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10.

11.

12.

Depreciation expense was charged to functions of the City as follows (in thousands):

Governmental Activities

General government $ 796
Police §45
Fire 1,038
Education 7,927
Public works 6,695
Heath and human services 16
Culture and recreation 892
Community development 1,650
Communications 850
Hydroekctric 226
Total governmental activities $ 20,635

Business-Type Activities

Wastewater $ 6,462
Solid Waste 2,267
Total business-type activities $ 8,729

Deferred Outflows of Resources

Deferred outflows of resources represent the consumption of net position by the City that
is applicable to future reporting periods. Deferred outflows of resources have a positive
effect on net position, similar to assets. Deferred outflows of resources related to pensions
and OPEB, in accordance with GASB Statements No. 68 and 75, are more fully discussed
in the corresponding pension and OPEB notes.

Accounts Payable

Accounts payable represent 2021 expenditures paid after June 30, 2021.

Salaries Payable

Salaries payable represent 2021 expenditures paid after June 30, 2021.

Accrued Liabilities

Accrued liabilities represent 2021 expenditures for debt service interest and health
insurance claims paid after June 30, 2021.

13.

14,

Notes Payable

The City participates in the New Hampshire Department of Environmental Services state
revolving fund loan program for clean water and drinking water projects. The notes will be
permanently funded upon completion of the projects. The following are changes in notes
payable for the year ended June 30, 2021:

Interest Date of Begmnnng Endmg
Rate — Issue Balance Additions Reductions Balance

State Revolving Loan
Pump Stations Upgrade Project 1.0% O2/10/15 $ 3,693,664 $ 1,055,986 § - $ 4749.650
Water Booster Station Upgrade Project 2.0% O6/07/17 759,000 - (759,000) .
Primary Tanks Upgrade Progect 2.0% 06/07/17 3,388,236 511,764 - 3,900,000
CMOM Impkmentation Project - Phase | 2.7% 40/04/18 1,836,099 705,731 - 2,541,830

Total $_ 9676,999 § e381 $ (759.000) $11,191,480

Capital Lease Obligations

The City has a six-year capital lease to acquire $537,962 of School Department photocopier
equipment and a twenty-year capital lease to acquire $6,671,814 of School Department
energy saving equipment using noncancellable lease financing. Most City leases contain
provisions whereby the lease is canceled if funds to meet obligations under the lease are
not appropriated. The contractual language making such lease contracts void if funds to
meet the City obligations are not appropriated are generally more legal in form than
substance. In most situations, the lease is renewed through the appropriation to the lessee
agency of its annual operating budget. Additionally, the appropriations required to fund the
lease obligations are made under the going concern theory. Thus, cancellation of a lease
due to non-appropriation of funds must be considered a remote contingency. A lease shall
be considered non-cancellable for purposes of the lease definition regardless of the
possibility of the occurrence of some remote contingency. For financial reporting purposes,
the lease is reported in the government-wide financial statements. Future minimum lease
payments on the lease consisted of the following as of June 30, 2021:

Present Value

of Minimum Total

Lease Interest Lease
Fiscal Year Payments Payments Payments
2022 $ =.338,716 §$ 212,932 $ 551,648
2023 252,234 202,459 454,693
2024 260,179 194,514 454,693
2025 268,375 186,318 454,693
2026 276,828 177,865 454,693
2027 - 2031 1,520,568 752,897 2,273,465
2032 - 2036 1,775,628 497,837 2,273,465
2037 - 2041 2,073,471 199,993 2,273,464
Total $ 6,765,999 $ 2.424815 $ 9,190,814

65

15.

Long-Term Debt

General Obligation Bonds (Public Offerings) and State Revolving Loans (Direct
Borrowing)

The City issues general obligation bonds and state revolving loans to provide funds for the
acquisition and construction of major capital facilities. The City has outstanding general
obligation bonds from public offerings totaling $260,827,500 related to governmental
activities. The City has general obligation bonds from public offerings and state revolving
loans related to business-type activities totaling $25,777,500 and $33,533,309,
respectively. General obligation bonds and state revolving loans currently outstanding are
as follows:

Amount
Serial Outstanding
Maturities Interest as of

Governmental Activities Through Rate % 6/30/21

Refunding for Refunded School Construction Series A 7/15/2021 0.85% $ 1,840,000
Refunding for Refunded Holman Stadium Series A 7/15/2021] 0.85% 330,000
Elm Street Middle School Fire Alarm 10/15/2021 2.06% 45,000
Elm Street Middle Schoo! Capital Equipment 10/15/2021 2.06% 35,000
Citywide Communication System Upgrade 4/1/2023 2.43% 280.000
Refunding for Refunded High School Construction 3/15/2024 2.04% 6,710,000
Nashua School Access Control System $/1/2024 2.96% 1,305,000
Public Safety Portable Radios 5/1/2024 2.96% $05,000
Radio Communications Lpgrade T/1S/2024 2.53% 5,170,000
Refunding for Senior Center 7/15/2025 1.74% 569.000
Refunding for Riverwalk 7/15/2025 1.74% 260,000
Refunding for Police Remodeling 2 7/15/2025 1.74% 134,000
Refunding for Police Remodeling | 7/15/2025 1.74% 69,000
Refunding for Fire Station 7/15/2026 1.74% 1,020,000
Refunding for Land Acquisition and Redevelopment 7/15/2026 1.74% 543,000
Refunding for Land Acquisition 7/15/2026 1.74% 110,000
Fire Pumper Truck 4/1/2028 2.43% 190,000
Refunding for Broad Street Parkway Construction 8/1/2030 0.79% 931,000
Refunding for High Street Garage Renovation 8/1/2030 0.78% 296,500
Refunding for Elm Street Garage Renovation 8/1/2030 0.80% 216,500
Fire Pumper Truck 10/1/2030 2.23% 325,000
Ledge Street School HVAC System Replacement 10/15/2031 3.04% 2.310,000
Broad Street Parkway Construction 10/15/2031 3.04% 1,375,000
Fairgrounds School HVAC System Replacement 10/15/2031 3.04% 830,000
Hunt Memorial Building Renovation 10/15/2031 3.04% $50,000
Nashua City Hall Renovation 10/15/2031 3.04% 275,000
Elm Street Middle School Roof Replacement 10/15/2031 3.04% 220.000
Telecom System 3/15/2032 2.37% 1,675,000
Charlotte Avenue School HVAC System Replacement 4/1/2033 2.43% 1,500,000
Broad Street Parkway Construction 4/1/2033 2.79% 1,250,000
Fire Ladder Truck 4/1/2033 2.43% 605,000
City Buildings Renovation 4/1/2033 2.43% 350,000
Multi-Year Road Paving Project 9/15/2033 2.89% 5,983,000
Broad Street Parkway Construction 5/1/2034 2.96% 14,955,000
Broad Street School Improvements 1/15/2034 2.53% 6.835.000
Broad Street Parkway Construction 7/15/2034 2.53% 6,110,000

(continued)

66

(continued)

Govermmmental Activities

Aerial Tower Truck

Nashua Enterprise Resource Planning (ERP} System
Multi-Year Road Paving Project

Fire Pumper Truck

Multi-Year Road Paving Project

Sunset Heights School Renovations

Burke Street Property

Multi-Schools Roof Replacement

Anherst Street/Charon Avenue

Mine Falls Dam

Broad Street Parkway

LED Street Lights

Spit Brook Road Fire Station Improvements
Mine Falls Dam (Di Minimus)

Amherst Street/Charon Avenue

Burke Street Property

School Roofing

Police HVAC & Window Improvements
School Improvements

Public Health Building

City Buildings (Public Health)
Hydroelectne Dam

Fairgrounds Middle School

Performing Arts Center (General Fund Supponed)
Performing Ans Center (TIF Supported)
Pennichuck Corporation Acquisition Bonds

Total Governmental Activities

67

Senal
Maturities
Through

7/15/2034
7/15/2034
1/1/2034
1i/ 1/2034
8/1/2035

10/1/2035
10/1/2035
10/1/2035
10/1/2035
3/15/2037
3/15/2037
3/15/2037
3/15/2037
3/15/2037
3/15/2037
9/15/2038
9/15/2038
11/1/2039
EI/1/2039
8/1/2040

8/1/2040

1/15/2041
8/1/2045

1/15/2046
1/15/2046
1/15/2042

Interest
Rate %

2.53%
2.53%
1.94%
1.92%
1,32%
2.23%
2.23%
2.23%
2.23%
3.42%
2.72%
2.72%
2.73%
2.73%
2.68%
3.16%
3.15%
2.45%
2.18%
162%
1.62%
1.65%
1.93%
1.91%
1.91%
4.09%

Amount
Outstanding
as of
6/30/21

950,000
420,000
6,170,000
615,000
6,569,500
8,830,000
2,265,000
1,080,000
380,000
3,090,000
1,645,000
1,645,000
1,365,000
400,000
370,000
1,440,000
1,012,000
1,540,000
360,000
1,300,000
614,000
6,085,000
6,400,000
15,396,667
5,463,333
119,745,000

5 __ 260,827,500

(continued}

(continued)

Amount
Serial Outstanding
Maturities Interest as of
Business-Type Activities Through Rate % 6/30/21
Solid Waste Disposal Fund:
Multisite Landfill - Roussel/Gardner 8/1/2022 1.53% $ 149,814
Mulltisite Land fill - Old Nashua 8/1/2022 1.53% 46,486
Multisite Landfill - Shady Lane 8/1/2022 1.53% 22,733
Mulltisite Land fill - Atherton Park 8/1/2022 1.53% 8,847
Vehicles 9/15/2023 2.19% 1,112,000
Lined Landfili Expansion II 4/15/2024 2.89% 1,275,000
Landfill Compactor 7/15/2024 1.65% 265,000
Landfill Closure 8/1/2024 1.87% 1,497,394
Mulltisite - Lincoln Park 8/1/2024 1.87% 310,404
Mulusite - Engineenng 8/1/2024 1.87% 206,701
Refuse Trucks 11/1/2024 1.43% $20,000
Refuse Trucks 8/1/2025 0.40% 452,500
Landfill Phase 3 11/1/2029 1.52% 4,505,000
Land fill Expansion 3/15/2037 2.71% 395,000
Gas System 3/15/2037 2.70% 235,000
Soil Wall 3/15/2037 2.73% 160,000
Soil Wall 9/15/2037 3.00% 115,000
Gas System 9/15/2038 3.16% 360,000
Land fill Improvements 11/1/2039 2.22% 570,000
Gas System Expansion 8/1/2040 158% 470,000
Barrier W all 8/1/2040 161% ___ 425,000
Total Solid Waste Fund 13,10%,879
Amount
Serial Outstanding
Maturities Interest as of
Business-Type Activities Through Rate % 6/30/21
Waste Water Treatment Fund
Net Metenng Project 8/1/2021 1.36% 24,817
Wet Weather SRF Loan 8/1/2029 2.58% 13,313,128
Haines Street Sewer Project 8/1/2030 2.62% 331,532
Nashua Storage Tank Facihty 4/1/2033 2.63% 3,090,023
Aeration Blower Upgrade 4/1/2033 2.63% 2,230,279
Dewatering Equipment Replacement 4/1/2033 2.63% 1,714,698
Dewatering Equipment Replacement 5/1/2034 3.04% 1,430,000
Harbor Avenue SRF Loan 8/1/2034 2.86% 3,220,053
Water Pollution Controt 8/1/2035 2.55% 10,521,478
Headworks Upgrade 8/1/2038 2.54% 3,188,000
Sewer Rehabilitation 9/15/2038 3.04% 2,118,000
Sewer Infrastructure Improvements 11/1/2039 2.21% 4,335,000
Water Booster Station Upgrades 1/1/2040 1.99% 691,822
Total Wastewater Fund 46,208,830
Total Enterpnse Fund Bonds and Notes Payable $ 59,310,709

68

Future Debt Service
The annual payments to retire all general obligation bonds and state revolving loans
outstanding as of June 30, 2021 are as follows:

General Obligation Bonds (Public Offerings)

City and Schgol Principal Interest Total
2022 $ 13.430.500 $ 4.941247 $ = 18,371,747
2023 12,375,000 4,272,029 16,647,029
2024 12,300,000 3.725,553 16,025,553
2025 9,480.000 3.187.633 12,667,633
2026 8,200.000 2,839,707 11,039,707
2027 - 2031 38,965.000 9,704,468 48,669,468
2032 - 2036 30,145,000 3,737,495 33,882,495
2037 - 2041 9,532.000 1,268,054 10,800.054
2042 - 2046 6.655.000 427,952 7,082.952

City and School Total $ 141,082,500, $34,104,138 $ 175,186,638

General Obligation Bonds (Public Offerings)

Pennichuck Principal Interest Total
2022 $ 3,795,000 $$ 4,970,430 $ 8,765,430
2023 3,910,000 4,854,797 8,764,797
2024 4,035,000 4,729,794 8,764,794
2025 4,170,000 4,594,742 8,764,742
2026 4,315,000 4,448,084 8,763,084

2027 - 2031 24,255,000 19,564.431 43,819,431

2032 - 2036 29,865,000 13.957,126 43,822.126

2037 - 2041 37,000,000 6,834,218 43,834.218
2042 8,400,000 367.586 8,767,586

Pennichuck Total $ 119,745,000 $ 64.321.208 $ 184,066.208

General Obligation Bonds (Public Offerings)

Total Governmental Principal Interest Total

2022 $ 17,225.500 $$ 9.911.677 $ = 27,137,177

2023 16,285.000 9.126.826 25.411.826

2024 16,335,000 8.455,347 24,790,347

2025 13,650,000 7,782,375 21,432,375

2026 12,515,000 7,287,791 19,802,791

2027 - 2031 63,220,000 29.268.899 92.488,899
2032 - 2036 60,010,000 17,694,621 77,704,621
2037 - 2041 46,532,000 8.102272 §4,634.272
2042 - 2046 15.055,000 795.538 15.850.538
Combined Total $ 260,827,500 $$ 98.425.346 $ 359,252,846

69

General Obligation Bonds (Public Offerings)

Business-Type Principal Interest Total
2022 $ 2,804.500 § 1,030,352 § 3,834,852
2023 2,790,000 884,942 3,674,942
2024 2,790.000 753.466 3,543,466
2025 1,990.000 636.611 2,626,611
2026 1,795,000 551,362 2,346,362
2027 - 2031 7,980,000 1,633,631 9.613.631
2032 - 2036 3,955.000 479,972 4,434,972
2037 - 2040 1,673,000 85,981 1,758,981
Total $ 25,777,500 $ 6,056,317 $ —31,833.817

State Revolving Loans (Direct Borrowing)

Business-Type Principal Interest Total
2022 $ 3,293.610 §$ 816.443 $ 4,110,053
2023 3,269.407 738.486 4,007,893
2024 3,156,079 660.852 3,816,931
2025 3,156.712 584.949 3,741,661
2026 2,653,728 509,034 3,162,762
2027 - 2031 11,799,506 1,547,247 13,346,753
2032 + 2036 5,504,901 464,797 5,969,698
2037 - 2040 699,266 35,604 734,870
Total § 33,533,209 $ §,357,412 $ —_38,890.621

70

Bond Authorizations
Long-term debt authorizations which have not been issued or rescinded as of June 30, 2021
are as follows:

Purpose Amount
Design and Construction of New Middle Schoo] and Renovation of Two
Existing Middle Schools $ 111,600,000
Refunding of Prior Year Capital Improvement Bonds 18,556,000
Multi-year Paving Project 17.402.500
Pump Stations Upgrade Project 11.000.000
Sewer Infrastructure Program 10.995.000
Broad Street Parkway Project 6.629.100
Public Works Office Facility 6,000,000
Wastewater Collection System (Capacity, Management, Operation, and
Maintenance Plan) 5.200.000
Wastewater Treatment Plan Primary Tank Upgrades 3.900.000
Four Hills Landfill Improvements and Two Refuse Trucks 2.847.500
Constniction of Ground Level Parking Garage 2.500.000
Police Building Renovations 1.763.000
Pumper Fire Trucks 1,500,000
Aerial Ladder Truck 1,400,000
Property Revaluation Services 1,300,000
Public Health & Community Services Division Building Renovations 1,100,000
Phase II] Lined Landfill Expansion 990.000
City Building Improvements 639,000
Performing Arts Center 140.000
Jackson Mills & Mine Falls Hydro-Electric Facilities Improvements 115,000
Wastewater Treatment Plan Booster Stations Project 58,950
Total $ 205,636.050

71

Changes in General Long-Term Liabilities
During the year ended June 30, 2021, the following changes occurred in long-term
liabilities (in thousands):

Beginning Ending Current Long-Term
Balance Additions § Reductions = Balance Portion Portion
Governmental Activities
Bonds payable (PO) $ 112544 § 43,272 $ (14,735) $ 141.081 $ (13.431) $ 127.650
Unamortized bond premmums 7,189 2,350 (1,468) 8,071 (890) 7,181
Acquisition bonds payable 123,435 - (3,690) 119.745 (3.795) 115,950
Subtotal bonds payable 243,168 45,622 (19,893) 268.897 (18,116) 250,781
Compensated absences’ 19,073 1,907 (3,599) 17.381 (1,738) 15,643
Capital leases"? 186 6,672 (92) 6,766 (339) 6,427
Net OPEB liability‘? 76.383 300 - 76,683 - 76,683
Net pension hability"” 245,551 74,592 - 320,143 - 320,143
Totals § 584.361 $ 129,093 $ (23,584) $ 689,870 $ (20,193) $669,677

The City typically uses the General Fund to liquidate governmental activities liabilities.

Less Equals
Beginning Ending Current Long-Term
Balance Additions Reductions § Balance Portion Portion
Business-Type Activities
Bonds payable (PO) $ 27,101 $ 1348 $ (2,672) $ 25,777 $ (2,805) $ 22,972
State revolving loans (DB) 36,991 720 (4,178) 33,533 (3,294) 30,239
LUnamortized bond premiums 2,466 148 {247} 2.367 (247) 2,120
Subtotal bonds payable 66,558 2,216 (7,097) 61,677 {6,346) $5,331
Compensated absences” 673 67 (118) 622 (62) 560
Landfill closure and
postclosure costs &,546 1,294 - 9.840 - 9.840
Total OPEB liability” 1,739 21 : 1,760 = 1,760
Net pension liability” 3,319 : (3,202) 117 - 17
Totals § 80,835 § 3.598 $ (10417) $ 74016 $ (6408) $ 67.608

The City typically uses ihe Wastewater and Solid Waste Funds to liquidate them respective business-ty pe abilities.

Current Refundings

Current Year

On November 5, 2020, the City issued general obligation bonds in the amount of
$1,444,000 with a variable interest rate ranging from 4.0% to 5.0% to current refund
$1,705,000 of term bonds with a variable interest rate of 3.0% to 3.75%. The term bonds
mature on August I, 2030 and are cailable on February 1, 2021. The net proceeds from the
issuance of the general obligation bonds were used to purchase U.S. government securities
and those securities were deposited in an irrevocable trust with an escrow agent to provide
debt service payments until the term bonds are called on February 1, 2021. The current
refunding met the requirements of an in-substance debt defeasance and the term bonds
were removed from the City’s financial statements. Defeased debt still outstanding at June
30, 2021 is $0.

T2

16.

17.

Landfill Closure and Postclosure Care Costs

State and Federal laws and regulations require the City to place a final cover on its landfill site
when it stops accepting waste and to perform certain maintenance and monitoring functions
at the site for thirty years after closure. Although closure and postclosure care costs will be
paid only near or after the date that the landfill stops accepting waste, the City reports a
portion of these closure and postclosure care costs as a liability in the financial statements
in each period based on landfill capacity used as of each balance sheet date.

The $9,840,185 reported as landfill closure and postclosure care liability at June 30, 2021
comprises $757,900 of post closure care cost for the Nashua Four Hills unlined landfill and
$9,082,285 in closure, and post closure costs for the Nashua Four Hills Phase I, Phase I]
and Phase II] lined expansion landfills. The recognition of these costs is based on annual
statutorily required engineering estimates. Waste filling operations in the Phase II lined
expansion landfill began in November 2009. The combined landfills are conservatively
estimated to have an operational life of 8 years and remaining capacity is estimated to be
29%. The City will recognize the remaining estimated cost of closure and post closure care
of the lined landfill as the remaining capacity is filled. The actual life of the landfill may
be longer due to recycling efforts and actual costs may be higher due to inflation, changes
in technology or changes in landfill laws and regulations.

The City is required by State and Federal laws and regulations to make annual contributions
to an account held by the City to finance closure and post closure costs of the municipal
solid waste landfill. As of June 30, 2021, the City has cash on deposit with a balance of
$6,957,676 restricted for closure and post closure costs.

Deferred Inflows of Resources

Deferred inflows of resources are the acquisition of net position by the City that are
applicable to future reporting periods. Deferred inflows of resources have a negative effect
on net position, similar to liabilities. Deferred inflows of resources related to pension and
OPEB will be recognized as expense in future years and is more fully described in the
corresponding pension and OPEB notes.

The following is a summary of other deferred inflows of resources (exclusive of Pension and
OPEB) balances as of June 30, 2021:

Entity-wide Basis Fund Basis
Governmental Governmental Funds
Activities General Fund
Unavailable revenues $ - $ 8,518,841
Taxes levied in advance 116,611,005 116,611,005
Gains on refunding bonds 1,041,300 -
Total $ 117,652,305 $ 125,129,846

73