Long-Term Debt
At the end of the current fiscal year, the City had total debt outstanding of $337 million compared
to $310 million in the prior year. Of this amount, $297 million represents general obligation debt, which
is backed by the full faith and credit of the government.
OUTSTANDING DEBT AS OF JUNE 36, 2021 and 2020
(m thousands)
Govemmental Busimess-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Bonds and notes $ 141,081 $ 112,543 $ 59,310 $ 64,092 $ 200,391 $ 176,635
Unamortized bond premiums 8,071 7,189 2,367 2,466 10,438 9,655
Pennichuck acquisition bonds 119,745 123,435 - - 119,745 123,435
Capital leases 6,766 186 - - 6,766 186
Total $ 275,663 §$ 243,353 $ 61,677 $ 66,558 $ 337,340 $§ 309,911
During the fiscal year, the City issued $52 million new debt and retired $25.4 million of
outstanding debt through scheduled principal payments.
State statutes limit the amount of general obligation debt a governmental entity may issue to 3%
of its total assessed valuation for the City or 7% of its total assessed valuation for the School. The City
of Nashua has imposed more restrictive limits for City and School respectively of 2% for and 6% of
total assessed valuation. The current debt limitation for the City and School combined is $1.0
billion, which is significantly above the $330.6 million of general obligation debt subject to these
limitations. Wastewater, Solid Waste, and Pennichuck acquisition debt of 216.4 million is not subject
to these limitations.
The City maintains a AAA credit rating from both Fitch and Standard & Poor’s Rating Services, both
agencies citing the City’s strong management procedures and improved local economy.
Additional information on the City’s long-term debt can be found in Note 15 on pages 66 - 72.
Economic Factors and Next Year’s Budget And Rates
The City experienced growth in local revenue, specifically in motor vehicle registration fees and
intergovernmental revenues. The City also continues to realize increased development activity
throughout its commercial and residential zones. Likewise, the City continues to invest in road
paving, capital equipment replacement, capital improvements for buildings and City-related
infrastructure, traffic mitigation, and other initiatives that promote economic growth and vibrancy. As
noted by rating agencies, the City has a diverse and expanding economic base, above-average
socioeconomic factors, and a manageable debt burden.
During calendar year 2020, the City’s unemployment rate averaged at 8.0% due to the COVID-19
pandemic. The City’s average unemployment rate for calendar year 2021 is at 4.2%, returning near
historical levels following a temporary spike in the early months of the COVID-19 pandemic.
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