Finance Committee

Information regarding the quality and maturity dates of fixed income securities is as
follows:

Average Average
Total Duration Rating
U.S. Treasury Obligations $ 14,949,928 4.83 Aaa
U.S. Government Agencies $ 10,914,022 3.08 Aaa
Corporate Bonds $ 5,249,591 7.29 Al

Foreign Currency Risk
Foreign currency risk is the risk that changes in foreign exchange rates will adversely affect
the fair value of an investment. The City does not have formal investment policies related

to foreign currency risk.

Fair Value

Investments at June 30, 2021 included the following:

U.S. Treasury Obligations $ 14,949,928
U.S. Government Agencies 10,914,022
Corporate Bonds 5,249,591
Equity Securities 64,409,001
Mutua! Funds 17,342,639
Long-term Certificates of Deposit 6,556,929

Total $ 119,422,110

Credit Risk

Deficit Fund Batance
Certain individual funds reflected deficit balances as of June 30, 2021.

Nonmajer Governmental Funds:

Fire Projects $ (1,293,023)
Public Works Projects (4,848,536)
City Building Projects (718,590)
Property Revaluation Projects (621,844)
School Department Projects (8,575,489)

Total $ (16,057,482)

It is anticipated that the deficits in these funds will be eliminated through future bond
proceeds.

Deposits and Investments

Custodial Credit Risk — Deposits

Budgetary Basis

The general fund final appropriation appearing on the “Budget and Actual” page of the
fund financial statements represents the final amended budget after all reserve fund
transfers and supplemental appropriations.

Budget/GAAP Reconciliation

portions of fund balance that are legally segregated for a specific future use or which do
not represent available, spendable resources and therefore, are not available for
appropriation or expenditure. Unassigned fund balance indicates that portion of fund
balance that is available for appropriation in future periods. The General Fund is the only
fund that reports a positive unassigned fund balance.

Capital assets are depreciated using the straight-line method over the following estimated
useful lives:

Assets Years
Buildings 40
Building improvements 20 - 40
Infrastructure 7 - 60
Vehicles 3-8
Machinery and equipment 5 - 20
Computer equipment 3-5

Equity Interest in Pennichuck

The City invests in the New Hampshire public Investment Pool (NHPDIP), an external
investment pool managed by the State Banking Commission. The portfolio meets the
requirements of GASB Statement No. 79, Certain Investment Pools and Pool Participants,
and investments are valued at amortized cost.

Investments are reported at fair value except for certificates of deposit which are reported
at cost.

Interfund Receivables and Payables

e¢ The Solid Waste Enterprise Fund that accounts for the resources and costs associated
with the City’s landfills.

The City’s self-insurance programs are reported as an internal service fund in the
accompanying financial statements.

The fiduciary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under this method, revenues are
recognized when earned and expenses are recorded when liabilities are incurred.

The City reports the following fiduciary funds:

general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements.

Amounts reported as program revenues include (1) charges to customers or applicants for
goods, services, or privileges provided, (2) operating grants and contributions, and
(3) capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.

Fund Financial Statements

The Nashua Airport Authority (the Authority) was established on August 27, 1961 by
legislative act as a separate legal entity. The Authority is located at Boire Field in Nashua,
New Hampshire and provides general airport operations as well as airplane tie-down
rentals. The Authority is governed by a five-member board, to be appointed by the Mayor
and confirmed by the Board of Aldermen. The Authority meets the criteria as a discretely
presented component unit as the City can appoint a voting majority of the Authority’s