Agenda

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021

Actuarial Assumptions

The total pension liability was determined by a roll forward of the actuarial valuation as of June 30, 2019,
using the following actuarial assumptions:

Inflation 2.00%
Wage inflation 2.75% (2.25% for Teachers )
Salary increases 5.60%, average, including inflation

Investment rate ofretum 6.75%, net of pension plan investment expense,
including inflation

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021

members, excluding contributions to separately finance specific liabilities of individual employers or
NHRS. At June 30, 2020, the Authority's proportion was approximately 0.0064 percent, which is an
increase of .0001 percentage points from its proportion measured as of June 30, 2019.

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021

Benefits Provided
Benefit formulas and eligibility requirements for the pension plan are set by State law (RSA 100-A).

Group | benefits are provided based on creditable service and average final salary for the highest of either
three or five years, depending on when service commenced.

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021

Weighted Average Long-Term

Asset Class Target Allocation Expected Real Rate of Retum
Domestic equity 30% 3.71-4.15%
Intemational equity 20% 3.96-6,20%

Fixed income 25% 0.42-].66%

Alternative investments 15% 4.81-7.71%

Real estate 10°%> 2.95%
Total 100%

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021

June 30,
2021 $ 4
2022 8
2023 10
2024 6

Actuarial Assumptions

The total OPEB liability was determined by a roll forward of the actuarial valuation as of June 30, 2019,
using the following actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:

Inflation 2.00%

Wage inflation 2.75% (2.25% for Teachers)

Salary increases §.60%, average, including inflation

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021

Funding Policy

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 202]

Other capital assets:

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021

the services that are the primary activities of the Authority. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.

Capital Contributions - Funds received from other governments for the purpose of constructing assets are
recorded as capital contributions.

NOTE 2—DEPOSITS AND INVESTMENTS

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended June 30, 2021

Estimated useful lives are as follows:

Years
Land improvements 5-25
Buildings and improvements 10-39
Equipment 3-30

NASHUA AIRPORT AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Nashua Airport Authority ("the Authority") conform to accounting principles
generally accepted in the United States of America for local governmental units, except as indicated
hereinafter. The following is a summary of significant accounting policies.

Financial Reporting Entity