City of Oakwood, Ohio

Notes to the Basic Financial Statements

For The Fiscal Year Ended December 31, 2024

Note 10 – Long-Term Obligations

Long-term Obligations

The following is a summary of long-term liability activity for the year ended December 31, 2024:

Restated
Beginning
Balance

Additions

Deletions
Ending
Balance
Due Within
One Year
Governmental Activities
Net Pension Liability 18,328,523 0 (349,516) 17,979,007 0
Net OPEB Liability 996,359 0 (125,187) 871,172 0
Compensated Absences 2,768,786 167,564 0 2,936,350 2,934,161
Total Governmental Activities Long-Term Liabilites $22,093,668 $167,564 ($474,703) $21,786,529 $2,934,161

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Restated
Beginning
Balance

Additions

Deletions
Ending
Balance
Due Within
One Year
Business-Type Activities
Net Pension Liability 1,420,724 0 (99,079) 1,321,645 0
Net OPEB Liability 29,788 0 (29,788) 0 0
Compensated Absences 265,983 17,673 * 0 283,656 283,656
Total Governmental Activities Long-Term Liabilites $1,716,495 $17,673 ($128,867) $1,605,301 $283,656

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* The increase in compensated absences is a net amount.

Compensated absences will be paid from the fund in which the employee who has earned the leave is paid.

There is no repayment schedule for the net pension and OPEB liabilities; however, employer contributions are made from the fund benefiting from related employees’ services.

Note 11 – Risk Management

The City is exposed to various risks of losses related to torts; thefts of, damage to, and destruction of assets, errors and omissions, and natural disasters. The City secures general liability, property and automobile coverage through the Ohio Plan Risk Management, Inc. (OPRM). OPRM coverage programs are developed specific to each member’s risk management needs and the related premiums for coverage are determined through the application of uniform underwriting criteria addressing the member’s exposure to loss. Effective November 1, 2012, the OPRM increased its retention to 50% of the first $250,000 casualty treaty. Effective November 1, 2014, the OPRM’s retention decreased to 47% of the first $250,000 casualty treaty. Effective November 1, 2016, the OPRM’s casualty retention increased to 50% of the first $250,000 casualty treaty.

Also, effective November 1, 2016, the Plan’s property retention increased to 30% of the first $1,000,000 property treaty. Corresponding with the property retention increase, the OPRM also elected to purchase a complementary excess layer within the property quota share treaty. The complementary excess will respond by reimbursing the OPRM 30% of the loss value that exceeds $200,000. Effective November 1, 2017 the OPRM’s retention decreased to 47% of the first $250,000 casualty treaty. Effective November 1, 2018 the OPRM’s retention increased to 100% of the first $250,000 casualty treaty. The Plan’s property

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