. THE CITY OF NASHUA
f Benactel Sermees Drvisiat
Office of the Chief Patancial Officer
TO: President Lori Wilshire
Members of the Board of Aldermen
Ce: , Mayor J im Donchess
0, be
ee John L. Griffin. Chief Financial Officer/Comptroller
DATE; | June 18. 2020
RE: 7.03% Tax Rate Increase Projected for FY2022
The purpose of this communication ts to advise the Board of Aldermen that due to the rise in
costs and anticipated revenue reductions at the State level, the tax rate percentage increase is
projected to be 7.03% in F¥2022. Key assumptions driving this projected increase include:
Cost Drivers
$2.8 million (11%) increase in State-run NHRS Pension System costs
$2.2 million (6.5%) increase in Health Care costs
$2.0 million funding for FY2022 CERF purchases (projected “cash” need is $3.9 million)
$0.6 million increase in Debt Service costs
$0.6 million increase in the Solid Waste Appropriation Funded by the General Fund
$5.3 million (2.73%) increase in General Fund Operating Budget costs
Revenues Changes
51.7 million reduction in State Aid in FY2022, which is planned to reduce the FY2021 Tax Rate
$3.0 million reduction in State Aid in FY2022, which funded one-time expenses in FY2021
Local Revenue will continue to be budgeted conservatively in FY 2022
Tax Rate Calculation
$4.5 million of projected FY2021 Revenue Surplus to reduce the FY2022 Tax Rate
$20.0 million decrease in the Assessed Value used to calculate the FY2022 Tax Rate.
229 Main Street » Nashua, New Hampshire 03060 « Phone (603) 589-3173 ° Fax (603)
589-3168
