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Finance Committee - 3/21/2018 Page 19

several years. But whenever you go through something like this, there will be information hearings,
discussions, abatements and so forth. And for you folks, we have an overlay account which is used to support
the payment of tax abatements. So the current overlay annual amount is $2 million dollars. If a tax payer was
awarded an abatement or had an abatement they would get it out of that account.

Mayor Donchess

But our balance is more than that.
John Griffin

And the balance is more so as the Mayor indicated there is a $2 million dollar amount in this tax year, there is a
$1.7 carryover from last year and there is another $1.5 million in the fund balance reserve. So those three
numbers added together is what we have right now.

Mayor Donchess

Which is $5 million dollars or so, so if we lose a case there is money to back it up. Just on the schedule that
you've pointed out, the people will be mailed their valuations in August and then they will be, anybody who
wants an informal hearing with KRT will be able to come in and have a hearing, basically a meeting to discuss
their valuation, those will occur during September. So anybody who wants to discuss their value can meet with
KRT and present whatever they would like and hear from KRT how KRT arrived at the value that they did
arrive at. And that covers of course residents with homes but also commercial properties as well.

There is a motion to approve the contract. Any discussion?
MOTION CARRIED

UNFINISHED BUSINESS — None

DISCUSSION

Alderman O’Brien

Thank you Mr. Mayor. | apologize for my tardiness | was tied up in Concord and everything. | totally support,
we are doing a lot of work on East Hollis Street with the sewer system and particular Temple Street area. And

that being a big thoroughfare there, emergency management, Police and Fire will be notified, can we get word
in the paper and everything that work is going to be done because that’s a big traffic issue | anticipate.

Mayor Donchess

You are referring to which item?

Alderman O’Brien

This is the first item, the emergency request for TDD Earth.
Mayor Donchess

Yes we can make sure people are notified.

Alderman O’Brien

Thank you Mr. Mayor.

Finance Committee - 3/21/2018 Page 20

Mayor Donchess

Because the street is going to be closed to complete the construction. Any other items for discussion. If not
we will go to record of expenditures.

RECORD OF EXPENDITURES

MOTION BY ALDERMAN O’BRIEN THAT THE FINANCE COMMITTEE HAS COMPLIED WITH THE CITY
CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURES FOR THE PERIODS
FROM FEBRUARY 16, 2018 TO MARCH 1, 2018 AND FROM MARCH 2, 2018 TO MARCH 15, 2018
MOTION CARRIED

PUBLIC COMMENT None

POSSIBLE NON-PUBLIC SESSION - None

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN TO ADJOURN
MOTION CARRIED

The Finance Committee meeting was adjourned at 8:24 p.m.

Alderwoman-at-Large Shoshanna Kelly
Committee Clerk

Potential Impacts
from the
2018 Full Statistical Revaluation

Assessed Value
(in billions)

Current Preliminary Future
Assessed Value Assessed Value
Tax Year 2017 Tax Year 2018
$6.6
$5.3
$3.2 93.4

Residential C&I Residential C&I
ER =.80 ER = .93 ER = 1.00 ER = 1.00

3/23/2018 Page 2

Property Taxes

(in millions)

Assumed Property Assumed Property
Taxes - $200 Million Taxes - $200 Million
Tax Year 2017 Tax Year 2018

$132
$124.8

$75.2
$68

Residential C&I Residential C&I

Review of
Capital Equipment Reserve Fund
(CERF}
3/21/18

Savings Account
CERF Reorganized in FY 2010 & FY 2015
Fully fund capital equipment (vehicles)

Majority purchased with Cash & Bonds

— Limited purchases through grants & trust funds

Phase 1 — included all DPW, Fire, & Police
2010
— 245 line items (DPW 121, Police 77, Fire 47)

Phase 2 — included School & General City
Departments (Cemeteries, Purchasing, IT,
Building Maintenance., Communications, Library
and Community Services)

2013

— 60 line items (School 41, Admin/Engineering 5,
Other General City Departments 14)

CERF Overview

Ten year look at needs and budget

Reviewed annually with each division in
detail

Dollars are not meant to be exact
_- Some purchases are over, some are under

The CERF schedule is a living document

It is used as an estimator to aid in
determining budget needs and
replacements with inflation factor

AS value does not mean spend that
amount exactly...desire is to spend less

City of Nashua

Capital Equipment Reserve Fund
“CERF” Balance Analysis

Description

Available Balance
FY2018 Budgeted Expenditures - Deferred

Projected FY2018 Ending Fund Balance

Proposed FY2019 Appropriation
Proposed FY2019 Expenditures
Proposed Funding for Revaluation Project - 2018

Projected FY19 Ending Fund Balance

Amount

$ 2,998,497

(1,280,766)

§ 1,717,731

$ 1,000,000

(2,053,070)

(500,000)

S$ 164,661

Deferred CERF Items from FY2018
Approved Budget

Current

Purchase Replacement Funded by
Dept ID# Current Equipment Purpose Year/Make/Model Year Life Cost Cash
Police MP64637 1FDAF57P83ED00858 2003 FORD/BEARCAT 2003 15 303,940 303,940
Fire T25 Fire Alarm International 7400 Bucket Truck, Red 2003 15 159,875 159,875
Solid Waste 41 Packer Refuse Trucks 2012 Freightliner M2112V CNG 2012 7 299,166 299,166
Street 48 Sterling Vacuum Sweeper 2007 Sterling SC8000 2007 10 264,600 264,600
Street 33 6 WhI Dump W/Plow & Wing 2007 Chevrolet C5500 2007 10 181,333 181,333
Street 157 = 2WD Pick Up 2001 Chevy C1500 2WD 2001 10 38,500 38,500
School N/A — Technology Ford Freestar MiniVan 2006 10 33,352 33,352

$1,280,766 $1,280,766

Fiscal Year 2019

Planned CERF Replacement Schedule

Purchase Current
Dept Current Equipment Purpose Year/Make/Model Year Life Replacement Cost Funded by Cash Funded by Bond
Fire Engine 6 Pierce Arrow XT, Pumper, Red 2008 12 655,988 - 655,988
S$ 655,988 - S$ 655,988
Police Uniform K-9 2014 Ford/Explorer 2014 5 35,000 35,000 -
Police School 2007 Chevy/Impala 2007 12 33,168 33,168 -
Police Uniform Patrol 2010 Ford/Crown Victoria 2010 9 46,978 46,978 -
Police Uniform Patrol 2010 Ford/Crown Victoria 2010 9 46,978 46,978 -
$ 162,123 $162,123 -
ParkRec 3/4 Ton 2008 Ford F350 3/4 Ton Pickup 2008 10 46,903 46,903
ParkRec Dump truck w/ Plow Wing & Sander 2009 International 7400 Dump Truck 2009 10 190,400 190,400
ParkRec 3/4 Ton 4x4 PU w/ Plow 2012 Ford F350 PU w/plow CNG 2013 7 65,071 65,071
Solid Waste Excavator 2008 John Deere 270DLC 2007 10 321,315 321,315
Solid Waste JCB Loader 2011 JCB 527-55 2011 7 99,697 99,697
Solid Waste Front Load Packer Refuse Truck 2012 Mack MRU633 CNG 2012 7 326,369 - 326,369
Solid Waste Semi-Automated Refuse Trucks 2013 Mack LEU633 CNG 2012 7 366,258 - 366,258
Streets Sidewalk tractor 2010 Maclean MV1121 2010 5 130,734 130,734
Streets Ford F250 w/plow 2011 Ford F350 w/plow 2011 7 42,940 42,940
Streets 6 WhI Dump W/Plow & Wing 2006 International 7400 2005 10 190,400 190,400
Streets 6 WhI Dump W/Plow & Wing 2006 International 7400 2005 10 198,085 198,085
Streets 6 WhI Dump W/Plow & Wing 2006 International 7400 SFA 2006 10 198,085 198,085
Streets 6 WhI Dump W/Plow & Wing 2009 International 7400 SFA 2009 10 198,085 198,085
Traffic Bucket Truck 2009 Chevy C4500 Bucket Truck 2009 10 174,212 174,212
$ 2,548,555 $ 1,855,927 S$ 692,628
School Plumber Ford Cargo Van 2008 10 35,020 35,020
$35,020 $35,020

Total Costs

$ 3,401,686

$ 2,053,070 $ 1,348,616