b"City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 to make all future benefit payments of current plan members; therefore, a municipal bond rate of 3.16 percent at December 31, 2017, and 3.71 percent at December 31, 2016, was blended with the long-term rate of 8 percent, which resulted in a blended discount rate of 3.24 percent.The municipal bond rate was determined using the S&P Municipal Bond 20 Year High Grade Rate Index.The OPEB plans fiduciary net position was projected to be available to make all projected OPEB payments until 2025.The long-term expected rate of return on health care investments was applied to projected costs through 2025, and the municipal bond rate was applied to all health care costs after that date.Sensitivity of the City's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate Net OPEB liability is sensitive to changes in the discount rate, and to illustrate the potential impact the following table presents the Citys proportionate share of the net OPEB liability calculated using the discount rate of 3.24 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 (2.24 percent), or one percentage point higher (4.24 percent) than the current rate: Current1% Decrease Discount Rate 1% Increase(2.24%) (3.24%) (4.24%)City's proportionate share of the net OPEB liability $9,849,343 $7,879,398 $6,363,598 Sensitivity of the Citys Proportionate Share of the Net OPEB Liability to Changes in the Health Care Cost Trend RateNet OPEB liability is sensitive to changes in the health care cost trend rate.The trend rate is the annual rate at which the cost of covered medical services is assumed to increase from the current year to the next year.Beginning in 2017, the per-capita costs are assumed to change by the following percentages each year:MedicareYear Non-Medicare Non-AARP AARP Rx Drug Part B2017 -0.47% -2.50% 4.50% -0.47% 5.20%2018 7.00% 7.00% 4.50% 7.00% 5.10%2019 6.50% 6.50% 4.50% 6.50% 5.00%2020 6.00% 6.00% 4.50% 6.00% 5.00%2021 5.50% 5.50% 4.50% 5.50% 5.00%2022 5.00% 5.00% 4.50% 5.00% 5.00%2023 and Later 4.50% 4.50% 4.50% 4.50% 5.00% To illustrate the potential impact, the following table presents the Citys proportionate share of the net OPEB liability calculated using the current health care cost trend current rates as outlined in the previous table, a one percent decrease in the trend rates, and a one percent increase in the trend rates:Current1% Decrease Rates 1% IncreaseCity's proportionate share of the net OPEB liability $6,120,858 $7,879,398 $10,249,315 - 74 75 -"