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CIM OF NASHLA, NEW HAMPSHIRE

STATEMENT OF NET POSITION
JUNE 30. 2021
(Except for Pennichuch Coup Comp Und, which 3 as of Deecmber 3}. 2020}
Primary Go. ermment
Business- Govemment
Governmental Type Wide Component
Asirines Tots! Unas.
Assets
Current
Cash and shortdenm myestmenis $ 209.220.0656 $ 17,117,692 $ = 226,337,708 $ 851.873
lavestments 55.978, 1 4.320.365 GO.R07469 37374
Resincted cash ond mvcstments - . + 9,072,000
R bes wet of alk for Bectibk
Property taxcs 21,385,882 - 21 385,882 -
Taxdeeded property iw . S312 -
User fees . 4430517 4,436,517 9,789,762
Deparimcatal and other 432.628 - 632,625 *
lntergov-ermmental TARE SSG 250,974 7.739,500 2.160569
Loans 1.003.993 * 1,003,995 -
Intemal balances 3,604,140 (3,604,140) - +
Duc from exicmal partics 469,436 a 469,436 .
Other assets 4,208,010 - 4303,040 2.395.000
Total Current Assets 309.922.7286 23.030.358 327.953, 144 2586582
Noncuncat
Capiial assets being depreciated
net of accumulaled deprecialion 292,604,759 L57S587, 317 450,192,076 2373S
Capaal assets not beng depreciated $9,915.22 20,520,308 WAI S27 13.169.217
Acquisition premum - . - 67,202,000
Equay mierestn Pennichuck b49.745,000 - 119,745,000 5
Total Noncutrent Assets 482,264 981 478,107,622 660,372,603 SH4960
Total Asses ‘7A? 187,767 201,137,980 ORR 325,747 358301542
Deferred Outflons of Res ources
Related to pensions 88,725.98) 755,64 BY AB L SRS .
Related to OPEB 6,955,335 197,274 9.152009 132.133
Total Deferred Ouiflows of Resources 97,681 316 952,878 98,634,194 7,147,033,
Liabilities
Current
Accounts payabke 1438191 ee 14394, 745 4.940,053
Retainage pay able 2.480.250 - 2.480.250 -
Salanes payable 8.392.190 101,107 8,499,297 -
Accrued liabildies 12,538,036 1,266,975 13,805,011 2.208.892
‘Uneamed revcnucs 6.876.529 * 6.876529 .
Notes pavabk - Tb.191 480 11,141,486 -
Customer advances - - : 437465
Linc of credit . * . 5,480,000
Other 5,061,665 . 5,061,665 .
Current portion of long-term babibtics
Bonds and notes payable 14,321,412 6345504 20,666,916 6,018,000
Acquisnion bonds pavabke 3.795.000 . 3,795,000 -
Compensated absences 1,738,056 62,174 1,800,230 .
Capnial keases 338,716 . 338,716 5
Total Current Liabibaics 69.996.045 18,967,434 8803479 19,084,410
Noncurrent
Bonds and notes payable 13.831473 S5.331,020 190,162,493 226,914,000
Acquisition bonds payable 115,950.00 . 115,980,000 -
Compensated absences 15,642,505 599.565 16,202,070 Ban
Capnal keases 6.427.183 - 6.427.283 a
Landfill closure and post closure - 9.840, 185 9,840,185 -
Net and total OPEB habia, 76,683 136 1.760289 T8ASBAS 4917214
Nei pension babilty - State of NH 321,002,458 . 320,002,453 15,837.263
Net pension Babilty - Board of Public Works 140,639 116.706, 2525 .
Conn in aid of - - : $6.536,000
Other noncurrent babiluies = : : 10,794,000
Total Noncurrent Liabilities 669,677,744 $7,607,735 737285 49 315.021, 756
Total Liabilaics 799,613.789 36,575,169 826, 186,958 34.106, 166
Deferred inflows of Resources
Related lo pensions 12856515 5,483. 184 16,369,099 6438
Related to OPEB 5.682308 180,459 5.862767 2l
Other 117,652,305 - 117,652,305 18,402,000
Total Deferred Inflows of Resources 136,191,128 3.633.643 1399.824.771 15,408,459
Net Position
Net investment in copual assets 235,153,904 OS, 737,012 HI 890,916 63,352.421
Resincted for
Grants and other slatutor: resinchions 10,159.233 . 10,189,233 .
Capaal propels 9,363,508 242? 685 16.7913 .
Permanent funds.
Espeadabke 2,195,621 - 2,091,621 -
Nonexpendabk: 204.130 . 23.204.130 -
Unrestricted idefica) (276.008.2315 (2.282.651) (278.290.381) 137.413.471b
Total Net Position 5 9.064 166 $1 382.046 $__ 120946212 $28. 993 95)

The accompany mg holes are an mitegfal part of these financasl statemeniis

32

Finance Committee - 12/5/2018 Page 4

From: Dan Kooken, Purchasing Manager
Re: Energy Recovery Upgrades — Construction Services (Value: $1,787,373)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD
OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO METHUEN CONSTRUCTION IN THE
AMOUNT OF $1,787,373. FUNDS ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER

ON THE QUESTION

Mayor Donchess

Mr. Boucher, do you want to take a moment to explain this one, it is a big item.

David Boucher, Superintendent of Wastewater

Sure, thank you. Dave Boucher, Superintendent of the Waste Water Facility. This project entails upgrades to
an existing building at the Waste Water Facility. The building currently houses a generator that powers our
digester complex. The generator has failed and is beyond repair. So we are receiving 2 new generators,
Caterpillar Generators. This upgrade would modify the building along with all the piping, the electrical
conduits, and the computer system that maintains the generators.

It also provides for a mixing skid, or | should say the generator runs off of biogas that is produced by the
digester complex, which is methane gas. The new generators will run off of both methane and natural gas mix
that is more efficient for the generators, so this whole facility would do that and the mixing skid is kind of an
upgrade also which blends the two gases together in a proper mix.

Alderwoman Caron

Yes thank you, | Know this is an important facility. Did this just happen or has this been a time thing or was this
lack of maintenance or just age. | mean it is almost $2 million dollars and | know we have spent a lot of money
there and | certainly don’t see any major things happen but it is just a question, a little concerning.

Mr. Boucher

The generator was not in operation when | started in January, it is aged because the generator cannot be
rebuilt they don’t make parts for it and there is new technology now that can make things more efficient. The
generator ran off of just methane gas which probably didn’t add to, | guess generators, what I’m told is that
they don’t run well off of just methane gas, it has to be a blend so that probably also did it in.

Alderman Caron

So this will make it even more efficient?

Mr. Boucher

Correct.

Alderman Caron

Ok thank you | appreciate that.

Alderman O’Brien

Thank you Mr. Mayor. Mr. Mayor with your indulgence if | may to Mr. Boucher, since | have been on Finance,
we have a lot of this, the digester failed and everything else. | think in the past and no blame or anything, but

Finance Committee - 12/5/2018 Page 5

this is what happens when we are too conservative and we let things go too far. But can you just give us an
overview, | mean we are catching up, it is a very important facility and to follow-up to what Alderman Caron is
saying, how is the health now? Are we getting there, do we see that we are going to have a top-rated system
here very shortly | hope?

Mr. Boucher

Yes this is a system all by itself, the digester complex and this particular building that powers is separate from
the rest of the facility. We just had the digester cleaned, maintained, all the flame arresters on all the tankage
has been re-done and pressure relieve valves have been redone. We are having work done to the gas, there
is a gas holding tank with all of this that needs some repair, that is getting done. So this will be back to its
original working order after this upgrade.

Alderman O’Brien
Very good, thank you.
Mr. Boucher

You're welcome.

Alderwoman Kelly

Thank you. | know you have been doing a lot of upgrades and you are kind of playing catch up as Alderman
O’Brien was saying. | was wondering about sort of the length of a lifetime of a generator, it seems like this
facility was just, it says 1999 was just built? So a little under 20 years, is that typical, what should we expect to
get out of this new one?

Mr. Boucher

It depends on how often a generator runs. We have generators at our facility that will last longer. These
generators are intended to run all the time because the digester needs to be heated, so there is constant
heating. The boilers will always have to be powered, always have to have power. Also, it generates all the
lighting and all that at this facility.

So it is going to run more often than some of the older generators we have at the facility, but we do have a
good maintenance program now we have outside contractors that will be maintaining this. | can’t speak for the
past. But the typical life for a generator like this is 10 years for this type of complex. | have seen them last a lot
longer with proper maintenance they will last longer and that is what we expect to do is maintain it.

Alderman Laws

This may be a silly question but why do you need a generator, why can’t you just plug into main line electricity.
Mr. Boucher

It’s very expensive and we do generate methane gas as a by-product of the waste water so it is free power. It
has to be cleaned and we have, part of the facility is a cleaning mechanism of the facility which is in operation,
it works proper. So you clean the methane gas so you can use it in a piece of equipment so it would be a

shame, currently we are just burning it off itis kind of a waste. But we look at it as kind of a pay off in five
years with this project just in savings in electricity and fuel that we have to buy for the generator.

Finance Committee - 12/5/2018 Page 6
Alderman Laws

That’s the information that | was looking for, thank you.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Change Order #5 — Northeast Earth Mechanics, Inc. (Value: $83,392)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AUTHORIZE CHANGE ORDER
#5 TO THE CONTRACT WITH NORTHEAST EARTH MECHANICS, INC., IN THE AMOUNT OF $83,392.
SOURCE OF FUNDING IS DEPARTMENT 168 , SOLID WASTE; SOIL WALL BOND

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: 2018 Sewer Replacement — Harvard Street - Change Order 2 (Value: $440,037)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AUTHORIZE CHANGE ORDER
#2 TO THE CONTRACT WITH NORTHEAST EARTH MECHANICS, INC., IN THE AMOUNT OF $440,037.
FUNDS ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER; SEWER REHAB BOND

ON THE QUESTION

Mayor Donchess

This is an interesting story so maybe you should come up and tell it, interesting and sad story.

Amy Gill, Senior Staff Engineer

Senior Staff Engineer, and | am representing the Engineering Department tonight. So it is an interesting story
as you are aware we have many sewers in the City, 330 miles, many of which are old. In June we awarded a
contract through a bidding process to Northeast Earth Mechanics, and | agree it is a difficult contract name to
state and they won the bid to replace sewer on Harvard Street, that was in June. That project was delayed
somewhat due to utility work that had to be completed prior to the sewer being constructed. While we were
waiting for that project to start another sewer on Chase Street failed, causing sewer backups to the residents,
that was about the end of September.

At that time we had exhausted our sewer rehabilitation funds and when we did the work at Chase Street to
begin, we had a contractor on board already to do Harvard Street that had won through a bidding process and
we gave them the change order to do the work. To make those funds available, we reduced the work from
Harvard Street to put in for Chase Street. Chase Street is under construction now and now that the funding is
available we are just going to replace those items to Harvard Street so they can complete that work as well at
another failing sewer.

So unfortunately the timing of the failure, Chase Street was on this year’s sewer rehab project to do which we
are bidding at the end of this month. However, the sewer beat us to the bidding process go get done.

Mayor Donchess
So this being in Crown Hill, Alderwoman Caron is probably hearing about this.
Ms. Gill

That is correct, that is correct. And there is a lot of work on sewers in the Crown Hill area.

Finance Committee - 12/5/2018 Page 7
Alderman Caron

Yes big time.

Ms. Gill

That whole neighborhood too, the Marshall Street area, Ald Street.

Alderman O’Brien

Thank you. Ms. Gill | completely understand, | used to work at the Arlington Street Station and | know it is a
very ancient system, it is one of the oldest in the City if | think what it is.

Ms. Gill
That is correct, it is the closest to the oldest.
Alderman O’Brien

If we were going to build a Nashua we could not build that type of sewer system, a combination system like
that today. But as we replace with modern upgrades, which | fully support, if we had damage at Chase Street
we had to get to that first and | completely understand that. Are we doing anything to help mitigate the odor or
anything when we look at the upgrades, are there any P-trap system or anything else that we could put in that
as we change them, can we alleviate some of that.

Ms. Gill

Depending on what we are trying do at that location, the odors generally come from the catch basins which are
also connected to the combined system that is one pipe that takes the sanitary waste from the household as
well as the runoff into the catch basins. The catch basins in the older systems are shallower and that is where
the odor is allowed to come out of the catch basins without being stopped by any water that typically might be
in a catch basin. A lot of that depends on funding, if we were to replace all the catch basins at the time we did
the sewers we would exhaust our dollars. But in known areas we do take care of the catch basins, when we
can correct.

Alderman O’Brien

If | may follow up, | completely understand we can’t do them, it would be separate, but it would be nice and it
sounds like we are, the ones we are getting to we are upgrading as best we can. But that’s all | think we can
do.

Ms. Gill

The best we can. And the interesting thing just to point them out on Chase Street area and those areas down
by Crown Hill, those pipes are the deepest pipes because the system is set up to be a gravity system, as you
get closer to the water, the pipes are deeper so it does cost us more money to replace these sewers.
Unfortunately we try to catch the sewers before they need replacement, we are doing a huge lining project in
order to try to capture those pipes when their condition is still that they can be refurbished through the interior
be lining those pipes so it is a lot less expensive.

Alderman O’Brien

Thank you.

Finance Committee - 12/5/2018 Page 8

Alderman Caron

I’m just glad we had the money on board in order to take care of Chase Street and Harvard Street. So when it
Pennichuck going to finish their project in order for us to do our job?

Ms. Gill

For Harvard Street?

Alderman Caron

Yes.

Ms. Gill

They are scheduled to do it but it is interesting because since Chase Street failed, and we are a deep sewer
they had come in ahead of us on Chase Street as well under an emergency situation too. But we schedule
with them all the time the utilities.

Alderman Caron

That’s the way to do it, to do theirs before we do our work.

Ms. Gill

And you can see most places in the City a lot of utilities are working together before we all finish a project
there.

Alderman Caron

Thank you.

MOTION CARRIED
UNFINISHED BUSINESS — None

NEW BUSINESS — None

RECORD OF EXPENDITURES

MOTION BY ALDERWOMAN KELLY THAT THE FINANCE COMMITTEE HAS COMPLIED WITH THE CITY
CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURES FOR THE PERIOD
NOVEMBER 16, 2018 TO NOVEMBER 30, 2018

MOTION CARRIED

MOTION BY ALDERWOMAN KELLY THAT THE FINANCE COMMITTEE HAS COMPLIED WITH THE CITY
CHARTER AND ORDINANCES PERTAINING TO THE RECORDS OF EXPENDITURES FOR THE PERIOD
OF NOVEMBER 2, 2018 TO NOVEMBER 15, 2018.

MOTION CARRIED

Finance Committee - 12/5/2018 Page 9

GENERAL DISCUSSION

Mayor Donchess

We've discussed a couple times the issue of whether we should raise the threshold for the items that we see
and approve. There has been some, a couple of you have asked questions, are we going to forward with
something like that. I’d say some people think that threshold should be $15,000.00, others $25,000.00. One
approach we could use and | just throw it out there, most of the items that come through are Public Works
items where the purchases tend to be very large and where they say Public Works Department indicates that
they spend many, many person hours preparing each of these items and that is sort of why they are interested.
They go before both the Board of Public Works and the Finance Committee and all of this paperwork has to be
prepared.

So one way we could go is we could raise the threshold for Public Works without affecting the other
departments where the purchases are less frequent. Like right here, this whole agenda is Public Works right,
except for the first item. And if we did raise it to $25,000.00 it would knock a couple of these items off but we
would still be seeing the major items because in Public Works, $25,000.00 is not that big an issue, as their
items go, it is not that big an item.

Most of their bigger things are $50,000.00, $75,000.00, $1,700,000.00, $400,000.00 so that is an approach we
can take. So | just throw out for your consideration.

Alderman O’Brien

Thank you Mr. Mayor, if we were to follow up on that suggestion could you please inform us how, would it take
an ordinance to go before the full Board and if you could explain the procedure please?

Mayor Donchess

Just like any other ordinance, so right now we have an ordinance that says that the Finance Committee
considers any item over $10,000.00. An ordinance could be proposed to institute a separate or different
criteria, we could raise it across the board or that ordinance could raise it just for Public Works as we see fit.

So the procedure would be to propose an ordinance, be introduced before the full Board it would get referred
to a committee, maybe this one depending on what President Wilshire would do. And then with
recommendation would go back to the full Board and would have to be voted on by the full Board of Alderman
and enacted in that fashion.

Alderman O’Brien

| would be willing to do such because it does seem to expedite some things, if | do have support from my fellow
members of the Board that could sign on as co-sponsors, | will Chair the lead and ask you to join me if you so
wish to act on this.

Mayor Donchess

The reason we were thinking about Public Works is that there are so many Public Works items; in some
departments, for example we did a $14,000.00 item in Economic Development just now. They don’t come
through that often, that’s not that small for Economic Development, but for Public Works a $14,000.00 item is
one definitely in the small end. So that was the point of thinking about the Public Works approach. But we
could do it across the board, | think that the members of the Committee, we could decide and recommend to
the Full Board whatever we think is best.

Finance Committee - 12/5/2018 Page 10
Alderman Caron
A question, did we ask to find out how many others, what the threshold was for purchases before they go

before their Selectman or Board of Aldermen, we weren't sure if it was $15,000.00 to $25,000.00. | think that if
the majority are at that point | wouldn’t have a problem either, Alderman O’Brien.

Mayor Donchess

Mr. Kooken has that, | don’t know if you’ve got it with you.

Mr. Kooken

| don’t have it with me, | do have that information and generally most of them are $25,000.00 or higher.
Mayor Donchess

We are very low. We really are on the low end.

Alderman Caron

Right | think so.

Mr. Kooken

And we were, at one time, | believe $15,000.00 and it went back to $10,000.00 some years ago, 2002, | think.
Mayor Donchess

Could you e-mail that to the members of the Committee?

Mr. Kooken

Absolutely.

Mayor Donchess

There is a spread sheet that shows that.

Alderwoman Kelly

Thank you, | was actually wondering if that spread sheet also has information on like how many purchases last
year were under that threshold or over?

Mr. Kooken
| have that as well.

Alderwoman Kelly

Great.

Mayor Donchess

Yes we’ve had that and then we kind of moved on from that so we will come back and Mr. Kooken will e-mail to
everyone those 2 spread sheets. Alright, is there anything else?

Finance Committee - 12/5/2018 Page 11

PUBLIC COMMENT - None

REMARKS BY THE ALDERMEN

Alderman O’Brien

Yes | just have one and | would really like to thank Mr. Boucher and Ms. Gill, their explanation was good,
particularly for the Public. We have been spending a lot of money in the sewage treatment and it is good to

see that things are coming along a lot better than what they were and | compliment them on their attentiveness
to their duties, so very good thank you.

Mayor Donchess

Mr. Boucher at the Superintendent of the Waste Water Treatment Plant has during his tenure, which is a year
or so, | think done an extremely good job of bringing the facility to analyzing the issues, bring the facility up to
better working order and he came highly recommended and | think he has met those expectations.

Any other remarks?

POSSIBLE NON-PUBLIC SESSION - None

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN TO ADJOURN
MOTION CARRIED

The Finance Committee meeting was adjourned at 7:30 p.m.

Alderwoman-at-Large Shoshanna Kelly
Committee Clerk

7:00 pm

FINANCE COMMITTEE
DECEMBER 5, 2018

Aldermanic Chamber

ROLL CALL

PUBLIC COMMENT

COMMUNICATIONS

From:
Re:

From:
Re:

From:
Re:

From:
Re:

From:
Re:

From:
Re:

From:
Re:

Dan Kooken, Purchasing Manager
Change Order 1 for 14 Court Street Building Improvements (Value: $14,562)
Department: 183 Economic Development; Fund: Building Trust Fund

Dan Kooken, Purchasing Manager
Tire Changer & High Capacity Balancer (Value: $19,367)
Department: 161 Street; Fund: Prior Year Escrow

Dan Kooken, Purchasing Manager
Winter Road Sand (Value: $16,000); Department: 161 Street; Fund: General

Dan Kooken, Purchasing Manager
Energy Recovery Upgrades — Construction Phase Engineering Services (Value: $76,762)
Department: 169 Wastewater; Fund: Wastewater

Dan Kooken, Purchasing Manager
Energy Recovery Upgrades — Construction Services (Value: $1,787,373)
Department: 169 Wastewater; Fund: Wastewater

Dan Kooken, Purchasing Manager
Change Order #5 — Northeast Earth Mechanics, Inc. (Value: $83,392)
Department: 168 Solid Waste; Fund: Bond

Dan Kooken, Purchasing Manager
2018 Sewer Replacement — Harvard Street - Change Order 2 (Value: $440,037)
Department: 169 Wastewater; Fund: Bond

UNFINISHED BUSINESS — None

NEW BUSINESS — None

RECORD OF EXPENDITURES

GENERAL DISCUSSION

PUBLIC COMMENT

REMARKS BY THE ALDERMEN

POSSIBLE NON-PUBLIC SESSION

ADJOURNMENT