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
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