b"City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 The allocation of investment assets with the Health Care portfolio is approved by the Board of Trustees as outlined in the annual investment plan.Assets are managed on a total return basis with a long-term objective of continuing to offer a sustainable health care program for current and future retirees.OPERS primary goal is to achieve and maintain a fully funded status for the benefits provided through the defined benefit pension plans.Healthcareisadiscretionarybenefit.ThefollowingtabledisplaystheBoard-approvedasset allocation policy for 2017 and the long-term expected real rates of return:Weighted AverageLong-Term ExpectedTarget Real Rate of ReturnAsset Class Allocation (Arithmetic)Fixed Income 34.00 % 1.88 %Domestic Equities 21.00 6.37Real Estate Investment Trust 6.00 5.91International Equities 22.00 7.88Other Investments 17.00 5.39Total 100.00 % 4.98 % Discount RateA single discount rate of 3.85 percent was used to measure the OPEB liability on the measurement date of December 31, 2017.A single discount rate of 4.23 percent was used to measure the OPEB liability on the measurement date of December 31, 2016.Projected benefit payments are required to be discounted to their actuarial present value using a single discount rate that reflects (1) a long-term expected rate of return on OPEB plan investments (to the extent that the health care fiduciary net position is projected to be sufficient to pay benefits), and (2) tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating as of the measurement date (to the extent that the contributions for use with the long-term expected rate are not met).This single discount rate was based on an expected rate of return on the health care investment portfolio of 6.50 percent and a municipal bond rate of 3.31 percent.The projection of cash flows used to determine this single discount rateassumedthatemployercontributionswillbemadeatratesequaltotheactuariallydetermined contributionrate.Basedontheseassumptions,thehealthcarefiduciarynetpositionandfuture contributionsweresufficienttofinancehealthcarecoststhrough2034.Asaresult,thelong-term expected rate of return on health care investments was applied to projected costs through the year 2034, and the municipal bond rate was applied to all health care costs after that date.Sensitivity of the Citys Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate The following table presents the Citys proportionate share of the net OPEB liability calculated using the single discount rate of 3.85 percent, as well as what the Citys proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.85 percent) or one percentage point higher (4.85 percent) than the current rate: Current1% Decrease Discount Rate 1% Increase(2.85%) (3.85%) (4.85%)City's proportionate share of the net OPEB liability $7,203,401 $5,422,030 $3,980,919- 71 72 -"