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Board of Aldermen — 10/24/17 Page 6
CONFIRMATION OF THE PRESIDENT OF THE BOARD OF ALDERMEN APPOINTMENTS
Citizen Advisory Commission for Community Grants

MOTION BY ALDERMAN CARON TO CONFIRM BY VOICE THE APPOINTMENT OF THE FOLLOWING
INDIVIDUALS TO THE CITIZENS ADVISORY COMMISSION FOR COMMUNITY GRANTS: MICHAEL
JOSEPH, 184 MAIN STREET, NASHUA, FOR A TERM TO EXPIRE OCTOBER 1, 2018, AND JENNIFER
BISHOP-SAUCIER, 359B MAIN STREET, NASHUA, FOR A TERM TO EXPIRE OCTOBER 1, 2020
MOTION CARRIED

President McCarthy declared Michael Joseph and Jennifer Bishop-Saucier duly appointed to the Citizen
Advisory Commission for Community Grants for terms to expire October 1, 2018, and October 1, 2020,
respectively.

Oath of Office administered by Corporation Counsel to Jennifer Bishop-Saucier.

UNFINISHED BUSINESS — RESOLUTIONS

R-17-128
Endorsers: Alderwoman Mary Ann Melizzi-Golja
Alderman Richard A. Dowd
Alderman-at-Large Michael B. O’Brien, Sr.
AUTHORIZING THE MAYOR TO ENTER INTO THE COOPERATIVE AGREEMENT FOR
HOUSEHOLD HAZARDOUS WASTE COLLECTION WITHIN THE NASHUA, NEW HAMPSHIRE
REGION
Given it second reading;

MOTION BY ALDERWOMAN MELIZZI-GOLJA FOR FINAL PASSAGE OF R-17-128
MOTION CARRIED

Resolution R-17-128 declared duly adopted.

R-17-136
Endorser: Mayor Jim Donchess
AUTHORIZING THE CITY TO ENTER INTO A SHORT-TERM REAL PROPERTY LEASE
AGREEMENT FOR 44 BROAD STREET

Given it second reading;

MOTION BY ALDERMAN DOWD FOR FINAL PASSAGE OF R-17-136
MOTION CARRIED

Resolution R-17-136 declared duly adopted.

Alderman Moriarty

It’s just entertaining; | was reading the rent. | don’t know if you guys read what the company is paying for rent.
They are paying in trees. It’s a Christmas tree farm that’s renting space that used to be the old Dairy Queen.
The Dairy Queen is not there anymore. They need to sell the Christmas trees, and they are renting from the
city and the rental fee is trees.

Board of Aldermen — 10/24/17 Page 7

UNFINISHED BUSINESS — ORDINANCES

O-17-039
Endorser: Alderman David Schoneman
AMENDING THE ZONING MAP BY EXPANDING THE HISTORIC OVERLAY DISTRICT
BY ADDING GREELEY PARK

Given its second reading;

MOTION BY ALDERMAN SCHONEMAN TO AMEND O-17-039 IN ITS ENTIRETY BY REPLACING IT
WITH THE AMENDED COPY PROVIDED WITH THE AGENDA

ON THE QUESTION
Alderman Schoneman

Essentially what we are doing here is clarifying the role of the Historic District Commission. It is an advisory
role according to this. It just says that if something comes up that would involve a project that would come
under the normal scrutiny of the Historic District Commission, the Historic District Commission will be consulted
on the project. It is non-binding, just an advisory role. That’s the amendment.

MOTION CARRIED

MOTION BY ALDERMAN SCHONEMAN FOR FINAL PASSAGE OF O-17-039 AS AMENDED
ON THE QUESTION
Alderman Schoneman

The idea behind this is to take advantage of one of these volunteer boards that we have in the city, the Historic
District Commission. We appoint folks to this commission who have a perceived expertise in city history and a
sense of aesthetics, and a desire to preserve assets in the city for the revitalization of the city with time. The
idea here is to give them an advisory role, ask them their opinion, call on their expertise that we have already
appointed them based upon. | would encourage all of us to please support that. | think it is good for Nashua.
Thank you.

Alderman Wilshire
Roll call please.
Alderman Dowd

I’m not going to support this because the Historic District Commission normally looks at properties, buildings,
colors, architecture. | don’t ever envision us building any buildings in Greeley Park. We found when we try to
do one simple project in the park that it had to go through the Board of Aldermen and the scrutiny took forever.
| think the way it is set up now with the Board of Aldermen having that oversight is fine.

Alderman Caron

| will be voting no. | think this is not needed. We have so many boards and commissions overseeing Greeley
Park. If this is non-binding then | think if there was something coming up and they wanted an opinion that they
could just go to the Historic District Commission and ask for their opinion on something. The only buildings that
are there probably would come down anyway if Park-Rec ever leaves that facility. | will not be voting for this.
Thank you.

Board of Aldermen — 10/24/17 Page 8
Alderman Schoneman
| just wanted to address that the legal department took a look at the enabling legislation for the Historic District
Commission and understood what their purview was and applied that here. It just says that if any building permit
or demolition permit which would come within the scope of the review of the Historic District Commission for that
part of Greeley Park deemed applicable, they will ask them for an opinion. It won’t slow the process down.
They are given 30 days according to this resolution to come up with something. It is just asking somebody’s
opinion, folks who we have entrusted with the historical view of the city.
A roll call was taken which resulted as follows:
Yea: Ald. Clemons, Ald. Schoneman, Ald. Melizzi-Golja,

Ald. LeBrun, Ald. Moriarty, Ald. O’Brien, Ald. Lopez

Ald. McCarthy 8

Nay: Ald. Wilshire, Ald. Dowd, Ald. Caron, Ald. Siegel
Ald. McGuinness, 5

MOTION CARRIED

Ordinance O-17-039 declared duly adopted as amended.

O-17-041
Endorser: Mayor Jim Donchess
AMENDING THE COMPOSITION AND PURPOSE OF THE DOWNTOWN IMPROVEMENTS
COMMITTEE

Given its second reading;

MOTION BY ALDERMAN CLEMONS FOR FINAL PASSAGE OF O-17-041

ON THE QUESTION

Alderman Moriarty

This probably isn’t a problem, but | wonder if you could just remind me what this does.

President McCarthy

It adds two members to the Downtown Improvement Committee and two alternates.
Alderman Siegel

| believe it also defines where they come from, correct?

Alderman Clemons

A portion of it does. It says that they have to be from downtown, one of the appointments. They either have to
be a business owner or a resident.

MOTION CARRIED

Ordinance O-17-041 declared duly adopted.

Board of Aldermen — 10/24/17 Page 9

O-17-045
Endorsers: Mayor Jim Donchess
Alderman Ben Clemons
Alderman-at-Large Lori Wilshire
Alderwoman Mary Ann Melizzi-Golja
Alderman Tom Lopez
MOVING PARKING ENFORCEMENT TO THE OFFICE OF ECONOMIC DEVELOPMENT IN
THE MAYOR’S OFFICE
Given its second reading;

MOTION BY ALDERMAN CLEMONS FOR FINAL PASSAGE OF O-17-045
MOTION CARRIED

Ordinance O-17-045 declared duly adopted.

NEW BUSINESS — RESOLUTIONS

R-17-141
Endorsers: Alderman Richard A. Dowd
Alderman June M. Caron
Alderman Ben Clemons
Alderman Tom Lopez
Alderman-at-Large Michael B. O’Brien, Sr.
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Lori Wilshire
APPROVING THE COST ITEMS OF A COLLECTIVE BARGAINING AGREEMENT BETWEEN
THE NASHUA BOARD OF EDUCATION AND THE NASHUA TEACHERS’ UNION, LOCAL #1044
AFT, AFL-CIO, UNIT B PARA-EDUCATORS FROM JULY 1, 2017 THROUGH JUNE 30, 2020 AND
AUTHORIZING RELATED TRANSFERS
Given its first reading;

President McCarthy

| will be recusing myself as that is the bargaining unit that represents my wife.
R-17-141 assigned to the BUDGET REVIEW COMMITTEE by President McCarthy

R-17-142
Endorsers: Mayor Jim Donchess
Alderman-at-Large Michael B. O’Brien, Sr.
AUTHORIZING A ONE-TIME STIPEND TO BOARD OF PUBLIC WORKS RETIREMENT SYSTEM
RETIREES AS REQUESTED BY THE BOARD OF PUBLIC WORKS RETIREMENT SYSTEM
BOARD OF TRUSTEES
Given its first reading; assigned to the BUDGET REVIEW COMMITTEE by President McCarthy

R-17-143
Endorsers: Mayor Jim Donchess
Alderman-at-Large Lori Wilshire
Alderwoman Mary Ann Melizzi-Golja
Alderman Tom Lopez
Alderman Richard A. Dowd
APPROVING AN AMENDMENT TO THE LEASE AGREEMENT WITH THE NASHUA ASSOCIATION
FOR THE ELDERLY
Given its first reading; assigned to the FINANCE COMMITTEE by President McCarthy

The Nashua Airport Authority (the Authority) was established on August 27, 1961 by
legislative act as a separate legal entity. The Authority is located at Boire Field in Nashua,
New Hampshire and provides general airport operations as well as airplane tie-down
rentals. The Authority is governed by a five-member board, to be appointed by the Mayor
and confirmed by the Board of Aldermen. The Authority meets the criteria as a discretely
presented component unit as the City can appoint a voting majority of the Authority’s
governing board and can impose a financial burden as the City can guarantee the principal
and interest of any bonds issued by the Authority. Complete financial statements of Nashua
Airport Authority may be obtained from its Airport Manager at 93 Perimeter Road, Nashua,
New Hampshire 03063.

Government-Wide and Fund Financial Statements

Government-Wide Financial Statements

The government-wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the nonfiduciary activities of the
primary government. For the most part, the effect of interfund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support. Likewise, the primary government
is reported separately from certain legally separate component units for which the primary
government is financially accountable.

The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include
(1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and (2) grants
and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.

Fund Financial Statements

Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-Wide Financial Statements

The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary funds and
fiduciary funds (other than Custodial funds which have no measurement focus) financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met. As a

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general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements.

Amounts reported as program revenues include (1) charges to customers or applicants for
goods, services, or privileges provided, (2) operating grants and contributions, and
(3) capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.

Fund Financial Statements

Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized
as soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the City considers property tax and
intergovernmental revenues to be available if they are collected within 60 days of the end
of the current fiscal period. All other revenue items are considered to be measurable and
available only when cash is received by the City. Expenditures generally are recorded when
a liability is incurred, as under accrual accounting. However, certain expenditures such as
debt service, claims and judgment, compensated absences, OPEB, and pension are recorded
only when payment is due.

The City reports the following major governmental funds:

« The General Fund is the government’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be accounted for
in another fund.

e The Debt Service Fund is used to account for resources and debt service payments
associated with the bond issuance for the acquisition of Pennichuck Corporation.

The proprietary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under this method, revenues are
recognized when earned and expenses are recorded when liabilities are incurred.

Proprietary funds (which include both enterprise and internal service funds) distinguish
operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection
with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the enterprise fund are charges to customers for sales and services. Operating expenses
for enterprise funds include the cost of sales and services, administrative expenses and
depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.

The City reports the following major proprietary funds:

e The Wastewater Enterprise Fund that accounts for the resources and cost associated
with the City’s wastewater treatment.

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e¢ The Solid Waste Enterprise Fund that accounts for the resources and costs associated
with the City’s landfills.

The City’s self-insurance programs are reported as an internal service fund in the
accompanying financial statements.

The fiduciary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under this method, revenues are
recognized when earned and expenses are recorded when liabilities are incurred.

The City reports the following fiduciary funds:

e The Pension Trust Fund accounts for the activities of the Board of Public Works
Employees Contributory Retirement System, which accumulates resources for pension
benefit payments to qualified employees. No separate issue financial statement is
available.

e The Private-Purpose Trust Fund is used to account for trust arrangements, other than
those properly reported in the pension trust fund or permanent fund, under which
principal and investment income exclusively benefit individuals, private organizations,
or other governments.

© The Custodial Fund is used to account for fiduciary assets held by the City in a custodial
capacity as an agent on behalf of others and are not required to be reported elsewhere
on the financial statements. Custodial funds include taxes and fees collected on behalf
of other governments.

Cash and Investments

Cash balances from all funds, except those required to be segregated by law, are combined
to form a consolidation of cash. Cash balances are invested to the extent available, with the
exception of such cash necessary to maintain adequate liquidity, and interest earnings are
recognized in the general fund. Certain special revenue, proprietary, and fiduciary funds
segregate cash, and investment earnings become a part of those funds.

Deposits with financial institutions consist primarily of demand deposits, money-market
funds, and savings accounts. A cash and investment pool is maintained that is available for
use by all funds. Each fund’s portion of this pool is reflected on the combined financial
statements under the caption “cash and short-term investments”. The interest earnings
attributable to each fund type are included under investment income.

For purpose of the statement of cash flows, the proprietary funds consider investments with
original maturities of three months or less to be short-term investments.

Where applicable, fair values are based on quotations from national securities exchanges,
except for certain investments that are required to be presented using the net asset value
(NAV). The NAV per share is the amount of net assets attributable to each share of capital
stock outstanding at the close of the period. Investments measured at the NAV for fair value
are not subject to level classification.

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The City invests in the New Hampshire public Investment Pool (NHPDIP), an external
investment pool managed by the State Banking Commission. The portfolio meets the
requirements of GASB Statement No. 79, Certain Investment Pools and Pool Participants,
and investments are valued at amortized cost.

Investments are reported at fair value except for certificates of deposit which are reported
at cost.

Interfund Receivables and Payables

Transactions between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either “due from/to other funds”
(i.e., the current portion of interfund loans) or ‘advances to/from other funds” (i.e., the non-
current portion of interfund loans).

Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances”.

The government-wide Statement of Activities eliminates transfers as reported within the
segregated governmental and business-type activities columns. Only transfers between
these two columns appear in this statement.

Loans

The Economic Development Office administers loan programs that provides for working
capital and capital asset financing for start-up and existing businesses in the Nashua area. The
City records a receivable for the principal amount of the loan issued.

Inventories

Inventories are valued at cost using the first-in/first-out (FIFO) method, The costs of
governmental fund-type inventories are recorded as expenditures when purchased rather than
when consumed. No significant inventory balances were on hand in governmental funds.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets, are
reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Capital assets are defined by the government as
assets with an initial individual cost of more than $15,000 and an estimated useful life in
excess of two years. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at acquisition value at the
date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are
constructed.

Capital assets are depreciated using the straight-line method over the following estimated
useful lives:

Assets Years
Buildings 40
Building improvements 20 - 40
Infrastructure 7 - 60
Vehicles 3-8
Machinery and equipment 5 - 20
Computer equipment 3-5

Equity Interest in Pennichuck

The City’s equity interest in Pennichuck Corporation represents, through the acquisition of all
outstanding shares, the control of all of Pennichuck’s assets, liabilities and businesses,
including land comprising the watershed of the Pennichuck Brook and the three regulated
water utilities owned by Pennichuck. Taking into account all of the assumed liabilities of
the company and its businesses, the acquisition was valued at approximately $200 million.
Pennichuck remains an independent corporation with an independent Board of Directors
with the City of Nashua as its sole shareholder.

The City accounts for this asset in accordance with GASB Statement 90 — Majority Equity
Interests — an Amendment of GASB Statements No. 14 and No. 61. The equity interest
represents an asset to offset the related acquisition bonds in the governmental funds, and is
adjusted accordingly by the related debt service.

Compensated Absences

It is the City’s policy to permit employees to accumulate earned but unused vacation and
sick pay benefits. All vested sick and vacation pay is accrued when incurred in the
government-wide and proprietary fund financiai statements. A liability for these amounts
is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.

Long-Term Obligations

In the government-wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt, and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or proprietary
fund type Statement of Net Position.

Fund Equity
Fund equity at the governmental fund financial reporting level is classified as “fund
balance”. Fund equity for all other reporting is classified as “net position”.

Fund Balance
Generally, fund balance represents the difference between the current assets/deferred outflows
of resources and current liabilities/deferred inflows of resources. The City reserves those

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portions of fund balance that are legally segregated for a specific future use or which do
not represent available, spendable resources and therefore, are not available for
appropriation or expenditure. Unassigned fund balance indicates that portion of fund
balance that is available for appropriation in future periods. The General Fund is the only
fund that reports a positive unassigned fund balance.

When an expenditure is incurred that would qualify for payment from multiple fund
balance types, the City uses the following order to liquidate liabilities: restricted,
committed, assigned, and unassigned.

Net Position

Net position represents the difference between assets/deferred outflows of resources and
liabilities/deferred inflows of resources. Net position invested in capital assets, net of
related debt, consist of capital assets, net of accumulated depreciation, reduced by the
outstanding balances of any borrowing used for the acquisition, construction or
improvement of those assets. Net position is reported as restricted when there are
limitations imposed on their use either through the enabling legislation adopted by the City
or through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments. The remaining net position is reported as unrestricted.

Use of Estimates

The preparation of basic financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures for contingent assets and
liabilities at the date of the basic financial statements, and the reported amounts of the
revenues and expenditures/expenses during the fiscal year. Actual results could vary from
estimates that were used.

Stewardship, Compliance, and Accountability

Budgetary Information

The Mayor presents an operating and capital budget for the proposed expenditures of the
fiscal year commencing the following July 1. The budget, as enacted by the Board of
Aldermen, establishes the legal level of control and projects the particular revenues that will
fund certain appropriations. The original budget may be amended, by supplemental
appropriations or transfers, during the fiscal year at Board of Aldermen meetings as required
by changing conditions. The Financial Services Department may transfer appropriations
between operating categories within departmental budgets at the request of department
heads, but expenditures may not legally exceed budgeted appropriations in total.

Formal budgetary integration is employed as a management control device during the year
for the general fund and proprietary funds. Effective budgetary control is achieved for all
other funds through provisions of the New Hampshire statutes.

At year-end, appropriation balances lapse, except for multi-year grants, certain unexpended
capital items, and encumbrances which will be honored during the subsequent year.

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