b"City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2019 Discount RateFor 2019, the total OPEB liability was calculated using the discount rate of 4.66 percent.For 2018, the total OPEB liability was calculated using the discount rate of 3.24 percent.The projection of cash flowsusedtodeterminethediscountrateassumedthecontributionfromemployersandfrommembers would be computed based on contribution requirements as stipulated by State statute.Projected inflows from investment earnings were calculated using the longer-term assumed investment rate of return of 8 percent.Based on those assumptions, OP&Fs fiduciary net position was projected to not be able to make all future benefit payments of current plan members; therefore, a municipal bond rate of 4.13 percent at December 31, 2018, and 3.16 percent at December 31, 2017, was blended with the long-term rate of 8 percent, which resulted in a blended discount rate of 4.66 percent for 2018 and 3.24 percent for 2017.The municipal bond rate was determined using the Bond Buyers General Obligation 20-year Municipal Bond Index Rate.The OPEB plans fiduciary net position was projected to be available to make all projected OPEB payments until 2031.Thelong-termexpectedrateofreturnonhealthcareinvestmentswasappliedtoprojectedcosts through 2031, 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 4.66 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 (3.66 percent), or one percentage point higher (5.66 percent) than the current rate. Current1% Decrease Discount Rate 1% Increase(3.66%) (4.66%) (5.66%)City's proportionate share of the net OPEB liability $1,551,164 $1,273,248 $1,039,962 Sensitivity of the Citys Proportionate Share of the Net OPEB Liability to Changes in the Health Care Cost Trend Rate The total OPEB liability is based on a medical benefit that is a flat dollar amount; therefore, it is unaffected by a health care cost trend rate. An increase or decrease in the trend rate would have no effect on the total OPEB liability. Note 17Other Employee BenefitsCompensated AbsencesVacation and sick leave benefits are derived from negotiated agreements and State laws.Employees earn five to thirty days of vacation per year, depending upon length of service and bargaining unit agreement or City policy.Vacation accumulation is limited to the amount earned in one year.All accumulated unused vacation time is paid upon termination of employment.Outstanding unused vacation is reflected as vacation benefits payable on the statement of net position.Employees earn sick leave at different rates depending upon type of employment.Sick leave accrual is continuous, without limit. Upon retirement or death, an employee can be paid a maximum of 960 hours of accumulated, unused sick leave, except fire department employees and administration hired after January 1, 2015, who can receive a maximum of 1,542 hours and 720 hours, respectively.- 74 74 -"