Board Of Aldermen - Minutes - 12/8/2020 - P17

Nashua Capital Funding Strategies to Minimize Ratepayer Impacts

¢ Nashua employs a mix of financing strategies to minimize ratepayer impacts:

¢ Maximize use of Federal and State Financing Loan Programs to lower debt service costs
¢ The City will access low interest SRF financing as much possible (2% interest rate as of 2019)
— CMOM Program and Pump Stations are being financed through SRF
— Other Projects will be financed through a mix of Bond issuances and SRF financing
¢ Fund smaller capital projects through cash where practical.
¢ Maintain capital equipment reserve fund to reduce year to year rate impacts.

¢ Stringently manage operation and maintenance costs to keep annual cost increase to
inflation growth.