Jim Donchess
Mayor e City of Nashua
To: Board of Aldermen
From: Jim Donchess, Mayor
Date: September 7, 2018
RE: — Report on Surplus and Overlay 2019
Although this report was due to the Board of Aldermen on or before September 1* in accordance
with NRO 5-136, I felt it best to obtain additional information on the revaluation of commercial
and industrial properties from KRT Appraisal before submitting this report.
Having received the additional information yesterday, I am providing you with our estimate of
overlay needed for FY19 ($3.0 million). Iam also providing you with the amount we have left
in the overlay from prior years ($2.7 million) and the overlay reserve ($1.5 million). See the
attached “Surplus Use and Overlay Notification.”
Also in accordance with NRO 5-135(B), I am providing the Board with an estimate of
unassigned fund balance as well as how much of that balance I propose to use to reduce the
anticipated tax rate. The unassigned fund balance 1s projected to be $34,838,600. Iam
recommending that we use $4,500,000 of the unassigned fund balance against the tax rate.
NRO 5-135(A) outlines a policy that a minimum 10% of a fiscal year’s appropriations be
maintained in undesignated general fund balance. As you can see in the “Surplus Use and
Overlay Notification” worksheet, the estimated unassigned fund balance is projected to be 11.5%
of the FY2018 fiscal year appropriations.
I will be submitting the resolution for your first meeting in September to propose the use of
$4,500,000 against the tax rate.
229 Main Street * PO Box 2019 * Nashua, New Hampshire 03061-2019
603.589.3260 * fax 603.594.3450 * NashuaMayor@NashuaNH.gov
www. NashuaNH. gov
