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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023
28
Note 10—Other postemployment benefits, healthcare (continued)
OPEB
Liability
Balances at June 30, 2022
4,061,448
$
Changes for the year:
Service cost
173,862
Interest
90,710
Differences between expected and
132,390
actual experience
Contributions – employer
-
Contributions – employee
-
Change in assumptions
(710,016)
Benefit payments, including refunds of
(71,935)
employee contributions
Net changes
(384,989)
Balances at June 30, 2023
3,676,459
$
Discount Rate – Since the Plan is pay-as-you-go and is not funded, the discount rate will be based on a 20-year,
tax-exempt general obligation municipal bond index. This Plan uses the Bond Buyer GO 20-Bond Municipal Bond
Index to satisfy the requirements of U.S. GAAP. As this index is issued weekly, the value closest to but not after
the reporting date is used in determining the appropriate rate. Based on this practice, the municipal bond rate at
June 30, 2023 was 3.54%.
The Plan does not have a trust established for the payment of OPEB benefits.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate – The following presents the total OPEB
liability of the Commission, as well as what the Commission’s total OPEB liability would be if it were calculated
using a discount rate that is one percentage point lower (2.54%) or one percentage point higher (4.54%) than the
current discount rate:
1%
Current
1%
Decrease
Discount Rate
Increase
2.54%
3.54%
4.54%
OPEB liability
4,290,504
$
3,676,459
$
3,182,805
$
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