Finance Committee

General Fund

Financial Analysis of the City’s Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.

Governmental Funds

The focus of the City’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City’s
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a
City’s net resources available for spending at the end of the fiscal year.

Governmental Activities

Governmental Activities

Governmental activities for the year resulted in a decrease in net position of $19.9 million or 68.7%.
Key elements of this change include favorable auto permits and intergovernmental revenues and
substantial unspent appropriations, increased funding levels in the internal service fund, softened
by approximately $23.3 million increase to pension expense from GASB 68 and spending
approximately $21.0 million for the downtown performing arts center.

The chart below identifies revenues by source for governmental activities:

The following table indicates the changes in net position for governmental and business-type
activities (in thousands):

CHANGES IN NET POSITION

Government-Wide Financial Analysis

The following is a summary of condensed government-wide financial data for the current and prior
fiscal year (in thousands):

Govemmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020

Current assets $ 304923 $ 278443 § 23,030 §$ 24,054 $ 327953 $ 302,497
Capital assets 362,520 333,460 178,108 W777 $40,628 310,577
Other noncurrent assets 119,745 123,435 — - 119,745 123,435

information for the Wastewater and Solid Waste operations, both of which are considered to be
major funds of the City.

Fiduciary Funds

All of the funds of the City can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.

Governmental Funds

MANAGEMENT?’S DISCUSSION AND ANALYSIS

As management of the City of Nashua, New Hampshire (the City), we offer readers of the City of
Nashua’s financial statements this narrative overview and analysis of the financial activities of the
City for the fiscal year ended June 30, 2021.

Overview of the Financial Statements

Gs MELANSON

responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with evidence
sufficient to express an opinion or provide any assurance.

Other Information