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CITY OF ARDEN HILLS <br />Notes to Required Supplementary Information <br />December 31, 2023 <br />NOTE 1— LEGAL COMPLIANCE — BUDGETS <br />The General Fund budget is legally adopted on a basis consistent with accounting principles generally <br />accepted in the United States of America. The legal level of budgetary control is at the fund level. <br />Budgeted appropriations lapse at year-end. <br />10111004M911;7:W"We111;7�a11u19111]'/11xy;71UY1;7Old 104,21d wm <br />2023 CHANGES IN ACTUARIAL ASSUMPTIONS <br />• The investment return assumption and single discount rate were changed from 6.50 percent to <br />7.00 percent. <br />2023 CHANGES IN PLAN PROVISIONS <br />• An additional one-time direct state aid contribution of $170.1 million will be contributed to <br />the Plan on October 1, 2023. <br />• The vesting period of those hired after June 30, 2010, was changed from five years of <br />allowable service to three years of allowable service. <br />• The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. <br />• A one-time, noncompounding benefit increase of 2.50 percent minus the actual <br />2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. <br />2022 CHANGES IN ACTUARIAL ASSUMPTIONS <br />• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. <br />2021 CHANGES IN ACTUARIAL ASSUMPTIONS <br />• The investment return and single discount rates were changed from 7.50 percent to <br />6.50 percent, for financial reporting purposes. <br />• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. <br />WO <br />