February 2016

OFFICIAL STATEMENT DATED FEBRUARY 11, 2016
Ratings: See “Ratings” herein.
Fitch: AAA
Standard & Poor’s Rating Group: AA+
New Issue
In the opinion of Locke Lord LLP, Bond Counsel, based upon an analysis of existing law and assuming, among other matters,
compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under the
Internal Revenue Code of 1986, as amended (the “Code”). Interest on the Bonds is not a specific preference item for purposes of the
federal individual or corporate alternative minimum taxes, although such interest is included in adjusted current earnings when
calculating corporate alternative minimum taxable income. Under existing law, interest on the Bonds is exempt from the New
Hampshire personal income tax on interest and dividends. Bond Counsel expresses no opinion regarding any other tax consequences
related to the ownership or disposition of, or the accrual or receipt of interest on, the Bonds. The Bonds will not be designated as
“qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code. See “Tax Exemption” herein.
CITY OF NASHUA, NEW HAMPSHIRE
$16,920,000 GENERAL OBLIGATION BONDS
DATED
Date of Delivery
DUE
October 1
(as shown below)
The Bonds are issuable only in fully registered form without coupons and, when issued, will be registered in the name of Cede & Co., as
Bondholder and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will act as securities depository for the
Bonds. Purchases of the Bonds will be made in book-entry form, in the denomination of $5,000 or any integral multiple thereof. See “BookEntry-Transfer System” herein.
Principal of the Bonds will be paid on October 1 of the years in which the Bonds mature. Interest on the Bonds will be payable semiannually on
April 1 and October 1, commencing October 1, 2016. So long as DTC or its nominee, Cede & Co., is the Bondowner, such payments will be
made directly to DTC. Disbursement of such payments to the DTC Participants is the responsibility of DTC. Disbursement of such payments to
the Beneficial Owners is the responsibility of the DTC Participants and the Indirect Participants as more fully described herein.
An opinion of Bond Counsel will accompany the Bonds to the effect that the Bonds are valid general obligations of the City of Nashua, New
Hampshire and that all taxable property in the City is subject to taxation without limitation as to rate or amount to pay the Bonds and the interest
thereon; provided that, to the extent the City has established any development districts pursuant to Chapter 162-K of the New Hampshire
Revised Statutes Annotated, taxes levied on certain taxable property located within any such district may be restricted and unavailable to pay
the principal of and interest on the Bonds.
The Bonds are subject to redemption prior to their stated maturity dates as described herein.
IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS
OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY
ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING
AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
_________________________________
MATURITIES, AMOUNTS, RATES, YIELDS AND CUSIPS
Due
October 1
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Principal
Amount
$
735,000
1,010,000
1,010,000
1,005,000
280,000
890,000
885,000
885,000
880,000
875,000
Interest
Rate
5.00 %
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
Yield
0.40 %
0.50
0.67
0.77
0.76
0.87
1.05
1.25
1.40
1.55
Cusip
631298
Due
October 1
AA4
AB2
AC0
AD8
AE6
AF3
AG1
AH9
AJ5
AK2
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Principal
Amount
$
860,000
875,000
860,000
860,000
860,000
830,000
830,000
830,000
830,000
830,000
Interest
Rate
5.00
2.00
2.125
2.25
2.50
2.50
2.75
3.00
3.00
3.00
Yield
%
1.65 %
2.00
2.20
2.35
2.50
2.60
2.70
2.75
2.80
2.85
Cusip
631298
AL0
AM8
AN6
AP1
AQ9
AR7
AS5
AT3
AU0
AV8
_________________________________
The Bonds will be certified as to genuineness by U. S. Bank National Association, Boston, Massachusetts and are offered subject to the final
approving opinion of Locke Lord LLP, Boston, Massachusetts, Bond Counsel, as aforesaid, and to certain other conditions referred to herein
and in the Notice of Sale. FirstSouthwest, a Division of Hilltop Securities Inc., Boston, Massachusetts has acted as Financial Advisor to the
City of Nashua, New Hampshire, with respect to the Bonds. The Bonds in definitive form will be delivered to DTC, or its custodial agent, on or
about February 23, 2016.
Roosevelt & Cross, Inc & Associates
TABLE OF CONTENTS
Page
SUMMARY STATEMENT
NOTICE OF SALE
OFFICIAL STATEMENT
INTRODUCTION
THE BONDS:
Description of the Bonds
Redemption Provisions
Record Date
Book-Entry-Transfer System
Authorization of the Bonds and
Use of Proceeds
Plan of Refunding
Sources and Uses of Bond Proceeds
Tax Exemption
Continuing Disclosure
Financial Advisory Services of FirstSouthwest,
a Division of Hilltop Securities Inc.
Ratings
Other Legal Matters
THE CITY OF NASHUA, NEW HAMPSHIRE:
General
History
Form of Government
Principal Executive Officers
Municipal Services
Acquisition of Pennichuck Water Utilities
Operation of Pennichuck and its Businesses
After the Merger
Economy
Location of Industry
Housing Development
Infrastructure Investment
Economic Development Strategic Plan
Large-Scale Residential Developments
Large-Scale Commercial Developments
Major Industries Located at Industrial Park
Industry and Commerce
Largest Employers
Retail Sales
Unemployment
Unemployment Rates
Building Permits
Education
Public School Enrollment
Transportation and Utilities
Income Levels and Educational Attainment
Population Trends
CITY FINANCES:
Major Sources of Revenues
Assessed Valuations
Tax Rates and Tax Levies
Tax Levies Calculations
3
4
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7
7
7
8
8
9
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10
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15
17
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25
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27
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27
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Page
Tax Collections
Largest Taxpayers
State Equalized Valuations and Estimated
Full Value Tax Rates
Tax Increment Financing for Development
Districts
Budget Process
Budget Control Charter Amendment
Budget Trends
FY2013 Budget
FY2014 Budget
FY2015 Budget
FY2016 Budget
Budget Summary for the Fiscal Year Ending
June 30, 2012 thru 2016
Accounting Methods
Investment of City Funds
Financial Statements
Governmental Funds Balance Sheet
June 30, 2015
June 30, 2014
June 30, 2013
Statement of Revenues, Expenditures
and Changes In Fund Balances
June 30, 2015
June 30, 2014
June 30, 2013
June 30, 2012
June 30, 2011
31
32
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33
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34
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35
36
37
37
37
38
39
40
41
42
43
44
45
46
INDEBTEDNESS:
Authorization Procedure and Limitations
47
Trend in Tax Anticipation Note Borrowings
47
Debt Ratios
47
Direct Debt Summary
48
Principal Payments by Purpose
48
Debt Service Requirements
49
Authorized Unissued Debt and Prospective
Financing
49
Capital Equipment Reserve Fund
49
Wastewater Enterprise Capital Reserve Fund
50
Solid Waste Capital Reserve Fund
50
RETIREMENT SYSTEM
50
New Hampshire Retirement System
50
Board of Public Works Employee Retirement System51
Other Post-Employment Benefits
51
EMPLOYEE RELATIONS
53
LITIGATION
54
APPENDIX A – June 30, 2015 City Audit
APPENDIX B – Proposed Form of Legal Opinion of
Bond Counsel
APPENDIX C – Proposed Form of Continuing
Disclosure Certificate
30
30
30
31
____________________________________________________
The information set forth herein has been obtained from the City and from other sources which are believed to be reliable but it is not
guaranteed as to accuracy or completeness. Any statements made in this Official Statement involving matters of opinion, whether or
not expressly so stated, are intended merely as opinion and not as representations of fact. The information and expressions of opinion
herein are subject to change without notice and neither the delivery of this Official Statement nor any sale of the Bonds described
herein shall, under any circumstances, create any implication that there has been no change in the affairs of the City of Nashua since
the date hereof.
SUMMARY STATEMENT
The information set forth below is qualified in its entirety by the information and financial statements appearing elsewhere in the Official
Statement.
Date and Time of Sale:
Thursday, February 11, 2016 at 12:00 Noon, Eastern Time.
Location of Sale:
FirstSouthwest, a Division of Hilltop Securities Inc., 54 Canal Street, Boston, Massachusetts.
Issuer:
City of Nashua, New Hampshire.
Issue:
$16,920,000 General Obligation Bonds, referred to as “the Bonds”.
P. O. S. Dated:
February 11, 2016.
Dated Date of the Bonds:
As of their date of delivery.
Principal Due:
October 1, 2016 through October 1, 2035, as detailed herein.
Interest Due:
Semi-Annually on April 1 and October 1, commencing October 1, 2016.
Purpose and Authority:
Bond proceeds will be used to (i) refund certain outstanding bonds of the City and (ii) finance a variety
of capital improvements of the City as authorized by the Board of Aldermen under provisions of Chapter
33 of the New Hampshire Revised Statutes Annotated.
Redemption:
The Bonds are subject to redemption prior to their stated maturity dates as described herein.
Security:
The Bonds will be valid general obligations of the City of Nashua, New Hampshire, and the principal of
and interest on the Bonds are payable from taxes which may be levied upon all taxable property in the
City without limitation as to rate or amount; provided that, to the extent the City has established any
development districts pursuant to Chapter 162-K of the New Hampshire Revised Statutes Annotated,
taxes levied on certain taxable property located within any such district may be restricted and
unavailable to pay the principal of and interest on the Bonds.
Credit Ratings:
Fitch Ratings and Standard & Poor’s have assigned ratings of AAA and AA+ to the Bonds.
Bond Insurance:
The City has not contracted for the issuance of any policy of municipal bond insurance or any other
credit enhancement facility.
Basis of Award:
Lowest True Interest Cost (TIC), as of the dated date. BIDS MUST INCLUDE A PREMIUM OF AT
LEAST $1,500,000.
Tax Exemption:
Refer to "Tax Exemption" herein and Appendix B, “Proposed Form of Legal Opinion".
Continuing Disclosure:
Refer to Appendix C.
Bank Qualification:
The Bonds WILL NOT be designated by the City as "qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
Paying Agent/
Escrow Agent:
U. S. Bank National Association, Boston, Massachusetts.
Verification Agent:
Grant Thornton LLP, Minneapolis, Minnesota.
Legal Opinion:
Locke Lord LLP, Boston, Massachusetts.
Delivery and Payment:
It is expected that delivery of the Bonds in book-entry only form will be made to The Depository Trust
Company, or its custodial agent, on or about February 23, 2016.
City Official:
Questions concerning the Official Statement should be addressed to: Mr. David G. Fredette, Treasurer,
City of Nashua, New Hampshire, Tel: (603) 589-3185 or Cynthia McNerney, Managing Director,
FirstSouthwest, a Division of Hilltop Securities Inc., Boston, Massachusetts, Tel: (617) 619-4408.
3
NOTICE OF SALE
CITY OF NASHUA, NEW HAMPSHIRE
$16,990,000* GENERAL OBLIGATION BONDS
The City of Nashua, New Hampshire (the “City”), will receive sealed and electronic (as described herein)
proposals until 12:00 Noon Eastern Time, Thursday, February 11, 2016 for the purchase of the following
described general obligation bonds (the "Bonds") of the City:
$16,990,000* General Obligation Bonds payable October 1 of the years and in the amounts as follows:
Due
October 1
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Principal
Am ount*
$
Due
O ctober 1
780,000
1,030,000
1,015,000
1,000,000
280,000
885,000
885,000
885,000
880,000
880,000
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Principal
Am ount*
**
**
**
**
**
**
**
**
**
**
$
880,000
875,000
875,000
860,000
855,000
825,000
825,000
825,000
825,000
825,000
_________________
*Preliminary, subject to change.
**Callable maturities. May be combined into one, two or three Term Bonds as set forth below.
The Bonds will be dated their date of delivery. Principal of the Bonds will be payable on October 1 of the years
in which the Bonds mature. The City reserves the right to increase or decrease such principal amounts shown for
the Bonds for any year as described below. Interest will be payable semiannually on April 1 and October 1,
commencing October 1, 2016.
The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Bonds. The
Bonds will be issued in fully registered form by means of a book-entry system with no physical distribution of the
Bonds made to the public. One certificate for each maturity of the Bonds will be issued to DTC and immobilized
in its custody. Ownership of the Bonds in principal amounts of $5,000 or integral multiples thereof, will be
evidenced by the book-entry system, with transfers of ownership affected on the records of DTC and its
participants pursuant to rules and procedures established by DTC and its participants. The winning bidder, as a
condition to delivery of the Bonds, shall be required to deposit the Bonds with DTC, registered in the name of
Cede & Co. Interest and principal on the Bonds will be payable to DTC or its nominee as registered owner of the
Bonds. Transfer of principal and interest payments to DTC participants will be the responsibility of DTC, and
disbursements of such payments to beneficial owners will be the responsibility of such participants and indirect
participants as more fully described herein. The City will not be responsible or liable for maintaining, supervising
or reviewing the records maintained by DTC, its participants or persons acting through such participants.
The Bonds maturing in the years 2016 through 2025, inclusive, will not be subject to redemption prior to maturity.
The Bonds maturing on and after October 1, 2026 shall be subject to redemption prior to maturity, at the option of
the City, on or after October 1, 2025, either in whole or in part on any date, and if in part, by lot within a maturity,
at the par amount of the Bonds to be redeemed, plus accrued interest to the date set for redemption.
Bidders shall state the rate or rates of interest per annum which the Bonds are to bear in a multiple of 1/20th or
1/8th of 1% but shall not state (a) more than one interest rate for any Bonds having a like maturity, (b) any
interest rate which exceeds the interest rate stated for any other Bonds by more than 3%, or (c) any interest rate
greater than 5%. BIDS MUST INCLUDE A PREMIUM OF AT LEAST $1,500,000.
For Bonds maturing on October 1, 2026, and thereafter, bidders may specify that all of the principal amount of
such Bonds in any two or more consecutive years may, in lieu of maturing in each such year, be combined to
comprise one maturity of Term Bonds scheduled to mature in the latest of the combined years, and shall be
subject to mandatory redemptions prior to maturity at par as described above, in each of the years and in the
principal amounts specified in the foregoing maturity schedule. Bidders may specify no more than three Term
Bonds.
4
As between proposals which comply with this Notice of Sale, the award of the Bonds will be to the bidder who
offers to purchase all of the Bonds at the lowest net effective interest rate to the City. Such interest rate shall be
determined on a true interest cost (TIC) basis, which shall mean that rate which, as of delivery of the Bonds,
discounts semiannually all future payments of principal and interest to the price bid, not including interest accrued
to the date of delivery, which accrued interest shall be paid by the successful bidder. In the event there is more
than one proposal specifying the lowest such rate, the Bonds will be awarded to the bidder whose proposal is
selected by the City Treasurer from among all such proposals.
The City reserves the right to change the aggregate principal amount of the Bonds and the maturity
schedule after the determination of the winning bid by increasing or decreasing the aggregate principal
amount and increasing or decreasing the principal amount of each maturity by such amounts as may be
necessary to a) produce sufficient funds for the purposes for which the Bonds are being issued after
taking into account the premium to be received by the City, (b) produce sufficient funds to effect the
refunding for which a portion of the Bonds is being issued after taking into account the premium to be
received by the City and the actual investment yield at which that portion of the proceeds of the Bonds
are to be invested, and (c) to account for any changes in the bonds to be refunded with a portion of the
proceeds of the Bonds based on the actual debt service savings to be realized by the City. The dollar
amount bid for the Bonds by the winning bidder will be adjusted, if applicable, to reflect changes in the
dollar amount of the amortization schedule. Any price that is adjusted will reflect changes in the dollar
amount of the underwriter’s discount and original issue premium, if any, but will not change the per bond
underwriter’s discount (net of insurance premium, if any) provided in such bid. Nor will it change the
interest rate specified for each maturity. Any such adjustments will be communicated to the winning
bidder by 4:00 P.M. on the day of the sale.
Bids must be submitted either:
(a) In a sealed envelope marked “Proposal for Bonds” and addressed to Mr. David G. Fredette, Treasurer,
City of Nashua, New Hampshire c/o FirstSouthwest, a Division of Hilltop Securities Inc. 54 Canal Street,
3rd Floor, Boston, Massachusetts 02114. Proposals by telegram delivered as specified above will be
accepted. Signed blank bid forms may be faxed to (617) 619-4411 prior to submitting bids, and actual
bids may be telephoned to FirstSouthwest, a Division of Hilltop Securities Inc., telephone (617) 6194400, at least one-half hour prior to the 12:00 Noon sale and after receipt of the faxed bid form by
FirstSouthwest, a Division of Hilltop Securities Inc.. Any bidder who submits a winning bid by telephone
in accordance with this Notice of Sale shall be required to provide written confirmation of the terms of
the bid by faxing or e-mailing a completed, signed bid form to FirstSouthwest, a Division of Hilltop
Securities Inc. by not later than 1:00 P.M. on the date of sale.
(b) Electronically via PARITY in accordance with this Notice of Sale. To the extent any instructions or
directions set forth in PARITY conflict with this Notice of Sale, the terms of this Notice of Sale shall
control. For further information about PARITY, potential bidders may contact the financial advisor to the
City or Dalcomp at 1359 Broadway, 2nd Floor, New York, New York 10018, telephone (212) 849-5021.
An electronic bid made in accordance with this Notice of Sale shall be deemed an offer to purchase the
Bonds in accordance with the terms provided in this Notice of Sale and shall be binding upon the bidder
as if made by a signed and sealed written bid delivered to the City.
The right is reserved to reject all bids and to reject any bid not complying with this Notice of Sale and, so far as
permitted by law, to waive any irregularity with respect to any proposal.
The award of the Bonds to the winning bidder will not be effective until the bid has been approved by the
Treasurer and the Mayor.
The City of Nashua has not contracted for the issuance of any policy of municipal bond insurance for the Bonds.
If the Bonds qualify for issuance of any such policy or commitment therefor, any purchase of such insurance or
commitment shall be at the sole option and expense of the bidder. Proposals shall not be conditioned upon the
issuance of any such policy or commitment. Any failure of the Bonds to be so insured or of any such policy or
commitment to be issued shall not in any way relieve the purchaser of its contractual obligations arising from the
acceptance of its proposal for the purchase of the Bonds. Should the bidder purchase municipal bond insurance,
all expenses associated with such policy or commitment will be borne by the bidder, except for the fees paid to
Fitch Ratings and Standard & Poor’s Rating Group for the ratings of the Bonds. Any such fees paid to Fitch
Ratings and Standard & Poor’s Rating Group would be borne by the City.
5
On or prior to the date of delivery of the Bonds, the successful bidder shall furnish to the City a certificate
acceptable to Bond Counsel generally to the effect that (i) as of February 11, 2016 (the “Sale Date”), the
purchaser had offered or reasonably expected to offer all of the Bonds to the general public (excluding bond
houses, brokers, or similar persons acting in the capacity of underwriters or wholesalers) in a bona fide public
offering at the prices set forth in such certificate, plus accrued interest, if any, (ii) such prices represent fair market
prices of the Bonds as of the Sale Date, and (iii) as of the date of such certificate, all of the Bonds have been
offered to the general public in a bona fide offering at the prices set forth in such certificate, and at least 10% of
each maturity of the Bonds actually has been sold to the general public at such prices. To the extent the
certifications described in the preceding sentence are not factually accurate with respect to the reoffering of the
Bonds, Bond Counsel should be consulted by the bidder as to alternative certifications that will be suitable to
establish the “issue price” of the Bonds for federal tax law purposes. If a municipal bond insurance policy or
similar credit enhancement is obtained with respect to the Bonds by the successful bidder, such bidder will also
be required to certify as to the net present value savings on the Bonds resulting from payment of insurance
premiums or other credit enhancement fees.
It shall be a condition to the obligation of the successful bidder to accept delivery of and pay for the Bonds that it
shall be furnished, without cost, with (a) the approving opinion of the firm of Locke Lord LLP, Boston,
Massachusetts, Bond Counsel, substantially in the form presented in Appendix B to the Preliminary Official
Statement dated February 4, 2016, (b) a certificate in form satisfactory to Bond Counsel dated as of the date of
delivery of the Bonds and receipt of payment therefor to the effect that there is no litigation pending or, to the
knowledge of the signers thereof, threatened affecting the validity of the Bonds or the power of the City to levy
and collect taxes to pay them, (c) a certificate of the City Treasurer to the effect that, to the best of his knowledge
and belief, as of the date of sale the Preliminary Official Statement did not, and as of the date of delivery of the
Bonds the Final Official Statement does not contain any untrue statement of a material fact and does not omit to
state a material fact necessary to make the statements made therein, in the light of the circumstances under
which they were made, not misleading and (d) a Continuing Disclosure Certificate in the form presented in
Appendix C of the Preliminary Official Statement.
The City will not designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265 (b) (3) of
the Internal Revenue Code of 1986, as amended.
Additional information concerning the City of Nashua and the Bonds is contained in the Preliminary Official
Statement dated February 4, 2016 to which prospective bidders are directed. The Preliminary Official Statement
is provided for informational purposes only and is not a part of this Notice of Sale. Such Preliminary Official
Statement is deemed final by the City except for the omission of the reoffering price(s), interest rate(s), delivery
date, any other terms of the Bonds depending on such matters, and the identity of the underwriter(s), but is
subject to change without notice and to completion or amendment in a Final Official Statement. Copies of the
Preliminary Official Statement may be obtained from Mr. David G. Fredette, Treasurer, City of Nashua, 229 Main
Street, Nashua, New Hampshire, 03060 (Telephone: 603 589-3185) or from FirstSouthwest, a Division of Hilltop
Securities Inc., 54 Canal Street, Boston, Massachusetts 02114 (Telephone: 617-619-4400). Following the award
of the Bonds in accordance herewith, 25 copies of the Final Official Statement will be available from
FirstSouthwest, a Division of Hilltop Securities Inc. to the successful bidder for use in reoffering the Bonds. Upon
request, additional copies will be provided at the expense of the successful bidder.
In order to assist bidders in complying with Rule 15c2-12(b) (5) promulgated by the Securities and Exchange
Commission, the City will undertake to provide annual reports and notices of certain significant events. A
description of this undertaking is set forth in the Preliminary Official Statement.
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such
numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the
purchaser thereof to accept delivery of and pay for the Bonds. The City assumes no responsibility for any CUSIP
Service Bureau or other charge that may be imposed for the assignment of such numbers.
The Bonds in definitive form will be delivered to The Depository Trust Company, or its custodial agent, on or
about February 23, 2016 against payment in Federal Reserve Funds.
_________________________
CITY OF NASHUA, NEW HAMPSHIRE
/s/ David G. Fredette, Treasurer
6
OFFICIAL STATEMENT
CITY OF NASHUA, NEW HAMPSHIRE
$16,920,000 GENERAL OBLIGATION BONDS
INTRODUCTION
This Official Statement is provided for the purpose of presenting certain information relating to the City of Nashua,
New Hampshire (the "City") in connection with the sale of $16,920,000 aggregate principal amount of its General
Obligation Bonds hereinafter referred to as the "Bonds". The information contained herein has been furnished by
the City, except information attributed to another governmental agency or official as the source.
THE BONDS
Description of the Bonds
The Bonds will be dated as of their date of delivery and will bear interest payable semiannually on April 1 and
October 1 of each year until maturity, commencing October 1, 2016. The Bonds shall mature on October 1 of the
years and in the principal amounts as set forth on the first page of this Official Statement.
Bonds are issuable only as fully registered Bonds without coupons, and, when issued will be registered in the
name of Cede & Co., as Bondowner and nominee for The Depository Trust Company ("DTC"), New York, New
York. DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry
form, in the denomination of $5,000 or any integral multiple thereof, and purchasers will not receive certificates
representing their interest in Bonds purchased. So long as Cede & Co. is the Bondowner, as nominee of DTC,
references herein to the Bondowners or registered owners shall mean Cede & Co., as aforesaid, and shall not
mean the Beneficial Owners (as defined herein) of the Bonds. (See "Book-Entry Transfer System" herein.)
Principal and semiannual interest on the Bonds will be paid by U. S. Bank National Association, Boston,
Massachusetts, as Paying Agent. So long as DTC or its nominee, Cede & Co., is the Bondowner, such
payments will be made directly to such Bondowner. Disbursement of such payments to the DTC Participants is
the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of
the DTC Participants and the Indirect Participants, as more fully described herein.
Redemption Provisions
Optional Redemption
The Bonds maturing in the years 2016 through 2025 will not be subject to redemption prior to maturity. The
Bonds maturing on and after October 1, 2026 shall be subject to redemption prior to maturity, at the option of the
City, on or after October 1, 2025, either in whole or in part on any date, and if in part, by lot within a maturity, at
the par amount of the Bonds to be redeemed, plus accrued interest to the date set for redemption.
Notice of Redemption
So long as DTC is the registered owner of the Bonds, notice of any redemption of Bonds prior to their maturities,
specifying the Bonds (or the portion thereof) to be redeemed shall be mailed by registered mail to DTC not more
than 60 days nor less than 30 days prior to the redemption date. Any failure on the part of DTC to notify the DTC
Participants of the redemption or failure on the part of the DTC Participants, Indirect Participants, or of a nominee
of a Beneficial Owner (having received notice from DTC Participant or otherwise) to notify the Beneficial Owner
shall not affect the validity of the redemption.
7
Record Date
The record date for each payment of interest is the fifteenth day of the month preceding the interest payment
date, and if such date is not a business day, the record date shall be the next succeeding business day; provided
that, with respect to overdue interest, the Paying Agent may establish a special record date. The special record
date may not be more than twenty (20) days before the date set for payment. The Paying Agent will mail notice of
a special record date to the Bondowners at least ten (10) days before the special record date.
Book-Entry Transfer System
The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Bonds. The Bonds
will be issued in fully-registered form registered in the name of Cede & Co. (DTC's partnership nominee) or such
other name as may be requested by an authorized representative of DTC. One-fully registered certificate will be
issued for each maturity of each series of the Bonds, each in the aggregate principal amount of such maturity,
and will be deposited with DTC.
DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking
Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity, corporate and
municipal debt issues, and money market instruments from over 100 countries that DTC's participants ("Direct
Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales
and other securities transactions in deposited securities, through electronic computerized book-entry transfers
and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust
companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of the
Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of
DTC and Members of the National Securities Clearing Corporation, Fixed Income Clearing Corporation, and
Emerging Markets Clearing Corporation (NSCC, FICC and EMCC, also subsidiaries of DTCC), as well as by the
New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities
Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard &
Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.
Purchases of securities deposited with DTC must be made by or through Direct Participants, which will receive a
credit for such securities on DTC's records. The ownership interest of each actual purchaser of each security
deposited with DTC ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records.
Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are,
however, expected to receive written confirmations providing details of the transaction, as well as periodic
statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered
into the transaction. Transfers of ownership interests in securities deposited with DTC are to be accomplished by
entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial
Owners will not receive certificates representing their ownership interests in securities deposited with DTC, except
in the event that use of the book-entry system for such securities is discontinued.
To facilitate subsequent transfers, all securities deposited by Direct Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of securities with DTC and their registration in the name of Cede & Co. or
such other nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the securities deposited with it, DTC's records reflect only the identity of the Direct
Participants to whose accounts such securities are credited, which may or may not be the Beneficial Owners. The
Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their
customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
8
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to
time.
Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to securities
deposited with it unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the issuer of such securities or its paying agent as soon as possible
after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct
Participants to whose accounts such securities are credited on the record date (identified in a listing attached to
the Omnibus Proxy).
Principal and interest payments on securities deposited with DTC will be made to Cede & Co., or such other
nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the issuer of such
securities or its paying agent, on the payable date in accordance with their respective holdings shown on DTC's
records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street
name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the issuer of such
securities or its paying agent, subject to any statutory or regulatory requirements as may be in effect from time to
time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested by an
authorized representative of DTC) is the responsibility of the issuer of such securities or its paying agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to securities held by it at any time by giving
reasonable notice to the issuer of such securities or its paying agent. Under such circumstances, in the event that
a successor depository is not obtained, physical certificates are required to be printed and delivered to Beneficial
Owners.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor
securities depository). In that event, physical certificates will be printed and delivered to Beneficial Owners.
The information in this section concerning DTC and DTC's book-entry system has been obtained from sources
that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
Authorization of the Bonds and Use of Proceeds
This
Issue
Purpose
School Roofs
Sunset Heights School
Amherst Street/Charon Avenue
Burke Street Property
Fire Pumper Truck
Refunding
Total
$
1,363,000
9,399,900
500,100
2,282,900
464,600
2,909,500
Date of
Authorization
Loan Order
Numbers
11/14/2014
11/14/2014, 3/9/2015 &
7/15/2015
5/28/2015
9/22/2015
12/8/2015
14-082
14-081, 15-012,
15-154
15-140
15-173
15-190
$ 16,920,000
A portion of Bond proceeds will be used to current refund a portion of the City’s $8,485,000 General Obligation
Refunding Bonds dated March 15, 2005, maturing in the years 2016 through 2019, in the aggregate principal
amount of $3,120,000 (the “Refunded Bonds”), and to pay costs of issuing the Bonds.
Plan of Refunding
Upon delivery of the Bonds, the City will enter into a Refunding Escrow Agreement (the “Refunding Escrow
Agreement”) with U.S. Bank National Association, as Escrow Agent, to provide for the refunding of the Refunded
Bonds. Upon receipt of the portion of the proceeds of the Bonds necessary to refund the Refunded Bonds, the
Escrow Agent will deposit in the Refunding Escrow Fund established under the Refunding Escrow Agreement an
amount which will be held in cash to pay when due, interest on, and upon redemption, the outstanding principal of
9
and redemption premium on, the Refunded Bonds. The Refunding Escrow Fund will be pledged for the benefit of
the holders of the Refunded Bonds.
Sources and Uses of Bond Proceeds
Proceeds of the Bonds will be applied as follows:
S o u rc e s :
P a r A m o u n t o f th e B o n d s
P re m iu m
T o ta l S o u rc e s
$ 1 6 ,9 2 0 ,0 0 0 .0 0
1 ,8 7 0 ,2 8 6 .0 6
$ 1 8 ,7 9 0 ,2 8 6 .0 6
U ses:
D e p o s it to R e fu n d in g E s c ro w F u n d
D e p o s it to C a p ita l P ro je c t F u n d
U n d e rw rite r's D is c o u n t
C o s ts o f Is s u a n c e
T o ta l U s e s
$
3 ,1 2 0 ,0 0 0 .0 0
1 5 ,3 8 0 ,2 2 3 .0 0
1 5 8 ,9 5 9 .6 8
1 3 1 ,1 0 3 .3 8
$ 1 8 ,7 9 0 ,2 8 6 .0 6
Tax Exemption
In the opinion of Locke Lord LLP, Bond Counsel to the City (“Bond Counsel”), based upon an analysis of existing
laws, regulations, rulings, and court decisions, and assuming, among other matters, compliance with certain
covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section
103 of the Internal Revenue Code of 1986 (the “Code”). Bond Counsel is of the further opinion that interest on
the Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum
taxes, although Bond Counsel observes that such interest is included in adjusted current earnings when
calculating corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding any
other federal tax consequences arising with respect to the ownership or disposition of, or the accrual or receipt of
interest on, the Bonds. The Bonds will not be designated as “qualified tax-exempt obligations” for purposes of
Section 265(b)(3) of the Code.
The Code imposes various requirements relating to the exclusion from gross income for federal income tax
purposes of interest on obligations such as the Bonds. Failure to comply with these requirements may result in
interest on the Bonds being included in gross income for federal income tax purposes, possibly from the date of
original issuance of the Bonds. The City has covenanted to comply with such requirements to ensure that interest
on the Bonds will not be included in federal gross income. The opinion of Bond Counsel assumes compliance
with these requirements.
Bond Counsel is also of the opinion that, under existing law, interest on the Bonds is exempt from the New
Hampshire personal income tax on interest and dividends. Bond Counsel expresses no opinion on any other
New Hampshire tax consequences arising with respect to the Bonds. Bond Counsel has not opined as to the
taxability of the Bonds or the income therefrom under the laws of any state other than New Hampshire. A
complete copy of the proposed form of opinion of Bond Counsel is set forth in Appendix B hereto.
To the extent the issue price of any maturity of the Bonds is less than the amount to be paid at maturity of such
Bonds (excluding amounts stated to be interest and payable at least annually over the term of such Bonds), the
difference constitutes “original issue discount,” the accrual of which, to the extent properly allocable to each owner
thereof, is treated as interest on the Bonds which is excluded from gross income for federal income tax purposes
and is exempt from the New Hampshire personal income tax on interest and dividends. For this purpose, the
issue price of a particular maturity of the Bonds is the first price at which a substantial amount of such maturity of
the Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the
capacity of underwriters, placement agents or wholesalers). The original issue discount with respect to any
maturity of the Bonds accrues daily over the term to maturity of such Bonds on the basis of a constant interest
rate compounded semiannually (with straight-line interpolations between compounding dates). The accruing
original issue discount is added to the adjusted basis of such Bonds to determine taxable gain or loss upon
disposition (including sale, redemption, or payment on maturity) of such Bonds. Bondholders should consult their
own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount,
including the treatment of purchasers who do not purchase such Bonds in the original offering to the public at the
first price at which a substantial amount of such Bonds is sold to the public.
10
Bonds purchased, whether at original issuance or otherwise, for an amount greater than the stated principal
amount to be paid at maturity of such Bonds, or, in some cases, at the earlier redemption date of such Bonds
(“Premium Bonds”), will be treated as having amortizable bond premium for federal income tax purposes and for
purposes of the New Hampshire personal income tax on interest and dividends. No deduction is allowable for the
amortizable bond premium in the case of obligations, such as the Premium Bonds, the interest on which is
excluded from gross income for federal income tax purposes. However, a Bondholder’s basis in a Premium Bond
will be reduced by the amount of amortizable bond premium properly allocable to such Bondholder. Holders of
Premium Bonds should consult their own tax advisors with respect to the proper treatment of amortizable bond
premium in their particular circumstances.
Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken)
or events occurring (or not occurring) after the date of issuance of the Bonds may adversely affect the value of, or
the tax status of interest on, the Bonds.
Prospective Bondholders should be aware that from time to time legislation is or may be proposed which, if
enacted into law, could result in interest on the Bonds being subject directly or indirectly to federal income
taxation, or otherwise prevent Bondholders from realizing the full benefit provided under current federal tax law of
the exclusion of interest on the Bonds from gross income. To date, no such legislation has been enacted into law.
However, it is not possible to predict whether any such legislation will be enacted into law. Further, no assurance
can be given that any pending or future legislation, including amendments to the Code, if enacted into law, or any
proposed legislation, including amendments to the Code, or any future judicial, regulatory or administrative
interpretation or development with respect to existing law, will not adversely affect the market value and
marketability of, or the tax status of interest on, the Bonds. Prospective Bondholders are urged to consult their
own tax advisors with respect to any such legislation, interpretation or development.
Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for federal
income tax purposes and is exempt from the New Hampshire personal income tax on interest and dividends, the
ownership or disposition of, or the accrual or receipt of interest on, the Bonds may otherwise affect a
Bondholder’s federal or state tax liability. The nature and extent of these other tax consequences will depend
upon the particular tax status of the Bondholder or the Bondholder’s other items of income, deduction, or
exclusion. Bond Counsel expresses no opinion regarding any such other tax consequences, and Bondholders
should consult with their own tax advisors with respect to such consequences.
Continuing Disclosure
In order to assist the successful bidder in complying with Rule 15c2-12(b) (5) promulgated by the Securities and
Exchange Commission (the “Rule”), the City will covenant for the benefit of owners of the Bonds to provide
certain financial information and operating data relating to the City by not later than 270 days after the end of
each fiscal year (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events and
to provide notice of failure to provide the Annual Report. The covenants will be contained in a Continuing
Disclosure Certificate, the proposed form of which is provided in Appendix C. The Certificate will be executed by
the signers of the Bonds, and incorporated by reference in the Bonds.
In the past five years, the City believes it has not failed to comply, in any material respect, with any previous
undertaking to provide annual reports or notices of significant events in accordance with the Rule.
Financial Advisory Services of FirstSouthwest, a Division of Hilltop Securities Inc.
FirstSouthwest, a Division of Hilltop Securities Inc., Boston, Massachusetts, serves as financial advisor to the City
of Nashua, New Hampshire.
First Southwest Company, LLC (“FirstSouthwest”) merged with its common control affiliate, Hilltop Securities Inc.
(“HilltopSecurities”). The merger was completed at the close of business on January 22, 2016, at which time
HilltopSecurities, as the surviving entity, automatically assumed all rights and obligations of FirstSouthwest. The
firm’s municipal advisory business will continue to operate as FirstSouthwest, a Division of Hilltop Securities Inc.
11
Ratings
Fitch Ratings and Standard & Poor’s have assigned ratings of AAA and AA+ to the Bonds. Said ratings reflect only
the respective rating agency’s views and are subject to revision or withdrawal, which could affect the market price
of the Bonds.
Other Legal Matters
All legal matters incidental to the authorization and issue of the Bonds are subject to approval of the firm of Locke
Lord LLP, Boston, Massachusetts as Bond Counsel. A proposed form of the legal opinion of Bond Counsel is
included herein as Appendix B.
Other than as to matters expressly set forth herein as the opinion of Bond Counsel, Bond Counsel are not passing
upon and do not assume any responsibility for the accuracy or adequacy of the statements made in this Official
Statement and make no representation that they have independently verified the same.
12
CITY OF NASHUA, NEW HAMPSHIRE
General
The City of Nashua is located in Hillsborough County along the Merrimack River in southern New Hampshire,
approximately 34 miles northwest of Boston, Massachusetts and 18 miles south of Manchester, New Hampshire.
The City encompasses an area of 32 square miles. Settled early in the seventeenth century by inhabitants of the
Boston area, Nashua was first a part of Massachusetts and called Dunstable. Later, as a part of New Hampshire,
it was incorporated as a City in 1853. The City is governed by its charter (adopted in 1913 and amended from
time to time) and an elected Mayor and fifteen member Board of Aldermen. According to the 2010 census, the
City has a population of 86,494.
History
Early settlers of land known today as the City of Nashua, (then known as Dunstable) in the 1600s originated from
England and Massachusetts as pioneers and homesteaders to settle on grants of land. The economy of the
community at that time could be characterized as farming and mercantile/commercial trade. The 1700s continued
the settlement period as the sawmills and gristmills were established to harness the many streams and brooks
throughout the town. The late 1700s was a significant period for the region due to construction of the 27.75 mile
long Middlesex Canal System linking the Merrimack River to Charlestown-Boston. Direct water access to Boston
markets immensely increased trade opportunities.
During the 1800s two giant mills were established by harnessing waterpower via the canal systems. Metal
manufacturing, iron industries and other heavy industries were established often as ancillary and support
businesses to the large mills. Railroads built throughout the region in the mid-1800s dramatically reduced the
general expense of travel and transportation of goods. The year 1853 marked the official establishment of the
City of Nashua.
Form of Government
The City is governed by its charter which was adopted in 1913 and which has been amended from time to time.
The Mayor and the fifteen member Board of Aldermen are the chief executive and legislative officers of the City,
and are generally responsible for the administration of the fiscal, prudential, municipal, and other affairs of the
City.
The City also is responsible for providing education, under requirements established by the State of New
Hampshire. An elected 9 member School Board manages academic and most business affairs with fiscal
autonomy on certain matters such as personnel salaries. However, the School Board does not represent an
autonomous governmental unit, independent from the City of Nashua. Financial management and reporting, as
well as the issuance of debt obligations, are the City's responsibility.
Principal Executive Officers
Name
Office
Length of Term
Term Expires
James W. Donchess
John Griffin
David G. Fredette
Mayor
Chief Financial Officer
Treasurer/Tax Collector
December, 2019
Indefinite
Sarah Marchant
Patricia D. Piecuch
Director of Community
Development
City Clerk
Stephen Bennett
Corporation Counsel
Four-Year Elected Term
Appointed by Mayor
Appointed by the Mayor/
Confirmed by the Board of Aldermen
Appointed by the Mayor/
Confirmed by the Board of Aldermen
Appointed by the Mayor/
Confirmed by the Board of Aldermen
Appointed by the Mayor/
Confirmed by the Board of Aldermen
13
Indefinite
Indefinite
Indefinite
Indefinite
Municipal Services
The City provides general governmental services for the territory within its boundaries, including police and fire
protection, refuse disposal, sewer services, highways, and street and sidewalk maintenance. Public education is
provided for grades kindergarten through twelve, providing a comprehensive program of preparatory courses,
general education and business courses. In addition, the City maintains 965 acres of park sites and includes the
Holman Stadium, a 4,500 seat outdoor stadium. The stadium is used for sporting events including minor league
professional baseball, football and City events. In addition, there are 49 athletic fields for baseball, football and
soccer, 7 ice skating rinks, 3 outdoor swimming pool complexes, and 22 tennis courts. The Nashua Airport
Authority provides air service out of the Boire Airport in Nashua.
Water service in the City is provided by the Pennichuck Corporation, a private corporation of which the City is the
sole shareholder (“Pennichuck”). See “Acquisition of Pennichuck Water Utilities” below. Water is obtained from
the Pennichuck Brook Watershed and one gravel-packed well, the watershed having a drainage area of
approximately 27 square miles. Pumping capacity is 32 million gallons per day with a maximum treatment
capacity of 35 million gallons per day. Pennichuck bills customers and collects payments directly. Water rates
are based on a flat monthly fee which is dependent on the size of the customer meter plus a consumption charge.
The fee for an average single family home consuming 7.9 ccf per month is $46.73 per month.
Wastewater services for the City of Nashua, the Town of Hudson and a portion of the Towns of Merrimack, New
Hampshire and Tyngsboro, Massachusetts, are provided by the City of Nashua Wastewater System, which is a
municipal enterprise. The wastewater collection system is comprised of 330 miles of lateral, trunk, and
interceptor sewers. The Nashua Wastewater Treatment Facility (“NWTF”) employs both primary and secondary
treatment processes. The design flow of the NWTF is 16.0 million gallons per day (MGD). The average daily flow
is 10.9 MGD. In fiscal 2015 the NWTF treated 3.99 billion gallons of wastewater. The total budget for the NWTF
in fiscal 2016 is $20 million which includes both operational expenditures of $13.0 million (consisting of
operations, collection system maintenance, billing services, debt service, storm water control, and the equipment
replacement fund) and $7.0 million of combined sewer overflow (CSO) abatement and other capital projects.
Revenues for the system for fiscal 2016 are estimated at $20 million which includes $6.4 million of accumulated
earnings. Unrestricted net assets of the wastewater system were $14.4 million (as of June 30, 2015). The
average cost to a residence is approximately $295 per year. The City anticipates sufficient capacity for at least
the next ten years.
The City’s combined sewer overflow (“CSO”) program, mandated by the EPA, completed its last major project in
December 2014 for a total program cost of $65 million in an effort to control the discharge of combined sewage to
the waterways. The City has entered into a Consent Decree with the EPA implementing a long term CSO plan,
which now requires the implementation of a post-construction monitoring program to determine the impact of the
CSO projects. The City has budgeted approximately $125,000 annually to address these operational projects.
The City of Nashua provides solid waste and recyclables collection and disposal service for approximately 23,000
residential dwellings. Commercial haulers service in excess of 14,501 dwellings in condominium and large
apartment complexes and mobile home parks. In fiscal year 2015, a total of approximately 26,986 tons of
residential solid waste were disposed of at the Four Hills Landfill. In this same period commercial and private
haulers disposed of approximately 28,755 tons of solid waste. Of this total, 10,914 tons were categorized as
residential waste generated through the residential credit program. In addition, 6,032 tons of construction and
demolition debris and 406 tons of asbestos were disposed of during fiscal year 2015. The total permitted capacity
of Phase I, Phase II and Phase III stands at just less than 4.0 million cubic yards.
Acquisition of Pennichuck Water Utilities
On January 25, 2012, the City acquired 100% of the outstanding shares of Pennichuck, the private utility
providing water services to the City and to a number of other communities. The City’s objectives in acquiring
Pennichuck were to secure and protect its critical water resources, and provide water service at reduced rates.
To acquire the Pennichuck stock and pay related costs of the transaction, the City issued $150,570,000 General
Obligation Pennichuck Corporation Acquisition Bonds (Federally Taxable) (the “Pennichuck Bonds”), dated
January 25, 2012.
While the City believed that the revenues reasonably expected to be realized through its ownership of
Pennichuck, together with operational savings reasonably projected to result from the acquisition, would be
14
sufficient to conduct the businesses operated by Pennichuck and its subsidiaries, fund necessary capital
improvements and/or fund debt service on future bonds issued by Pennichuck to fund capital improvements, and
provide cash flow to offset the City’s payment of debt service on the Pennichuck Bonds, the Pennichuck Bonds
were issued as general obligations of the City payable as to principal and interest from ad valorem taxes, which
may be levied without limitation as to rate or amount on all taxable property of the City. Therefore, payment of the
Pennichuck Bonds is not dependent upon receipt of any amounts from Pennichuck. The Pennichuck Bonds are
not secured by any pledge of revenues, or any other assets of the City, Pennichuck, or its subsidiaries.
Operation of Pennichuck and its Businesses After the Merger
Pennichuck’s businesses and operations have continued with little or no changes following the City’s acquisition
of Pennichuck. The business and affairs of Pennichuck are managed and overseen by a corporate board of
directors, whose members were nominated by the Pennichuck board and subject to election by the City, in its
capacity as sole shareholder. Pennichuck and its subsidiaries are operated and managed by staff in its employ at
the time of the City’s acquisition of Pennichuck, at the operational and customer support level, although certain
management positions which mainly supported Pennichuck’s publicly-traded status were eliminated shortly after
the acquisition of Pennichuck.
Economy
Known as the Gateway City for its strategic location just over the Massachusetts border, Nashua is the State’s key
center for business and government. With an abundance of opportunities for business and living alike, the City of
Nashua is the second largest city in the State of New Hampshire. It has twice been named the “Best Place to Live
in America” by Money magazine – the only city in the country to be so honored twice.
The City continues to grow, reinvent and reinvigorate itself in response to ever changing economic trends and
challenges, much as it has always done since its establishment some 350 years ago. Once a leader in textile
manufacturing, the local economy has transformed into one that emphasized the development of electrical
equipment, computer and machinery manufacturing. In more recent years, software development, defenserelated research and development, telecommunications, robotics and medical devices have blossomed into key
industries. The City also maintains its position as the dominant regional retail hub and is increasingly emerging as
a regional center for healthcare services. With less than 300 acres of undeveloped commercial/industrial land and
vacant residentially zoned land becoming scarce, Nashua is largely built-out. As a result, focus has shifted
primarily toward redevelopment and rehabilitation to keep Nashua on the forefront of economic, technological and
social change.
The City strives to build and maintain strong, dynamic relationships with its business community and fosters
opportunities for existing business development and expansion, continued tax base improvements, new business
recruitment programs and efforts to maintain the integrity and desirability of all existing neighborhoods. The area
is home to a broad base of leading international corporations including, Oracle, BAE Systems, Dell, Fidelity
Investments and many others. Since 1960, Nashua’s population has nearly doubled--a tribute to the area’s high
quality of life and industrial success.
Location of Industry
While industrial and commercial uses are found throughout Nashua, they are concentrated along its commercial
corridors, and in particular in areas that have easy access to and from the FE Everett Turnpike. Notable
concentrations exist in the southerly portion of Nashua along the Daniel Webster (“DW”) Highway (accessed via
Exits 36, Exit 1, Exit 2 and Exit 3 on the FE Everett Turnpike), in the north along Amherst Street (via Exits 7 and
8), and in the center of the City along West Hollis Street, Simon Street and Northeastern Boulevard (via Exits 5
and 4). More established commercial areas can be found in the core of Nashua and include Downtown Nashua,
the Nashua Millyard and areas along Bridge Street and East Hollis Street. Many of these established areas have
hosted industry for more than 150 years.
The City’s largest commercial center is the DW Highway commercial corridor in south Nashua, which extends to
the New Hampshire/Massachusetts state line. Nearly the entire two miles of commercially zoned land along the
DW Highway has been developed for retail and commercial uses, making it the second largest concentration of
retail space in New England. Here, area residents, including a substantial population from Northern
15
Massachusetts, take advantage of sales tax-free New Hampshire shopping at its best. Pheasant Lane Mall
anchors the corridor. The Simon Properties-owned super-regional mall boasts over 1 million square feet of retail
space. It includes major tenants such as Sears, J.C. Penney, Macy’s, and Target. The mall recently welcomed a
Dick’s Sporting Goods (the largest in New England) as well as two new restaurants. The mall recently completed
a $10 million facelift that includes redesigned entrances, a renovated food court and new surface treatments in all
common areas. The DW Highway commercial corridor attracts over 10 million shoppers annually.
In addition to the Pheasant Lane Mall, furniture stores include Jordan’s, Bernie & Phil’s, and Bob’s Discount
Furniture, auto dealerships include Volvo, BMW, Jeep, Toyota, Buick, Toyota, Chrysler, Dodge, Jeep, Hyundai,
Infiniti, and Chevrolet, along with other nationally recognized chains such as Barnes & Noble, Modell’s, Home
Depot, Best Buy, and Old Navy have all located along this corridor. The location is in such great demand that
redevelopment of older commercial properties is a continual process, allowing the area to remain on top of current
retail trends. The 45-acre former DOW Chemical site on East Spitbrook Road (about ½ mile north of Pheasant
Lane Mall), for example, is envisioned as a 600,000 square foot “lifestyle” retail center. The total real estate
valuation in the DW Highway area continues to be significant not only to the City of Nashua but to the entire State
of New Hampshire.
In February of 2014, Surfs Up opened next door to the Sky Venture indoor skydiving facility. Surfs Up houses the
nation’s largest standing wave stream machine, which can produce a 5-foot wave with a 32-foot face to carve and
even get barreled.
A dramatic turnaround has occurred along Spit Brook Road, just west of the Exit 1 along the FE Everett Turnpike.
In December of 2007, the same month that the National Bureau of Economic Research determined that the Great
Recession started, Hewlett Packard announced that it was leaving the former Digital Equipment Corporation
facility off of Spit Brook Road. For over a quarter of a century, that facility had been the heart of the burgeoning
technology industry in southern New Hampshire. In 2007, the John J. Flatley Company acquired the property and
began an aggressive program of improvement and investment in the facility to reconfigure it from a single user
facility into a multi-tenant property. The John J. Flatley Company put in new elevators, reconstructed entrances,
landscaped and remade the façade. They aggressively marketed the site as the premiere location for technology
companies in southern New Hampshire and have consistently and successfully attracted major tenants to the
facility including Amphenol, Skillsoft, Benchmark Electronics, Dell – Equallogics, VGo and Plexxi. The facility has
regained its place as the center of the southern New Hampshire technology cluster. Thousands of people are at
work at the facility creating some of the most innovative products in the world.
The City worked closely with the John J. Flatley Company to plan for future growth. The 400-acre property was
rezoned and Dozer Road partially abandoned in order to facilitate the logical and continued growth of the park. In
2015 the company completed the construction and lease up of 530 units of luxury apartments. Tara Commons, a
24,000 square foot retail and medical office complex has opened along Spit Brook Road and is 90% leased. A
new, 120-unit Hilton Homewood Suites just opened in the fall of 2015. A 240,000 square foot office/R&D building
is also planned. All of these efforts will help to transform Gateway Hills into a thriving mixed-use community.
These amenities are designed to allow the site to continue to attract the best and brightest employees and
companies.
In the northwest quadrant of Nashua, the Amherst Street commercial area (Route 101A), represents a growing,
diversified district, boasting a strong concentration of retail, along with significant office, research, industrial and
educational uses. Beyond providing an excellent array of shops and services for the local consumer, it also
attracts patrons from other New England states and Canada. On any given Saturday parking lots are filled with
cars bearing out of state license plates from as far away as New York, Connecticut, Rhode Island, Maine,
Vermont, and Canada, as well as a substantial number from Massachusetts. The three-mile corridor contains six
different commercial “strip centers”, each of which ranges from 50,000 to 100,000 square feet. Unlike the Daniel
Webster Highway area, however, Amherst Street has a large office component. Within the immediate vicinity are
buildings housing nearly one-half million square feet of prime, class-A office space. Nashua Community College,
Granite State College, Southern New Hampshire University-Nashua, and the Crowne Plaza Hotel, numerous
restaurants and banks are but a few of the larger tenants in this area. Growth and development continues with
the recently opened Target, T J Maxx, Texas Road House Restaurant and Panera Bread Restaurant. A 4-story,
104-room Hampton Inn opened in 2009 on the former Ground Round Restaurant site at the corner of Somerset
Parkway and Amherst Street.
16
New activity is emerging along the busy Amherst Street corridor. Market Basket consolidated two grocery stores
along Amherst Street into a single, modern 84,000 square foot store at Somerset Plaza. Whole Foods Market
opened its first New Hampshire store at Turnpike Plaza in August of 2014. A 20,000 square foot retail plaza,
anchored by Aldi Supermarket is under construction at the former Nashua Motor Freight site at 270 Amherst
Street.
Located steps from Amherst Street and accessed immediately from Exit 8 is the WE/SC LLC Corporate Park,
comprised of 1.1 million square feet on a site of approximately 100 acres. Currently, this research and
development park contains a 250-room Marriott Hotel, a regional cancer center, a public storage facility, an
extended stay motel, and two office buildings totaling 110,000 square feet. Viega, a German based leader in the
production of innovative plumbing and heating systems, opened its first North American training center in 2006 on
one of the two remaining undeveloped lots in the park. Dartmouth-Hitchcock Medical Center opened a 180,000
square foot in-patient medical facility in 2012. Expansion potential exists on a site next door. Steps away, a new
Marriot Residence Inn opened in November of 2014.
Westwood Industrial Park, 105-acres in the northwest corner of the City off of Amherst Street, is the City’s newest
industrial park. Delta Education, a producer of educational products, was the first tenant in the park. Bellevance
Beverage (a 78,920 square foot distribution facility) and ITT Corporation (55,765 square feet of research and
development and office space) are two of the businesses located in Westwood Park. Two C Pack Systems, a
premium packaging company headquartered in Italy, purchased the Lowell Paper Box Company in 2007 and the
former Corning building (330,000 square feet) in February 2008. They moved into the renovated space in
December of 2008.
Though the City’s newer office/industrial parks are prominent, much of the City’s technological innovation and
entrepreneurial activity is currently taking place in one of the City’s oldest industrial areas: the historic Millyard
District near Downtown Nashua. Here, numerous small businesses are taking advantage of the City’s highly
skilled and educated labor force to develop new cutting edge products and technologies. This entrepreneurial
spirit is found in Downtown Nashua as well, which boasts unique retailers and award winning restaurants in a
classic and historic New England main street shopping district. Both of these areas are poised to grow due to the
opening of the Broad Street Parkway in December of 2015.
Manufacturers are reporting a rebound from the effects of the recession. Electronics and systems manufacturers,
including those involved in the manufacture of medical devices, are expanding in Nashua. Resonetics, a 30 year
old laser machining and laser systems manufacturer, has opened a new facility at 44 Simon Street, expanding to
50,000 square feet with a plan to double its workforce of 125 within 2 years. FLIR Commercial Systems recently
purchased a 90,000 square foot building at 8 Townsend West and is in the midst of a $10 million building
renovation, which will allow it to consolidate three business units from Massachusetts and Southern New
Hampshire and expand its workforce in Nashua substantially. The Rapid Group, a Nashua-based project and
parts prototyping company, has grown exponentially over the past five years to over 300 employees.
Housing Development
New housing developments have been developed or are under construction for families and individuals of all
types, sizes and income levels throughout the City. In 2008, as part of the City’s Brownfields initiative, the City
worked with a local developer to build a 41-unit townhome project called Prescott Square which provides
workforce housing. Nearby on Temple Street, Neighborhood Housing Services of Greater Nashua recently
completed Casimir Place, another workforce housing development. This innovative project provides 28 units of
affordable rental housing for working families, including 6 townhouse units constructed within the former St.
Casimir Church. Assistance was also provided by the City through its Urban Programs Department and through
the New Hampshire Housing Finance Authority. Also on Temple Street, the City teamed with Southern NH
Services and the Nashua Association for the Elderly to build a new 24,000 square foot senior center and 43 units
of affordable elderly housing.
Located in a downtown neighborhood a few blocks from Main Street, Palm Square was completed in 2009. The
project is major rehabilitation of the almost 200,000 square foot historic Batesville Casket Company
manufacturing building into 140 senior apartments for active adults aged 55 and over, as well as retail space and
the successful New World Chinese Restaurant. The complex is 100% occupied and boasts a growing waiting list.
The groundbreaking of 23 senior cottages took place in 2008 in South Nashua to complement The Huntington, a
17
full service life care retirement community which provides 125 one and two-bedroom apartments situated in a
beautiful rural setting across from Sky Meadows. Traditional single-family homes continue to be developed in
various areas of the City. Small in-fill developments have also occurred in many neighborhoods.
The City of Nashua, through the Nashua Business and Industrial Development Authority, has partnered with Long
Island-based developer Renaissance Downtowns to plan for the redevelopment of 26 acres of underutilized
industrial land. The site is located at the confluence of the Nashua and Merrimack Rivers, and sits adjacent to the
Taylor Falls Bridge on the way to Hudson, NH. The City signed a preferred developer agreement with
Renaissance in 2009, which allows Renaissance to develop a concept plan for the site. A concept plan refined in
2012 shows a mixed-use development with up to 700 units of housing situated in a village concept. The project
will include supporting commercial and retail space.
The Nashua Planning Board recently approved a site plan for over 225 units. Groundbreaking is expected in
2016.
The City is also working closely with the State of NH DOT and NRPC to plan for an innovative traffic circle at the
foot of the Taylor Falls Bridge. The traffic circle would help to improve traffic flow at this notorious traffic
bottleneck. The project would also provide better access to the first phase of the Renaissance project and provide
a unique opportunity to incorporate sustainable design as part of this traffic improvement. Preliminary engineering
has begun on the $3.5 million project, which is fully funded by State and Federal highway funds.
The long anticipated Apartments at Cotton Mill project opened in 2014 and leased up in less than 9 months. This
th
ambitious historic rehabilitation of the 19 century Cotton Storage Building into 109-units of mixed income
housing promises to transform the Front and Franklin Mill District. Conceived and developed by The Stabile
Companies, this project has brought more vitality to Downtown Nashua and opened up access to the Nashua
River for all residents to enjoy (expansion of the Riverwalk). The project is an important project that has required
close collaboration among the developer, the City, the State of NH and the Federal Government to make happen.
Already, the success of the Apartments at Cotton Mill has prompted additional activity nearby. Brady Sullivan
Properties recently acquired the 300,000 sq. ft. mill building at 34 Franklin Street. The firm received site plan
approval from the Nashua Planning Board in November of 2015 to convert the property into 170 units of market
rate residential apartments. The firm is poised to break ground in January to transform this eyesore into a
thriving, residential community within 12 months. This will continue the series of exciting redevelopment activity
adjacent to Downtown Nashua.
Infrastructure Investment
The City in conjunction with the State of New Hampshire has invested in road improvements in support of new
development and has provided a coherent planning framework. Both are leading efforts to restore passenger rail
service between Boston and New Hampshire through an extension of the existing MBTA line that now terminates
just 12 miles away in Lowell. In 2008, the City of Nashua authorized the construction of the Broad Street
Parkway, a $74 million roadway that now links Downtown Nashua, the Millyard, and other key redevelopment
sites with Broad Street (near the Exit 6 Interchange) and the Everett Turnpike. Completed in December of 2015,
the roadway also provides a second bridge crossing the Nashua River. Commuter bus service between Nashua
and Boston began in 2007, with stops at South Station and Logan Airport. It has become an overwhelming
success.
Downtown Nashua continues to serve as a vibrant center for Nashua and the surrounding region. New
restaurants and retailers are locating alongside established favorites, adding to the ever-expanding diversity of the
City’s historic core. The Apartments at Cotton Mill were completed in April of 2014, providing the first new marketrate housing in downtown in decades. In nine months, all 109 units within the historic mill complex were fully
leased, bringing over 250 new residents to the historic core of Nashua.
A key aspect of the Apartments at Cotton Mill project was a major flood control improvement to the City-owned
Jackson Falls Dam. The $850,000 improvement included the installation of an adjustable crest gate on the top of
the dam. This allows the City to lower the gate when flood conditions are present. The City has experienced socalled 100-year floods with greater frequency in recent years. The crest gate improvements will help to minimize
the effect that flood events will have on downtown Nashua properties upstream of the dam (both publicly and
18
privately owned), without increasing the impact on properties below the dam. The dam improvement was
completed in the fall of 2013.
Economic Development Strategic Plan
Throughout fiscal 2005, the City worked with a private consulting firm, Mt. Auburn Associates, to prepare an
Economic Development Strategic Plan for the City. This same firm completed a similar plan in 1992, the wellreceived Nashua at the Crossroads. The overall goals of the plan, officially adopted by the City in December of
2005, are to:



improve the economic well-being of all residents of the City,
improve the competitiveness of the City and address needs of the business community, and
ensure a stable fiscal environment.
The planning process included three key phases: an Economic and Resource Base Analysis, Strategies to Build a
Competitive City, and an Implementation Plan that included a separate Marketing Plan. Throughout the fall of
2004 and winter of 2005, Mt. Auburn Associates held multiple meetings with various City officials and the Board of
Aldermen’s Planning & Economic Development Committee which provided oversight for the project. In addition,
interviews were held with over fifty individual business and community leaders. Along with interviews, site visits
and public meetings, the study included a comprehensive review and analysis of data from a wide range of
sources and an analysis of how Nashua compares to other cities of similar size, composition and location.
In April of 2005, an Economic Summit was held to present the principal findings and recommendations of the plan
to the public. Among its major findings is that Nashua is a relatively prosperous city with increasingly strong links
to Greater Boston. The City benefits from a young and highly skilled talent base with very high concentrations in
disciplines such as engineering and software. Nashua also has a good entrepreneurial environment and benefits
greatly from strategic investments that have been made in its schools, transportation system and downtown. The
City, however, also faces challenges due to a lack of support for research and development in the State, limited
links to university based research facilities, a lack of vacant developable land, and relatively high unemployment
and high housing costs. To build upon the City’s assets and address its challenges, the plan sets out five key
strategy areas outlined below.
1.
Investing in the Future - The Role of the City of Nashua in Sustaining its Quality of Life:
a. Continue to invest and support excellence in the public schools
b. Support commuter rail and transit-oriented development
c. Continue to invest and improve Downtown
d. Promote investments that secure the City’s role as a retail Mecca
2.
Managing for Success - Advancing a Collaborative Private-Public Sector Culture:
a. Create a more customer-oriented, integrated management team
b. Streamline the City’s permitting processes
c. Build new opportunities for business-city dialogue
d. Develop a marketing effort to promote the Team Nashua approach
3.
Accelerating Enterprise Development - Stimulating Innovation and Entrepreneurship:
a. Create a Center for Innovation Acceleration
b. Support immigrant entrepreneurs
c. Focus Nashua’s RLF on innovation acceleration and immigrant enterprise development
4.
Promoting the City - Marketing its Economic Development Product:
a. Inside marketing: keep the existing business base strong through retention and expansion efforts
b. Outside marketing: strategic business recruitment
c. Academic marketing: attract a satellite campus
5.
Addressing Regional Housing and Workforce Challenges - Leading and Convening Regional
Stakeholders:
a. Work with the Nashua Regional Planning Commission to make affordable housing a more
regional issue
b. Help convene regional stakeholders to build career ladders for low and moderate-income
residents
19
The City and the Greater Nashua Chamber of Commerce have partnered on an ambitious effort to re-brand
Nashua. Both the City and the Chamber of Commerce recognized the need to develop a consistent and powerful
brand for Nashua. The branding platform helps to consolidate the multiple messages that tell the story about
Nashua into one, consistent message about the positive momentum in Nashua. The City launched its new
branding platform with the tagline “Nashua, Dare to Begin” in the fall of 2013. This platform, which celebrates
Nashua heritage as a center for innovation and entrepreneurship, was launched with a new marketing website,
www.nashuadares.com, as well as the associated social media tools.
20
The following pages provide a summary of the history of large scale residential, commercial and industrial
development within the City.
LARGE-SCALE RESIDENTIAL DEVELOPMENTS
1990-2015
# of
Dwelling
Units
# of
Dwelling
Units
1990
South Main Street
Pine Brook
23
57
Heidi Lane
Edmatteric
Lansing Drive
12
12
18
Gilson Road Subdivision
Skymeadows – Birches
Cobblehill Road
Ridge Road
Longview Meadows
18
15
15
24
16
Hadley Woods
36
Freshwater Court
Granite Hill
11
34
Village at Bowers Pond
49
2004-06/2005
Jackson Falls-Riverfront
Condominiums
Temple St. Realty
Wild Rose Estates
Salmon Brook Flats - Elderly
Nashua Assoc. - Elderly
St. Casimir
Mine Falls Estates
Greenleaf of Nashua
Courtney Estates
Maplewood Phase 6
Hollis East
Mile High R.E.
Groton Woods
7/05 – 12/2011
Northfield Estates
Lowther Place
Streeter Landing Elderly Housing
Harbor Homes Veterans' Housing
Huntington CCRC assisted du’s
Dalton Village
Southline Woods
Cotton Mill Square
AHEPA Retirement Home
Prescott Square
Colliston Yard Elderly Condos
Palm View Crossing senior apts
Kempton Heights
22 Marshall St Apartments
Kincaid Lane
7 Coliseum Av Senior Apts
Addition
Hayden Green
Stinson Park
Wellman Terrace
2012
91 Farley Rd Single Family
Brook Village North Apts
Tara Ridge Apts
65 Pine Hill Senior Housing
2013
1991
1993
1994
1995
1996
1997
Brox Development
Gagnon
Castleton Estates
Howard
226
8
13
12
1998
Georgetowne
Hadley Woods – II
Sanderson Farms
Lojko Drive
Nine smaller subdivisions
69
7
39
13
72
Southern NH Services
Maplewood - Elderly
Manchester Street
Tinker Estates
Maplewood - Carriage House
Common Phase 1-5
Tanglewood
Longview Meadows
The Huntington Retirement
Community
Sky Country
Dunlogin Road
Gagnon Farms (Rosewood)
Majestic Heights
Walden Woods – Elderly
Housing
J M R Construction, INC
Meridian Place Elderly
Housing
Webster Lawn Elderly
82
14
9
17
1999-2003
212
50
52
Renaissance Apts
Nashua Crossing Memory
Care Units
Tara Ridge Apts
266
24
21
82
73
22
11
26
22
43
26
40
36
13
37
80
10
122
5
6
43
20
12
7
36
109
38
41
75
140
20
112
7
40
85
17
6
31
26
180
17
228
22
384
2014
Memory Care 575 Amherst
105 Split Brook Apartments
75 Deerwood Town Homes
118
7
48
18
13
2015
34 Franklin St. Apartments
Kirkpatrick
Monis Farm Phase II
Salmon Brook Estates (Elderly)
47
76
21
168
16
6
31
LARGE-SCALE COMMERCIAL DEVELOPMENTS
2000-2015
Year
2000
2001
2002
Name of Development
Public Storage
Worthen
Delta Education Phase 2
Tara Properties
Gurney’s Automotive
Bishop Guertin
Second Generation Properties
Longhorn Steakhouse
Second Generation Properties
Corning Lasertron
Cumberland Farms
Wendy’s Restaurant
Toyota of Nashua
Rivier College Dorm
Saint Joseph Parish
Peter’s Honda
Old Navy
BAE, Chemical Storage
Dunkin Donuts
Shell Oil
Teradyne
Delta Education
Flagler Properties
Bickford Restaurant
Whitney Screw Redevelopment
Bernie and Phyl’s
Khol’s Department Store
Main Street Marketplace
Extended Stay America
1400 Motors, Inc.
Nashua Mall- Christmas Tree
Shop
Furniture World
Value Homes Inc.
Nashua Cancer Center
Charron Realty
Target Shopping Center
MacThompson Realty
Custom Mfg
DEA
BAE Systems
Windmill Development Corp
Nashua Airport Authority
Office Building –NE Blvd.
Law Realty Warehouse
Amherst Pizza
Square
Feet
98,952
9,600
87,664
70,000
6,900
53,554
50,000
5,072
5,000
389,408
3,600
3,200
3,200
29,650
27,500
27,000
25,093
2,800
2,250
2,010
187,000
12,160
10,920
1,431
9,000
86,520
8,600
64,500
44,000
4,800
36,000
34,800
2,754
2,519
17,700
168,800
1,800
1,726
1,350
1,000
Square
Feet
Year
Name of Development
2003
Citizens Bank
Crisco Inc. Addition
Bugaboo Creek Steak House
Applebee’s Restaurant
Pizzeria Uno
Community Bank
Merrimack County Savings Bank
Nashua Ice Arena (800 seats)
Small World addition
Burger King
Wendy’s Restaurant
Bank of New Hampshire Branch
BAE Systems addition
Dunkin Donuts
Nashua Mall retail addition
Custom Manufacturing Services
9,072
8,000
6,800
6,550
6,000
5,500
5,000
37,000
3,970
3,582
3,148
2,750
2,100
2,020
17,000
14,432
2004
Patriot Supply
St. Joseph Hospital
Town Fair Tire
Pilgrim Church
Conway Office Products
SNH Medical Center
White Family Ven
Ligkos Rev. Trust
Rochette Funeral Home
Viega
Allen Mello Car Dealership
DWH, LLC
Skyventure
8,400
68,000
6,950
5,170
43,200
39,440
3,600
3,592
2,166
15,088
14,370
10,800
10,000
2005
267 Main Street
Regency Center
Cumberland Farms
East Hollis St. Fire Station
Kentucky Fried Chicken
Walgreens
Leda Lanes
Pennichuck Water
8,400
48,300
4,620
20,124
2,827
14,425
12,250
12,100
2006
Bellweather Credit Union
Nashua Senior Center
Veterinary (Cat) Office
City Transit Garage
Panera Bread
Maccor Medical Office
Lowe’s
9,000
23,750
2,360
18,000
1,000
12,600
172,000
7,880
3,400
28,000
20,000
17,000
22
LARGE-SCALE COMMERCIAL DEVELOPMENTS
2000-2015 (continued)
Year
Name of Development
2007
Pleasant Lane Mall
Nashua Landing Lifestyle
Center
PK’s Retail Building
Land Air Design Airport
Hangar
Medical center office building
Generator building for Hospital
Rivier College Library addition
Grace Fellowship Church
R&D Office Building 85 NW
BV
Walgreen’s Pharmacy & Store
2008
2009
2010
Burger King Amherst Street
Carwash 607 Amherst Street
Hampton Inn 103 rooms 4
story
Two C Pack Systems
Burger King (Amherst St)
Taco Bell Restaurant
Huntington CCRC addition
Retail Building 323 DW Hwy
Nashua Regional Cancer Ctr
Palm View Crossings
Cotton Mill Square office bldg..
Axsys Tech. (44 Simon St)
Nature of Things School Barn
Retail/Restaurant (5 Guys)
Amherst St
Creative Years School addition
Retail to Medical Office exit 5
Retail to Fitness Club
(Coliseum)
Nashua Baptist Church
(addition)
Family Dollar and retail space
MacMulkin Chevrolet addition
Camray Automotive
NH Liquor Store new
NH Technical College addition
Daniel Webster Col –
Dormitory
Rivier College Gym addition
YMCA new facility
Mary Hitchcock Hospital – new
Pheasant Lane Mall
Square
Feet
Year
Portland Pie Downtown
Sky Venture
Toyota of Nashua
17 Riverside Realty
Red Falls LLC
John Flatley
Lodi Trust
Oanh & Long Nguyen
Trinity Baptist Church
World Academy
Mason St. LLC
O’Donnell
5,235
9,974
65,580
10,000
21,941
29,880
558
400
4,150
25,798
2,400
660
2012
Advance Auto Parts Amherst
Aspen Technology
Trader Joe’s- 274 DW Hwy
TJMaxx- 274 DW Hwy
Ulta Beauty- 274 DW Hwy
AutoZone Amherst St.
Market Basket expansion
McKenzie’s Restaurant
NH Technical College addition
Charter School- 486 Amherst
St
7,700
38,000
13,800
25,200
9,500
6,815
83,521
2,150
17,000
52,218
2013
World Academy
Sky Ventures Wave Pool
Micro Desk
Wizard Cycle
Dunkin Donuts
Residence Inn & Restaurant
Tara Commons Retail Center
Linear Retail Center
28,000
9,974
8,100
4,300
3,804
118 rooms
34,745
11,625
2014
Homewood Suites Hotel
Whole Foods
Saxon Retail Center (Exit 7)
Not Your Average Joes
Restaurant
Starbucks – Dwy Highway
Office Building – 190 Broad St.
Peter’s Bump Clinic Addition
Oil Lube/Car Wash Amherst
St.
Mac Thompson Auto 140 Dwt
105 rooms
32,500
40,045
6,000
13,500
37,785
2,578
11,801
105,188
8,000
2,580
5,834
15,689
302,000
2,580
2,800
16,843
6,000
3,303
15,000
10,000
80,000
2,160
9,830
3,150
2,870
24,000
3,137
13,000
14,600
9,600
19,810
48,176
18,132
7,796
46,464
149,000
120,285
Square
Feet
2011
99,752
600,000
15,617
Name of Development
2015
23
Prudential Overall Supply
270 Amherst Retail Center
CVS Pharmacy 242 Main
Nature of Things School
Expansion
565 Amherst Office/Retail
Jordan’s - 323 DW Highway
7,100
1,908
10,388
5,980
6,696
16,184
131,371
40,045
13,045
32,000
12,400
23,000
MAJOR INDUSTRIES LOCATED AT INDUSTRIAL PARK AREAS
SIMON STREET
Apex Telecomunications
ARC Technology Solutions
Bronze Craft
Macsteel
Ferotec
GEAC Computers
General Dynamics
GSSI
Kloeckner Metals
Resonetics
Highland Tool Co.
Rapid Finishing
Mass Design
United Parcel Service
NORTHEASTERN BLVD.
Advanced Circuit Technology
Altaworks
Amphenol
Bosch Articulating Papers
CCS Presentation
Centorr Vacuum Industries
Fab-Braze Corp.
Federal Aviation
Administration
Harvey Building Products
HelloDirect
Holiday Inn
Hope Industries
Motel 6
McLaughlin Transportation
The PLUS Co. Inc.
Skillsoft
Spray-Tek Corp.
Streetwize Technologies Inc.
Transparent Language
Unifirst Corp.
Winco Identification Corp.
X-L Corp.
MILLYARD
Apex Business Forms
Critical Process Filtration
Crown Linen
Jumpstart Manufacturing, LLC
Just Lights
Surplus Office Equipment
Syam Software
Visible Edge
Ultima-Nimco
W.H. Bagshaw Co.
NORTHWEST BOULEVARD
Bellavance Beverage
Delta Education
ITT - Excelis
SNHRMC West (Hospital)
Two C Pack Systems
AIRPORT
Affordable Solutions, Inc.
AD Automated Data
Capital Transportation
Logistics
Conway Office Products
Gate City Air
GFW Aeroservices
OIA Aircorp
Quality Design Pools
Rapid Sheet Metal
Robinson Labs
S3 Development Corp.
Scientific Solutions, Inc.
Techparts, Inc.
TST Equipment
SOUTHWOOD PARK
Courtyard by Marriot
Crown Plaza Hotel
Dartmouth Hitchcock
Sun Microsystems
Public Storage
Regional Cancer Center
Waveguide Fiber Optics
Viega
CROWN/FRENCH HILL
Apex Plastics
Area Agency of Greater
Nashua
B A E Systems
Danfor
Duncan Phyfe Furniture
Gatecity Industrial Supply
Greenard Press & Machinery
Harry M. Wells Plumbing/Heating
Henry Hangar
Intracity P.C.
Laconia Earth Anchors, Inc.
Machine Solutions
MAKEIT Labs
Nashua Circuits, Inc.
Nashua Foundries, Inc.
Norfold Factory Direct
Public Service Co. of NH
Reclaim Technology
Task Force
United Supply Company
Yourparty.com
BURKE STREET
First Student
Hershey Ice Cream
Lewis & Clarke, Inc.
Lightblocks
24
EXIT 1/SPITBROOK RD.
BAE Systems
Benchmark
Datagravity
Dell
Microdesk
Mitre Corporation
Oracle
Plexxi
Skillsoft Corp.
AMHERST STREET
Amazon
Amcor
Amphenol Backplane Systems
ARC Energy
Ascendantone, Inc.
Aspen Research Group
ATC Power
Bigraphics, Inc.
Circuit Connect
Dharma Systems
DTC Communications
First Virtual Communications
Flextec
Harcros
Holden Health Career
IKE Inc.
Lexington, Inc.
Modular Casework Systems
Owens Brockway
Pragmatech
Pfeifer Vacuum
PMPC/USPS
Randstad
Siemens
S.P. Richards CO.
Sienna Technologies
Stabile Companies
Technical Graphics
The Tamposi Company
GL & V
The Rapid Group
Comcast
Industry and Commerce
Nashua has a diversified economic base with some 50,841 people employed in Nashua in 2014, with an estimated
payroll of approximately $3 billion. The following table lists the major categories of income and employment in
Nashua for 2014.
Employment and Payrolls
2014
NAICS
Code
Industry
Total, Private plus Government
101
11
21
23
31
102
22
42
44
48
51
52
53
54
55
56
61
62
71
72
81
99
Total Private
Goods-Producing Industries
Agriculture/Forestry/Fishing
Mining
Construction
Manufacturing
Service-Providing Industries
Utilities
Wholesale Trade
Retail Trade
Transportation and Warehousing
Information
Finance and Insurance
Real Estate and Rental and Leasing
Professional and Technical Service
Management of Companies/Enterprises
Administrative and Waste Services
Educational Services
Health Care and Social Assistance
Arts, Entertainment, and Recreation
Accommodation and Food Services
Other Services Except Public Admin
Unclassified Establishments
Total Government
Federal Government
State Government
Local Government
Average
Average Weekly
Estimated Total
Quarterly
Wage
Payroll
Employment
2,731
50,841 $
1,135.19 $ 3,001,138,129
Units
2,688
260
139
121
2,428
N/A
223
447
43
45
116
118
381
36
177
35
341
38
222
198
N/A
43
10
27
7
46,173 $
7,712
1,124
6,588
38,461 $
N/A
2,347
9,875
986
1,373
821
559
2,887
580
3,196
756
8,047
619
4,330
1,958
N/A
4,668 $
1,161
560
2,947
1,130.12 $
1,744.21
1,058.21
1,861.22
1,006.99 $
N/A
1,954.80
558.20
814.03
4,052.12
1,351.69
906.49
1,781.71
1,500.19
831.57
761.08
1,016.68
357.55
368.66
615.87
N/A
1,185.30 $
1,914.66
659.13
997.78
2,713,413,600
699,470,071
61,850,258
637,609,303
2,013,951,804
238,571,611
286,635,700
41,736,946
289,305,160
57,706,349
26,349,851
267,477,432
45,245,730
138,200,281
29,919,577
425,423,646
11,508,819
83,007,486
62,705,420
287,714,981
115,591,854
19,193,866
152,903,798
____________
Source: New Hampshire Employment Security, Economic and Labor Market Information Bureau: Quarterly Census
of Employment and Wages
Note: Estimated Total Payroll equals Average Quarterly Employment multiplied by Average Weekly Wage
multiplied by 52 weeks.
25
The following table lists the largest employers of the City as of January 1, 2016, including the City which employs
2,487 persons as of that date.
Largest Employers
Firm
BAE Systems
Southern New Hampshire Medical Center
Nashua School District
St. Joseph Hospital and Trauma Center
City of Nashua
Oracle Corporation
Federal Aviation Administration
Amphenol
US Post Office
Benchmark Electronics Inc.
Product
Aerospace/ Electronics
Hospital
Schools
Hospital
City Government (excludes school
employees shown above)
Software
Air Traffic Control
Backplane Connection Systems
Postal Service
Electronics/Mfg.
Number of
Employees
3,100
2,217
1,679
1,675
808
620
490
439
458
400
Retail Sales
Retail trade has been an increasingly important industry in Nashua. Highway accessibility, its location on the
Massachusetts border, and the differing sales tax rates between New Hampshire (0%) and Massachusetts (6.25%)
has resulted in tremendous retail trade growth in Nashua. Nashua has the largest concentration of retail square
footage in New Hampshire. The following table compares retail trade data for the City of Nashua, Hillsborough
County and for the State as a whole. This information is provided by the United States Census of Retail Trade every
five years.
Retail Sales 1992 – 2012
Year
Nashua
Hillsborough County
New Hampshire
# of Establishments (with payroll)
2012 (NAICS)
2007 (NAICS)
2002 (NAICS)
455
492
501
1,584
1,657
1,703
6,127
6,603
6,702
$7,724,727
7,647,259
6,182,948
$26,018,201
25,353,874
20,830,057
Sales (000)
2012 (NAICS)
2007 (NAICS)
2002 (NAICS)
$2,375,426
2,925,213
2,335,877
Per Capita Sales
2012 (NAICS)
2007 (NAICS)
2002 (NAICS)
$31,505
33,832
-
$19,258
19,067
15,761
_________________
SOURCE: 1992-2012 U.S. Census of Retail Trade.
26
$19,748
19,268
16,330
Unemployment
The following table sets forth the trend in the City’s average labor force and unemployment rates and the
unemployment rates for the State of New Hampshire, and the United States as a whole for the same period.
Unemployment Rates
Year
2014
2013
2012
2011
2010
City of Nashua
Unemployment
Labor Force
Rate
5.1%
48,820
5.9
50,140
6.2
49,770
6.0
49,480
6.7
49,494
Unemployment Rates
New Hampshire
4.3%
5.3
5.5
5.4
6.1
United States
6.2%
6.7
8.1
8.9
9.6
___________________
SOURCE: NH Division of Employment Security and US Bureau of Labor Statistics. Data based on place of residence, not place of
employment.
Building Permits
The following table sets forth the trend in the number of building permits issued and the taxable dollar value of new
construction and alterations for private as well as public construction projects.
New Construction
Residential
Non-Residential
Fiscal
No.
Value ($)
No.
Value ($)
Year
2015
71
$27,351,936
7
$33,164,182
2014
79
30,828,011
9
21,151,060
2013
87
45,651,461
89
3,820,283
2012
28
4,168,658
106
11,990,460
2011
56
11,858,590
91
6,696,561
___________________
Additions and
Alterations
No.
Value ($)
591
$42,061,102
512
46,916,350
472
43,794,329
461
44,213,505
526
77,106,431
No.
2,332
1,916
1,723
1,757
1,431
Other
Value ($)
$13,574,576
10,855,976
5,360,000
5,553,378
5,669,415
Total
Permits
Issued
3,001
2,516
2,371
2,352
2,104
Total Valuation
($)
$116,151,796
109,751,397
98,626,073
65,926,001
101,330,997
Source: City of Nashua, Department of Building Safety.
Education
The Nashua School system includes 12 elementary schools, 3 middle schools, and 2 senior high schools. The
system provides a comprehensive program of advanced placement courses, general education courses, and career
and technical education courses. October 2015 enrollment totaled 11,377. In the past decade, the City issued $135
million school construction bonds for construction of a new high school, and renovation/expansion of the existing
high school. Construction began in May 2000, with the new high school opening in September 2002 and the fully
renovated high school opening in September 2004. Currently the City has a multi-year Elementary and Middle
School renovation project with a projected plan of $45 million to bond over several years.
Public School Enrollment – October 1,
Elementary (K-5)
Middle School (6-8)
Senior High (9-12)
11-12
12-13
5,587
2,557
3,752
11,896
5,621
2,494
3,780
11,895
Actual
13-14
5,635
2,512
3,522
11,669
__________________
Source: City of Nashua school department.
27
14-15
15-16
5,501
2,414
3,573
11,488
5,405
2,425
3,547
11,377
Projected
16-17
5,459
2,410
3,545
11,414
Transportation and Utilities
The City of Nashua is served by a network of interstate highways, including the F.E. Everett Turnpike and US Route
3. The City also has easy access to Interstates 93 and 95, which are both major north-south connectors. The F.E.
Everett Turnpike widening/construction was completed by the State in July 2000 at a total cost of $200 million. This
road serves as one of the primary gateways to New Hampshire and Nashua from the south. The Commonwealth of
Massachusetts recently completed the expansion of US Route 3 to the New Hampshire border, which has improved
access to and from the Boston metropolitan area.
The State of New Hampshire Executive Council approved the acceptance of funds and the contract on February 6,
2013 to determine the feasibility of restoring passenger rail to the State of New Hampshire. The study will
determine the physical and economic feasibility of extending passenger rail from Lowell, MA through Nashua,
Manchester and on to Concord, including a stop that connects to the Manchester-Boston Regional Airport. The
study is paid for with both Federal Railroad Administration and Federal Transit Administration funds, the first project
to ever be funded with both funding sources. The match of toll credits was supported by the State Capital Budget
Overview Committee 4 to 1. A 2011 survey completed by the University of New Hampshire Survey Center
indicated broad support for restoration of passenger rail. Of those indicating an opinion, over 90% supported
restoration of rail to New Hampshire. The 2011 survey was consistent with a similar survey in 2007.
The cities of Nashua and Manchester, the two largest cities in New Hampshire, are actively pursuing the extension
of commuter rail service to New Hampshire. Extension of service from Lowell, Massachusetts through Nashua to
Manchester and Manchester Boston Regional Airport will provide direct commuter service to and from Boston. Both
New Hampshire and Massachusetts officials are supporting the effort. Funding includes $22 million committed to
the Nashua rail project; $7 million committed to the Manchester multimodal terminal; $2 million committed by
Manchester Airport to the airport station; and $1 million committed to Nashua and Manchester’s stations. In 2007
the State of New Hampshire formed the New Hampshire Rail Transit Authority for the express purpose of advancing
commuter and passenger rail in the State of New Hampshire.
The City has access to three airports, the Nashua Municipal Airport, the Manchester-Boston Regional Airport in
Manchester, New Hampshire, and Logan International Airport, in Boston, Massachusetts. Nashua Airport provides
air service for small planes and local flights. The Manchester Boston Regional Airport is the largest in the State and
provides non-stop service to Chicago, New York City, Orlando, Washington DC, Minneapolis, Philadelphia,
Pittsburgh, Cincinnati, Las Vegas, Los Angeles, Houston, and other major cities in the United States. The
Manchester Boston Regional Airport is serviced by US Airways, Continental and Continental Express, Southwest,
United and Northwest Airlines. Logan International Airport is 34 miles south of Nashua and provides services for all
local, domestic and international flights.
Gas, electric, telephone, and cable services are provided by established private utilities. Water service is provided
by a privately-owned water system, the Pennichuck Water Works, of which the City is the sole shareholder, and
sewer services are provided by the City. See “The City of Nashua, New Hampshire – Acquisition of Pennichuck
Water Utilities” above.
The Nashua Transit System, a City operation, provides bus service throughout the City as well as special pick-up
service for the handicapped. The system continues to grow in ridership, frequency of service and geographic area.
28
Income Levels and Educational Attainment (1)
The following table compares 2009-2013 and 2005-2007 census figures to 2000 and 1990 figures for Nashua, the
State and the country.
Year
Nashua
New Hampshire
United States
38.2
39.5
35.8
32.0
41.5
39.6
37.1
32.8
37.2
36.4
35.4
Not available
Median Age
2009-2013
2005-2007
2000
1990
Median Family Income
2009-2013
2005-2007
2000
1990
$81,607
76,117
61,102
46,614
$79,886
73,246
49,509
41,628
$32,874
30,566
25,209
18,101
$33,134
29,672
24,273
15,959
$53,046
50,000
41,343
Not available
Per Capita Income
2009-2013
2005-2007
2000
1990
$28,155
26,178
21,684
Not available
Educational Attainment: % of Population 25 years old with High School Graduate or Higher
2009-2013
2005-2007
2000
1990
88.5%
90.9%
86.6
82.7
91.8%
89.9%
87.4
82.2
86.0%
84.1%
81.6
Not available
Educational Attainment: % of Population 25 years old Bachelor’s Degree or Higher
2009-2013
2005-2007
34.5%
35.0%
33.7%
31.9.9%
28.8%
27.0%
_____________
(1) In 1990 and subsequently the Median Level of Education was measured in percentages of the population attaining level of
higher education. The 2005-2007 data is from the U. S Census American Factfinder, American Community Survey,
Summary Indicators Educational Attainment (S1501), percent high school graduate or higher and percent bachelors degree
or higher of the population 25 years and over. The median age 2005-2007 data is from the U.S Census American
Factfinder, American Community Survey (2005-2007 three year average), Summary Indicators Median Age (years).
Population Trends
Based on the 2010 federal census, the population density of the City of Nashua is 2,703 persons per square mile.
The following table shows the City’s population over the past several decades.
Population
86,494
86,605
79,662
67,865
55,820
Year
2010
2000
1990
1980
1970
___________
SOURCE: US Census; New Hampshire Office of Energy and Planning.
29
CITY FINANCES
Major Sources of Revenues
Local Property Taxes
The principal tax of the City is the tax on real and personal property. There is no limit as to rate or amount. The
State of New Hampshire’s “assessment year” for taxing purposes runs from April 1 to March 31 of the following
year. The City operates on a June 30 fiscal year basis. Property taxes in Nashua are collected each year in two
installments, on July 1 at the beginning of the fiscal year for the period July through December, and December 15,
midway through the fiscal year for the period January through June. Interest accrues on delinquent taxes at the
rate of 12% to the date of payment. On January 1, 1988 the City of Nashua opted to abandon the “tax sale”
procedure and adopt the optional tax lien process pursuant to RSA 80:58-86 in accordance with RSA 80:87. The
City places a lien on the delinquent property prior to September 1 of the following year. From the date of the tax
lien, a two year period of redemption is allowed the owner, during which time, payment of taxes, interest and costs
will be accepted and the lien released. 18% interest is charged during the two year redemption period. Beyond the
two year period of redemption, properties may be deeded to the City by the tax collector. Except for any paramount
federal lien and subject to bankruptcy and insolvency laws, tax liens take precedence over all other liens. The tax
collector’s deeds are free and clear of all encumbrances. All interest rates are on a per annum basis. The amount
to be levied in each year is the amount appropriated or required by law to be raised for municipal expenditures less
estimated receipts from other sources and less appropriations voted from available funds.
Assessed Valuations
Fiscal
Year
Real
Property
2016
$ 8,213,629,475
2015
8,148,914,763
2014 (1)
8,122,693,478
2013
8,644,335,771
2012
8,636,646,561
Statutory
Exemptions(2)
Net Assessed
Valuations
$ 126,697,477
129,096,800
133,592,750
146,459,050
138,958,000
$ 8,086,931,998
8,019,817,963
7,989,100,728
8,497,876,721
8,497,688,561
Local
Tax Rate
(Per $1,000)
$
24.53
24.05
23.50
21.49
20.97
Gross Tax
Levy (2)
$ 196,127,537
190,612,284
185,559,749
180,280,805
175,904,288
__________________
(1) Property revaluation year.
(2) Gross Tax Levy source – Department of Revenue Administration. Tax Rate calculation sheet.
Tax Rates and Tax Levies
Fiscal
Year
2016
2015
2014
2013
2012
Local Tax Rate (Per $1,000
Assessed Valuation) (1)
$ 24.53
24.05
23.50
21.49
20.97
$
Gross
Tax Levy
196,127,537
190,612,284
185,559,749
180,280,805
175,904,288
Tax Levy
Per Capita (2)
$
2,268
2,204
2,145
2,084
2,034
________________
(1) City-wide revaluations were completed for use in 2006, 2008, 2010 and 2014. The City decided no revaluation or update was needed in
2012 due to valuation percentage statistics as they relate to the average sale ratios were still close to 100% and therefore there was no need
for an update in fiscal 2012.
(2) Levy per capita is based on 2010 federal census data, City population of 86,494.
30
Tax Levy Calculations
2012
Fiscal Year
2014
2013
2015
2016
$ 244,487,961
10,383,051
1,600,500
1,968,000
$ 258,439,512
$ 248,715,682
11,020,217
1,543,000
2,037,226
$ 263,316,125
61,616,530
4,300,000
$
61,126,728
5,100,000
$
60,545,588
5,100,000
$
65,916,530
$
66,226,728
$
65,645,588
$
187,071,269
Requirements:
Appropriations (1)
County Tax
Statutory Credits
Overlay
Total Requirements
Less Receipts and
Available Funds:
Receipts (1)(2)
Business Profits
Transfer from Surplus
Total Receipts and
Available Funds:
$
61,938,260
4,300,000
$
61,031,719
4,300,000
$
$
66,238,260
$
65,331,719
Gross Property Tax Levy
$
177,607,288
$
181,988,801
$
$
Less Statutory Credits
230,756,222
9,569,306
1,703,000
1,817,020
243,845,548
$
$
(1,703,000)
Net Property Tax Levy (3)
$
175,904,288
234,370,387
9,420,187
1,690,000
1,839,946
247,320,520
$
$
239,543,871
9,763,895
1,645,500
2,034,533
252,987,799
(1,690,000)
$
180,298,801
(1,645,500)
$
185,425,769
$ 192,212,784
(1,600,500)
$ 190,612,284
$ 197,670,537
(1,543,000)
$ 196,127,537
____________
(1)
(2)
(3)
Amounts exclude enterprise and special revenue funds.
Includes State Education Adequacy Grant.
Amounts do not include supplemental changes made during the year.
Tax Collections
Property Tax
Fiscal
Levied for
Year(1) Fiscal Year (2)
2015
2014
2013
2012
2011
2010
$ 191,893,860
185,563,420
181,191,086
180,052,101
170,706,403
165,010,958
Collected within the
Fiscal Year of the Levy
Dollar
% of
Amount
Levy
$ 189,619,825
183,499,092
178,655,327
177,497,774
168,303,403
162,496,172
98.8 %
98.9
98.6
98.6
98.6
98.5
Lien Amount
Balance at
Subsequent Balance at End
Fiscal Year End Tax Lien
of Current
of Levy Year Collections
Fiscal Year
$ 2,274,035
2,064,328
2,535,759
2,554,327
2,403,272
2,514,786
$ 461,585
312,751
350,811
376,603
539,882
359,829
____________
(1)
(2)
Fiscal year relates to prior tax year.
Includes supplemental taxes.
31
$ 1,812,450
1,751,577
2,184,948
2,177,724
1,863,350
2,154,957
Total Collections
Through 6/30/15
Amount
% of Levy
$ 190,081,410
183,811,843
179,006,138
177,874,377
168,843,413
162,856,001
99.1 %
99.1
98.8
98.8
98.9
98.7
Number of Parcels
In Levy Liened % Liened
28,173
28,082
28,072
28,010
27,992
27,983
632
640
601
685
671
741
2.2 %
2.3
2.1
2.4
2.4
2.6
The following is a list of the largest taxpayers in the City based upon assessed valuations for fiscal 2015.
Largest Taxpayers
Name
Pheasant Lane Realty
Pennichuck Water Works (1)
Public Service Co. of New Hampshire
Aimco Royal Crest-Nashua LLC
Flately, John J Company
St. Joseph Hospital and Trauma Center
Energy North Natural Gas
Southern New Hampshire Hospital
BAE Systems
Nashua Oxford-Bay Assoc. LIM PT
Total
Nature of Business
Shopping Mall
Water Distribution
Utility
Apartment Complex
Office/Land/Apts/Retail
Hospital
Utility
Hospital
Electronics Manufacturer
Real Estate
Fiscal 2015
Assessed
Valuations
$ 142,785,496
104,161,500
97,147,800
83,203,000
64,156,800
58,564,900
56,281,400
55,988,100
43,151,200
38,807,800
$ 744,247,996
__________
(1) Prior to its acquisition by the City, Pennichuck Water Works paid a little over $1.8 million in property taxes to the City of Nashua.
Now that the City acquired Pennichuck, property taxes continue to be assessed and billed to the acquired company. See
“Acquisition of Pennichuck Water Utilities” herein.
Equalized Assessed Valuations and Estimated Full Value Tax Rates
The following table sets forth the trend in local assessed and state equalized valuations for the City of Nashua and
the estimated full value tax rates for the City.
Ratio of Total
Tax Rate
Assessed Valuation
State Equalized
(Per $1,000
Estimated
to Equalized
Fiscal
Net Assessed
Assessed
of Assessed
Full value
Valuation
Year
Valuation
Valuation(1)
Valuation)
Tax Rate
2015
$ 8,019,817,963
$ 8,684,907,808
92.3 %
$
24.05
$ 22.13
2014 (2)
7,989,100,728
8,386,760,928
95.3
23.50
22.31
2013
8,497,876,721
7,949,863,821
106.9
21.49
22.89
2012
8,497,688,561
8,248,187,902
103.0
20.97
21.53
2011
8,442,082,529
8,519,356,326
99.1
20.40
20.15
___________________
(1) Full value as determined annually by the State Department of Revenue Administration.
(2) Revaluation year.
Tax Increment Financing For Development Districts
Cities and towns in New Hampshire are authorized to establish development districts to encourage increased
development. All or a portion of the taxes on growth in assessed value in such districts may be pledged and used
solely to finance capital and administrative costs incurred by the city or town in developing the district in accordance
with its development program and tax increment financing plan for the district. This may include pledging such “tax
increments” for the payment of bonds issued by the city or town to finance development projects. As a result of any
such pledge, property taxes raised on the increased assessed value in development districts are not available for other
municipal purposes.
The City established its first development district in 2006, known as the Riverfront Promenade Tax Increment Financing
District. Pursuant to the development program and tax increment financing plan for the district, bonds of the City dated
December 15, 2006 included $1,124,650 to finance construction of a public riverwalk and related improvements within
the District to encourage private development. The “tax increment” resulting from the private development has been
pledged to the payment of the portion of the bonds issued for this purpose.
On April 27, 2011 the City of Nashua accepted NH RSA 79E, known as the Community Revitalization Tax Relief
Incentive. This program encourages investment in downtowns and village centers with a new local property tax
32
incentive. Its goals are to encourage the rehabilitation and active use of under-utilized buildings in downtown
Nashua and the surrounding neighborhoods.
Property owners who intend to substantially rehabilitate a building located downtown may apply to the City of
Nashua for a period of temporary tax relief. The temporary tax relief, if granted, would consist of a finite period of
time during which the property tax on the structure would not increase as a result of its substantial rehabilitation
(between 5 and 13 years). In exchange for the relief, the property owner grants a covenant ensuring there is a
public benefit to the rehabilitation. Following expiration of the finite tax relief period, the structure would be taxed at
its full market value taking into account the rehabilitation.
The City is currently working with a local developer on plans for a downtown project.
Budget Process
During January of each year, the Mayor provides budget guidance to the division directors in crafting their
st
respective proposed budgets for the next fiscal year which begins on July 1 . The proposed budgets are submitted
for review by the Mayor during March. All increased appropriation requests are reviewed during scheduled division
budget reviews with the Mayor and Chief Financial Officer. The proposed budget is then submitted to the Board of
Aldermen for their review and approval. The Board of Aldermen may add to the Mayor’s budget by a two-thirds
vote or reduce the budget by a majority vote.
Included in this process is a public hearing as set by the Board to review with the general public the proposed
budget. After due consideration, including public input, the Board makes a final decision. A resolution is required
for acceptance of the final budget by a majority vote. The resolution lists each department’s total appropriations,
total revenues, and the amount to be raised by taxation. Should the Mayor decide to veto the Board’s final budget,
a two-thirds vote would be required to override the veto.
The final budget resolution is then presented to the Department of Revenue Administration for its review and
issuance of the tax rate. Certain limitations are set by state statute which must be subscribed to before the rate is
established.
Budget Control Charter Amendment
On November 2, 1993, the voters adopted an amendment to the City Charter, proposed by an initiative petition,
which limits annual budget increases. The amendment provides in part as follows in paragraph 56-c:
In establishing a combined annual municipal budget, the Mayor and the Board of Aldermen shall assume
an increase in the current budget only in an amount equal to the current fiscal year budget, increased by a
factor equal to the average of the changes in the Consumer Price Index-Urban (CPIU) of the three (3)
calendar years immediately preceding budget adoption, as published by the U.S. Bureau of Labor
Statistics.
Effective with the FY2016 Budget, in establishing a combined annual municipal budget, the Mayor and the
Board of Aldermen shall assume an increase in the current budget only in an amount equal to the current
fiscal year budget, increased by a factor equal to the average of the changes in the Gross Domestic
Product Implicit Price Deflator for State and Local Governments (S&L IPD) of the three (3) calendar years
immediately preceding budget adoption, as published by the U.S. Bureau of Economic Analysis.
The amendment further provides in paragraph 56-d in part as follows with respect to debt service:
The total or any part of principal and interest payments of any municipal bond, whether established for
school or municipal purposes, may be exempted from the limitation defined in Paragraph 56-c upon an
affirmative vote of two-thirds of the members of the Board of Aldermen. This decision shall be made
annually.
In the opinion of Bond Counsel, these charter provisions do not affect the validity or enforceability of the Bonds, or
the ability of the City to levy taxes without limit as to rate or amount to pay the Bonds and other general obligation
indebtedness of the City. Paragraph 56-c expressly provides that it does not limit the Mayor and Board of Aldermen
“from appropriately funding any programs or accounts mandated to be paid from municipal funds by State and
33
Federal law”. Moreover, Part 1, Article 39 of the state Constitution permits only charters and charter amendments
“not in conflict with general law”, and Section 2 of Chapter 33 of the New Hampshire Revised Statutes Annotated
(RSA 33, known as the Municipal Finance Act) states, “The amount of each payment of principal and interest on all
loans shall, without vote of the municipality, be annually assessed and collected” (emphasis added). Thus, even in
the absence of an appropriation of debt service by the City, State law requires assessment and collection of taxes
as necessary to pay debt service on the City’s general obligation bonds and notes.
The provisions of paragraph 56-d do require a determination on an annual basis of whether the City will limit its
other appropriations either to a larger amount that provides for debt service as an additional appropriation or to a
smaller amount that results from subtracting debt service from the total allowable appropriation. In the opinion of
Bond Counsel these provisions do not limit in any way the City’s obligations to pay debt service in accordance with
the Municipal Finance Act.
Budget Trends
The following information summarizes budget trends in recent years.
The fiscal 2011 and 2012 budgets were under the spending cap of 2.2% and 2.0% respectively. The fiscal 2011
budget was under the spending cap by $1,284,455 and the fiscal 2012 was under by $978,669.
FY2013 Budget
The development of the fiscal 2013 budget was challenging given the economic climate. With the exception of
schools and police, the Mayor requested that each division limit its proposed operating budget increase to no more
than 1%, a challenge given that with the exception of schools and information technology, the divisions’ had
reductions of 3% in their respective fiscal 2012 operating budgets.
With the cooperation of the division directors and successful union negotiations, the City was able to minimize the
overall spending increase and planned for a reasonable tax increase of approximately 2.5%. The overall increase
in general fund expenses (those that directly impact property taxes) was 1.5% (down 0.2% from fiscal 2012). The
Board of Aldermen increased the overall operating budget by $77,200 through a combination of spending cuts and
increases. This budget was below the combined municipal budget spending cap of 1.7% by $476,984.
The fiscal 2013 budget continued to fund investments like capital equipment replacement, capital improvements for
buildings and related infrastructure and the operating costs associated with the implementation of the new financial
software system. This budget also provided funding to achieve the priorities necessary to promote strong fiscal
management and encourage economic growth.
Through a long range planning process which included a fleet assessment, the City continues to appropriately fund
the timely replacement of the fleet through the Capital Equipment Replacement Fund (CERF). During fiscal 2012
the City opened its new Compressed Natural Gas (CNG) filling station. This station is a result of a public/private
partnership. Exclusive of minimal costs for site preparation done with City labor, the station was built and paid for
by the company which won the bid for providing the fuel, AVSG. The City has used the station to fuel its new solid
waste refuse vehicles and other vehicles that are capable of using CNG as a cost-effective alternate fuel. The City
aggressively pursued and succeeded in getting grant funds to pay for the initial cost differential between CNG and
diesel powered refuse trucks. The price of fuel was locked in for three years at $2.30 per gallon (gas equivalent).
An additional benefit of this initiative is a 25% increase in longevity to the vehicle engine along with benefits to the
environment. This initiative is expected to serve the City well into the future.
The fiscal 2013 budget also incorporated an investment in the downtown infrastructure. Sidewalks, drainage, lights,
and furniture are all being repaired and replaced in a major multi-year initiative.
FY2014 Budget
All City divisions were able to develop their proposed budgets at or below the 1% increase target with the exception
of the Fire, Police and School Departments which exceeded the target due to monies planned for salary
negotiations. The Board of Aldermen decreased the proposed operating budget by $38,556 resulting in an Adopted
FY2014 Operating Budget of $236,009,508. This approved budget is below the combined municipal budget
spending cap by $381,670. The overall increase in general fund expenses (those that directly impact property
taxes) is 2.3%.
34
In planning for the FY2014 Budget, the City was also preparing for and executing the revaluation of the residential
and commercial properties in the City. Revaluation of properties is required from time to time as market conditions
change and properties are bought and sold. Revaluation is important to realign the City’s tax base to more
accurately reflect what property values are worth in the current market. The Assessing Department completed the
revaluation and the results indicate that approximately 53% of the residential homeowners can expect to pay the
same amount or less in property taxes for the coming year.
As for the revenue side of the adopted budget, State revenues for the City continue to be flat or reduced. With
regard to local revenues, the City continues to see positive increases in motor vehicle registrations. Other local
revenues, such as interest income on deposits, continue to be impacted by historically low interest rates. The City’s
strategy to budget revenues conservatively continues to serve it well.
The most significant challenge for FY2014 was funding for pension costs which cannot be controlled – specifically
amounts expected to be paid to the New Hampshire Retirement System (‘NHRS’). As the NHRS employer rates
per dollar of payroll are set on a bi-annual basis, this budget included an increased appropriation of approximately
$3.5 million to fund pension costs paid to NHRS. This amount represents 65% of the 2.3% increase in the
operating budget.
During the past several years, the City has explored different strategies to mitigate cost increases in employee
benefits costs. The City introduced consumer driven choices through healthcare plan design changes by increasing
co-pays and adding deductibles. Dating back to October 1, 2011 the majority of City employees have agreed to
increase their share of the monthly cost of their healthcare plan. Over 90% of the City’s union employees have
agreed to these proposed changes, four of the five Police Department unions being the exception. As part of the
FY2014 medical plan offerings, the City introduced a high deductible plan combined with a health savings account.
As in past years, the FY2014 budget continued the funding of other investments, such as capital equipment
replacement, capital improvements for buildings and City related infrastructure. Once again, funding was provided
to achieve what the City believes are the priorities necessary to promote strong fiscal management and encourage
economic growth over the long-term. Through a long-range planning process, the City continues to fund the timely
replacement of its fleet through the Capital Equipment Reserve Fund. The City continued to invest in the downtown
sidewalks and related infrastructure, which is a major multi-year initiative.
FY2015 Budget
In preparing the FY2015 budget, the Mayor requested that each division limit its proposed operating budget
increase to no more than 2%. All divisions were able to develop their proposed budgets at or below the 2% request
with the exception of the Police and School Departments. The Adopted FY2015 Operating Budget is $240,756,942
reflecting a 2.0% increase in general fund expenses. This approved budget is below the combined municipal
budget spending cap by $760,945.
The most significant challenge for FY2015 was the need for increased funding for salary and pension costs.
Although the percentage increase in wage appropriations for the period FY2012 to FY2014 was modest and less
than previous years, the approved budget includes a $3.5 million (2.8%) increase in salary costs and a $1.1 million
(4.2%) increase in pension costs above the FY2014 Budget.
The City has been successful in mitigating the escalating costs of healthcare benefits over the past several years.
The appropriations for benefits have been relatively flat since FY2009. It has accomplished this by implementing
different strategies, including introducing consumer driven choices, through healthcare plan design changes by
increasing co-pays, and adding deductibles. All employees have agreed to increase their share of the monthly cost
of the healthcare plan of their choosing. In addition, over 100 employees have selected a high deductible plan with
a companion Health Savings Account (HSA). HSAs allow employees to manage their healthcare costs with the
potential to save for future healthcare expenses. HSAs are portable and can be used after the employee retires or
separates from City of Nashua employment.
As in past years, the FY2015 budget continues the funding of other investments such as capital equipment
replacement, capital improvements for buildings and City infrastructure. Once again, funding is provided to achieve
what the City believes are the priorities necessary to promote strong fiscal management and encourage economic
growth over the long-term. Through a long-range planning process, the City continues to fund the timely
replacement of its fleet through the Capital Equipment Reserve Fund. The City continues to invest in its downtown
sidewalks and related infrastructure which is a major multi-year initiative.
35
As part of the FY2015 budget, a creative and sustainable way to put additional funds into paving the City’s streets
without impacting the spending cap or other City divisions was introduced and approved. A Special Revenue Fund
was established that uses the City’s share of the annual state highway block grant ($1,347,000) and a portion of the
motor vehicle registration fees ($700,000) for a total of $2,047,000, for this purpose.
With the exception of positive revenue from motor vehicle registrations and municipal Medicaid reimbursements,
State and other local revenues continue to be flat. The City continues to budget revenues conservatively.
This year’s tax rate increase is 2.34%. The City’s tax rate management plan has provided rate stability to its
residents and businesses.
FY2016 Budget
In preparing the FY2016 budget, the Mayor requested that the School, Police, and Fire departments limit their
respective proposed operating budget increase by no more than 1.5% and all other divisions limit their proposed
operating budget increase to 1%. All divisions were able to develop their proposed budgets at or below the request
with the exception of the School and Fire Departments. The Adopted FY2016 Operating Budget is $244,825,057
reflecting a 1.7% increase in general fund expenses. This approved budget is below the combined municipal
budget spending cap by $50,276.
The most significant challenges for FY2016 was the need for increased funding for both salary and pension costs.
Although the percentage increase in wage appropriations for the period FY2012 to FY2015 was modest and less
than previous years, the approved budget includes a $2.8 million (2.2%) increase in salary costs and a $2.2 million
(8.1%) increase in pension costs above the FY2015 Budget.
The City has been successful in mitigating the escalating costs of healthcare benefits over the past several years.
The appropriations for benefits have been relatively flat since FY2009. It has accomplished this by implementing
different strategies, including introducing consumer driven choices through healthcare plan design changes by
increasing co-pays and adding deductibles. All employees have agreed to increase their share of the monthly cost
of the healthcare plan of their choosing. In addition, over 100 employees have selected a high deductible plan with
a companion Health Savings Account (HSA). HSAs allow employees to manage their healthcare costs with the
potential to save for future healthcare expenses. HSAs are portable and can be used after the employee retires or
separates from City of Nashua employment.
As in past years, the FY2016 budget continues the funding of other important investments such as capital
equipment replacement, capital improvements for buildings and City related infrastructure. Once again, funding is
provided to achieve what the City believes are the priorities necessary to promote strong fiscal management and
encourage economic growth over the long-term. Through a long-range planning process, the City continues to
appropriately fund the timely replacement of its fleet through the Capital Equipment Reserve Fund. This year the
City wrapped up its investment in its downtown sidewalks and related infrastructure. Simultaneously, the Broad
Street Parkway – a key project for economic growth and traffic mitigation – came to a close.
With the exception of positive revenue from motor vehicle registrations and municipal Medicaid reimbursements,
state and other local revenues continue to be flat. The City continues to budget revenues conservatively.
Since FY2008, the annual tax rate increases have been managed quite effectively with reasonable increases and
minimal volatility. This year’s tax rate increase is 2%. The City’s tax rate management plan has provided rate
stability to its residents and businesses, while continuing the high level of services the citizens have come to rely on
from the taxes they pay.
36
Budget Summary for the Fiscal Year Ending June 30,
General Government
Protection of Persons and Property:
Police
Fire
Other
Community Development
Community Services
Public Works (1)
Libraries
Public Services (2)
Education
Debt Service (3)
Contingency
Transfers to Capital Equipment Reserve
Capital Improvements
Total Appropriations
2012
2013
2014 (4)
$ 60,248,829
$ 60,383,418
$ 13,051,053 (4)
17,157,163
13,966,096
3,793,945
1,932,560
2,461,014
9,467,857
2,259,487
467,267
93,386,383
17,533,396
1,513,974
1,525,000
1,500,000
$ 227,212,971
17,670,299
14,135,096
3,718,046
1,945,408
2,113,616
9,659,402
2,310,552
496,993
95,628,047
17,814,045
1,284,608
1,675,000
1,850,000
$ 230,684,530
25,575,724
20,598,539
3,735,135
2,515,555
2,416,098
11,323,028
3,040,564
661,617
129,203,710
17,867,652
1,903,335
2,290,000
1,827,500
$ 236,009,510
2015 (4)
2016 (4)
$13,086,617 (4)
$13,335,518 (4)
26,635,973
21,182,299
3,748,713
2,531,474
2,441,011
10,999,504
3,112,422
691,655
133,298,556
18,072,688
1,658,618
2,622,412
675,000
$ 240,756,942
27,734,035
21,850,669
3,845,693
2,721,123
2,429,192
11,178,133
3,132,828
698,773
136,090,723
18,138,725
793,033
2,254,112
622,500
$ 244,825,057
_________________
(1)
(2)
(3)
(4)
Excludes wastewater treatment plant and solid waste disposal costs. These costs are accounted for in the enterprise fund and operations
for these services are reported on an enterprise fund basis.
Includes cemetery and aeronautical operations.
Excludes debt service costs associated with sewer and solid waste disposal. These costs are accounted for in the enterprise funds.
Beginning in fiscal 2014, fringe benefits (i.e. insurance, pensions, FICO, etc. were charged directly to the operating division departments
rather than General Government).
Accounting Methods
See Appendix A.
Investment of City Funds
Under RSA 48:16, the treasurer of a New Hampshire city may deposit its funds in the New Hampshire Public
Deposit Investment Pool (the "NHPDIP") or in solvent banks in the State, and also in banks outside the State if the
deposits are fully secured by collateral in the form of obligations of the United States, U.S. agencies or the State.
The treasurer may also invest any excess funds, not immediately needed for expenditure, in the NHPDIP, U.S.
obligations, savings bank deposits in New Hampshire savings banks, or certificates of deposit and repurchase
agreements of New Hampshire banks or banks recognized by the State Treasurer.
Overnight deposits held at the City's major financial institutions are collateralized with securities held in a Federal
Reserve Bank of Boston Joint Custody Account. A security transfer requires agreement by both parties. Current
collateral is U.S. government securities.
According to the NHPDIP Program Administrator, MBIA Municipal Investors Service Corporation, NHPDIP invests
only in high grade short term federal securities, variable rate obligations backed by federal agencies having monthly
or quarterly resets based on indexes like the prime rate, LIBOR, or a combination of the two, the highest grade
short term commercial paper instruments, and very short-term (usually overnight) repurchase agreements secured
by high quality collateral which is valued daily and fully delivered to the program's custodial bank to be held for the
benefit of the pools participants. In addition, MBIA Inc., corporate parent of the Program Administrator, has agreed
that it will guarantee, so long as its subsidiary serves as Program Administrator, that no pool participant will be
exposed to loss of funds upon account liquidation. See "Investment Policy" above.
The City of Nashua had $199,264,627 in cash and investments as of June 30, 2015 in its General Fund. The City's
investments are divided in U.S. Government instruments and in overnight Repurchase Agreements and Certificates
of Deposit. Said Repurchase Agreements are fully collateralized by U.S. Treasuries held in joint custody at the
Federal Reserve Bank in Boston.
37
Financial Statements
Audit reports of the City’s financial statements are conducted annually, the most recent of which was performed by
Melanson, Heath and Company, Certified Public Accountants, for the 2015 fiscal year and which is attached hereto
as Appendix A. Extracts from the City’s annual audits are presented on the following pages, including Governmental
Funds Balance Sheets for the fiscal years ended June 30, 2015, June 30, 2014, June 30, 2013 and June 20, 2012
and Statements of Revenues, Expenditures and Changes in Fund Balance for the fiscal years ended June 30,
2015, June 30, 2014, June 30, 2013, June 30, 2012, June 30, 2011 and June 30, 2010.
38
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2015 (1)
General
Debt Service
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and short-term investments
Investments
Receivables, net of allowance for uncollectibles:
Property taxes
Departmental and other
Intergovernmental
Loans
Due from other funds
TOTAL ASSETS
$ 157,194,811
42,069,816
18,457,771
132,368
3,500
20,762,034
$ 238,620,300
$
$
4,312,424
4,312,424
$
$
2,939,356
22,943,921
$ 160,134,167
65,013,737
169,040
9,605,793
625,073
21,749,114
58,032,297
18,457,771
301,408
9,609,293
625,073
46,823,572
$ 300,965,021
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Other liabilities
$ 17,620,636
7,863,284
66,949,240
229,854
$
-
$
990
413,893
3,701,624
-
$ 17,621,626
8,277,177
70,650,864
229,854
TOTAL LIABILITIES
$ 92,663,014
$
-
$
4,116,507
$ 96,779,521
DEFERRED INFLOWS OF RESOURCES
$ 99,306,735
$
-
$
271,579
$ 99,578,314
$
$
$
20,304,610
21,729,261
12,915,004
(1,304,664)
$ 20,496,487
26,041,685
21,966,504
9,677,264
26,425,246
53,644,211
104,607,186
58,032,297
$ 300,965,021
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
__________________
(1) Extracted from audited financial statements.
191,877
9,051,500
9,677,264
27,729,910
46,650,551
$ 238,620,300
39
4,312,424
4,312,424
$
4,312,424
$
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2014 (1)
General
Debt Service
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and short-term investments
Investments
Receivables, net of allowance for uncollectibles:
Property taxes
Departmental and other
Intergovernmental
Loans
Due from other funds
Other assets
$ 171,344,602
22,060,383
$
3,377,810
22,960,492
$ 174,722,412
45,020,875
196,088
8,207,818
3,272,092
13,143,877
134,062
17,590,541
279,020
8,249,859
3,272,092
34,224,613
678,898
TOTAL ASSETS
$ 228,433,647
$
$
51,292,239
$ 284,038,310
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Due to other governments
Other liabilities
$ 19,375,342
7,231,074
54,311,255
198,334
$
-
$
112
496,663
3,702,425
2,500,000
-
$ 19,375,454
7,727,737
58,013,680
2,500,000
198,334
TOTAL LIABILITIES
$ 81,116,005
$
-
$
6,699,200
$ 87,815,205
DEFERRED INFLOWS OF RESOURCES
$ 96,400,458
$
-
$
452,185
$ 96,852,643
$
$
$
18,477,710
16,321,330
10,193,612
(851,798)
$ 18,692,071
20,633,754
22,536,481
11,009,824
26,498,332
44,140,854
99,370,462
51,292,239
$ 284,038,310
17,590,541
82,932
42,041
16,768,312
544,836
-
$
4,312,424
4,312,424
LIABILITIES AND FUND BALANCES
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
__________________
(1) Extracted from audited financial statements.
214,361
12,342,869
11,009,824
27,350,130
50,917,184
$ 228,433,647
40
4,312,424
4,312,424
$
4,312,424
$
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2013 (1)
General
Debt Service
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and short-term investments
Investments
Receivables, net of allowance for uncollectibles:
Property taxes
Departmental and other
Intergovernmental
Loans
Due from other funds
Other assets
$ 160,671,543
20,230,046
$
3,248,756
20,314,358
$ 163,920,299
40,544,404
128,942
3,699,930
653,910
9,574,139
-
18,761,869
207,040
3,727,403
653,910
22,907,948
8,066
TOTAL ASSETS
$ 208,797,638
$
$
37,620,035
$ 250,730,939
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Other liabilities
$ 12,243,464
6,386,244
48,087,495
83,984
$
-
$
128,899
38,270
2,322,362
-
$ 12,372,363
6,424,514
50,409,857
83,984
TOTAL LIABILITIES
$ 66,801,187
$
-
$
2,489,531
$ 69,290,718
DEFERRED INFLOWS OF RESOURCES
$ 94,470,218
$
-
$
203,528
$ 94,673,746
$
$
$
16,751,522
8,014,685
10,160,993
(224)
$ 16,965,883
12,327,951
21,995,051
8,907,711
26,569,879
34,926,976
86,766,475
37,620,035
$ 250,730,939
18,761,869
78,098
27,473
9,020,543
8,066
-
$
4,313,266
4,313,266
LIABILITIES AND FUND BALANCES
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
__________________
(1) Extracted from audited financial statements.
214,361
11,834,058
8,907,711
26,570,103
47,526,233
$ 208,797,638
41
4,313,266
4,313,266
$
4,313,266
$
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2015(1)
General
Revenues:
Property taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Licenses and permits
Interest earnings (loss)
Miscellaneous
Contributions
Total Revenues
$ 189,042,677
12,457,966
1,100,240
1,087,212
45,176,606
1,380,174
472,974
2,373,632
253,091,481
Expenditures:
Current:
General government
Police
Fire
Water fire protection services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Principal
Interest and issuance cost
Intergovernmental
Total Expenditures
Debt Service
Fund
$
13,435,903
29,200,580
21,920,727
2,607,342
133,194,372
12,210,895
2,192,487
6,596,462
2,116,217
299,615
-
13,025,778
4,938,213
10,383,051
252,121,642
Excess (deficiency) of revenues
over expenditures
8,763,122
8,763,122
3,280,000
5,483,122
8,763,122
Nonmajor
Governmental
Funds
$
Total
Governmental
Funds
327,334
700,000
366,494
4,784,906
33,519,082
(218,290)
996,973
708,629
41,185,128
$ 189,370,011
13,157,966
1,466,734
5,872,118
78,695,688
1,380,174
254,684
3,370,605
9,471,751
303,039,731
889,955
1,805,788
2,486,022
22,198,898
19,792,010
1,108,127
368,807
4,860,347
3,381,160
14,325,858
31,006,368
24,406,749
2,607,342
155,393,270
32,002,905
3,300,614
6,965,269
6,976,564
3,680,775
60,000
28,854
56,979,968
16,365,778
10,450,189
10,383,051
317,864,732
969,839
-
(15,794,840)
(14,825,001)
4,760,000
610,993
(5,386,403)
655,147
(5,876,209)
(5,236,472)
-
21,888,749
2,488,519
1,601,408
(680,479)
25,298,197
21,888,749
4,760,000
2,488,519
610,993
(5,386,403)
2,256,555
(6,556,688)
20,061,725
Change in fund balance
(4,266,633)
-
9,503,357
5,236,724
Fund Balance, July 1, 2013
50,917,184
4,312,424
44,140,854
99,370,462
4,312,424
$ 53,644,211
$ 104,607,186
Other Financing Sources (Uses):
Issuance of Bonds
Issuance of refunding bonds
Bond premiums
Bond premiums on refunding bonds
Payment to refunded escorw agent
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balance, June 30, 2014
$
46,650,551
_________________
(1) Extracted from audited financial statements.
42
$
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2014(1)
Debt Service
Fund
General
Revenues:
Property taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Licenses and permits
Interest earnings (loss)
Miscellaneous
Contributions
Total Revenues
$ 183,735,667
12,352,468
1,148,670
1,079,751
47,038,932
1,515,231
893,965
1,666,045
300.00
249,431,029
Expenditures:
Current:
General government
Police
Fire
Water fire protection services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Principal
Interest and issuance cost
Intergovernmental
Total Expenditures
$
13,217,724
26,394,497
20,534,919
2,576,767
130,325,123
10,426,586
2,178,171
6,332,706
1,993,206
302,102
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses):
Issuance of Bonds
Bond Premiums
Transfers in
Transfers out
Total Other Financing Sources (Uses)
8,762,310
8,762,310
-
Nonmajor
Governmental
Funds
$
Total
Governmental
Funds
53,121
407,285
4,942,937
26,334,156
3,298,081
833,518
601,526
36,470,624
$ 183,788,788
12,352,468
1,555,955
6,022,688
73,373,088
1,515,231
4,192,046
2,499,563
9,364,136
294,663,963
1,226,331
1,945,074
45,713
19,680,533
13,785,736
1,013,035
420,634
9,436,370
1,152,049
14,444,055
28,339,571
20,580,632
2,576,767
150,005,656
24,212,322
3,191,206
6,753,340
11,429,576
1,454,151
13,186,389
4,664,660
9,763,895
241,896,745
3,250,000
5,513,151
8,763,151
60,000
31,554
48,797,029
16,496,389
10,209,365
9,763,895
299,456,925
7,534,284
(841)
(12,326,405)
(4,792,962)
19,480,000
1,928,900
638,265
(506,883)
21,540,282
19,480,000
2,068,011
1,041,003
(5,192,065)
17,396,949
139,111
402,738
(4,685,182)
(4,143,333)
-
Change in fund balance
3,390,951
(841)
9,213,877
12,603,987
Fund Balance, July 1, 2013
47,526,233
4,313,265
34,926,977
86,766,475
4,312,424
$ 44,140,854
Fund Balance, June 30, 2014
$
50,917,184
_________________
(1) Extracted from audited financial statements.
43
$
$
99,370,462
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2013(1)
Debt Service
Fund
General
Revenues:
Property taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Licenses and permits
Interest earnings (loss)
Miscellaneous
Contributions
Total Revenues
$ 179,316,327
11,422,224
1,265,981
1,066,266
45,965,204
1,372,314
312,035
1,805,181
242,525,532
Expenditures:
Current:
General government
Police
Fire
Water fire protection services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Principal
Interest and issuance cost
Intergovernmental
Total Expenditures
$
59,553,651
17,954,600
14,312,925
2,591,814
95,691,904
10,403,801
1,755,105
5,058,769
1,416,357
425,232
-
12,914,611
4,897,909
9,420,187
236,396,865
Excess (deficiency) of revenues
over expenditures
8,766,487
8,766,487
3,390,000
5,376,487
8,766,487
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$
499,342
394,925
4,907,031
21,765,256
2,457,550
638,159
556,532
31,218,795
$ 179,815,669
11,422,224
1,660,906
5,973,297
67,730,460
1,372,314
2,769,585
2,443,340
9,323,019
282,510,814
3,286,704
1,164,451
810,040
19,164,058
5,403,792
846,012
341,810
6,194,481
1,555,591
62,840,355
19,119,051
15,122,965
2,591,814
114,855,962
15,807,593
2,601,117
5,400,579
7,610,838
1,980,823
60,000
34,254
38,861,193
16,364,611
10,308,650
9,420,187
284,024,545
6,128,667
-
(7,642,398)
(1,513,731)
110,848
424,911
(8,396,682)
(7,860,923)
-
7,136,000
1,054,848
-
7,136,000
944,000
3,663,044
(1,141,813)
10,601,231
4,087,955
(9,538,495)
2,740,308
Change in fund balance
(1,732,256)
-
2,958,833
1,226,577
Fund Balance, July 1, 2012
49,258,489
4,313,266
31,968,143
85,539,898
4,313,266
$ 34,926,976
$ 86,766,475
Other Financing Sources (Uses):
Issuance of Bonds
Bond Premiums
Capital leases
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balance, June 30, 2013
$
47,526,233
$
_________________
(1) Extracted from audited financial statements.
44
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2012(1)
Pennichuck
Acquisition
General
Revenues:
Property taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Licenses and permits
Interest earnings (loss)
Miscellaneous
Contributions
Total Revenues
$ 174,263,969
11,077,345
971,916
2,113,695
46,452,864
728,360
938,791
1,348,906
237,895,846
Expenditures:
Current:
General government
Police
Fire
Water fire protection services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Principal
Interest and issuance cost
Intergovernmental
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses):
Issuance of Bonds
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Extraordinary Items:
Issuance of Acquisition Bonds
Pennichuck Acquisition
Acquisition Bonds Interest and Issuance
Cost
Change from extraordinary items
$
2,561,897
2,561,897
4,313,266
4,313,266
Total
Governmental
Funds
$
111,588
453,846
5,699,965
19,786,143
873,841
787,610
193,690
27,906,683
$ 174,375,557
11,077,345
1,425,762
7,813,660
66,239,007
728,360
1,812,632
2,136,516
7,068,853
272,677,692
1,131,722
-
-
3,561,018
1,213,535
1,358,721
24,758,710
2,590,889
922,133
494,152
5,061,609
84,224
63,115,094
18,967,499
15,507,234
2,611,535
118,234,670
11,822,833
2,595,897
5,581,693
6,607,068
364,299
12,163,180
5,237,490
9,569,306
231,201,085
1,131,722
-
60,000
36,654
40,141,645
12,223,180
5,274,144
9,569,306
272,474,452
6,694,761
1,430,175
(12,234,962)
203,240
1,227,619
(4,231,574)
(3,003,955)
(1,028,000)
(1,028,000)
-
-
150,570,000
(150,011,079)
-
-
150,570,000
(150,011,079)
-
(558,921)
-
-
-
(558,921)
-
3,690,806
402,175
Fund Balance, July 1, 2011
45,567,683
(400,909)
$ 49,258,489
$
1,266
_________________
(1) Extracted from audited financial statements.
$
Nonmajor
Governmental
Funds
58,422,354
17,753,964
14,148,513
2,611,535
93,475,960
9,231,944
1,673,764
5,087,541
1,545,459
280,075
Change in fund balance
Fund Balance, June 30, 2012
Debt Service
Fund
45
4,313,266
4,313,266
$
4,313,266
13,460,000
1,422,174
(933,470)
13,948,704
13,460,000
2,649,793
(6,193,044)
9,916,749
1,713,742
10,119,989
30,253,135
75,419,909
$ 31,966,877
$ 85,539,898
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
STAT EMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2011(1)
General
Revenues:
Property taxes
Auto permits
Penalties, interes t and other taxes
Charges for services
Intergovernmental
Licenses and permits
Interest earnings (loss)
Miscellaneous
Contributions
Total Revenues
$ 168,867,223
10,411,574
961,391
1,832,280
48,875,423
788,464
446,572
1,040,677
233,223,604
Expenditures:
Current:
General government
Police
Fire
Water fire protec tion services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Principal
Interest and issuanc e cost
Intergovernmental
Total Expenditures
Excess (defic iency) of revenues
over expenditures
Nonmajor
Governmental
Funds
$
Total
G overnmental
Funds
238,701
510,395
6,055,940
22,290,694
3,721,608
558,692
460,903
33,836,933
$ 169,105,924
10,411,574
1,471,786
7,888,220
71,166,117
788,464
4,168,180
1,599,369
460,903
267,060,537
56,897,557
19,165,600
16,203,772
2,471,096
93,588,224
9,371,404
1,894,004
5,310,816
1,445,969
289,648
3,886,512
1,610,358
113,681
20,345,041
728,773
1,247,986
414,275
6,496,240
-
60,784,069
20,775,958
16,317,453
2,471,096
113,933,265
10,100,177
3,141,990
5,725,091
7,942,209
289,648
11,864,348
5,416,517
9,416,623
233,335,578
60,000
38,904
34,941,770
11,924,348
5,455,421
9,416,623
268,277,348
(111,974)
(1,104,837)
(1,216,811)
2,001,108
(6,301,394)
(4,300,286)
6,000,000
1,906,625
(2,283,675)
5,622,950
6,000,000
3,907,733
(8,585,069)
1,322,664
Change in fund balanc e
(4,412,260)
4,518,113
105,853
Fund Balance, July 1, 2010
49,979,943
25,334,113
75,314,056
45,567,683
$ 29,852,226
Other Financing Sources (Uses):
Issuance of Bonds
Transfers in
Transfers out
Total Other Financing Sourc es (Uses)
Fund Balance, June 30, 2011
$
_________________
(1) Extracted from audited financial statements.
46
$
75,419,909
INDEBTEDNESS
Authorization Procedure and Limitations
Bonds are generally authorized on behalf of the City by a two-thirds vote of the fifteen Aldermen who, with the
Mayor, constitute the Board of Mayor and Aldermen. The Mayor has veto power over loan authorizations.
Under a special act applicable to the City, the general debt limit of the City is 2.00% of its base valuation as last
determined by the State Board of Taxation. Debt for school purposes is excluded from the general debt limit.
Under a special act applicable to the City, school debt is subject to a limit of not more than 6% of the above
described base valuation. Debt for certain purposes, including overlapping debt, temporary loans, debt for urban
redevelopment and housing purposes, certain sewer debt, and, subject to a special 10% limit, water debt are
exempt from the general debt limit. Borrowings authorized by special legislative acts, rather than the general
municipal finance statutes, are sometimes excluded from the City's debt limit (which is the case for the Bonds
pursuant to Section 118 of Chapter 1 of the Special Session of the Acts of 2010). The debt limits generally apply
both at the time of authorization and at the time of issuance of debt. State-prescribed statutory debt limits under
RSA 33:4-a are higher than those allowed under the special act applicable to the City.
Trend in Tax Anticipation Note Borrowings
Since 1972 when the City introduced a July 1 - June 30 fiscal period and implemented a semiannual property tax
collection system, the City has not borrowed seasonally to finance any of its outstanding taxes. Each year ample
cash has been available on a daily basis to meet current obligations. Property tax bills are due and payable to the
City on July 1 and on December 1. It is expected that future cash operations will continue to be favorable and that
the City will not need to borrow on a short-term basis.
Debt Ratios
The following table sets forth the ratio of bonded debt to equalized assessed valuation and per capita net debt ratios
for the end of the five most recent fiscal years. The table does not deduct anticipated State grant payments
applicable to the principal amount of outstanding bonds or debt that may be supported in part (i.e., school and
sewer) by non-tax revenues. The table reflects the net effect of bonds refunded. (See "Debt Summary.")
Fiscal
Year
Bonded
Debt
Outstanding (3)
Equalized
Assessed
Valuation(2)
Population(1)
Bonded
Debt
Per Capita
Ratio Bonded
Debt to Equalized
Assessed Valuation
2015
$
325,691,881
86,494
$ 8,684,907,808
$
3,765
3.75 %
2014
319,677,940
86,494
8,386,760,928
3,696
3.81
2013
306,405,011
86,494
7,949,863,821
3,543
3.85
2012
306,781,368 (3)
86,494
8,248,187,902
3,547
3.72
2011
159,951,683
86,494
8,519,356,326
1,849
1.88
__________
(1) Based on 2010 federal census.
(2) Full value including utilities and railroad as determined annually by the State Department of Revenue
Administration.
(3) The increase beginning in fiscal 2012 reflects the issue of $150,570,000 self-supporting water bonds issued in
fiscal 2012 for the City’s purchase that same year of the private Water Company serving the City and
surrounding communities. See “Acquisition of Pennichuck Water Utilities” herein.
47
Direct Debt Summary
The following table sets forth the debt of the City of Nashua incurred for capital purposes outstanding as of June 30,
2015. The table does not reflect this issue of Bonds but does reflect the net effect of all issues of refunding bonds.
Direct Debt Summary
As of June 30, 2015
Long-Term Debt Outstanding (1)
School (2)
Sewer(3)
Pennichuck Corporation Acquisition (4)
Landfill (5)
Stadium
Other (6)
$
70,948,144
42,925,415
140,650,000
13,892,716
2,157,500
55,118,106
$
Total Direct Debt
(1)
(2)
(3)
(4)
(5)
(6)
325,691,881
All outstanding debt, other than school, sewer and Pennichuck Corporation Acquisition debt, is subject to the City’s general debt limit.
School debt is subject to the City’s special school debt limit as described above.
Subject to appropriation by the State legislature, the City expects to receive state school grant reimbursements equal to 30% of the
principal of outstanding school bonds, payable in annual installments over the life of the bonds.
Self-supporting. Subject to appropriation by the State legislature, the City expects to receive $1,150,261 in debt service reimbursements
for outstanding sewer debt, payable in annual installments over the life of the issues outstanding.
Self-supporting.
Subject to appropriation by the State legislature, the City expects to receive $2,095,838 in debt service reimbursements for outstanding
landfill debt, payable in annual installments over the life of the issues outstanding.
Includes garage construction, city hall renovations and police station planning, land, arts & science center, library west wing addition, a
communications system, athletic fields and fire station addition.
Principal Payments by Purpose
The following table sets forth the principal payments by purpose on outstanding bonds of the City of Nashua as of
June 30, 2015.
F is c a l
Y ear
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
T o ta l
(1)
(2)
(3)
S c h o o l (1 )
P e n n ic h u c k
C o rp o ra tio n
A c q u is itio n (2 )
S e w e r (2 )
L a n d fill
S ta d iu m
O th e r (3 )
TOTAL
$
8 ,9 0 7 ,3 8 0
8 ,3 7 3 ,3 3 9
8 ,1 4 0 ,4 0 0
8 ,0 1 0 ,1 2 5
8 ,0 1 7 ,9 0 0
7 ,7 7 9 ,0 0 0
5 ,1 1 5 ,0 0 0
3 ,6 3 5 ,0 0 0
3 ,6 6 5 ,0 0 0
9 9 5 ,0 0 0
9 9 5 ,0 0 0
9 9 5 ,0 0 0
9 9 5 ,0 0 0
9 2 0 ,0 0 0
9 1 5 ,0 0 0
9 1 5 ,0 0 0
9 1 5 ,0 0 0
6 1 0 ,0 0 0
5 2 5 ,0 0 0
5 2 5 ,0 0 0
-
$
2 ,9 2 8 ,4 8 0
2 ,9 2 8 ,4 8 0
2 ,9 2 8 ,4 8 0
2 ,9 2 8 ,4 8 0
2 ,9 2 8 ,4 8 0
2 ,9 2 8 ,4 8 0
2 ,4 6 7 ,2 1 0
2 ,4 4 2 ,3 9 4
2 ,4 4 2 ,3 9 4
2 ,4 3 7 ,3 9 4
2 ,4 3 7 ,3 9 4
2 ,4 3 7 ,3 9 4
2 ,4 3 7 ,3 9 4
2 ,4 3 7 ,3 9 4
2 ,4 3 7 ,3 9 4
9 5 8 ,1 5 7
9 2 5 ,0 0 4
9 2 5 ,0 0 4
3 4 0 ,0 0 4
2 3 0 ,0 0 4
-
$
3 ,3 2 0 ,0 0 0
3 ,3 7 0 ,0 0 0
3 ,4 3 0 ,0 0 0
3 ,5 0 5 ,0 0 0
3 ,5 9 0 ,0 0 0
3 ,6 9 0 ,0 0 0
3 ,7 9 5 ,0 0 0
3 ,9 1 0 ,0 0 0
4 ,0 3 5 ,0 0 0
4 ,1 7 0 ,0 0 0
4 ,3 1 5 ,0 0 0
4 ,4 7 5 ,0 0 0
4 ,6 4 0 ,0 0 0
4 ,8 4 0 ,0 0 0
5 ,0 4 5 ,0 0 0
5 ,2 5 5 ,0 0 0
5 ,4 8 0 ,0 0 0
5 ,7 1 0 ,0 0 0
5 ,9 6 0 ,0 0 0
6 ,2 2 0 ,0 0 0
6 ,4 9 5 ,0 0 0
6 ,7 8 0 ,0 0 0
7 ,0 7 5 ,0 0 0
7 ,3 8 5 ,0 0 0
7 ,7 1 0 ,0 0 0
8 ,0 5 0 ,0 0 0
8 ,4 0 0 ,0 0 0
$
1 ,7 9 8 ,9 0 9
1 ,8 0 2 ,6 5 9
1 ,8 0 2 ,6 5 9
1 ,6 1 8 ,7 0 4
1 ,5 4 3 ,7 0 4
1 ,5 4 3 ,7 0 4
1 ,1 1 2 ,5 6 4
1 ,1 0 7 ,5 6 4
9 9 3 ,6 2 4
5 6 8 ,6 2 4
-
$
2 7 0 ,0 0 0
2 8 5 ,0 0 0
2 9 5 ,0 0 0
3 0 7 ,5 0 0
3 2 0 ,0 0 0
3 3 0 ,0 0 0
3 5 0 ,0 0 0
-
$
4 ,0 5 6 ,3 7 0
3 ,5 6 6 ,6 6 1
3 ,0 9 4 ,6 0 0
2 ,6 0 7 ,3 7 5
2 ,3 1 2 ,1 0 0
2 ,0 8 6 ,0 0 0
3 ,8 5 5 ,0 0 0
4 ,4 2 0 ,0 0 0
4 ,3 0 0 ,0 0 0
4 ,1 2 5 ,0 0 0
2 ,8 1 5 ,0 0 0
2 ,6 2 5 ,0 0 0
2 ,3 4 5 ,0 0 0
2 ,2 4 5 ,0 0 0
2 ,2 3 5 ,0 0 0
2 ,2 3 5 ,0 0 0
2 ,0 6 0 ,0 0 0
1 ,8 5 5 ,0 0 0
1 ,7 1 5 ,0 0 0
5 6 5 ,0 0 0
-
$
2 1 ,2 8 1 ,1 4 0
2 0 ,3 2 6 ,1 4 0
1 9 ,6 9 1 ,1 4 0
1 8 ,9 7 7 ,1 8 5
1 8 ,7 1 2 ,1 8 5
1 8 ,3 5 7 ,1 8 5
1 6 ,6 9 4 ,7 7 4
1 5 ,5 1 4 ,9 5 7
1 5 ,4 3 6 ,0 1 8
1 2 ,2 9 6 ,0 1 8
1 0 ,5 6 2 ,3 9 4
1 0 ,5 3 2 ,3 9 4
1 0 ,4 1 7 ,3 9 4
1 0 ,4 4 2 ,3 9 4
1 0 ,6 3 2 ,3 9 4
9 ,3 6 3 ,1 5 7
9 ,3 8 0 ,0 0 4
9 ,1 0 0 ,0 0 4
8 ,5 4 0 ,0 0 4
7 ,5 4 0 ,0 0 4
6 ,4 9 5 ,0 0 0
6 ,7 8 0 ,0 0 0
7 ,0 7 5 ,0 0 0
7 ,3 8 5 ,0 0 0
7 ,7 1 0 ,0 0 0
8 ,0 5 0 ,0 0 0
8 ,4 0 0 ,0 0 0
$
7 0 ,9 4 8 ,1 4 4
$
4 2 ,9 2 5 ,4 1 5
$
1 4 0 ,6 5 0 ,0 0 0
$
1 3 ,8 9 2 ,7 1 6
$
2 ,1 5 7 ,5 0 0
$
5 5 ,1 1 8 ,1 0 6
$
3 2 5 ,6 9 1 ,8 8 1
School debt is offset by state grant payments equal to 30% of annual principal payable over the life of school bonds.
Self-supporting.
Includes garage construction, city hall renovations and police station planning, land, arts & science center, library west wing addition, a
communications system, athletic fields, fire station addition and highway and sidewalk construction.
48
Debt Service Requirements
The following table sets forth the required principal and interest payments on outstanding bonds of the City of
Nashua as of June 30, 2015.
Fiscal Year
As of June 30, 2015 (1)
Principal
Interest
Estimated State
School Grants
Net
Debt Service (1)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
$
21,281,140
20,326,140
19,691,140
18,977,185
18,712,185
18,357,185
16,694,774
15,514,957
15,436,018
12,296,018
10,562,394
10,532,394
10,417,394
10,442,394
10,632,394
9,363,157
9,380,004
9,100,004
8,540,004
7,540,004
6,495,000
6,780,000
7,075,000
7,385,000
7,710,000
8,050,000
8,400,000
$
11,815,997
11,404,711
10,734,728
10,088,723
9,440,209
8,783,219
8,164,957
7,550,646
6,956,379
6,367,318
5,976,579
5,614,141
5,237,317
4,837,842
4,444,844
4,043,054
3,673,379
3,307,554
2,932,797
2,571,500
2,270,925
1,986,704
1,690,011
1,380,409
1,057,242
719,852
367,584
$
(2,471,664)
(2,453,502)
(2,395,620)
(2,376,038)
(2,393,370)
(2,332,200)
(1,553,000)
(931,500)
(942,000)
(141,000)
(141,000)
(141,000)
(141,000)
(118,500)
(117,000)
(117,000)
(117,000)
(25,500)
-
$
30,625,473
29,277,349
28,030,247
26,689,869
25,759,023
24,808,203
23,306,731
22,134,104
21,450,397
18,522,336
16,397,972
16,005,534
15,513,711
15,161,736
14,960,238
13,289,211
12,936,383
12,382,057
11,472,800
10,111,504
8,765,925
8,766,704
8,765,011
8,765,409
8,767,242
8,769,852
8,767,584
Total
$ 325,691,881
$
143,418,619
$
(18,907,894)
$
450,202,606
____________
(1) Reflects mostly self-supporting debt, including $140,650,000 self-supporting water bonds.
Authorized Unissued Debt and Prospective Financing
The City has approximately $116.2 million authorized unissued debt, excluding the unissued balance of refunding
bonds authorized and including $69.4 million of bonds authorized for the purpose of acquiring Pennichuck Water
Corporation which are expected to be rescinded.
Capital Equipment Reserve Fund (CERF)
In 1973 the City created a capital equipment reserve fund for the purpose of funding depreciation. As of June 30,
2013 the audited balance was $2,829,736. As of June 30, 2014 the audited balance was $2,719,807. As of June
30, 2015 the audited balance was $1,126,756. The City revised its CERF plan to include full funding of capital
equipment from the CERF account directly instead of a combination of funding from both departmental operating
budgets and CERF. Effective in Fiscal Year 2011, the City intends to fund all capital equipment through the CERF
account only, including capital equipment needs for the Solid Waste Department. One element of the plan is to
gradually increase the City’s contribution to the CERF account annually.
49
Wastewater Enterprise Capital Reserve Fund
The City’s Wastewater Enterprise Fund has a Capital Equipment Reserve Fund with an audited fund balance of
$10,552,681 at June 30, 2015.
Solid Waste Capital Reserve Fund
This is now being funded through the Capital Equipment Reserve Fund (see above).
RETIREMENT SYSTEMS
The City participates in the New Hampshire Retirement System, which is a multi-employer defined benefit pension
plan. The system covers substantially all full-time permanent employees, except for the Board of Public Works
employees. See Appendix A, Note 18, “Retirement System" for additional information regarding the City’s annual
contributions.
New Hampshire Retirement System
The City participates in the New Hampshire Retirement System (the “System”), which is a multi-employer defined
benefit pension plan. The System covers substantially all full-time permanent employees, except for the Board of
Public Works employees. See Appendix A, Note 18, “Retirement System" for additional information regarding the
City’s annual contributions.
Prior to 1967 four separate retirement systems were operated by the State involving State employees and State
and local teachers, police officers and firefighters. Effective July 1, 1967, these four systems were combined under
a common board of trustees in the System to include all employees hired subsequent to such time and to also
include all members of the prior systems who elected to transfer to the new system. At June 30, 2012, there were
approximately 48,625 active and inactive members and 28,454 retired members of the System. The System
provides service, disability, death and vested retirement benefits to its members and their beneficiaries. It also
provides a health insurance subsidy to qualified members and their beneficiaries, though that benefit has been
discontinued for new members.
The financing of the System as well as its predecessor programs is provided through both employee contributions
and political subdivision and State employer contributions.
The State has previously funded 100% of the employer cost for all State employees and 35% of the employer cost
for teachers, firefighters and police officers employed by political subdivisions. Legislation was enacted in the 2009
legislative sessions that reduced the State's share of the employers' cost for teachers, firefighters and police officers
to 30% for fiscal 2010, 25% for fiscal 2011, and 0% for fiscal 2012, 2013 and 2014.
Beginning in fiscal 2012, the State’s share of the employer’s cost for teachers, firefighters and police officers was
reduced to 0%, thereby eliminating the State’s sharing arrangement with political subdivisions. Listed below are the
amounts of the City’s contributions to the System for the past five fiscal years.
Fiscal Year
Ending June 30,
2016
2015
2014
2013
2012
2011
2010
Contributory
(budgeted)
$21,315,621
19,432,673
18,450,237
14,571,561
14,759,025
11,840,910
10,703,914
As of June 30, 2014, the net assets available to pay pension benefits of the combined retirement and health
insurance subsidy programs, at fair value, were reported by the System to be $6.700 billion. The total pension
liability at June 30, 2014 was $11.045 billion, resulting in an unfunded pension liability at June 30, 2014 of $4.344
billion, a funded ratio of 60.7%.
50
Information regarding the System, including financial statements and actuarial valuations may be obtained from the
System by requesting them in writing at 54 Regional Drive, Concord, NH 03301-8507 or from the System’s website,
www.nhrs.org.
Additional information concerning the System is also available under the heading “STATE RETIREMENT SYSTEM”
in the State Annual Report for the fiscal year ended June 30, 2014 which was filed with the Municipal Securities
Rulemaking Board through its Electronic Municipal Market Access system by March 27, 2015, which may be
accessed at www.msrb.org. The information pertaining to the System is current only as of the date of such filing.
Neither the City nor the State represent that there has been no change in such information since such date and
both disclaim any liability for changes in such information since such date.
__________________
SOURCE: Board of Trustees, New Hampshire Retirement System.
Board of Public Works Employee's Retirement System
The Board of Public Works Employees Retirement is a contributory plan with the city matching employee
contributions to the plan. The plan is administered by a Board of Trustees, which include five members. The City’s
share of the plan amounted to $772,343 for the year ended June 30, 2015. The plan has a full actuarial valuation
on the even years and full GASB 67 & 68 Disclosure on the odd years. Net pension liability (assets) was
$6,881,217 as of June 30, 2015. The plan fiduciary net position as percentage total pension liability was 84.5% as
of June 30, 2015. The fund value as of June 30, 2015 is $37,512,143.
Other Post-Employment Benefits
GASB Statement 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other
Than Pensions, requires governments to account for other post-employment benefits (OPEB), primarily
healthcare, on an accrual basis rather than on a pay-as-you-go basis. The effect is the recognition of an
actuarially required contribution as an expense on the Statement of Activities when a future retiree earns their
post-employment benefits, rather than when they use their post-employment benefit. To the extent that an
entity does not fund their actuarially required contribution, a post-employment benefit liability is recognized on
the Statement of Net Position over time.
The $22,982,340 OPEB liability, as calculated below, represents the implementation of Governmental Accounting
Standards Board (GASB) Statement No. 45. The purpose of the statement is to reflect the liability of healthcare
or other post-employment benefits provided to separated or retired employees. With the exception of one group
of retirees described below, the City of Nashua does not pay a direct subsidy towards their retiree's health
insurance premiums. In accordance with RSA 100-A:50, retired employees shall be deemed to be part of the
same group as active employees for health insurance premium purposes, thereby resulting in a so-called
"blended rate". The blended rate decreases the cost of insurance premiums for retirees and increases the cost
for active employees, thereby resulting in the City paying an Implicit Subsidy.
The City's Explicit Subsidy pertains to only one group of retirees. Teachers who have retired after June 30, 1991 who
have at least 20 years of service with the Nashua School District and who are actually receiving retirements benefits
under the New Hampshire Retirement System, will have a portion of their health insurance premiums paid according
to a set schedule based on the years of service at retirement. The subsidy ranges from 20% for a teacher retiree with
20 years of service at retirement to 50% for a teacher with 30+ years of service at retirement. The City's Explicit
Subsidy associated with each eligible teacher retiree ends when the retiree is eligible for Medicare.
The City's most recent GASB Valuation was for the fiscal year ending June 30, 2014. The valuation calculated the
City's total OPEB liability of approximately $39.4 million. The liability was further broken down for current and future
retirees.
51
The table below shows the Explicit and Implicit liability amounts:
Explicit
Current Retirees
Future Retirees
Totals
$
$
$
Implicit
0.4 million
2.8 million
3.2 million
10.0
26.2
36.2
Totals
$
$
$
10.4
29.0
39.4
The Explicit Subsidy of $3.2 million shown above represents only 8.1% of the total OPEB liability of $39.4 million.
Plan Description
In addition to providing the pension benefits described, the City provides post-employment health care and life
insurance benefits for retired employees through the City’s plan. The benefits, benefit levels, employee contribution
and employer contributions are governed by RSA 100-A:50. As of July 1, 2013, the actuarial valuation date,
approximately 1,076 retirees and 2,631 active employees met the eligibility requirements. The Single Employer plan
does not issue a separate financial report.
Benefits Provided
The City provides medical insurance to retirees and their covered dependents. All active employees who retire from
the City and meet the eligibility criteria will receive these benefits.
Funding Policy
In general, retirees and their spouses pay 100% of coverage.
Annual OPEB Costs and Net OPEB Obligation
The City's fiscal 2015 annual OPEB expense is calculated based on the annual required contribution of the employer
(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost per year and
amortize the unfunded actuarial liability over a period of thirty years. The following table shows the components of the
City's annual OPEB cost for the year ending June 30, 2015, the amount actually contributed to the plan, and the
change in the City’s net OPEB obligation based on an actuarial valuation as of July 1, 2013.
Annual Required Contribution (ARC)
Interest on net OPEB obligation
NOO amortization adjustment to the ARC
Annual OPEB Cost
Contributions made
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
$
$
4,510,124
1,034,567
(1,346,001)
4,198,690
(1,907,690)
2,291,000
20,691,340
22,982,340
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation were as follows
Annual
OPEB
Cost
Fiscal Year Ended
2015
2014
2013
2012
2011
$
$
$
$
$
4,198,690
4,355,261
5,032,829
5,078,422
5,631,575
Percentage
of OPEB
Cost Contributed
45.4
40.2
44.8
40.4
40.7
%
%
%
%
%
Net OPEB
Obligation
$
$
$
$
$
22,982,340
20,691,340
18,086,253
15,307,591
12,278,412
The City’s net OPEB obligation as of June 30, 2014 is recorded as net OPEB obligations line on the Statement of Net
Assets.
52
Funded Status and Funding Progress
The funded status of the plan as of July 1, 2013, the date of the most recent actuarial valuation was as follows:
Actuarial accred liability (AAL)
Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
Funded ratio (actuarial value of plan assets/AAL
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
$
$
$
39,415,168
39,415,168
0%
123,880,502
31.8%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amount and assumptions about
the probability of occurrence of events far into the future. Examples included assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the
annual required contributions of the employer are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the Notes to the Financial Statements, presents multiyear trend
information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to
the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the plan as understood by the City and
the plan members and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the City and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
In the July 1, 2013 actuarial valuation the Entry Age Normal method was used. The actuarial value of assets
was not determined as the City has not advance funded its obligation. The actuarial assumptions included a
3.00% inflation rate, 5.00% investment rate of return, and an initial annual healthcare cost trend rate of 9.00%
which decreases to a 5.00% long-term rate for all healthcare benefits in 2023. The amortization costs for the
initial UAAL is a level dollar method for a period of 30 years, on an open group. This has been calculated
assuming the amortization payment increases at a rate of 3.00%.
EMPLOYEE RELATIONS
The City of Nashua currently employs 2,685 regular full time and part time employees of which 1,905 are Nashua
School District, Board of Education employees. A breakdown of the number of employees in the other City
divisions is as follows: General Government Division, which includes the Office of the Mayor, the Legal
Department, Legislative Assistants, Office of the City Clerk, Human Resources Department, Emergency
Management Director and the Office of Economic Development, 26. The Financial Services Division, which includes
Financial Services (CFO, Treasurer/Tax Collections/Motor Vehicle Registration, and Accounting/Compliance), the
Risk Management Department, which includes Building Maintenance, the Purchasing Department, the Assessing
Department, which includes GIS, and the Hunt Building, 51; the Information Technology Division, 14; the Police
Department, 234; the Fire Department, 174; the Division of Public Health and Community Services, which includes
the Community Health Department, the Environmental Health Department, and the Welfare Department, 25;
Division of Public Works, Board of Public Works, which includes Engineering and Administration, the
Parks/Recreation Department, the Street Department, the Wastewater Department, the Traffic Department, and the
Solid Waste Department, 159; City Cemeteries which includes Edgewood, Woodlawn, and the Suburban
Cemeteries, 8; the Community Development Division, which includes the Planning Department, the Urban
Programs Department, the Department of Building Safety, the Code Enforcement Department, and the
Transportation Department, which includes Parking Lots, 40; and the Nashua Public Library, 49.
Pursuant to NH RSA 273-A, all municipal employees of the City of Nashua, with the exception of the appointed and
confidentiality employees may collectively bargain through Public Employees Labor Relations Board (PELRB)
certified collective bargaining units (unions) on issues regarding wages, hours, and other terms/conditions of
employment. Currently, all but approximately 133 City of Nashua employees are represented by one of the 10
collective bargaining units. Of the 16 total collective bargaining units, six units represent Nashua School
53
Department employees. Three of the 16 contracts will expire on June 30, 2016, and one contract will expire on
August 31, 2016. A total of 5 expired contracts are currently in negotiations.
Labor/Management collective bargaining agreements must be ratified by the City of Nashua and authorized
representatives of the respective collective bargaining unit and the cost items of a ratified collective bargaining
agreement must be approved by the Mayor and the Board of Aldermen.
LITIGATION
In the opinion of the City’s Corporation Counsel, there is no pending litigation likely to result, either individually or in
the aggregate, in final judgment against the City that would materially affect its financial position.
_________________________
City of Nashua, New Hampshire
/s/ David G. Fredette, City Treasurer
February 11, 2016
54
APPENDIX A
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For The Fiscal Year Ended
June 30, 2015
New four-faced clock on Main Street, Downtown Nashua
Photo Credit: Paul Shea, Great American Downtown
CITY OF NASHUA,
NEW HAMPSHIRE
(This page intentionally left blank.)
CITY OF NASHUA
NEW HAMPSHIRE
Comprehensive Annual Financial
Report
For The Fiscal Year Ended
June 30, 2015
Prepared by:
The Financial Services Division
John L. Griffin
CFO/Comptroller
(This page intentionally left blank.)
City of Nashua, New Hampshire
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2015
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:
Transmittal Letter
Organizational Chart
Principal Officials
Division and Department Heads
Geographic Location
Certificate of Achievement
A-1
A-9
A-10
A-11
A-13
A-14
FINANCIAL SECTION:
Independent Auditors’ Report
A-15
Management’s Discussion and Analysis
A-18
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position
A-33
Statement of Activities
A-34
Fund Financial Statements:
Governmental Funds:
Balance Sheet
A-36
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities in the Statement
of Net Position
A-37
Statement of Revenues, Expenditures, and Changes
in Fund Balances
A-38
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities
A-39
Statement of Revenues and Other Sources, and Expenditures
and Other Uses - Budget and Actual - General Fund
A-40
Page
Proprietary Funds:
Statement of Net Position
A-41
Statement of Revenues, Expenses, and Changes in Fund
Net Position
A-42
Statement of Cash Flows
A-43
Fiduciary Funds:
Statement of Fiduciary Net Position
A-44
Statement of Changes in Fiduciary Net Position
A-45
Component Units:
Combining Statement of Net Position
A-46
Combining Statement of Revenues, Expenses and
Changes to Net Position
A-47
Notes to Financial Statements
A-48
Pennichuck Corporation and Subsidiaries Notes
A-91
Nashua Airport Authority Notes
A-121
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress
A-132
Schedule of Proportionate Share of the Net Pension Liability
A-133
Schedule of Contributions
A-134
Schedule of Changes in the Net Pension Liability
A-135
Schedules of Net Pension Liability, Contributions, and
Investment Returns
A-136
SUPPLEMENTARY STATEMENTS AND SCHEDULES:
Governmental Funds:
Combining Financial Statements:
Combining Balance Sheet - Nonmajor Governmental Funds
A-140
Combining Statement of Revenues, Expenditures, and
Changes in Fund Equity - Nonmajor Governmental Funds
A-146
Page
Detail and Combining Budget and Actual Statements:
Detail Schedule of Revenues and Other Financing
Sources - Budget and Actual - General Fund
A-153
Detail Schedule of Expenditures and Other Financing
Uses - Budget and Actual - General Fund
A-154
Internal Service Funds:
Combining Statement of Net Position
A-156
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position
A-157
Combining Statement of Cash Flows
A-158
Fiduciary Funds:
Combining Statement of Changes in Assets and Liabilities Agency Fund
A-160
STATISTICAL SECTION:
Financial Trends
Net Position by Component - Last Ten Fiscal Years
A-162
Changes in Net Position - Last Ten Fiscal Years
A-163
Fund Balances, Governmental Funds - Last Ten Fiscal Years
A-164
Changes in Fund Balances, Governmental Funds - Last Ten
Fiscal Years
A-165
Expenditures and Other Financing Uses by Department and
Budget Category, General Fund - Last Ten Fiscal Years
A-166
Combined Enterprise Funds Revenue, Expenditures, Other
Financing Sources and Uses and Change in Total Net Position Last Ten Fiscal Years
A-167
Revenue Capacity
General Government Tax Revenues by Source - Last Ten
Fiscal Years
A-168
Property Tax Levies and Collections - Last Ten Fiscal Years
A-169
Assessed and Estimated Full Value of Real Property - Last
Ten Fiscal Years
A-170
Page
Principal Taxpayers - Current Year and Nine Years Ago
A-171
Property Tax Rates per $1,000 of Assessed Value Direct and Overlapping Governments - Last Ten Fiscal
Years
A-172
Nashua’s Share of the Hillsborough County Tax Apportionment Last Ten Fiscal Years
A-173
Debt Capacity
Ratios of Long Term Debt Outstanding and Legal Debt Limits Last Ten Fiscal Years
A-174
Ratios of Outstanding Debt by Debt Type - Last Ten Fiscal Years
A-175
Computation of Overlapping Debt - Hillsborough County
Long Term Debt - Last Ten Fiscal Years
A-176
Demographic and Economic Information
Demographic Statistics - Last Ten Fiscal Years
A-177
Principal Employers - Current Year and Nine Years Ago
A-178
Operating Information
Operating Indicators by Function - Last Ten Fiscal Years
A-179
Capital Asset Statistics by Function - Last Ten Fiscal Years
A-180
City Government Employees by Division - Full Time
Equivalents - Last Ten Fiscal Years
A-181
Student/Teacher Statistical Information - Last Ten Fiscal Years
A-182
School Department Operating Statistics - Last Ten Fiscal Years
A-183
City of Nashua
Office of the Chief Financial Officer
229 Main Street - Nashua, NH 03060
(603) 589-3171
Fax (603) 589-3168
December 30, 2015
To the Citizens of the City of Nashua and the Board of Aldermen:
It is our pleasure to present the Comprehensive Annual Financial Report (CAFR) for the City
of Nashua, New Hampshire, for the fiscal year ended June 30, 2015. Responsibility for the
accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with management. To the best of our knowledge and belief, the report
accurately presents the City’s financial position and the results of operations in all material
respects in accordance with the most current generally accepted accounting principles
(GAAP). All disclosures necessary to enable the reader to gain an accurate understanding of
the City’s financial activities have been included. This letter of transmittal is intended to
complement and should be read in conjunction with Management’s Discussion and Analysis
(MD&A).
This CAFR presents the City’s financial statements as required by the Governmental
Accounting Standards Board (GASB) Statement No. 34, which established a new financial
reporting model for state and local governments. It also complies with GASB Statement
No. 44, which “identified the specific information required by the statistical section standards
and set forth the overarching objectives of statistical section information. The statistical
section provides crucial data to many different kinds of consumers of governmental financial
information, ranging from municipal credit analysts to state legislators, municipal governing
bodies, oversight bodies, and citizen and taxpayer organizations.” (www.gasb.org/news) The
CAFR covers all funds that, by law or other fiduciary obligation, the City administers. These
include, but are not limited to, funds for the City of Nashua, the Nashua School District, and
the component units, Pennichuck Corporation and Nashua Airport Authority.
History and Government
The City of Nashua encompasses an area of thirty-two square miles in Hillsborough County
along the Merrimack River in Southern New Hampshire. It is approximately thirty-four miles
northwest of Boston, Massachusetts, and eighteen miles south of Manchester, New
Hampshire. Nashua was part of the settlement of Dunstable, Massachusetts, until the division
line between Massachusetts and New Hampshire was settled in 1741. It was then known as
Dunstable, New Hampshire, until its name was changed to Nashua in 1836.
Originating from England, the pioneers of Dunstable arrived in the 1600s to settle on grants
of land. The livelihood of the community at that time was farming and mercantile/commercial trade. The settlement period continued into the 1700s as sawmills and gristmills were
established to harness the many streams and brooks throughout the town. The late-1700s
A-1
were a significant period for the region due to construction of the 27.75 mile-long Middlesex
Canal System linking the Merrimack River to Charlestown-Boston. Direct water access to
Boston markets immensely increased trade opportunities.
During the 1800s, two massive cotton textile mills were established by harnessing waterpower with canal systems. Metal manufacturing, iron industries and other heavy industries
were established as ancillary and support businesses to the mills. Railroads built throughout
the region in the mid-1800s dramatically reduced the general expense of travel and
transportation of goods, allowing Nashua's manufacturing and retail sectors, along with its
population, to grow and diversify.
The City Charter was issued by the State of New Hampshire and signed by Governor Noah
Martin on June 28, 1853. It was not until a new charter was written in 1913 that the current
form of government was adopted. (The Nashua History Committee 1978: The Nashua
Experience. Canaan, New Hampshire: Phoenix Publishing.) The Mayor and fifteen-member
Board of Aldermen, as the chief executive and legislative officers of the City, are responsible
for the prudent administration of the City’s affairs in accordance with laws set forth in the
City Charter.
Municipal Services
The City provides services such as police and fire protection; refuse disposal; sewer services
and highway, street, and sidewalk maintenance. It maintains forty-nine athletic fields, four
ice skating rinks, three outdoor swimming pool complexes, and twenty-two tennis courts.
The City also preserves 965 acres of park sites including Holman Stadium, a 4,500-seat
open-air stadium. The stadium is used for sports, concerts, recreational activities and other
City sponsored events.
Nashua is fortunate to have a municipal airport, Boire Field. It is located in the northwest
corner of the city on 396 acres of land that the Nashua Airport Authority leases from the
City. The Authority was created by State Statute in 1961 and is “tasked with setting policy
and procedures to operate the airport for the City of Nashua in conjunction with the rules and
regulations of the Federal Aviation Administration (FAA) and New Hampshire Department
of Transportation, Division of Aeronautics.” (www.nashuaairport.com)
The City is responsible for providing education to its citizens in compliance with requirements established by the State of New Hampshire. Public education is offered for grades
kindergarten through twelve, providing a comprehensive program of general education,
business, and college preparatory courses. An elected nine-member School Board manages
the school district’s affairs with fiscal autonomy on certain matters; however, the School
Board does not represent an autonomous governmental unit independent from the City of
Nashua. Financial management and reporting, as well as the issuance of debt obligations, are
the City’s responsibility.
Financial Structure and Management
In accordance with the City Charter and Code of Ordinances, the Financial Services Division
is responsible for establishing an accounting and internal control structure designed to ensure
that the City’s assets are protected from loss, theft, and misuse, and to ensure that adequate
accounting information is maintained and reported in conformity with GAAP. The internal
A-2
control structure is designed to provide reasonable, but not absolute, assurances that these
objectives are attained. In providing these reasonable assurances, it is recognized that the
expenses related to the cost of control should not exceed the benefits and the valuation of
costs and benefits requires management’s judgment.
Budget Control Charter Amendment
The City’s budget must adhere to the Budget Control Charter Amendment passed by voters
in 1993 that limits the budget to an increase of no more than the average annual consumer
price index (CPI-U) over the past three years. It allows exemptions voted upon annually by
the Board of Aldermen. In fiscal year 2008, the Board of Aldermen approved changing the
CPI measurement from the national average to the Northeast region average. The fiscal year
2015 budget was under the spending cap of 2.1% by approximately $761,000.
Beginning in fiscal year 2016, the index was changed by the voters to the three year average
of the Implicit Price Deflator for State and Local Governments (S&L IPD). The fiscal year
2016 budget adopted in June 2015 also came in under the spending cap of 1.5% by approximately $50,000.
The Board of Aldermen is the Appropriating Authority for the City of Nashua. From a budgetary control perspective, management cannot overspend its approved and authorized budget
without gaining approval from the Board of Aldermen. In addition, the Board of Aldermen
must approve all interdepartmental transfers as well as the transfer of appropriated funds
within departments from non-salary accounts to salary accounts. The City also maintains a
system of encumbrance accounting to further control budgetary expenses.
Minimum Unassigned Fund Balance
The City has an ordinance stating that it’s policy to maintain a minimum unassigned general
fund balance of 10% of the fiscal year appropriations. If a portion of unassigned general fund
balance is used to offset property taxes in any given fiscal year, it is the policy of the Board
to replenish it to the 10% level within a three-year period.
Single Audit
As a recipient of federal and state funds, the City is required to undergo a yearly single audit in
conformance with the provisions of the Single Audit Act Amendments of 1996 and U.S.
Government Office of Management and Budget’s Circular A-133, Audits of States and Local
Governments and Non-Profit Organizations. The City is also responsible for implementing an
adequate internal control structure to ensure compliance with the rules and regulations of these
funds. This internal control structure is subject to ongoing and/or periodic evaluation by
management and the external audit firm retained by the City for this purpose. Information related
to this single audit including a Schedule of Expenditures of Federal Awards; findings and
recommendations; and auditor’s reports on the internal control structure and compliance with
applicable laws and regulations is available in a separately issued single audit report. The single
audit for the fiscal year ended June 30, 2015 is in progress and management does not anticipate
that there will be any instances of material weakness in the City’s internal control structure.
Enterprise Operations
The City’s enterprise operations are comprised of both a Wastewater Fund and a Solid Waste
Fund. Wastewater is fully self-supported by user fees. Combined Sewer Overflow (CSO)
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Consent Decree projects and mandated operational costs are expected to be approximately
$70 million with approximately $68.65 million of the total spent by the end of fiscal year
2015. Certain components of the CSO projects have been eligible for a New Hampshire
Department of Environmental Services (NHDES) 20% grant, however, due to state budget
reductions in fiscal year 2009, grant payments for certain projects included in the Wastewater
budget have been deferred until further notice. The City updates the wastewater rate study on
an annual basis. The most recent rate study was presented to the Board of Aldermen in
November 2013 and a 15% increase in the wastewater user fee rates effective January 1,
2014 was approved.
During fiscal year 2015, the Solid Waste Fund received a transfer of approximately
$3.7 million from the general fund to cover a portion of the cost of residential solid waste
collection and disposal. This transfer is funded by property taxes and supplements the cost of
collection and disposal of residential solid waste.
Long Term Financial Planning
The City uses a multi-year model to plan for future budget periods. This exercise is designed
to provide the city’s financial planners the ability to project the magnitude and timing of
certain fiscal decisions as they relate to programs and services. The City also manages its
capital budget process looking out over a six-year time horizon. The capital budget submittals are updated annually. As part of this planning process, the participating departments
project their respective capital expenditure needs over the next six-year period and submit
the necessary documentation for review by the members of the Capital Improvements
Committee (CIC). The CIC reviews the requests and ranks them based on several factors
including the scope of the proposed project, service, facility or equipment; the needs criteria
such as a legal mandate, scheduled replacement, improved working environment, increased
public health and safety improved coordination and/or more cost effective; conformance with
the City’s Master Plan; and other factors such as anticipated future revenues and expenses.
The City has also developed and implemented a capital equipment replacement program,
which has been designed to replace equipment on an established schedule. This ten-year plan
allows for the timely replacement of the equipment at a time when the useful life of the
equipment has expired and the associated cost of maintenance and repair is not exorbitant
relative to the remaining value. The capital equipment replacement program has been
designed to be financed with a combination of internal cash and the issuance of debt.
Debt Administration
The City has $152.6 million of authorized unissued debt. This amount includes $69.4 million
related to the City’s acquisition of Pennichuck Corporation in 2012, $20.0 million of
refunding bonds, and $63.2 million in other capital project related bond authorizations. There
is approximately $70.9 million of general obligation debt outstanding for the school district
and $57.3 million for the City, and $140.7 million for the acquisition of Pennichuck
Corporation. The school bonds are eligible for grant reimbursement payments equal to 30%
of project costs, payable annually over the life of bonds issued for this purpose. In addition,
there is $56.8 million in debt outstanding for the City's enterprise funds.
$27.2 million in new debt was issued in fiscal year 2015 for Citywide Capital improvements and
Wastewater projects. Debt limitations are discussed in MD&A and in the statistical section.
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Credit Rating
During FY2015, the City’s credit rating was reaffirmed at AAA by Fitch Ratings and AA+
(Positive Outlook) by Standard & Poor’s Rating Services in connection with the issuance of
general obligation bonds for the purposes noted above.
In reaffirming its AAA rating, Fitch cited the City’s:
Strong financial management
Diverse and expanding economic base
Above average socioeconomic factors
Low debt levels
Manageable future retiree costs
In reaffirming its AA+ (Positive Outlook) rating, Standard & Poor’s noted the City’s:
Strong economy
Very strong budgetary flexibility
Strong budgetary performance
Very strong liquidity
Very strong management
Strong debt and contingent liability profile
Cash Management
General fund and enterprise fund cash is invested at several New Hampshire banking institutions and the New Hampshire Deposit Investment Pool in accordance with the directives set
forth in the City’s adopted investment policy. This policy is reviewed and approved by the
Board of Aldermen. The policy has several objectives which include, but are not limited to,
risk, liquidity, income, maturity and diversification. The City requires collateral on all investments in the form of U.S. government obligations at no less than 102% in excess of the face
value of the investment unless funds are marked to market. Commercial insurance coverage
for amounts in excess of FDIC limits in the form of surety bonds issued by approved
insurance corporations may be considered. The average yield for general fund investments
during fiscal year 2015 was 0.40%, compared to 0.53% earned in the prior fiscal year.
The City’s trust funds must be invested pursuant to the provisions in the State of New
Hampshire’s Revised Statutes Annotated Section 31:25. The objective of the investment
policy is to receive a return that is sufficient to meet the obligations of the fund while
remaining within those guidelines.
Benefits Cost Planning and Management
The City has been successful in mitigating the escalating costs of healthcare benefits over the
past several years. The appropriations for benefits costs have been relatively flat since FY2009,
averaging approximately $26 million per year. This has been accomplished by increasing the
percentage share that each employee subscriber contributes toward the cost of healthcare as
well as introducing consumer driven strategies such as increasing co-pays and adding deductibles. In addition, many employees have selected a high deductible plan with a companion
Health Savings Account (HSA). HSAs are a great way for the employee subscriber to manage
their healthcare costs with the potential to save for future healthcare expenses.
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Summary of Financial Position and Operations-General Fund
The City’s most significant sources of revenue continue to be property taxes, followed by the
State Adequate Education Grant and motor vehicle revenues. Property tax collections remain
strong overall; however investment income continues to experience declines due to the
historically low interest rates. Tax collections stated as a percent of the current levy were
99.1%, consistent with the prior fiscal year. The City continues to negotiate payment plans
for taxpayers unable to meet their property tax obligations, believing that, particularly in
more challenging economic times, this strategy will benefit both the City and taxpayers. A
ten-year comparison of property tax collection data is available in the statistical section.
During FY2015, the City received funding of $35.9 million in State Adequate Education Grant
Funds. Motor vehicle revenue received during fiscal year 2015 came in at $13.2 million, an
increase of $800,000 over the prior fiscal year. This particular revenue source has rebounded
from the downward trend that began in early 2008 and continues to get stronger.
In 2005, the City of Nashua challenged the state formula for distributing education funding to
schools from the statewide education tax (NH Laws 2005, Chapter 257). The Superior Court
found in favor of Nashua in March 2006 and the State of New Hampshire appealed to the
New Hampshire Supreme Court, which consolidated the case with similar claims filed by a
coalition of 21 school districts. The Supreme Court stayed all cases pending legislative action
and also remanded the Nashua case to the Superior Court for factual findings regarding
damages. In 2007 and 2008 the legislature adopted a number of laws addressing the concerns
raised before the Supreme Court. (See, NH Laws 2007, Chapter 262; NH Laws 2007,
Chapter 263:35; NH Laws 2008, Chapter 173; and NH Laws 2008, Chapter 173.) The
remanded Nashua case was settled by agreement of the parties on August 14, 2008 for a payment of $125,000.
The City’s unassigned general fund balance position at the end of fiscal year 2015 was $27.7
million, an increase of $400,000 from the prior fiscal year.
Major Initiatives
Nashua Government Innovation (NGIN) Project
In 2010, the City launched a $7.5 million multi-year modernization project to update many of
the internal systems and provide a unified set of technologies, business processes and management. This project was identified as the Nashua Government Innovation (NGIN) project.
To date, the City has implemented phase one of the initiative which includes the replacement
of the core financial applications, the purchasing module, payroll processing which includes
electronic time recording, and the Human Resource system. Currently underway are projects
to replace the City’s property tax system and the implementation of an electronic document
management system.
The NGIN project has and will continue to incorporate business process improvement and
best practices for each phase of the project. These systems will promote and support electronic sharing of information and government transparency.
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Broad Street Parkway Project
In 2009, the City authorized $37.6 million of debt issuance towards its portion of the
construction of the Broad Street Parkway, with the balance of $30.5 million funded by the
Federal Department of Transportation. The total budget for the project is $68.1 million. The
1.8 mile parkway provides a second bridge crossing over the Nashua River and will connect
downtown Nashua, the Millyard, and other key redevelopment sites with Broad Street (near
the exit 6 interchange). The Broad Street Parkway officially opened with a dedication on
Saturday, December 19, 2015.
Local Economy
The City of Nashua, ranked among the top twenty best affordable suburbs in the Northeast by
Business Week magazine, continues to grow, reinvent and reinvigorate itself in response to
changing economic trends and challenges. Nashua remains a regional retail hub—the second
largest concentration of retail space in New England. In addition, Nashua is a regional center
for healthcare services. Nashua maintains growing clusters within the high tech manufacturing, software development, optics, radar systems, electronics, telecommunications,
robotics and medical device manufacturing.
The City adopted its most recent City-wide Master Plan in 2001 and has a current Downtown
Master Plan, East Hollis Street Master Plan, Economic Development Strategic Plan and a
Consolidated Plan. These and other plans form the basis for public and private development
decisions, budgetary decisions and future investment.
There is little land available in the City for new development; therefore, redevelopment and
rehabilitation of existing sites has become and the focus, keeping Nashua on the forefront of
economic, technological and social change. The City is undertaking ambitious redevelopment
strategies for long-dormant Brownfields sites near the center of Nashua. The recently opened
Broad Street Parkway is already stimulating redevelopment of the Nashua Millyard and
downtown Nashua as these areas now have superior access to the F.E. Everett Turnpike. The
recent occupancy of 109 units of mixed income housing at The Apartments at Cotton Mill
was fully leased just 9 months after its opening in 2013. Another mill conversion project,
Lofts 34 will bring another 168 units on line in 2016 and will continue the reemergence of
downtown Nashua. On the eastern edge of the downtown, the East Hollis Street Gateway
Project has begun. This project features the Bridge Street Waterfront Redevelopment Project,
which has an approved plan for up to 228 units of housing within the first phase. Across
the street, the City of Nashua was awarded $3.505 million from NH Department of
Transportation to construct major traffic improvements which will improve circulation and
provide critical access to the Bridge Street site. All of these development initiatives will
reinvigorate downtown Nashua with people-intensive uses.
In South Nashua, a key redevelopment site is Gateway Hills, a 400-acre mixed-use development that will provide crucial expansion capacity for Nashua’s high tech cluster. An existing
750,000 sq. ft. high tech campus has been joined by 540 units of new construction, 40,000 sq.
ft. of retail space and a newly opened 120 room hotel. Nearby, along Daniel Webster Highway,
the Pheasant Lane Mall recently underwent the $20 million renovation project.
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The City actively pursues all available funding opportunities and has been a successful
recipient of federal funding from EPA Brownfield awards, Federal Transportation and
Administration Grants, and Community Development Block Grants.
Transportation is essential to the viability of a community and the quality of life of its
citizens. The City continues to make significant investments and plays an active role in
supporting infrastructure improvements, extensions, expansions and transit. The transit
system has been a proven success for over 25 years and continues to expand its service
routes. An extension of the MBTA commuter line from the Lowell/Boston area to Nashua
and potentially further north to Manchester and Concord, remains under consideration at
Federal, State, and local levels. Commuter bus service between Nashua and Boston began in
February 2007 and has developed a steady local ridership base which has exceeded projections. During 2013, the City acquired a site for a future Park & Ride facility and a potential
downtown rail station.
All of the aforementioned factors have contributed to a solid, strong, and diverse fiscal and
economic atmosphere for the City and its citizens.
Financial Reporting Awards
The City of Nashua has received a Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association of the United States and
Canada (GFOA) for its CAFR for the last ten fiscal years. In order to receive this prestigious
award the report must be easily readable and efficiently organized, the contents must
conform to program standards, and it must satisfy both generally accepted accounting principles and applicable legal requirements. The award is presented to government units and
public employee retirement systems whose CAFRs achieve the highest standards in government accounting and financial reporting.
The Certificate of Achievement is valid for a period of one year only. We believe that this
CAFR conforms to the standards required for the certificate and will be submitting it to the
GFOA for review.
Acknowledgements
The preparation and publication of this CAFR would not have been possible without the
dedication and hard work of members of the Financial Services Division team. This accomplishment also required contributions and cooperation from many departments throughout the
City and we appreciate their efforts as well. We would also like to thank the Board of
Aldermen for their continued support of the highest standards of professionalism in the
management of the City’s finances.
Respectfully submitted,
Donnalee Lozeau
Mayor
John L. Griffin
Chief Financial Officer
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CITY OF NASHUA, NEW HAMPSHIRE
LIST OF PRINCIPAL OFFICIALS
FISCAL YEAR 2015
MAYOR
Donnalee Lozeau
ALDERMEN AT LARGE
David W. Deane, President
Brian S. McCarthy, Vice President
Jim Donchess
Daniel T. Moriarty
Mark S. Cookson
Lori Wilshire
WARD ALDERMEN
Sean M. McGuinness ....................................................... Ward 1
Richard A. Dowd ............................................................. Ward 2
David Schoneman ............................................................ Ward 3
Pamela T. Brown ............................................................. Ward 4
Michael Soucy ................................................................. Ward 5
Paul M. Chasse, Jr............................................................ Ward 6
June M. Caron .................................................................. Ward 7
Mary Ann Melizzi-Golja.................................................. Ward 8
Kenneth Siegel ................................................................. Ward 9
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CITY OF NASHUA, NEW HAMPSHIRE
DIVISION AND DEPARTMENT HEADS
FISCAL YEAR 2015
LEGAL
Corporation Counsel
Deputy Corporation Counsel
Stephen Bennett, Esquire
Dorothy Clarke, Esquire
BOARD OF ALDERMEN
Aldermanic Legislative Manager
Susan Lovering
OFFICE OF THE CITY CLERK
City Clerk
Paul R. Bergeron
HUMAN RESOURCES
Human Resources Director
Larry Budreau
OFFICE OF ECONOMIC DEVELOPMENT
Economic Development Director
Thomas Galligani, Jr.
INFORMATION TECHNOLOGY
Chief Information Officer/IT Division Director
Bruce Codagnone
FINANCIAL SERVICES DIVISION
Chief Financial Officer/Comptroller
Treasurer/Tax Collector
Deputy Treasurer/Deputy Tax Collector
Accounting/Compliance Manager
Compensation Manager
Purchasing Manager
Risk Manager
Chief Assessor/GIS Manager
John L. Griffin
David G. Fredette
Ruth Raswyck
Rosemarie Evans
Doreen Beaulieu
Daniel Kooken
Jennifer Deshaies
Angelo Marino
POLICE DEPARTMENT
Chief
Deputy Chief
Deputy Chief
Andrew Lavoie
Michael Carignan
Denis Linehan
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FIRE DEPARTMENT
Chief
Assistant Fire Chief
Steven Galipeau
Brian Rhodes
DIVISION OF PUBLIC HEALTH
AND COMMUNITY SERVICES
Director
Manager, Community Health
Manager, Environmental Health
Welfare Officer
Kerran Vigroux
Jacqueline Aguilar
Heidi Peek
Robert Mack
PUBLIC WORKS DIVISION
Director
City Engineer
Superintendent, Parks/Recreation
Superintendent, Streets
Superintendent, Solid Waste
Superintendent, Wastewater Treatment
Lisa Fauteux
Stephen Dookran
Nicholas Caggiano
Eric Ryder
Jeffrey Lafleur
David Simmons
COMMUNITY DEVELOPMENT DIVISION
Director
Manager, Planning Department
Manager, Urban Programs
Building Department Manager
Code Enforcement Department Manager
Transportation Department Manager
Sarah Marchant
Roger Houston
Carrie Johnson Schena
William McKinney
Nelson Ortega
Christopher Clow
PUBLIC LIBRARIES
Director
Assistant Director, Library
Jennifer McCormack
Jennifer Hosking
SCHOOL DEPARTMENT
Superintendent
Chief Operating Officer
Mark Conrad
Daniel Donovan
CEMETERIES
Superintendent – Edgewood and Suburban
Superintendent – Woodlawn and Pinewood
Jeffrey Snow
Paul (Len) Fornier, Jr.
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Board of Aldermen
City of Nashua, New Hampshire
Report on the Financial Statements
102 Perimeter Road
Nashua, NH 03063
(603)882-1111
melansonheath.com
Additional Offices:
Andover, MA
Greenfield, MA
Manchester, NH
Ellsworth, ME
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units (except Nashua
Airport Authority), each major fund, and the aggregate remaining fund information of the
City of Nashua, New Hampshire, as of and for the year ended June 30, 2015, and the related
notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted in the
United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
did not audit the financial statements of Nashua Airport Authority, which represents
8.1 percent, 52.7 percent, and 1.3 percent, respectively, of the assets, net position and
revenues of the aggregate discretely presented component units. Those financial statements
were audited by other auditors whose report thereon has been furnished to us, and our
opinion, insofar as it relates to the amounts included for Nashua Airport Authority is based
solely on the report of other auditors. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable
to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
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statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of
the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City of Nashua, New Hampshire, as of June 30, 2015, and
the respective changes in financial position and, where applicable, cash flows thereof and the
respective budgetary comparison for the general fund for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that
Management’s Discussion and Analysis, the Schedule of Funding Progress, the Schedule of
Proportionate Share of Net Pension Liability, the Schedule of Contributions, the Schedule of
Changes in Net Pension Liability, and the Schedules of Net Pension Liability, Contributions,
and Investment Returns be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
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.
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Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The accompanying supplementary information appearing on pages 140 through 160 is presented for purposes of additional
analysis and is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the financial statements or to
the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated in all material respects in relation to the financial statements as a
whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The Introductory and the Statistical Sections are presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 30, 2015 on our consideration of the City’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
December 30, 2015
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Nashua, we offer readers of the City of Nashua’s financial
statements this narrative overview and analysis of the financial activities of the City of
Nashua for the fiscal year ended June 30, 2015. All amounts, unless otherwise indicated,
are expressed in thousands of dollars.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an explanation of the basic financial statements. The basic financial statements are comprised of three components: (1) governmentwide financial statements, (2) fund financial statements, and (3) notes to financial statements. This report also contains supplementary information in addition to the basic financial statements.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Nashua’s finances in
a manner similar to a private-sector business.
The Statement of Net Position presents information on all the City of Nashua's assets and
liabilities, with the difference between the two reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the
financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the government’s net
position changed during the most recent fiscal year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of
the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
Both government-wide financial statements distinguish functions of the City of Nashua
that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of
their costs through user fees and charges (business-type activities). The governmental
activities of the City of Nashua include general government, public safety, public works,
education, health and human services, culture and recreation, community development
and communications. The business-type activities of the City of Nashua include Wastewater and Solid Waste activities.
The government-wide financial statements include not only the City of Nashua itself
(known as the primary government), but also legally separate entities for which the
primary government is financially accountable (known as component units). Pennichuck
Corporation and the Nashua Airport Authority are reported as a discretely presented
governmental component units. Financial information for Pennichuck Corporation and
the Nashua Airport Authority are reported separately from the financial information
presented for the primary government.
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Fund financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or objectives. The City of Nashua, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City of Nashua can be divided into three categories: governmental funds,
proprietary funds and fiduciary funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus
on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the governmentwide financial statements. By doing so, readers may better understand the long-term impact
of the government’s near-term financing decisions. Both the governmental fund balance
sheet and the governmental fund statement of revenues, expenditures and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The City of Nashua maintains 26 individual governmental fund types. Information is
presented separately in the governmental fund balance sheet and in the governmental
fund statement of revenues, expenditures and changes in fund balances for the general
fund. Data from all the other governmental funds are combined into a single aggregated
presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of Nashua adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate
compliance with this budget.
Proprietary funds
The City of Nashua maintains two different types of proprietary funds. Enterprise
funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City of Nashua uses enterprise funds to
account for its Wastewater and Solid Waste operations. Internal service funds are an
accounting device used to accumulate and allocate costs internally among the City of
Nashua's various functions. The City of Nashua uses an internal service fund to account
for its self-insured programs. Because this service predominantly benefits governmental
rather than business-type functions, it has been included within governmental activities in
the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide sepaA-19
rate information for the Wastewater and Solid Waste operations, both of which are
considered to be major funds of the City of Nashua.
Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside
the government (i.e., Public Works Pension Funds, Scholarship Funds, etc.). Fiduciary
funds are not reflected in the government-wide financial statements because the resources
of those funds are not available to support the City’s own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds.
Notes to financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government-wide and fund financial
statements.
Other information. In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary information concerning the
City of Nashua’s progress in funding its obligation to provide pension benefits to its
employees.
FINANCIAL HIGHLIGHTS
During the fiscal year, the City implemented the requirements of Governmental
Accounting Standard Board (GASB) Statement No. 68 – Accounting and Financial
Reporting for Pensions. Compliance with GASB68 requires that the City’s net
pension liability be recorded on the Statement of Net Position, which reduces
unrestricted net position, and, in the City’s case, creates a negative unrestricted net
position. The City’s net pension liability as of June 30, 2015 is $191.8 million, of
which, $184.9 million represents the City’s proportionate share of the New
Hampshire Retirement System, and $6.9 million represents the City’s full share of the
Public Works Employees’ Retirement System.
The assets of the City of Nashua exceeded its liabilities at the close of the most recent
fiscal year by $141,153 (net position), The City’s total net position increased by
$22,210 in comparison to the prior year. This change is comprised of increases of
$21,997 and $213 in Governmental and Business-Type Activities, respectively.
As of the close of the current fiscal year, the City of Nashua's governmental funds
reported combined ending fund balances of $104,607, an increase of $5,237 over the
prior year. Approximately 25.3% or $26,425 constitutes unassigned fund balance
which is available for spending at the City’s discretion. (This increase is discussed in
Financial Analysis of the Government’s Funds).
The City issued $27.2 million of new general obligation debt.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following is a summary of condensed government-wide financial data for the current
and prior fiscal year. All amounts are presented in thousands.
NET POSITION AT JUNE 30, 2015 AND 2014
Governmental
Activities
(1)
2015
256,744 $
284,975
140,650
24,274
706,643
2014
253,961 $
258,448
143,930
1,169
657,508
Current liabilities
Noncurrent liabilities
Deferred inflows of resources
Total liabilities
58,108
487,807
121,334
667,249
62,303
290,334
93,223
445,860
Net position:
Invested in capital assets, net
Restricted
Unrestricted
Total net position
158,393
35,755
(154,754)
39,394 $
139,619
43,985
28,044
211,648 $
Current assets
Capital assets
Noncurrent assets
Deferred outflows of resources
Total assets
(1)
$
$
Business-Type
Activities
2015
2014
25,854 $
28,246
158,667
153,827
575
185,096
182,073 $
20,017
62,858
462
83,337
94,937
4,474
2,348
101,759 $
18,815
58,828
77,643
93,304
4,473
6,653
104,430 $
Total
2015
282,598 $
443,642
140,650
24,849
891,739
2014
282,207
412,275
143,930
1,169
839,581
78,125
550,665
121,796
750,586
81,118
349,162
93,223
523,503
253,330
40,229
(152,406)
141,153 $
232,923
48,458
34,697
316,078
In FY2015, the City implemented the requirements of Governmental Accounting Standards Board (GASB) Statement 68,
Accounting and Financial Reporting for Pensions.
As depicted in the table above, the largest portion of the City of Nashua's net position,
$253,330, reflects its investment in capital assets (e.g., land, buildings, machinery and
equipment), less any related outstanding debt used to acquire those assets. The City of
Nashua uses its capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the City’s investment in its capital assets
is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot be
used to liquidate these liabilities.
An additional portion of the City of Nashua's net position, $40,229, represents resources
that are subject to external restrictions on how they may be used (i.e., grants, capital projects, contributions, etc.). The remaining balance of net position ($152,406) is considered
unrestricted and represents the government's ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, while the City’s unrestricted net position reflects a
negative balance due to the impact of GASB68, the City is able to report a positive net
position for the government as a whole, as well as for its separate Wastewater activities.
The same situation held true for the prior fiscal year.
The restricted portion of net position $4,474 reported within the City of Nashua's
business-type activities primarily represent the regulatory funds set-aside for the closure
of the Nashua Four Hills Lined Landfill.
A-21
The following table indicates the changes in net position for governmental and businesstype activities:
CHANGES IN NET POSITION
Governmental
Activities
(1)
2015
2014
Revenues:
Program revenues:
Charges for services
Operating grants and
contributions
Capital grants and
contributions
$
General revenues:
Property taxes
Motor vehicle
Investment income
Penalties and interest
on taxes
Grants and contributions
not restricted to
specific programs
Other
Total revenues
7,652 $
10,642 $
Business-Type
Activities
2015
2014
14,605 $
13,482 $
Total
2015
2014
22,257 $
24,124
64,217
63,496
-
-
64,217
63,496
19,443
15,562
460
526
19,903
16,088
189,295
13,158
178
183,227
12,352
1,356
-
15
189,295
13,158
183
183,227
12,352
1,371
1,467
1,556
-
-
1,467
1,556
5,957
3,098
4,891
2,233
540
-
582
-
6,497
3,098
5,473
2,233
304,465
295,315
15,610
14,605
320,075
309,920
5
Expenses:
General government
Police
Fire
Water fire protection
services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Interest and costs
Wastewater services
Solid waste services
25,054
30,449
22,657
24,633
28,778
21,098
-
-
25,054
30,449
22,657
24,633
28,778
21,098
2,607
153,500
11,816
3,272
7,123
7,581
526
13,651
-
2,577
153,294
11,331
3,235
7,166
10,180
630
13,233
-
12,931
6,766
11,548
6,024
2,607
153,500
11,816
3,272
7,123
7,581
526
13,651
12,931
6,766
2,577
153,294
11,331
3,235
7,166
10,180
630
13,233
11,548
6,024
Total expenses
278,236
276,155
19,697
17,572
297,933
293,727
Increase\(decrease) in net position
before transfers and permanent
fund contributions
26,229
19,160
(4,087)
(2,967)
22,142
16,193
Amortization of investment
Transfers
Permanent fund contributions
(4,300)
68
(4,149)
71
4,300
-
4,149
-
68
71
Increase in net position
21,997
15,082
213
1,182
22,210
16,264
Net position - beginning of year
17,398
196,566
101,545
103,248
118,943
299,814
39,395 $
211,648 $
101,758 $
104,430 $
141,153 $
316,078
Net position - end of year
(1)
$
In FY2015, the City implemented the requirements of Governmental Accounting Standards Board (GASB) Statement 68, Accounting and
Financial Reporting for Pensions.
A-22
Governmental activities. Governmental activities for the year resulted in an increase in
net position of $ 21,997 or 8.2%. Key elements of this change are as follows:
General fund excess of revenues over expenditures
General fund transfers to Solid Waste fund
Capital assets from current revenue
Increase in net OPEB obligation
Decrease in net pension liability, net of deferrals
Decrease in compensated absences
Other
Total
$
970
(4,355)
22,624
(2,224)
3,911
602
469
21,997
$
The chart below identifies revenues by source for governmental activities.
GOVERNMENTAL ACTIVITIES - REVENUES BY SOURCE
Fiscal Year Ended June 30, 2015
Non Program
Grants & Investment
Penalties & Interest on Contributions Income
0.1%
2.0%
Taxes
0.5%
Other Income
1.0%
Program Revenues Charges for Services
2.5%
Program Revenues Operating Grants &
Contributions
21.1%
Motor Vehicle Permits
4.3%
Program Revenues Capital Grants &
Contributions
6.4%
Property Taxes
62.2%
As reflected in the above chart, the City’s largest sources of revenue are from property
taxes (62.2%) and operating grants and contributions (21.1%). The cost of all governmental activities this year was $278,237. This reflects a $2.1 million increase over the
fiscal year 2014 total of $276,155. However, as shown in the Statement of Activities on
page 35, the amount that our taxpayers ultimately financed for these activities through
City property taxes was $189,295 because some of the cost was paid by those who
directly benefited from the programs through charges for services or by other governments and organizations that subsidized certain programs with capital and operating
grants and contributions. The City supports the remaining portion of the governmental
A-23
activities with other general revenues such as motor vehicle registrations, investment
income, unrestricted grants and contributions, and miscellaneous other revenues.
The table below presents the cost of each of the City’s programs as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows
the amount that must be supported by property taxes and other general revenues.
Governmental Activities
(In Millions)
General Government
Police
Fire
Water Fire Protection Services
Education
Public Works
Health and Human Services
Culture and Recreation
Community Development
Communications
$
$
Total Cost of Services
2015
2014
34,133 $
33,571
30,562
28,915
22,823
21,297
2,607
2,577
156,427
156,439
12,711
11,665
3,272
3,235
7,226
7,281
7,736
10,369
740
806
278,237 $
276,155
$
$
Net Cost of Services
2015
2014
24,498 $
21,339
29,132
27,426
21,499
21,116
2,607
2,577
100,732
100,498
(3,610)
3,701
2,043
2,086
6,710
6,426
2,573
584
740
702
186,924 $
186,455
Business-type activities. Overall, business-type activities increased the City’s net position by $213.
Key elements of this change are as follows:
The Wastewater Fund’s total net position decreased by $386. This decrease is
predominantly due to increased operating and interest costs. The City continues to
annually update its wastewater rate study model in order to ensure that rates are
sufficient to cover the operating and capital costs of the wastewater system. A
user fee rate increase of 15% was put into effect in January of 2014 with another
increase planned for early calendar year 2016.
The Solid Waste Disposal Fund increased its total net position by $599. This
increase is largely due to an inter-fund transfer from the General Fund Capital
Equipment Reserve Fund for capital equipment purchases. Solid waste operating
activities continue to operate at a deficit with the City continuing to supplement
the Solid Waste operations through property taxation for the residential costs of
collection and disposal. There is currently no separate fee charged to the City’s
residential population.
The Solid Waste Disposal Fund negative net position of ($1,606) is primarily due
to the fund’s high percentage of non-capital (landfill closure costs) related debt, as
well as the GAAP (generally accepted accounting principles) requirement to
A-24
record closure and post closure care liability (the amount the City would be
required to spend should the landfill cease operations).
The following charts depict revenues and expenses for business type activities:
A-25
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City of Nashua uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental funds. The focus of the City of Nashua’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 government’s net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Nashua’s governmental funds reported
combined ending fund balances of $104,607 an increase of $5,237 over the prior year and
can be summarized as follows:
General fund excess of revenues over expenditures
General fund transfers to Solid Waste fund
Special Revenue Funds revenues exceeding expenditures
Capital Project Funds revenues and other financing sources
exceeding expenditures (excluding transfers)
Permanent Fund expenditures exceeding revenues
Other
Total
$
970
(4,355)
1,689
7,183
(289)
39
5,237
$
$26,425, approximately 25.3%, of the total combined ending fund balances constitutes
unassigned fund balance. The remaining components of fund balance, $78,182, are not
available for new spending and are classified into the following categories:
Nonspendable
Restricted
Committed
Assigned
Total:
$
$
A-26
20,496
26,042
21,967
9,677
78,182
GOVERNMENTAL FUNDS
FUND BALANCES
Fiscal Year Ended June 30, 2015
Unassigned
25.3%
Nonspendable
19.6%
Assigned
9.3%
Restricted
24.9%
Committed
21.0%
The General Fund is the chief operating fund of the City. At the end of the current fiscal
year, unassigned fund balance of the general fund was $27,730 compared to $27,350 last
year, while total general fund balance was $46,651 compared to $50,917 last year. As a
measure of the general fund’s change in financial position, it may be useful to compare
both unassigned fund balance and total fund balance to total fund expenditures over time.
Unassigned fund balance, represents 11% of total general fund expenditures compared to
11.3% with the prior year, while total fund balance represents 18.5% compared to 21%
last year.
Proprietary funds. The City of Nashua’s proprietary funds provide the same type of
information found in the government-wide financial statements, but in more detail.
Unlike governmental funds, proprietary funds utilize the accrual basis of accounting.
Therefore, no reconciliation is needed between the government-wide financial statements
and the proprietary fund financial statements.
Factors concerning the finances of these two funds have already been addressed in the
discussion of the City’s business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
The following reconciles the City’s adopted budget with the “original budget” columns of
the Budget and Actual Financial Statements on page 40 and the Budget and Actual Detail
Schedule on pages 153 - 154.
A-27
Total Adopted Budget
$
Plus: Hillsborough County appropriation
Plus: Appropriation to Solid Waste Fund
Plus: Supplemental Appropriation for Police Equipment
Plus: Supplemental Appropriation to the Jackson Mills Dam ETF
Total Original Budget, per Financial Statements/Schedules
$
240,757
10,383
3,731
440
240
255,551
The difference between the original and final amended budget resulted in an overall
increase in appropriations of $1,115 and is summarized as follows:
Total Original Budget, per budgetary financial
statements/schedules
Plus: Transfers in from Retirement Trust and Reserve Funds
Total Final Budget, per Financial Statements/Schedules
$
255,551
$
1,115
256,666
The combined difference between the final amended budget and actual results reflects an
overall surplus of $4,779.
Actual revenues, transfers and other financing sources on a budgetary basis were
$259,708 which represents a $3,042 surplus over the final revenue budget. Significant
revenue surpluses are summarized as follows:
$1,551 in Motor Vehicle Registrations.
$ 222 in Intergovernmental Medicaid reimbursements.
$ 135 in Building Permits.
$ 127 in Cable TV Franchise Fees.
$ 165 in Bond Premiums
$ 179 in Sale of Property and Equipment.
Actual expenditures, transfers and other financing uses on a budgetary basis were
$254,929 resulting in a $1,737 surplus below the final expenditure budget. Highlights in
expenditure variances include the following:
$1,005 in City-wide pension costs.
$ 732 across all other Departments primarily due to salary attrition
and savings realized through effective budget maintenance.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City’s investment in capital assets for its governmental and businesstype activities as of June 30, 2015 amounted to $443,642, net of accumulated depreciation, an increase of $31,367 over the prior fiscal year. This investment in capital assets
includes land, buildings, vehicles, equipment, and infrastructure.
A-28
CAPITAL ASSETS AS OF JUNE 30, 2015 AND 2014
(net of accumulated depreciation)
Governmental
Activities
2015
2014
Land and improvements
Buildings and systems
Machinery and equipment
Infrastructure
Construction in progress
Total
$
$
29,141
149,685
27,947
27,833
50,369
284,975
$
29,121
155,485
25,908
23,370
24,564
$ 258,448
Business-Type
Activities
2015
2014
$
9,969
40,658
23,095
80,454
4,491
$ 158,667
$
10,512
42,065
17,289
64,274
19,687
$ 153,827
Total
2015
$
$
2014
39,110
190,343
51,042
108,287
54,860
443,642
$
39,633
197,550
43,197
87,644
44,251
$ 412,275
Major capital asset additions during the current fiscal year included the following:
Governmental Activities
Broad Street Parkway Construction
Broad Street Elementary School Improvements
Citywide Communication Upgrades
Loop Traffic Signal Construction
Manchester Street Bridge Reconstruction
School Technology-Software & Hardware Upgrades
Citywide Street Paving Improvements
Pierce Arrow Fire Truck
Sunset Heights Elementary School HVAC Improvements
Fire-Mobile Training Simulator
Dr. Crisp Elementary School Roof Replacement
Self-Contained Breathing Apparatus Equipment
$
16,986
8,404
3,347
2,307
2,252
1,291
1,266
1,087
820
499
479
398
$
3,911
1,399
982
802
355
Business-type Activities
Wastewater Screening and Disinfection Facility Improvements
Sewer Infrastructure Improvements
Wastewater Secondary Clarifier Rehabilitation
Landfill Caterpillar Compactor
Landfill Caterpillar Dozer
Additional information concerning the City of Nashua’s capital assets can be found in
Note 7 on pages 62 - 63.
Long-term debt. At the end of the current fiscal year, the City of Nashua had total debt
outstanding of $325,692 compared to $319,678 in the prior year. Of this amount,
$325,692 represents general obligation debt, which is backed by the full faith and credit
of the government.
A-29
OUTSTANDING DEBT AS OF JUNE 30, 2015 AND 2014
Governmental
Activities
2015
2014
Bonds and notes
Capital leases
Total
$
$
268,874
268,874
$ 263,666
$ 263,666
Business-Type
Activities
2015
2014
$
$
56,818
56,818
$
$
56,012
56,012
Total
2015
$
$
325,692
325,692
2014
$ 319,678
$ 319,678
During the fiscal year, the City issued $27,165 of new debt and retired $21,151 of
outstanding debt through scheduled principal payments. New debt was issued for the
following capital improvements:
Governmental Activities:
Broad Street School Improvements
Broad Street Parkway Construction
Radio Communications Upgrade
Fire Aerial Tower Truck
Enterprise Resource Planning (ERP) System
Business Type Activities:
Harbor Avenue Sewer Separation Project
Landfill Compactor
$
7,989
7,278
5,196
976
450
$
4,600
676
State statutes limit the amount of general obligation debt a governmental entity may issue
to 3% of its total assessed valuation for the City or 7% of its total assessed valuation for
the School. The City of Nashua has imposed more restrictive limits for City and School
respectively of 2% for and 6% of total assessed valuation. The current debt limitation for
the City and School combined is $694,042, which is significantly in excess of the current
outstanding general obligation debt of $268,874. Additionally, principal outstanding on
qualified school debt receives a 30% state building aid reimbursement. Wastewater and
Solid Waste debt of $56,818 is not subject to these limitations.
During FY2015, the City’s credit rating was reaffirmed at AAA by Fitch Ratings and
AA+ by Standard & Poor’s Rating Services in connection with the $22.6 million issuance
of general obligation bonds for capital equipment and improvements.
Additional information on the City of Nashua's long-term debt can be found in Note 11
on pages 65 - 71.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The City continues to see signs of local revenue growth, specifically in motor vehicle
registration fees and building permit fees. As the national, state, and local economies
continue to strengthen, Nashua has experienced increased development activity throughout the City’s commercial and residential zones. Likewise, the City continues to invest in
capital equipment replacement, capital improvements for buildings and city-related infraA-30
structure, traffic mitigation, and other initiatives that promote economic growth and
vibrancy. As noted by Fitch Ratings, the City has strong financial management, a diverse
and expanding economic base, above-average socioeconomic factors, and a manageable
debt burden.
Similar to many communities throughout the United States, Nashua continues to face
significant cost pressures with regards to state pension costs and healthcare costs. In
fiscal year 2016, employer pension rates increased as a result of the most recent actuarial
valuation. The City has proactively set aside funds that can be used to smooth any future
increases in employer rates. Additionally, during the past several years, the City has
effectively implemented different strategies in an effort to mitigate rising health care
costs. The City raised the employee contribution from 10% to 20% of the monthly
premium, and introduced plan design changes to include higher co-payments and
deductibles.
All of these factors were considered in preparing the City of Nashua’s budget for fiscal
year 2016.
The City adopted a fiscal year 2016 General Fund operating budget of $259,736
(inclusive of the transfer to solid waste and Hillsborough County appropriation), compared to an adopted budget of $255,551 for fiscal year 2015. The budget reflects an
overall increase of 1.7% over the prior year and did not require any service level
reductions.
$5.1 million of assigned fund balance is planned to be used as a funding source towards
the fiscal year 2016 tax rate.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Nashua’s
finances for all those with an interest in the government’s finances. Questions concerning
any of the information provided in this report or requests for additional financial
information should be addressed to:
Financial Reporting
City of Nashua
229 Main Street
Nashua, New Hampshire 03061
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A-32
CITY OF NASHUA, NEW HAMPSHIRE
STATEMENT OF NET POSITION
JUNE 30, 2015
(Except for Pennichuck Corporation Component Unit, which is as of December 31, 2014)
Governmental
Activities
Primary Government
BusinessType
Activities
ASSETS
Current:
Cash and short-term investments
$ 160,134,167
Investments
65,013,737
Restricted cash and investments
Receivables, net of allowance for uncollectibles:
Property taxes
18,457,771
User fees
Departmental and other
301,408
Intergovernmental
9,609,293
Loans
625,073
Internal balances
1,548,427
Due from external parties - fiduciary funds
336,292
Other assets
717,508
Total current assets
256,743,676
Noncurrent:
Capital assets being depreciated,
net of accumulated depreciation
Capital assets not being depreciated
Acquisition premium
Equity interest in Pennichuck
Other assets
Total non-current assets
$
23,250,138
-
Government
Wide
Total
$
3,452,149
700,551
(1,548,427)
25,854,411
183,384,305
65,013,737
-
Component
Units
$
3,057,784
67,914
45,836,000
18,457,771
3,452,149
301,408
10,309,844
625,073
336,292
717,508
282,598,087
4,647,218
509,452
2,390,000
56,508,368
205,464,673
79,510,262
140,650,000
425,624,935
153,944,338
4,722,737
158,667,075
359,409,011
84,232,999
140,650,000
584,292,010
196,121,058
4,637,632
78,885,000
13,446,000
293,089,690
24,274,232
574,448
24,848,680
2,368,394
706,642,843
185,095,934
891,738,777
351,966,452
17,620,636
1,228,943
19,204,294
980,029
104
1,208,008
13,913,542
-
17,620,740
1,228,943
20,412,302
13,913,542
980,029
2,338,069
221,000
682,000
-
14,040,107
3,320,000
1,713,587
58,107,596
4,838,165
57,569
20,017,388
18,878,272
3,320,000
1,771,156
78,124,984
26,275,000
29,516,069
Noncurrent:
Bonds and notes payable
Acquisition bonds payable
Compensated absences
Net OPEB obligation
Net pension liability - State of NH
Net pension liability - Board of Public Works
Other
Total non-current liabilities
121,904,771
137,330,000
17,326,270
22,458,215
184,879,108
3,908,531
487,806,895
53,385,975
582,084
524,125
2,972,686
5,392,950
62,857,820
175,290,746
137,330,000
17,908,354
22,982,340
184,879,108
6,881,217
5,392,950
550,664,715
200,363,000
13,200
2,016,000
269,731
DEFERRED INFLOWS OF RESOURCES
121,333,636
462,169
121,795,805
21,159,381
TOTAL LIABILITIES AND DEFERRED
INFLOWS OF RESOURCES
667,248,127
83,337,377
750,585,504
300,015,381
158,392,742
94,936,719
253,329,461
28,612,690
6,982,277
7,233,862
4,473,789
6,982,277
11,707,651
23,369,000
-
2,348,049
1,235,658
20,304,609
(152,406,383)
DEFERRED OUTFLOWS OF RESOURCES
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES
LIABILITIES
Current:
Accounts payable
Retainage payable
Accrued liabilities
Notes payable
Other
Current portion of long-term liabilities:
Bonds and notes payable
Acquisition bonds payable
Compensated absences
Total current liabilities
NET POSITION
Net investment of capital assets
Restricted for:
Pennichuck corporation
Grants and other statutory restrictions
Capital projects
Permanent funds:
Expendable
Nonexpendable
Unrestricted
TOTAL NET POSITION
1,235,658
20,304,609
(154,754,432)
$
39,394,716
The accompanying notes are an integral part of these financial statements.
A-33
$
101,758,557
$
141,153,273
46,678,000
249,339,931
(30,619)
$
51,951,071
CITY OF NASHUA, NEW HAMPSHIRE
STATEMENT OF ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2015
(Except for Pennichuck Corporation Component Unit, which is as of December 31, 2014)
Indirect Cost
Allocation
Expenses
Primary Government
Governmental Activities:
General government
Police
Fire
Water fire protection services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Interest and costs
$
Total Governmental Activities
Business-Type Activities:
Wastewater services
Solid waste services
Total Business-Type Activities
Total primary government
Component units:
Pennichuck Corporation
Nashua Airport Authority
Total component units
25,054,260
30,448,888
22,657,301
2,607,342
153,499,901
11,816,177
3,271,988
7,123,288
7,580,687
526,204
13,650,683
$
9,078,835
111,849
166,098
2,926,716
895,363
102,477
155,221
214,124
(13,650,683)
Charges for
Services
$
685,849
1,026,770
105,110
3,180,186
480,655
161,729
486,871
1,525,076
-
278,236,719
-
7,652,246
12,931,195
6,766,342
-
11,804,073
2,800,729
19,697,537
-
14,604,802
Program Revenues
Operating
Grants and
Contributions
$
8,949,241
401,854
1,219,531
52,514,324
36,111
1,066,868
29,204
-
Capital
Grants and
Contributions
$
64,217,133
15,805,146
3,638,052
-
Net (Expenses)
Revenue
$
(24,498,005)
(29,132,113)
(21,498,758)
(2,607,342)
(100,732,107)
3,610,372
(2,043,391)
(6,709,690)
(2,572,780)
(740,328)
-
19,443,198
(186,924,142)
-
460,422
-
(666,700)
(3,965,613)
-
460,422
(4,632,313)
$ 19,903,620
$ (191,556,455)
$ 297,934,256
$
-
$ 22,257,048
$
$
40,039,000
1,964,170
$
-
$ 38,815,000
524,673
$
-
$
1,056,339
$
(1,224,000)
(383,158)
$
42,003,170
$
-
$ 39,339,673
$
-
$
1,056,339
$
(1,607,158)
The accompanying notes are an integral part of these financial statements.
A-34
64,217,133
(continued)
CITY OF NASHUA, NEW HAMPSHIRE
STATEMENT OF ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2015
(Except for Pennichuck Corporation Component Unit, which is as of December 31, 2014)
(continued)
BusinessType
Activities
Governmental
Activities
Change in Net Position:
Net (Expenses) Revenue from previous page
$ (186,924,142)
General Revenues, permanent fund contributions and transfers:
Property taxes
Auto permits
Penalties, interest and other taxes
Grants and contributions not restricted
to specific programs
Investment income
Miscellaneous
Permanent fund contributions
Transfers in (out)
Other Pennichuck adjustments
189,294,796
13,157,966
1,466,734
$
208,921,113
4,845,505
213,766,618
(944,139)
21,996,971
213,192
22,210,163
(2,551,297)
17,397,745
101,545,365
118,943,110
54,502,368
39,394,716
$ 101,758,557
$ 141,153,273
$
A-35
189,294,796
13,157,966
1,466,734
(1,607,158)
6,497,136
183,061
3,098,340
68,585
-
Net Position:
Beginning of year, as restated
-
$ (191,556,455)
540,023
5,349
4,300,133
-
Change in Net Position
End of year
(4,632,313)
1,861
(946,000)
5,957,113
177,712
3,098,340
68,585
(4,300,133)
-
Total general revenues, contributions and transfers
$
Component
Units
Total
$
51,951,071
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2015
Debt
Service
Fund
General
ASSETS
Cash and short-term investments
Investments
Receivables, net of allowance for uncollectibles:
Property taxes
Departmental and other
Intergovernmental
Loans
Due from other funds
TOTAL ASSETS
LIABILITIES
Accounts payable
Accrued liabilities
Due to other funds
Other liabilities
$ 157,194,811
42,069,816
$
-
Nonmajor
Governmental
Funds
$
Total
Governmental
Funds
2,939,356
22,943,921
$ 160,134,167
65,013,737
18,457,771
132,368
3,500
20,762,034
4,312,424
169,040
9,605,793
625,073
21,749,114
18,457,771
301,408
9,609,293
625,073
46,823,572
$ 238,620,300
$ 4,312,424
$ 58,032,297
$ 300,965,021
$
$
$
$
17,620,636
7,863,284
66,949,240
229,854
-
990
413,893
3,701,624
-
17,621,626
8,277,177
70,650,864
229,854
TOTAL LIABILITIES
92,663,014
-
4,116,507
96,779,521
DEFERRED INFLOWS OF RESOURCES
99,306,735
-
271,579
99,578,314
FUND BALANCES
Nonspendable
Restricted
Committed
Assigned
Unassigned
191,877
9,051,500
9,677,264
27,729,910
4,312,424
-
20,304,610
21,729,261
12,915,004
(1,304,664)
20,496,487
26,041,685
21,966,504
9,677,264
26,425,246
TOTAL FUND BALANCES
46,650,551
4,312,424
53,644,211
104,607,186
$ 238,620,300
$ 4,312,424
$ 58,032,297
$ 300,965,021
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
The accompanying notes are an integral part of these financial statements.
A-36
CITY OF NASHUA, NEW HAMPSHIRE
RECONCILIATION OF TOTAL GOVERNMENTAL FUND
BALANCES TO NET ASSETS OF GOVERNMENTAL
ACTIVITIES IN THE STATEMENT OF NET POSITION
JUNE 30, 2015
Total governmental fund balances
$
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
104,607,186
284,974,935
Revenues are reported on the accrual basis of accounting
and are not deferred until collection.
3,373,755
To record investment in Pennichuck Waterworks.
140,650,000
Deferred outflows of resources related to losses on prior
year bond refundings.
1,011,914
Deferred outflows of resources related to pensions resulting from:
Differences between expected and actual experience
Net difference between projected and actual investment earnings
Changes in proportion and differences between contributions and
proportionate share of contributions
Contributions subsequent to the measurement date
41,440
713,852
3,074,353
19,432,673
Deferred inflows of resources related to gains on current
year bond refundings.
(315,000)
Deferred inflows of resources related to pensions resulting from:
Net difference between projected and actual investment earnings
Changes in assumptions
Changes in proportion and differences between contributions and
proportionate share of contributions
(23,655,436)
(607,667)
(550,974)
Internal service funds are used by management to account for
health insurance and workers' compensation activities. The
assets and liabilities of the internal service funds are included
in the governmental activities in the Statement of Net Position.
17,638,072
In the Statement of Activities, interest is accrued on outstanding
long-term debt, whereas in governmental funds interest is not
reported until due.
(4,113,798)
Long-term liabilities are not due and payable in the current
period and, therefore, are not reported in the governmental funds:
Bonds payable
Acquisition bonds payable
Compensated absences
Net OPEB obligation
Net pension liability - State of NH
Net pension liability - Board of Public Works
Net position of governmental activities
(135,944,878)
(140,650,000)
(19,039,857)
(22,458,215)
(184,879,108)
(3,908,531)
$
The accompanying notes are an integral part of these financial statements.
A-37
39,394,716
CITY OF NASHUA, NEW HAMPSHIRE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR FISCAL YEAR ENDED JUNE 30, 2015
Debt
Service
Fund
General
Revenues:
Property taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Licenses and permits
Interest earnings
Miscellaneous
Contributions
$ 189,042,677
12,457,966
1,100,240
1,087,212
45,176,606
1,380,174
472,974
2,373,632
-
Total Revenues
253,091,481
Expenditures:
Current:
General government
Police
Fire
Water fire protection services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Principal
Interest and issuance cost
Intergovernmental
$
8,763,122
Nonmajor
Governmental
Funds
$
8,763,122
13,435,903
29,200,580
21,920,727
2,607,342
133,194,372
12,210,895
2,192,487
6,596,462
2,116,217
299,615
-
327,334
700,000
366,494
4,784,906
33,519,082
(218,290)
996,973
708,629
Total
Governmental
Funds
$ 189,370,011
13,157,966
1,466,734
5,872,118
78,695,688
1,380,174
254,684
3,370,605
9,471,751
41,185,128
303,039,731
889,955
1,805,788
2,486,022
22,198,898
19,792,010
1,108,127
368,807
4,860,347
3,381,160
14,325,858
31,006,368
24,406,749
2,607,342
155,393,270
32,002,905
3,300,614
6,965,269
6,976,564
3,680,775
13,025,778
4,938,213
10,383,051
3,280,000
5,483,122
-
60,000
28,854
-
16,365,778
10,450,189
10,383,051
252,121,642
8,763,122
56,979,968
317,864,732
-
(15,794,840)
(14,825,001)
4,760,000
610,993
(5,386,403)
655,147
(5,876,209)
-
21,888,749
2,488,519
1,601,408
(680,479)
21,888,749
4,760,000
2,488,519
610,993
(5,386,403)
2,256,555
(6,556,688)
(5,236,472)
-
25,298,197
20,061,725
Change in fund balance
(4,266,633)
-
9,503,357
5,236,724
Fund Balance, July 1, 2014
50,917,184
4,312,424
44,140,854
99,370,462
46,650,551
$ 4,312,424
53,644,211
$ 104,607,186
Total Expenditures
Excess (deficiency) of revenues
over expenditures
969,839
Other Financing Sources (Uses):
Issuance of bonds
Issuance of refunding bonds
Bond premiums
Bond premiums on refunding bonds
Payment to refunded escrow agent
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balance, June 30, 2015
$
The accompanying notes are an integral part of these financial statements.
A-38
$
CITY OF NASHUA, NEW HAMPSHIRE
RECONCILIATION OF THE STATEMENT OF REVENUES
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2015
Net changes in fund balances - Total governmental funds
$
5,236,724
Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense:
Capital outlay purchases, net of disposals
40,073,184
Depreciation
(13,294,477)
Loss on disposal of capital assets
(252,330)
Revenues in the Statement of Activities that do not provide current
financial resources are fully deferred in the Statement of Revenues,
Expenditures and Changes in Fund Balances. Therefore, the
recognition of revenue for various types of accounts receivable
(i.e., real estate and personal property, motor vehicle excise, etc.)
differ between the two statements. This amount represents the
net change in deferred revenue.
(255,821)
The issuance of long-term debt (e.g., bonds and leases) provides
current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the financial
resources of governmental funds. Neither transaction, however,
has any effect on net position:
Issuance of general obligation bonds
(21,888,749)
Issuance of refunding bonds
(4,760,000)
Repayments of debt
16,365,781
Refunded debt
5,075,000
Bond premiums
(2,307,771)
Gain on refunding bonds
(315,000)
To record amortization of Equity Interest in Pennichuck.
(3,280,000)
In the Statement of Activities, interest is accrued on outstanding
long-term debt, whereas in governmental funds interest is not
reported until due.
71,498
Some expenses reported in the Statement of Activities do not
require the use of current financial resources and therefore, are
not reported as expenditures in the governmental funds:
Decrease in compensated absences liability
601,643
Increase in net OPEB obligation
(2,223,575)
Decrease in net pension liability, and related deferred inflows
and outflows
3,910,915
Other
(157,333)
Internal service funds are used by management to account for health
insurance and workers' compensation activities. The net activity of
internal service funds is reported with Governmental Activities.
Change in net position of governmental activities
The accompanying notes are an integral part of these financial statements.
A-39
(602,718)
$
21,996,971
CITY OF NASHUA, NEW HAMPSHIRE
GENERAL FUND
STATEMENT OF REVENUES AND OTHER SOURCES, AND EXPENDITURES AND OTHER USES BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2015
Budgeted Amounts
Original
Budget
Revenues and Other Sources:
Taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Licenses and permits
Interest earnings
Miscellaneous
Transfers in
Other sources
$
Total Revenues and Other Sources
Expenditures and Other Uses:
General government
Police
Fire
Water fire protection services
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Intergovernmental
Transfers out
Total Expenditures and Other Uses
Excess of revenues and other sources
over expenditures and other uses
$
Final
Budget
Variance with
Final Budget
Positive
(Negative)
Actual
Amounts
188,644,284
10,907,000
1,058,000
1,017,034
44,880,559
1,162,050
400,000
1,522,498
619,587
5,340,000
$ 188,644,284
10,907,000
1,058,000
1,017,034
44,880,559
1,162,050
400,000
1,522,498
1,734,911
5,340,000
$ 188,644,284
12,457,967
1,100,240
1,235,108
45,119,462
1,382,224
446,507
2,098,495
1,718,362
5,505,585
255,551,012
256,666,336
259,708,234
3,041,898
14,471,080
27,752,915
21,336,559
2,634,760
133,799,926
9,108,980
2,441,011
6,157,594
2,464,864
334,153
18,072,688
10,383,051
6,593,431
15,485,036
28,497,744
21,573,001
2,634,760
132,765,375
9,318,861
2,422,709
6,153,085
2,433,135
333,460
18,072,688
10,383,051
6,593,431
14,180,161
28,328,074
21,564,983
2,632,342
132,730,608
9,305,305
2,336,760
6,081,581
2,414,031
309,587
18,068,991
10,383,051
6,593,431
1,304,875
169,670
8,018
2,418
34,767
13,556
85,949
71,504
19,104
23,873
3,697
-
255,551,012
256,666,336
254,928,905
1,737,431
4,779,329
$ 4,779,329
-
$
The accompanying notes are an integral part of these financial statements.
A-40
-
$
$
1,550,967
42,240
218,074
238,903
220,174
46,507
575,997
(16,549)
165,585
CITY OF NASHUA, NEW HAMPSHIRE
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2015
Waste
Water
Fund
ASSETS
Current:
Cash and short-term investments
User fees, net of allowance for uncollectibles
Intergovernmental receivable
Due from other funds
Other assets
Total current assets
$
18,669,156
3,179,698
700,551
-
Business-Type Activities
Enterprise Funds
Solid
Waste
Fund
$
4,580,982
272,451
85,402
-
$
Governmental
Activities
Internal
Service
Funds
Total
23,250,138
3,452,149
700,551
85,402
-
$
25,712,011
717,508
22,549,405
4,938,835
27,488,240
Noncurrent:
Capital assets being depreciated, net
Capital assets not being depreciated
139,209,539
4,491,032
14,734,799
231,705
153,944,338
4,722,737
-
Total noncurrent assets
143,700,571
14,966,504
158,667,075
-
323,127
251,321
574,448
-
166,573,103
20,156,660
186,729,763
26,429,519
1,633,829
949,502
13,913,542
-
104
258,506
-
104
1,633,829
1,208,008
13,913,542
-
8,041,272
750,175
3,022,541
28,843
1,815,624
28,726
4,838,165
57,569
19,548,257
2,102,960
21,651,217
41,167,518
291,637
268,515
1,672,136
-
12,218,457
290,447
255,610
1,300,550
5,392,950
53,385,975
582,084
524,125
2,972,686
5,392,950
-
43,399,806
19,458,014
62,857,820
-
259,970
202,199
462,169
-
63,208,033
21,763,173
84,971,206
8,791,447
88,956,896
14,408,174
5,979,823
4,473,789
(12,060,125)
94,936,719
4,473,789
2,348,049
17,638,072
(1,606,513)
$ 101,758,557
$ 17,638,072
DEFERRED OUTFLOWS OF RESOURCES
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES
LIABILITIES
Current:
Accounts payable
Due to other funds
Accrued liabilities
Notes payable
Other liabilities
Current portion of long-term liabilities:
Bonds and notes payable
Compensated absences
Total current liabilities
Noncurrent:
Bonds and notes payable
Compensated absences
Net OPEB obligations
Net pension liability - Board of Public Works
Landfill closure and post closure
Total noncurrent liabilities
DEFERRED INFLOWS OF RESOURCES
TOTAL LIABILITIES AND DEFERRED
INFLOWS OF RESOURCES
26,429,519
8,791,447
NET POSITION
Net investment in capital assets
Restricted for capital projects
Unrestricted
TOTAL NET POSITION
$ 103,365,070
$
The accompanying notes are an integral part of these financial statements.
A-41
CITY OF NASHUA, NEW HAMPSHIRE
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
FOR FISCAL YEAR ENDED JUNE 30, 2015
Waste
Water
Fund
Operating Revenues:
Charges for services
Employer contributions
Employee and retiree contributions
Other
Total Operating Revenues
$
11,727,364
76,709
Business-Type Activities
Enterprise Funds
Solid
Waste
Fund
$
2,557,071
243,658
$
Governmental
Activities
Internal
Service
Fund
Total
14,284,435
320,367
$
28,573,972
10,884,670
1,743,873
11,804,073
2,800,729
14,604,802
41,202,515
3,531,514
3,170,060
4,993,740
2,680,642
1,774,267
1,714,096
6,212,156
4,944,327
6,707,836
41,811,273
-
11,695,314
6,169,005
17,864,319
41,811,273
(3,368,276)
(3,259,517)
331,785
4,134
(1,235,881)
208,238
1,215
(239,703)
(357,634)
540,023
5,349
(239,703)
(1,593,515)
6,040
-
Total Nonoperating Revenues (Expenses), Net
(899,962)
(387,884)
(1,287,846)
6,040
Income (Loss) Before Transfers and Contributions
(791,203)
(3,756,160)
(4,547,363)
460,422
(55,000)
4,355,133
-
460,422
4,355,133
(55,000)
(385,781)
598,973
Operating Expenses:
Personnel expenses
Non-personnel expenses
Depreciation
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Intergovernmental
Investment income
Loss on disposal of capital assets
Interest expense
Capital contributions
Transfers in
Transfers out
Change in Net Position
Net Position at Beginning of Year
Net Position at End of Year
108,759
213,192
(608,758)
(602,718)
(602,718)
103,750,851
(2,205,486)
101,545,365
18,240,790
$ 103,365,070
$ (1,606,513)
$ 101,758,557
$ 17,638,072
The accompanying notes are an integral part of these financial statements.
A-42
CITY OF NASHUA, NEW HAMPSHIRE
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR FISCAL YEAR ENDED JUNE 30, 2015
Waste
Water
Fund
`
Cash Flows From Operating Activities:
Receipts from customers and users
Receipts from interfund services provided
Payments to vendors
Payments to employees
$ 11,636,706
(3,524,217)
(3,136,419)
Business-Type Activities
Enterprise Funds
Solid
Waste
Fund
$
2,656,165
(1,277,053)
(2,674,788)
Governmental
Activities
Internal
Service
Fund
Total
$ 14,292,871
(4,801,270)
(5,811,207)
$
12,628,543
28,573,972
(42,711,722)
-
Net Cash Provided By (Used for) Operating Activities
4,976,070
(1,295,676)
3,680,394
(1,509,207)
Cash Flows From Noncapital Financing Activities:
Proceeds from interfund loan agreements
Payments under interfund loan agreements
Transfers
Intergovernmental subsidy
(1,561,259)
(55,000)
331,785
54,948
4,355,133
208,238
54,948
(1,561,259)
4,300,133
540,023
1,503,167
-
Net Cash Provided By (Used for) Noncapital Financing Activities
(1,284,474)
4,618,319
3,333,845
1,503,167
Cash Flows From Capital and Related Financing Activities:
Acquisition and construction of capital assets
Contributions
Proceeds from bonds and notes
Principal payments on bonds and leases
Interest expense
(9,815,887)
245,411
17,796,388
(7,313,220)
(976,675)
(1,971,964)
747,000
(1,757,215)
(387,759)
(11,787,851)
245,411
18,543,388
(9,070,435)
(1,364,434)
-
(63,983)
(3,369,938)
(3,433,921)
-
Net Cash Provided By (Used For)
Capital and Related Financing Activities
Cash Flows From Investing Activities:
Investment income
4,134
Net Change in Cash and Short-Term Investments
3,631,747
Cash and Short-Term Investments, Beginning of Year
Cash and Short-Term Investments, End of Year
Reconciliation of Operating Income to Net Cash
Provided by (Used For) Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Depreciation
Changes in assets and liabilities:
User fees
Deferred outflows of resources
Other assets
Accounts payable
Accrued liabilities
Net OPEB obligation
Net pension liability
Landfill closure and postclosure
Other liabilities
Deferred inflows of resources
Net Cash Provided By (Used for) Operating Activities
1,215
(46,080)
15,037,409
3,585,667
-
19,664,471
-
4,580,982
$ 23,250,138
$
$
$
$
$
$ (3,368,276)
4,993,740
(170,934)
(323,127)
21,384
36,847
49,431
259,970
$
4,976,070
The accompanying notes are an integral part of these financial statements.
A-43
6,040
4,627,062
$ 18,669,156
108,759
5,349
1,714,096
6,707,836
(140,264)
(251,321)
(1,345)
7,822
30,578
38,446
472,389
202,199
$ (1,295,676)
(3,259,517)
3,680,394
(608,758)
-
(311,198)
(574,448)
(1,345)
29,206
67,425
87,877
472,389
462,169
$
-
3,174
(922,600)
18,977
$
(1,509,207)
CITY OF NASHUA, NEW HAMPSHIRE
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2015
Private
Purpose
Trust
Funds
Pension
Trust
Agency
Funds
ASSETS
Cash and short-term investments
Investments
Fixed income securities
Equities
Mutual funds
$
$
245,945
$ 260,290
7,536,599
23,333,267
6,465,030
1,802,246
3,179,129
370,307
-
37,334,896
5,351,682
-
$ 37,761,517
$ 5,597,627
$ 260,290
$
$
$
Total Investments
Total Assets
426,621
LIABILITIES
Accrued liabilities
Other liabilities
Due to external parties - governmental funds
Total Liabilities
44,734
204,640
131,352
249,374
131,352
37,512,143
5,466,275
$ 37,761,517
$ 5,597,627
259,990
300
260,290
NET POSITION
Total net position restricted for
pensions and other purposes
Total Liabilities and Net Position
The accompanying notes are an integral part of these financial statements.
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$ 260,290
CITY OF NASHUA, NEW HAMPSHIRE
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR FISCAL YEAR ENDED JUNE 30, 2015
Private
Purpose
Pension
Trust
Trust Fund
Funds
Additions:
Contributions:
Employers
$
Plan members
772,343
772,343
Other
Total contributions
$
-
2,226
8,552
1,546,912
8,552
1,308,368
252,734
Investment Income:
Dividend, interest and investment income
Less: management fees
(186,901)
-
Total Investment income
1,121,467
252,734
Total additions
2,668,379
261,286
2,526,991
134,220
20,360
39,475
2,547,351
173,695
121,028
87,591
37,391,115
5,378,684
$ 37,512,143
$ 5,466,275
Deductions:
Benefit payments to plan members and beneficiaries
Administrative expenses
Total deductions
Net increase
Net position held in trust:
Beginning of year
End of year
The accompanying notes are an integral part of these financial statements.
A-45
CITY OF NASHUA, NEW HAMPSHIRE
Statement of Net Position
Component Units
June 30, 2015
(Except for Pennichuck Corporation Component Unit, which is as of December 31, 2014)
Nashua
Airport
Authority
Pennichuck
Corporation
ASSETS
Current assets:
Cash and cash equivalents
Investments
Restricted cash and investments
Receivables, net of allowance for uncollectibles:
User fees
Intergovernmental
Inventory
Prepaid expenses
$
2,987,000
45,836,000
$
70,784
67,914
-
Total
$
3,057,784
67,914
45,836,000
4,631,000
802,000
1,588,000
16,218
509,452
-
4,647,218
509,452
802,000
1,588,000
Total current assets
55,844,000
664,368
56,508,368
Noncurrent assets:
Non-depreciable capital assets
Depreciable capital assets, net
Other noncurrent assets
Acquisition premium
Investment in real estate partnership
173,287,000
13,342,000
78,885,000
104,000
4,637,632
22,834,058
-
4,637,632
196,121,058
13,342,000
78,885,000
104,000
265,618,000
27,471,690
293,089,690
2,345,000
23,394
2,368,394
323,807,000
28,159,452
351,966,452
1,980,000
221,000
682,000
358,069
-
2,338,069
221,000
682,000
Total noncurrent assets
DEFERRED OUTFLOWS OF RESOURCES
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES
LIABILITIES
Current liabilities:
Accounts payable and other liabilities
Accrued payroll
Accrued interest payable
Current portion of long-term liabilities:
Bonds, notes payable and other obligations
26,275,000
Total current liabilities
-
26,275,000
29,158,000
358,069
29,516,069
Noncurrent liabilities:
Regulatory liability
Bonds, notes payable and other obligations
Compensated absences
Post-employment benefits obligations
Accrued pension liability
Net pension liability
Liability for derivative instruments
Contributions in aid of construction
Other noncurrent liabilities
803,000
200,363,000
2,016,000
8,017,000
583,000
36,532,000
743,000
13,200
269,731
-
803,000
200,363,000
13,200
2,016,000
8,017,000
269,731
583,000
36,532,000
743,000
Total noncurrent liabilities
249,057,000
282,931
249,339,931
DEFERRED INFLOWS OF RESOURCES
21,002,000
157,381
21,159,381
TOTAL LIABILITIES AND DEFERRED
INFLOWS OF RESOURCES
299,217,000
798,381
300,015,381
1,221,000
27,391,690
28,612,690
NET POSITION
Net investment in capital assets
Restricted for:
Pennichuck corporation
Unrestricted
Total net position
23,369,000
$
24,590,000
The notes to the financial statements are an integral part of this statement.
A-46
(30,619)
$
27,361,071
23,369,000
(30,619)
$
51,951,071
CITY OF NASHUA, NEW HAMPSHIRE
Statement of Revenues, Expenses and Changes in Net Position
Component Units
Fiscal Year Ending June 30, 2015
(Except for Pennichuck Corporation Component Unit, which is as of December 31, 2014)
Nashua
Airport
Authority
Pennichuck
Corporation
Operating Revenues:
Charges for services
Other
$
38,815,000
-
$
475,137
49,536
Total
$
39,290,137
49,536
Total Operating Revenues
38,815,000
524,673
39,339,673
Operating Expenses:
Cost of services
Taxes other than income taxes
Depreciation
18,221,000
5,541,000
6,148,000
514,329
1,324,496
18,735,329
5,541,000
7,472,496
29,910,000
1,838,825
31,748,825
8,905,000
(1,314,152)
7,590,848
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest income
Interest expense
Other nonoperating revenues (expenses)
Nonoperating Revenues (Expenses), Net
Income (Loss) Before Contributions
Capital contributions
(Provision for) Benefit from income taxes
Other
(10,156,000)
27,000
1,861
(2,963)
(122,382)
1,861
(10,158,963)
(95,382)
(10,129,000)
(123,484)
(10,252,484)
(1,224,000)
(1,437,636)
(2,661,636)
1,056,339
-
1,056,339
(551,000)
(395,000)
(551,000)
(395,000)
Change in net position
(2,170,000)
Stockholders' equity/Net position, beginning, as restated
Stockholders' equity/Net position, ending
$
26,760,000
27,742,368
24,590,000
$ 27,361,071
The notes to the financial statements are an integral part of this statement.
A-47
(381,297)
(2,551,297)
54,502,368
$
51,951,071
CITY OF NASHUA, NEW HAMPSHIRE
Notes to Financial Statements
1.
Summary of Significant Accounting Policies
The accounting policies of the City of Nashua (the City) conform to generally
accepted accounting principles (GAAP) as applicable to governmental units. The
following is a summary of the more significant policies:
A. Reporting Entity
The City is a municipal corporation governed by an elected Mayor and Board of
Aldermen. As required by generally accepted accounting principles, these financial statements present the government and applicable component units for which
the government is considered to be financially accountable.
Blended Component Unit
The Board of Public Works Retirement System (the System) was established to
provide retirement benefits exclusive to regular employees of the Board of Public
Works (the Board). The System is governed by a board of five trustees, comprised
of one member of the Board of Public Works, two representatives of the public
works employees, one member of the Board of Aldermen, and one member
appointed by the Mayor. The System is presented using the accrual basis of
accounting and is reported as a pension trust fund in the fiduciary fund financial
statements. The System met the required GASB 14 (as amended) criteria of a
blended component unit as the benefits provided are exclusively or almost
exclusively to the City or its employees.
Discretely Presented Component Units
In fiscal year 2015, it was determined that the Pennichuck Corporation and
Nashua Airport Authority met the required GASB 14 (as amended) criteria of discretely presented component units.
Pennichuck Corporation (Pennichuck) is a holding company headquartered in
Merrimack, New Hampshire with five wholly owned operating subsidiaries.
Pennichuck Water Works, Inc., Pennichuck East Utility, Inc., and Pittsfield
Aqueduct Company, Inc. are involved in regulated water supply and distribution
to customers in New Hampshire. Pennichuck Water Service Corporation conducts
non-regulated water-related services, while the Southwood Corporation owns
several parcels of undeveloped land. On January 25, 2012, the City purchased all
of the outstanding shares acquiring control of Pennichuck’s assets, liabilities, and
businesses. Pennichuck remains an independent corporation with the City as its
sole shareholder. Pennichuck meets the criteria as a discretely presented component unit as the City owns a majority of the equity interest in Pennichuck, and the
intent of the acquisition was to enhance the control of water resources and
watershed, along with providing stability in water rates.
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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 governing board and can impose
a financial burden as the City can guarantee the principal and interest of any
bonds issued by the Authority.
B. Government-wide and Fund Financial Statements
Government-wide Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and
the Statement of Activities) report information on all of the nonfiduciary activities
of the primary government. For the most part, the effect of interfund activity has
been removed from these statements. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for
support. Likewise, the primary government is reported separately from certain
legally separate component units for which the primary government is financially
accountable.
The Statement of Activities demonstrates the degree to which the direct expenses
of a given function or segment is offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment. Program
revenues include (1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function
or segment and (2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as
general revenues.
Fund Financial Statements
Separate financial statements are provided for governmental funds, proprietary funds
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary
fund and fiduciary fund (other than Agency funds which have no measurement
focus) financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are
A-49
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. As a 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
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the City considers property tax and intergovernmental revenues
to be available if they are collected within 60 days of the end of the current fiscal
period. All other revenue items are considered to be measurable and available
only when cash is received by the City. Expenditures generally are recorded when
a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts
for all financial resources of the general government, except those required
to be accounted for in another fund.
The Debt Service Fund is used to account for resources and debt service
payments associated with the bond issuance for the acquisition of
Pennichuck Corporation.
Proprietary funds (which include both enterprise and internal service funds)
distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenues of the enterprise fund are charges to
customers for sales and services. Operating expenses for enterprise funds include
the cost of sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
The government reports the following major proprietary funds:
Wastewater enterprise fund that accounts for the resources and cost
associated with the City’s wastewater treatment.
A-50
Solid Waste enterprise fund that accounts for the resources and costs
associated with the City’s landfills.
The City’s self-insured programs are reported as an internal service fund in the
accompanying financial statements.
The Pension Trust fund accounts for the activities of the Board of Public Works
Employees Contributory Retirement System, which accumulates resources for
pension benefit payments to qualified employees. No separate issue financial
statement is available.
The Private-Purpose Trust fund is used to account for trust arrangements, other
than those properly reported in the pension trust fund or permanent fund, under
which principal and investment income exclusively benefit individuals, private
organizations, or other governments.
The Agency funds include escrow deposits and performance bonds. These funds
are custodial in nature and do not involve measurement of results of operations.
D. Cash and Short-Term Investments
Cash balances from all funds, except those required to be segregated by law, are
combined to form a consolidation of cash. Cash balances are invested to the
extent available, with the exception of such cash necessary to maintain adequate
liquidity, and interest earnings are recognized in the General Fund. Certain special
revenue, proprietary, and fiduciary funds segregate cash, and investment earnings
become a part of those funds.
Deposits with financial institutions consist primarily of demand deposits, certificates of deposits, and savings accounts. A cash and investment pool is maintained
that is available for use by all funds. Each fund’s portion of this pool is reflected
on the combined financial statements under the caption “cash and short-term
investments”. The interest earnings attributable to each fund type are included
under investment income.
For purpose of the statement of cash flows, the proprietary funds consider investments with original maturities of three months or less to be short-term investments.
E. Investments
State and local statutes, as well as the City’s investment policy, place certain
limitations on the nature of deposits and investments available. Deposits in any
financial institution may not exceed certain levels within the financial institution.
Non-fiduciary fund investments can be made in securities issued by or unconditionally guaranteed by the U.S. Government or agencies that have a maturity of
one year or less from the date of purchase and repurchase agreements guaranteed
by such securities with maturity dates of no more than 90 days from the date of
purchase.
A-51
Investments for the Trust Funds consist of marketable securities, bonds and shortterm money market investments. Investments are carried at fair value.
F. Interfund Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due
from/to other funds” (i.e., the current portion of interfund loans) or “advances
to/from other funds” (i.e., the non-current portion of interfund loans).
Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate the portion not available for appropriation and
not available as expendable financial resources.
Any residual balances outstanding between the governmental activities and
business-type activities are reported in the government-wide financial statements
as “internal balances”.
The government-wide Statement of Activities eliminates transfers as reported
within the segregated governmental and business-type activities columns. Only
transfers between these two columns appear in this statement.
G. Loans
The Economic Development Office administers loan programs that provides for
working capital and capital asset financing for start-up and existing businesses in
the Nashua area. The City records a receivable for the principal amount of the
loan issued.
H. Inventories
Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs
of governmental fund-type inventories are recorded as expenditures when purchased rather than when consumed. No significant inventory balances were on
hand in governmental funds.
I. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets,
are reported in the applicable governmental or business-type activities columns in
the government-wide financial statements. Capital assets are defined by the
government as assets with an initial individual cost of more than $15,000 and an
estimated useful life in excess of two years. Such assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated capital
assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized.
A-52
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of
business-type activities is included as part of the capitalized value of the assets
constructed.
Property, plant and equipment are depreciated using the straight-line method over
the following estimated useful lives:
Assets
Years
Buildings
Building improvements
Infrastructure
Vehicles
Machinery and equipment
Computer equipment
40
20 - 40
7 - 60
3-8
5 - 20
3-5
J. Equity Interest in Pennichuck
The City’s equity interest in Pennichuck Corporation represents, through the
acquisition of all outstanding shares, the control of all of Pennichuck’s assets,
liabilities and businesses, including land comprising the watershed of the
Pennichuck Brook and the three regulated water utilities owned by Pennichuck.
Taking into account all of the assumed liabilities of the company and its businesses, the acquisition was valued at approximately $200 million. Pennichuck
remains an independent corporation with an independent Board of Directors with
the City of Nashua as its sole shareholder.
The City accounts for this asset in accordance with GASB Statement 61 – The
Financial Reporting Entity: Omnibus, an amendment of GASB Statements
No. 14 and No. 34. The equity interest represents an asset to offset the related
acquisition bonds in the governmental funds, and is adjusted accordingly by the
related debt service.
K. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused
vacation and sick pay benefits. All vested sick and vacation pay is accrued when
incurred in the government-wide, proprietary, and fiduciary fund financial
statements. A liability for these amounts is reported in governmental funds only
if they have matured, for example, as a result of employee resignations and
retirements.
L. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the
fund financial statements, long-term debt, and other long-term obligations are
reported as liabilities in the applicable governmental activities, business-type
activities, or proprietary fund type Statement of Net Position.
A-53
M. Fund Equity
Fund equity at the governmental fund financial reporting level is classified as
“fund balance”. Fund equity for all other reporting is classified as “Net Position”.
Fund Balance - Generally, fund balance represents the difference between the
current assets and current liabilities. The City reserves those 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 City’s fund balance classification policies and procedures are as follows:
1) Nonspendable funds are either unspendable in the current form (i.e.,
inventory or prepaid items) or can never be spent (i.e., perpetual care).
2) Restricted funds are used solely for the purpose in which the fund was
established. In the case of special revenue funds, these funds are created
by statute or otherwise have external constraints on how the funds can be
expended.
3) Committed funds are reported as a result of resolutions passed by the
highest decision making authority in the City, the Board of Aldermen. The
same action is required to modify or rescind the commitment.
4) Assigned funds are used for specific purposes as established by management. These funds have been assigned for specific goods and services
ordered but not yet paid for. This account also includes fund balance voted
to be used in the subsequent fiscal year. The City’s Revised Ordinances
(NRO) permits the Chief Financial Officer and Controller to make
assignments.
5) Unassigned funds are available to be spent in future periods.
When an expenditure is incurred that would qualify for payment from multiple
fund balance types, the City uses the following order to liquidate liabilities:
restricted, committed, assigned and unassigned.
Net Position - Net position represents the difference between assets/deferred
outflows and liabilities/deferred inflows. Net position invested in capital assets,
net of related debt, consist of capital assets, net of accumulated depreciation,
reduced by the outstanding balances of any borrowing used for the acquisition,
construction or improvement of those assets. Net position is reported as restricted
when there are limitations imposed on their use either through the enabling
legislation adopted by the City or through external restrictions imposed by
creditors, grantors, or laws or regulations of other governments. All other net
position is reported as unrestricted.
A-54
N. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosures for
contingent assets and liabilities at the date of the basic financial statements, and
the reported amounts of the revenues and expenditures/expenses during the fiscal
year. Actual results could vary from estimates that were used.
2.
Stewardship, Compliance, and Accountability
A. Budgetary Information
The Mayor presents an operating and capital budget for the proposed expenditures
of the fiscal year commencing the following July 1. The budget, as enacted by the
Board of Aldermen, establishes the legal level of control and projects the particular revenues that will fund certain appropriations. The original budget may be
amended, by supplemental appropriations or transfers, during the fiscal year at
Board of Aldermen meetings as required by changing conditions. The Financial
Services Department may transfer appropriations between operating categories
within departmental budgets at the request of department heads, but expenditures
may not legally exceed budgeted appropriations in total.
Formal budgetary integration is employed as a management control device during
the year for the General Fund and Proprietary Funds. Effective budgetary control
is achieved for all other funds through provisions of the New Hampshire statutes.
At year-end, appropriation balances lapse, except for multi-year grants, certain
unexpended capital items, and encumbrances which will be honored during the
subsequent year.
B. 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.
C. Budget/GAAP Reconciliation
The budgetary data for the general and proprietary funds is based upon accounting
principles that differ from generally accepted accounting principles (GAAP).
Therefore, in addition to the GAAP basis financial statements, the results of
operations of the general fund are presented in accordance with budgetary
accounting principles to provide a meaningful comparison to budgetary data.
The following is a summary of adjustments made to the actual revenues and other
sources, and expenditures and other uses, to conform to the budgetary basis of
accounting.
A-55
General Fund
Revenues
and Other
Financing Sources
Revenues/Expenditures
(GAAP Basis)
$
Other financing sources/uses
(GAAP Basis)
Subtotal (GAAP Basis)
Adjust tax revenue to accrual basis
253,091,481
Expenditures
and Other
Financing Uses
$
252,121,642
6,026,140
11,262,612
259,117,621
263,384,254
(398,393)
-
Reverse effect of activity
appropriated in prior year
-
(1,358,993)
Add end-of-year appropriation
carryforwards from expenditures
-
1,643,507
Add use of fund balance
5,340,000
-
Reverse non-budgeted refunding
activity
(5,386,403)
(5,386,403)
Reverse non-budgeted revenues
and expenditures
1,035,409
(3,353,460)
Budgetary Basis
$
259,708,234
$
254,928,905
In addition, adjustments were made to the enterprise funds to conform to the
budgetary basis, primarily for the omission of depreciation expense which is not
budgeted, and the inclusion of principal debt service and capital expenses which
are budgeted expenses.
D. Deficit Fund Equity
The following funds had a total fund balance/net position deficit at June 30, 2015:
Nonmajor Governmental Funds:
Public Works Projects
School Department Projects
$
Proprietary Funds:
Solid Waste
(33,220)
(1,271,444)
(1,606,513)
$
(2,911,177)
The City will be funding the deficits in the Nonmajor governmental funds with
future grant revenues or bond proceeds.
The Proprietary Fund deficit is primarily due to the Solid Waste fund’s high
percentage of non-capital related debt for landfill closure costs.
A-56
3.
Cash and Investments
A. Custodial Credit Risk
Custodial credit risk for deposits is the risk that in the event of a bank failure, the
deposits may not be returned. The custodial credit risk for investments is the risk
that, in the event of a failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party.
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that in the event
of a bank failure, the City’s deposits may not be returned to it. RSA 48:16 states
that “deposits in any one bank shall not at any time exceed the sum of its paid-up
capital and surplus, except that a City with a population in excess of 50,000 is
authorized to deposit funds in a solvent bank in excess of the paid-up capital surplus of said bank.” The City does not have policies for custodial credit risk. The
City’s deposit policy for custodial credit risk is to be fully insured.
As of June 30, 2015, the City’s entire bank balance was fully insured and
collateralized.
Custodial Credit Risk - Investments. Custodial credit risk for investments is the
risk that in the event of a failure of the counterparty (e.g., broker-dealer) to a
transaction, a government will not be able to recover the value of the investment
or collateral securities that are in the possession of another party. The City limits
its exposure to custodial credit risk by requiring that all security transactions
entered into by the City be conducted on a delivery-versus-payment basis.
Securities are held by a third-party custodian.
The City’s investments are exposed to custodial risk. The City manages this risk
with the Securities Investor Protection Corporation, Excess Securities Investor
Protection Corporation and by holding the assets in separately identifiable trust
accounts.
Investments at June 30, 2015 included the following (in thousands):
U.S. Treasury Obligations
U.S. Government Agencies
Corporate Bonds
Common Equities
Mutual Funds
Long-term Certificates of Deposit
$
Total
$ 107,700
A-57
8,768
17,514
6,190
44,326
8,586
22,316
B. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. State law employs the prudent person
rule whereby investments are made as a prudent person would be expected to act,
with discretion and intelligence, to seek reasonable income, preserve capital, and,
in general, avoid speculative investments. The City’s Investment Policy is to
minimize credit risk by limiting investments to the safest types of securities, prequalifying institutions and diversifying the portfolio.
C. Concentration of Credit Risk
The City places no limit on the amount the City may invest in any one issuer. The
City does not have an investment in one issuer, other than U.S. Treasury bonds
and notes, greater than 5% of total investments.
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely
affect the fair value of an investment. Generally, the longer the maturity of an
investment, the greater the sensitivity of its fair value to changes in market
interest rates. The City’s current investment policy does not limit investment
maturities as a means of managing its exposure to fair value losses arising from
increasing interest rates.
Information regarding the quality and maturity dates of fixed income securities is
as follows (in thousands):
Average
Average
Rating
Duration
Total
Corporate Bonds
$
6,190
5.08
A2
E. 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’s current investment
policy does not address foreign currency risk.
4.
Taxes Receivable
The City bills property taxes semi-annually, in May and November. Property tax
revenues are recognized in the fiscal year for which taxes have been levied to the
extent that they become available, i.e., due or receivable within the current fiscal year
and collected within the current period or within 60 days of year-end.
A-58
Property taxes billed and collected in advance of the year for which they are levied,
and are recorded as a prepaid tax liability.
Property taxes are due in July and December. Taxes paid after the due, date accrue
interest at 12% per annum. In April of the following calendar year, the Tax Collector
executes tax liens on properties that have unpaid taxes. The lien is recorded on the
delinquent taxpayer’s property at the Registry of Deeds. The tax liens accrue interest
at 18% per annum. If the lien is not redeemed within a two-year redemption period,
the property may be conveyed to the City by deed.
Taxes receivable at June 30, 2015 consist of the following (in thousands):
Gross
Amount
Unredeemed Taxes:
5.
Allowance
for
Doubtful
Net
Amount
Levy of 2015
Prior levies
Tax liens
Tax deeded property
$
14,890
16
5,859
192
$
(2,499)
-
$
14,890
16
3,360
192
Total
$
20,957
$
(2,499)
$
18,458
Intergovernmental Receivables
This balance represents reimbursements requested from Federal, State, and Local
agencies for expenditures incurred in fiscal 2015.
6.
Interfund Fund Receivables/Payables and Transfers In/Out
Although self-balancing funds are maintained, most transactions flow through the
general fund. In order to obtain accountability for each fund, interfund receivable and
payable accounts must be utilized. All remaining balances resulted from the time lag
between the dates that (1) interfund goods and services are provided or reimbursable
expenditures occur, (2) transactions are recorded in the accounting system, and
(3) payments between funds are made.
The following is an analysis of the June 30, 2015 balances in interfund receivable and
payable accounts:
A-59
Due From
Other Funds
Funds:
General Fund
Debt Service Fund
Nonmajor Governmental Funds:
Police grants
Fire grants
Community health and services grants
Parks and recreation grants
Transit grants
Community Development Block grants/Home grants
Community Development division grants
Homeland security grants
Other city grants
Food services
School grants
City revolving funds
School revolving funds
Other trust funds
Fire projects
Public works projects
School department projects
Technology projects
City building projects
City-wide communications projects
Cemetery permanent funds
Library permanent funds
Other permanent funds
Enterprise funds:
Waste Water
Solid Waste
Internal service fund:
Employee benefits fund
Property and casualty fund
Due To
Other Funds
$ 20,762,034
4,312,424
$ 66,949,240
-
1,871
6,562
339,400
6,136,519
1,079,162
136,622
7,828
9,328,152
826,875
1,116,029
69,268
2,700,826
-
38,202
20,510
275,489
185,076
259,412
160,307
146,120
2,407,916
188,722
17,819
2,051
85,402
1,633,829
-
20,317,384
5,394,627
Fiduciary fund types:
Pension trust
Private purpose
Agency
$ 72,620,985
Total
204,640
131,352
300
$ 72,620,985
The City reports interfund transfers between many of its funds. The City’s routine
transfers include transfers made to move (1) unrestricted revenues or balances that
have been collected or accumulated in the general fund to other funds based on budgetary authorization, and (2) revenues from a fund that by statute or budgetary authority must collect them to funds that are required by statute or budgetary authority to
A-60
expend them. The sum of all transfers presented in the table agrees with the sum of
interfund transfers presented in the governmental fund financial statements.
The following is an analysis of interfund transfers made in fiscal year 2015.
Transfers In
Transfers Out
655,147
$ 5,876,209
51,622
96,487
415,460
8,205
20,332
110,139
155,000
650,000
94,163
-
20,243
13,296
63,743
200,250
788
53,445
326,663
2,051
3,731,019
624,114
55,000
-
$ 6,611,688
$ 6,611,688
Funds:
General Fund
$
Nonmajor Governmental Funds:
Police grants
Fire grants
Transit grants
Other city grants
City revolving funds
Other trust funds
Fire projects
Public works projects
School department projects
City building projects
Cemetery permanent funds
Other permanent funds
Enterprise funds:
Waste water
Solid waste - operations
Solid waste - capital
Total
The following is a detailed analysis of general fund transfers made in fiscal year 2015:
General Fund Transfers In:
Income Transfer from Cemetery Trust funds
Transfer from School Impact Fees Fund
Surplus Transfer from Police Outside Detail Fund
Transfer of Unspent funds from School Capital Project Funds
Transfer of Unspent Matching Funds from Police Grants Fund
Public Works Grants Fund
Surplus Transfer from Engineering Services Fund
Engineering Capital Project Fund
Transfer from Expendable Trust Funds
A-61
$
308,384
200,000
56,350
53,445
20,243
13,296
2,393
788
248
$
655,147
General Fund Transfers Out:
Solid Waste Operating Subsidy
School Gym Floor Replacements Capital Project Fund
Solid Waste Vehicle Purchases
Nashua Transit Grants - Matching Funds
Fire Stations Lighting Upgrades Capital Project Fund
Fire Capital Grants - Matching Funds
Parking Garage Upgrades Capital Project Fund
Yudicky Farm Access Road Improvements Capital Project Fund
Police Grant - Matching Funds
East Hollis Street Gateway Improvements Capital Project Fund
Retirement Trust Fund Transfer to Parking Violation Fund
7.
$
3,731,019
650,000
624,114
410,460
110,139
96,487
94,164
60,000
51,622
40,000
8,204
$
5,876,209
Capital Assets
Capital asset activity for the year ended June 30, 2015 was as follows (in thousands):
Beginning
Balance
Governmental Activities:
Capital assets, being depreciated:
Buildings and improvements
Infrastructure
Machinery and equipment
$ 255,065
58,124
55,594
Total capital assets, being depreciated
Increases
$
605
6,579
6,839
Decreases
$
Ending
Balance
$ 255,670
64,703
(1,389)
61,044
368,783
14,023
(1,389)
381,417
Less accumulated depreciation for:
Buildings and improvements
Infrastructure
Machinery and equipment
(99,580)
(34,754)
(29,686)
(6,405)
(2,116)
(4,773)
1,362
(105,985)
(36,870)
(33,097)
Total accumulated depreciation
(164,020)
(13,294)
1,362
(175,952)
Total capital assets, being depreciated, net
204,763
729
(27)
205,465
29,121
24,564
246
30,390
(226)
(4,585)
29,141
50,369
53,685
30,636
(4,811)
79,510
$ 258,448
$ 31,365
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Governmental activities capital assets, net
A-62
$
(4,838) $ 284,975
Beginning
Balance
Business-Type Activities:
Capital assets, being depreciated:
Buildings
Land improvements
Infrastructure
Machinery and equipment
$
Total capital assets, being depreciated
79,875
17,853
102,619
38,808
Increases
$
124
359
18,441
8,060
Decreases
$
Ending
Balance
$ 79,999
18,212
121,060
(1,278)
45,590
239,155
26,984
(1,278)
264,861
Less accumulated depreciation for:
Buildings
Land improvements
Infrastructure
Machinery and equipment
(37,810)
(7,573)
(38,345)
(21,519)
(1,531)
(902)
(2,261)
(2,014)
1,038
(39,341)
(8,475)
(40,606)
(22,495)
Total accumulated depreciation
(105,247)
(6,708)
1,038
(110,917)
133,908
20,276
(240)
153,944
232
19,687
8,519
(23,715)
232
4,491
19,919
8,519
(23,715)
4,723
153,827
$ 28,795
Total capital assets, being depreciated, net
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Business-type activities capital assets, net
$
$ (23,955) $ 158,667
Depreciation expense was charged to functions of the City as follows (in thousands):
Governmental Activities:
General government
Police
Fire
Education
Public works
Culture and recreation
Heath and human services
Community development
Communications
$
1,143
689
870
6,261
2,506
660
6
885
274
Total depreciation expense - governmental activities
$ 13,294
Business-Type Activities:
Waste water
Solid waste
$
4,994
1,714
Total depreciation expense - business-type activities
$
6,708
A-63
8.
Deferred Outflows of Resources
Deferred outflows of resources represent the consumption of net assets by the City
that is applicable to future reporting periods. Deferred outflows of resources have a
positive effect on net position, similar to assets.
The following is a summary of deferred outflow of resources balances as of June 30,
2015 (in thousands):
Loss on refunding
Entity-wide Basis
Governmental Business-type
Activities
Activities
Fund Basis
Proprietary Funds
Wastewater Solid Waste
$
$
1,012
Differences between expected and actual
pension experience
$
-
31
18
13
714
543
305
238
3,074
-
-
-
19,433
-
-
-
$ 574
$ 323
$ 251
Changes in proportion and differences
between contributions and proportionate
share of pension contributions
9.
-
41
Net difference between projected and actual
pension investment earnings
Pension contributions subsequent to the
measurement date
Total
$ -
$ 24,274
Accounts Payable
Accounts payable represent 2015 expenditures paid after June 30, 2015.
10.
Anticipation Notes Payable
The City had the following notes outstanding at June 30, 2015:
Screening and Disinfection
Facility SRF Loan
Interest
Rate
Issue
Date
1.0%
07/11/12
Maturity
upon completed
construction
Balance
6/30/15
$ 13,913,542
The following summarizes activity in notes payable during fiscal year 2015:
Balance
Beginning
of Year
Harbor Avenue Sewer Separation
Project SRF Loan
Screening and Disinfection
Facility SRF Loan
Total
$
4,394,700
New
Issues
$
205,377
8,932,906
4,980,636
$ 13,327,606
$ 5,186,013
A-64
Maturities
$ (4,600,077) $
-
Balance
End of
Year
13,913,542
$ (4,600,077) $ 13,913,542
11.
Long-Term Debt
A. General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds have been issued
for both governmental and business-type activities. General obligation bonds and
notes currently outstanding are as follows:
Governmental Activities:
Refunding for Dr. Crisp School & Bicentennial School
Refunding for Fairgrounds Middle School
Refunding for New Searles School
Refunding for Fairgrounds Middle School
Refunding for Ridge Road Bridge
Refunding for Amherst Street School
Refunding for School Land Acquisition
Refunding for Athletic Field at Yudicky Farm
Refunding for Southwest Quadrant Land Acquisition
Refunding for Lake Street Fire Station
Refunding for Citywide Communication System
Refunding for Citywide Communication Towers
Refunding for Library Automation
Refunding for Police Headquarters Additions and Renovations
Refunding for Police Computer Aided Dispatch (CAD) System
Refunding for Highway and Sidewalk Construction
Refunding for Holman Stadium Series A
Refunding for High School Athletic Field
Refunding for High School Construction
Refunding for High School Planning
Refunding for High School Construction Series A
Nashua Senior Center Renovation & Expansion
Police HVAC System Replacement
Police HVAC System Replacement
Land Acquisition for East Hollis Street Fire Station
East Hollis Street Fire Station Construction
Nashua Riverwalk Construction
Nashua Bus Garage Construction
Nashua Enterprise Resource Planning (ERP) System
Broad Street Parkway Construction
Elm Street Garage Renovation
High Street Garage Renovation
Broad Street Parkway Construction
Nashua Enterprise Resource Planning (ERP) System
Hunt Memorial Building Renovation
Serial
Maturities
Through
Interest
Rate(s) %
11/16
11/16
11/16
11/16
11/16
11/16
11/16
11/16
11/16
7/18
7/18
7/20
7/20
7/20
7/20
7/20
7/21
7/20
7/20
7/20
7/21
7/26
7/26
7/26
7/26
7/26
7/26
7/26
8/16
7/31
7/31
7/31
10/31
10/17
10/31
2.0 - 4.0%
2.0 - 4.0%
2.0 - 4.0%
2.0 - 4.0%
2.0 - 4.0%
2.0 - 4.0%
2.0 - 4.0%
2.0 - 4.0%
2.0 - 4.0%
3.72%
3.72%
3.78%
3.78%
3.78%
3.78%
3.78%
3.97%
3.78%
3.78%
3.78%
3.86%
3.95%
3.93%
3.96%
3.95%
3.98%
3.95%
3.98%
1.39%
3.00%
3.00%
3.00%
3.04%
3.04%
3.04%
Amount
Outstanding
as of
6/30/15
$
1,206,120
1,795,500
256,780
666,600
640,038
10,001
10,001
614,959
10,001
1,200,000
14,676,525
507,500
13,852,500
610,600
590,600
1,515,000
152,000
1,215,000
760,000
327,775
2,157,500
250,000
30,000
60,000
50,000
370,000
120,000
200,000
830,000
1,760,000
435,000
575,000
2,125,000
1,245,000
850,000
(continued)
A-65
(continued)
Governmental Activities:
Nashua City Hall Renovation
Refunding for High School Construction
Ledge Street School HVAC System Replacement
Fairgrounds School HVAC System Replacement
Elm Street Middle School Roof Replacement
Elm Street Middle School Capital Equipment
Elm Street Middle School Fire Alarm
Pennichuck Corporation Acquisition Bonds
Broad Street Parkway Construction
Nashua Enterprise Resource Planning (ERP) System
City Buildings Renovation
Charlotte Avenue School HVAC System Replacement
Fire Ladder Truck
Fire Pumper Truck
Citywide Communication System Upgrade
Broad Street Parkway Construction
Nashua Enterprise Resource Planning (ERP) System
Nashua School Access Control System
Public Safety Portable Radios
Refunding for Senior Center
Refunding for Police Remodeling 1
Refunding for Land Acquisition
Refunding for Riverwalk
Refunding for Fire Station
Refunding for Police Remodeling 2
Refunding for Land Acquisition & Redevelopment
Broad Street Parkway Construction
Nashua Enterprise Resource Planning (ERP) System
Aerial Tower Truck
Radio Communications Upgrade
Broad Street School Improvements
Total Governmental Activities:
Serial
Maturities
Through
Interest
Rate(s) %
Amount
Outstanding
as of
6/30/15
10/31
3/24
10/31
10/31
10/31
10/21
10/21
1/42
4/33
4/19
4/33
4/33
4/33
4/28
4/23
5/34
5/20
5/24
5/24
7/25
7/25
7/26
7/25
7/26
7/25
7/26
7/34
7/34
7/34
7/34
7/34
3.04%
2.04%
3.04%
3.04%
3.04%
2.06%
2.06%
4.09%
2.79%
0.88%
2.79%
2.79%
2.79%
2.20%
1.54%
3.29%
1.26%
2.34%
2.30%
1.80%
1.78%
1.92%
1.79%
1.96%
1.78%
1.96%
3.07%
3.03%
3.07%
1.91%
3.07%
425,000
19,065,000
3,570,000
1,310,000
340,000
245,000
315,000
140,650,000
1,463,500
590,000
430,000
1,761,500
735,000
370,000
790,000
15,075,000
800,000
1,840,000
775,000
1,049,200
124,000
184,600
493,000
1,732,200
254,000
923,000
7,278,500
449,500
976,500
5,195,750
7,988,500
$
A-66
268,873,750
Business-Type Activities:
Solid Waste Disposal Fund:
Lined Landfill Expansion II
Landfill Compactor
Landfill Compactor
Landfill Expansion and Closure
Landfill Expansion and Closure
Multisite Landfill - Old Nashua
Multisite Landfill - Atherton Park
Multisite Landfill - Roussel/Gardner
Multisite Landfill - Shady Lane
Multisite - Lincoln Park
Multisite - Engineering
Landfill Closure
Serial
Maturities
Through
Interest
Rate(s) %
4/24
4/19
7/24
8/17
8/20
8/22
8/22
8/22
8/22
8/24
8/24
8/24
2.89%
2.20%
1.65%
0.85%
1.19%
1.53%
1.53%
1.53%
1.53%
1.87%
1.87%
1.87%
Amount
Outstanding
as of
6/30/15
$
Total Solid Waste Disposal Fund
3,853,000
322,000
676,250
536,865
2,556,843
185,950
35,379
599,250
90,935
776,010
516,751
3,743,482
13,892,715
Waste Water Treatment Fund:
Nashua Storage Tank Facility
Dewatering Equipment Replacement
Aeration Blower Upgrade
Dewatering Equipment Replacement
Sludge Digester
Haines Street Sewer Project
Net Metering Project
Wet Weather SRF Loan
Harbor Avenue SRF Loan
4/33
4/33
4/33
5/34
8/20
3/31
12/21
11/29
8/34
2.63%
2.63%
2.63%
3.04%
1.19%
2.62%
1.36%
2.58%
2.86%
4,644,915
2,577,530
3,352,555
2,090,000
2,767,623
530,450
173,714
22,188,550
4,600,077
42,925,414
Total Waste Water Treatment Fund
Total Enterprise Fund Bonds and Notes Payable
$
56,818,129
B. Future Debt Service
The annual payments to retire all general obligation long-term debt outstanding as
of June 30, 2015 are as follows:
City and School
2016
2017
2018
2019
2020
2021 - 2025
2026 - 2030
2031 - 2035
City and School Total
Principal
$
13,233,750
12,225,000
11,530,000
10,925,000
10,650,000
40,655,000
17,085,000
11,920,000
$
4,816,128
4,553,558
4,062,681
3,609,790
3,164,852
9,812,796
4,036,959
1,085,650
$ 128,223,750
$
35,142,414
A-67
Total
Interest
$
18,049,878
16,778,558
15,592,681
14,534,790
13,814,852
50,467,796
21,121,959
13,005,650
$ 163,366,164
Pennichuck
2016
2017
2018
2019
2020
2021 - 2025
2026 - 2030
2031 - 2035
Thereafter
Pennichuck Total
$
Combined Total
Total
3,320,000
3,370,000
3,430,000
3,505,000
3,590,000
19,600,000
23,315,000
28,625,000
51,895,000
$
5,445,729
5,395,863
5,335,809
5,261,756
5,175,568
24,226,355
20,505,062
15,193,655
9,472,727
$
$ 140,650,000
$
96,012,524
$ 236,662,524
Total Governmental
2016
2017
2018
2019
2020
2021 - 2025
2026 - 2030
2031 - 2035
Thereafter
Interest
Principal
Interest
Principal
$
16,553,750
15,595,000
14,960,000
14,430,000
14,240,000
60,255,000
40,400,000
40,545,000
51,895,000
$ 268,873,750
$
$ 131,154,938
Principal
Business-Type
10,261,857
9,949,421
9,398,490
8,871,546
8,340,420
34,039,151
24,542,021
16,279,305
9,472,727
8,765,729
8,765,863
8,765,809
8,766,756
8,765,568
43,826,355
43,820,062
43,818,655
61,367,727
Total
$
26,815,607
25,544,421
24,358,490
23,301,546
22,580,420
94,294,151
64,942,021
56,824,305
61,367,727
$ 400,028,688
Interest
Total
2016
2017
2018
2019
2020
2021 - 2025
2026 - 2030
2031 - 2035
$
4,727,390
4,731,139
4,731,141
4,547,184
4,472,186
18,043,960
12,186,970
3,378,159
$
1,554,139
1,455,293
1,336,234
1,217,175
1,099,790
3,783,372
1,568,703
248,981
$
6,281,529
6,186,432
6,067,375
5,764,359
5,571,976
21,827,332
13,755,673
3,627,140
Total
$
56,818,129
$
12,263,687
$
69,081,816
A-68
C. Bond Authorizations
Long-term debt authorizations which have not been issued or rescinded as of
June 30, 2015 are as follows:
Purpose
Amount
Pennichuck Corporation Stock
and Asset Acquisition
Wastewater Wet Weather Facility and
Disinfection Facility
Refunding of Prior Year Capital Improvement Bonds
Sunset Heights Elementary School
HVAC Improvements
Broad Street Parkway Project
Pump Stations Upgrade Project
Refunding of Solid Waste and Wastewater
State Revolving Loan Funds
Headworks Upgrade Project
Storage Tank Facility, Aeration Blower, and
Sludge Dewatering Upgrade
School Roof Replacements
Sunset Heights Elementary School Roof
City Building Improvements
Radio Communications Upgrade
Haines Street Sewer Separation Project
Broad Street Elementary School HVAC
and Building Improvements
Amherst Street Road and Traffic Improvements
School Access Control System
Net Metering Project at Wastewater
Treatment Facility
Fire Trucks
Charlotte Avenue Elementary School
HVAC Improvements
Aerial Tower Truck
Enterprise Resource Planning Modernization
Public Safety Portable Radios
Caterpillar Landfill Compactor
Total
$
69,430,000
20,024,923
18,695,000
9,000,000
8,588,100
8,500,000 *
4,077,060
3,800,000 *
1,538,453
1,500,000
1,300,000 *
1,253,000
1,009,250
873,975
801,750
550,000
323,900
250,000
230,800
228,300
223,500
198,300
127,500
70,750
$ 152,594,561
* Authorized subsequent to June 30, 2015
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D. Changes in General Long-Term Liabilities
During the year ended June 30, 2015, the following changes occurred in longterm liabilities (in thousands):
Governmental Activities
Bonds and notes payable
Unamortized bond premiums
Acquisition bonds payable
Additions
Reductions
Total
Balance
6/30/15
$ 119,736
5,413
143,930
$ 21,889
3,099
-
$ (13,401)
(791)
(3,280)
$ 128,224
7,721
140,650
$ (13,234)
(806)
(3,320)
$ 114,990
6,915
137,330
269,079
24,988
(17,472)
276,595
(17,360)
259,235
(1,768)
19,040
(1,714)
17,326
Total bonds and notes payable
Compensated absences(1)
Less
Current
Portion
Equals
Long-Term
Portion
6/30/15
Total
Balance
7/1/14
19,641
1,167
Net OPEB obligation(1)
20,235
4,075
(1,852)
22,458
-
22,458
Net pension liability(1)
212,701
-
(23,913)
188,788
-
188,788
$ (45,005)
$ 506,881
Totals
(1)
$ 521,656
$ 30,230
$ (19,074)
$ 487,807
The City typically uses the General Fund to liquidate governmental activities liabilities.
Total
Balance
7/1/14
Business-Type Activities
Bonds and notes payable
Unamortized bond premiums
$
Total bonds and notes payable
56,012
1,446
Additions
$
57,458
5,276
71
Total
Balance
6/30/15
Reductions
$
(4,470)
(111)
$
56,818
1,406
Less
Current
Portion
$
(4,727)
(111)
Equals
Long-Term
Portion
6/30/15
$
52,091
1,295
5,347
(4,581)
58,224
(4,838)
53,386
Compensated absences(2)
623
73
(56)
640
(58)
582
Net OPEB obligation(2)
457
123
(56)
524
-
524
2,885
88
-
2,973
-
2,973
4,920
473
-
5,393
-
5,393
(2)
Net pension liability
Other:
Landfill closure and postclosure
Totals
(2)
$
66,343
$
6,104
$
(4,693)
$
67,754
$
(4,896)
$
62,858
The City typically uses the Wastewater and Solid Waste funds to liquidate their respective business-type liabilities.
E. Advance Refundings
On April 23, 2015, the City issued general obligation bonds in the amount of
$27,325,000 with 4% coupons for a TIC of 2.53%. $4,760,000 of the $27,325,000
issued was used to advance refund $5,075,000 of bonds originally issued on
December 15, 2006. The average coupon of the refunded bonds was 4.12%. The
general obligation refunding bonds had a TIC of 1.74% and after paying issuance
costs of $45,202, the net proceeds were $5,370,993. The net proceeds from the
issuance of the general obligation refunding bonds were used to purchase U.S.
government securities and those securities were deposited in an irrevocable trust
with an escrow agent to provide debt service payments until the bonds are called
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on July 15, 2016. The advance refunding met the requirements of an in-substance
debt defeasance and the bonds were removed from the City’s financial statements.
As a result of the advance refunding, the City reduced its total debt service cash
flow requirements by $512,219, which resulted in an economic gain (difference
between the present value of the debt service payments on the old and new debt)
of $439,118.
Defeased debt still outstanding at June 30, 2015 is $5,075,000.
12.
Landfill Closure and Postclosure Care Costs
State and Federal laws and regulations require the City to place a final cover on its
landfill site when it stops accepting waste and to perform certain maintenance and
monitoring functions at the site for thirty years after closure. Although closure and
postclosure care costs will be paid only near or after the date that the landfill stops
accepting waste, the City reports a portion of these closure and postclosure care costs
as a liability in the financial statements in each period based on landfill capacity used
as of each balance sheet date.
The $5,392,950 reported as landfill closure and postclosure care liability at June 30,
2015 is comprised of $1,107,700 of post closure care cost for the Nashua Four Hills
unlined landfill, and $4,285,250 in closure, and post closure costs for the Nashua
Four Hills Phase I and Phase II lined expansion landfills. The recognition of these
costs is based on annual statutorily required engineering estimates. Waste filling
operations in the Phase II lined expansion landfill began in November 2009. The
combined landfills are conservatively estimated to have an operational life of twelve
years and remaining capacity is estimated to be 39%. The City will recognize the
remaining estimated cost of closure and post closure care of the lined landfill as the
remaining capacity is filled. The actual life of the landfill may be longer due to recycling efforts and actual costs may be higher due to inflation, changes in technology or
changes in landfill laws and regulations.
The City is required by State and Federal laws and regulations to make annual contributions to an account held by the City to finance closure and post closure costs of the
municipal solid waste landfill. As of June 30, 2015, the City has cash on deposit with
a balance of $4,473,789 restricted for closure and post closure costs.
13.
Deferred Inflows of Resources
Deferred inflows of resources are the acquisition of net assets by the City that are
applicable to future reporting periods. Deferred inflows of resources have a negative
effect on net position, similar to liabilities.
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The following is a summary of deferred inflow of resources balances as of June 30,
2015 (in thousands):
Unavailable revenues
Entity-wide Basis
Governmental
Business-type
Activities
Activities
Fund Basis
Governmental Funds
Proprietary Funds
General Fund
Nonmajor Wastewater Solid Waste
$
$
Taxes levied in advance
Gain on refunding
Net difference between projected and actual
pension investment earnings
14.
$
-
3,102
$
272
$
-
$
-
-
96,205
-
-
-
315
-
-
-
-
-
-
-
-
-
-
462
-
-
260
202
23,655
Changes in pension assumptions
Changes in proportion and differences
between contributions and proportionate
share of pension contributions
Total
96,205
608
551
$ 121,334
$
462
$ 99,307
$
272
$ 260
$
202
Restricted Net Position
The accompanying entity-wide financial statements report restricted net position
when external constraints from grantors or contributors are placed on net position.
Permanent fund restricted net position are segregated between nonexpendable and
expendable. The nonexpendable portion represents the original restricted principal
contribution, and the expendable represents accumulated earnings which are available
to be spent based on donor restrictions.
15.
Governmental Funds – Fund Balances
Fund balances are segregated to account for resources that are either not available for
expenditure in the future or are legally set aside for a specific future use.
The City implemented GASB Statement No. 54 (GASB 54), Fund Balance Reporting
and Governmental Fund Type Definitions, which enhances the usefulness of fund
balance information by providing clearer fund balance classifications that can be
more consistently applied and by clarifying existing governmental fund type definitions. The following types of fund balances are reported at June 30, 2015:
Nonspendable - Represents amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained
intact. This fund balance classification includes general fund reserves for prepaid
expenditures and nonmajor governmental fund reserves for the principal portion of
permanent trust funds.
Restricted - Represents amounts that are restricted to specific purposes by constraints
imposed by creditors, grantors, contributors, or laws or regulations of other governments, or constraints imposed by law through constitutional provisions or enabling
legislation. This fund balance classification includes general fund encumbrances
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funded by bond issuances, various special revenue funds, and the income portion of
permanent trust funds.
Committed - Represents amounts that can only be used for specific purposes pursuant
to constraints imposed by resolution of the City’s Board of Aldermen. The City
Charter designated the Board of Aldermen as its appropriating authority. This fund
balance classification includes general fund escrows for non-lapsing, special article
appropriations approved by the Board of Alderman, capital reserve funds set aside by
the Board of Alderman vote for future capital acquisitions and improvements (now
reported as part of the general fund per GASB 54), and various special revenue funds.
A similar action is needed to modify or rescind a commitment.
Assigned - Represents amounts that are constrained by the City’s intent to use these
resources for a specific purpose. In addition, this fund balance classification includes
general fund encumbrances that have been established by various City departments
for the expenditure of current year budgetary financial resources upon vendor
performance in the subsequent budgetary period. The City’s Revised Ordinances
(NRO) permits the Chief Financial Officer and Controller to make assignments.
Unassigned - Represents amounts that are available to be spent in future periods.
Following is a breakdown of the City’s fund balances at June 30, 2015:
Debt
Service
Fund
General
Fund
Nonspendable
Reserved for tax deeds
Nonexpendable cemetery permanent funds
Nonexpendable library permanent funds
Nonexpendable other permanent funds
Total Nonspendable
$
191,877
191,877
Restricted
For future debt service
Police grants
Fire grants
Community health & services grants
Parks & recreation grants
Transit grants
Community Development division grants
Homeland security grants
Other City grants
Food services
School grants
Fire projects
Public works projects
School department projects
Technology projects
City building projects
City-wide communications projects
Cemetery expendable permanent funds
Library expendable permanent funds
Other expendable permanent funds
Total Restricted
$
-
Nonmajor
Governmental
Funds
$
16,050,672
4,094,256
159,682
Total
Governmental
Funds
$
191,877
16,050,672
4,094,256
159,682
20,304,610
20,496,487
-
4,312,424
-
29,534
4,112
3,452
1,871
92,785
38,486
5,778
6,562
549,743
565
4,427
14,484,613
1,448,169
1,116,029
6,652
2,700,826
656,793
569,579
9,285
4,312,424
29,534
4,112
3,452
1,871
92,785
38,486
5,778
6,562
549,743
565
4,427
14,484,613
1,448,169
1,116,029
6,652
2,700,826
656,793
569,579
9,285
-
4,312,424
21,729,261
26,041,685
(continued)
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(continued)
General
Fund
Committed
For continuing appropriations
School capital funds
City capital funds
City revolving funds
School revolving funds
Other trust funds
Fire projects
Public works projects
School department projects
City building projects
Nonmajor
Governmental
Funds
Total
Governmental
Funds
2,365,688
2,389,363
4,296,449
-
-
6,828,680
1,026,544
4,268,828
3,401
74,935
650,000
62,616
2,365,688
2,389,363
4,296,449
6,828,680
1,026,544
4,268,828
3,401
74,935
650,000
62,616
Total Committed
9,051,500
-
12,915,004
21,966,504
Assigned
For next year's tax rate
For encumbrances
For overlay contingency
For unfunded liabilities
5,100,000
847,264
1,500,000
2,230,000
-
-
5,100,000
847,264
1,500,000
2,230,000
9,677,264
-
-
9,677,264
27,729,910
-
Total Assigned
Unassigned
Total Fund Balance
16.
Debt
Service
Fund
$ 46,650,551
$ 4,312,424
(1,304,664)
$
53,644,211
26,425,246
$ 104,607,186
Commitments and Contingencies
Outstanding Legal Issues - There are several pending legal issues in which the City is
involved. The City’s management is of the opinion that the potential future settlement
of such claims would not materially affect its financial statements taken as a whole.
Abatements - There are several cases pending before the Board of Tax and Land
Appeals and Superior Court in regard to alleged discrepancies in property assessments.
According to the City’s counsel, the probable outcome of these cases at the present
time is indeterminable.
Grants - Amounts received or receivable from grantor agencies are subject to audit
and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount of expenditures which may be disallowed by the
grantor cannot be determined at this time, although the City expects such amounts, if
any, to be immaterial.
17.
Post-Employment Healthcare Benefits
GASB Statement 45, Accounting and Financial Reporting by Employers for PostEmployment Benefits Other Than Pensions, requires governments to account for other
post-employment benefits (OPEB), primarily healthcare, on an accrual basis rather
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than on a pay-as-you-go basis. The effect is the recognition of an actuarially required
contribution as an expense on the Statement of Activities when a future retiree earns
their post-employment benefits, rather than when they use their post-employment
benefit. To the extent that an entity does not fund their actuarially required contribution, a post-employment benefit liability is recognized on the Statement of Net
Position over time.
The $22,982,340 OPEB liability, as calculated below, represents the implementation
of Governmental Accounting Standards Board (GASB) Statement No. 45. The purpose of the statement is to reflect the liability of healthcare or other post-employment
benefits provided to separated or retired employees. With the exception of one group
of retirees described below, the City of Nashua does not pay a direct subsidy towards
their retiree’s health insurance premiums. In accordance with RSA 100-A:50, retired
employees shall be deemed to be part of the same group as active employees for health
insurance premium purposes, thereby resulting in a so-called “blended rate”. The
blended rate decreases the cost of insurance premiums for retirees and increases the
cost for active employees, thereby resulting in the City paying an Implicit Subsidy.
The City’s Explicit Subsidy pertains to only one group of retirees. Teachers who
have retired after June 30, 1991 who have at least 20 years of service with the Nashua
School District and who are actually receiving retirements benefits under the New
Hampshire Retirement System, will have a portion of their health insurance premiums
paid according to a set schedule based on the years of service at retirement. The
subsidy ranges from 20% for a teacher retiree with 20 years of service at retirement to
50% for a teacher with 30+ years of service at retirement. The City’s Explicit Subsidy
associated with each eligible teacher retiree ends when the retiree is eligible for
Medicare.
The City’s most recent GASB Valuation was for the fiscal year ending June 30, 2014.
The valuation calculated the City’s total OPEB liability of approximately $39.4 million.
The liability was further broken down for current and future retirees.
The table below shows the Explicit and Implicit liability amounts:
Implicit
Explicit
Totals
Current Retirees $ 0.4 million
Future Retirees
2.8 million
$ 10.0 million
26.2 million
$ 10.4 million
29.0 million
Totals
$ 36.2 million
$ 39.4 million
$ 3.2 million
The Explicit Subsidy of $3.2 million shown above represents only 8.1% of the total
OPEB liability of $39.4 million.
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A. Plan Description
In addition to providing the pension benefits described, the City provides postemployment healthcare and life insurance benefits for retired employees through
the City’s plan. The benefits, benefit levels, employee contributions and employer
contributions are governed by RSA 100-A:50. As of July 1, 2013, the actuarial
valuation date, approximately 1,076 retirees and 2,631 active employees meet the
eligibility requirements. The Single Employer plan does not issue a separate
financial report.
B. Benefits Provided
The City provides medical insurance to retirees and their covered dependents. All
active employees who retire from the City and meet the eligibility criteria will
receive these benefits.
C. Funding Policy
In general, retirees and their spouses pay 100% of coverage.
D. Annual OPEB Costs and Net OPEB Obligation
The City’s fiscal 2015 annual OPEB expense is calculated based on the annual
required contribution of the employer (ARC), an amount actuarially determined in
accordance with the parameters of GASB Statement No. 45. The ARC represents
a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost per year and amortize the unfunded actuarial liability over a period of
thirty years. The following table shows the components of the City’s annual
OPEB cost for the year ending June 30, 2015, the amount actually contributed to
the plan, and the change in the City’s net OPEB obligation based on an actuarial
valuation as of July 1, 2013.
Annual Required Contribution (ARC)
Interest on net OPEB obligation
NOO amortization adjustment to the ARC
$
Annual OPEB cost
4,510,124
1,034,567
(1,346,001)
4,198,690
Contributions made
(1,907,690)
Increase in net OPEB obligation
2,291,000
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
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20,691,340
$
22,982,340
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to
the plan, and the net OPEB obligation were as follows:
Fiscal Year Ended
2015
2014
2013
2012
2011
2010
2009
2008
Annual OPEB
Cost
$
$
$
$
$
$
$
$
Percentage of
OPEB
Cost Contributed
4,198,690
4,355,261
5,032,829
5,078,422
5,631,575
5,038,535
4,597,000
4,597,000
Net OPEB
Obligation
45.4%
44.8%
44.8%
40.4%
40.7%
41.3%
37.6%
32.2%
$
$
$
$
$
$
$
$
22,982,340
20,691,340
18,086,253
15,307,591
12,278,412
8,937,822
5,982,000
3,115,000
E. Funded Status and Funding Progress
The funded status of the plan as of July 1, 2013, the date of the most recent
actuarial valuation was as follows:
Actuarial accrued liability (AAL)
Actuarial value of plan assets
$
39,415,168
-
Unfunded actuarial accrued liability (UAAL)
$
39,415,168
Funded ratio (actuarial value of plan assets/AAL)
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
0%
$
123,880,502
31.8%
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amount and assumptions about the probability of occurrence of events far into the
future. Examples included assumptions about future employment, mortality, and
the healthcare cost trend. Amounts determined regarding the funded status of the
plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the Notes to the Financial Statements, presents multiyear trend information that shows whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
F. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the plan as
understood by the City and the plan members and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the City and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce
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short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the July 1, 2013 actuarial valuation the Entry Age Normal method was used.
The actuarial value of assets was not determined as the City has not advance
funded its obligation. The actuarial assumptions included a 3.00% inflation rate,
5.00% investment rate of return, and an initial annual healthcare cost trend rate of
9.00% which decreases to a 5.00% long-term rate for all healthcare benefits in
2023. The amortization costs for the initial UAAL is a level dollar method for a
period of 30 years, on an open group. This has been calculated assuming the
amortization payment increases at a rate of 3.00%.
18.
Retirement System
New Hampshire Retirement System
The City follows the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27, with respect
to the State of New Hampshire Retirement System (NHRS).
A. Plan Description
Full-time employees participate in the New Hampshire Retirement System
(NHRS), a cost sharing, multiple-employer defined benefit contributory pension
plan and trust established in 1967 by RSA 100-A:2 and qualified as a tax-exempt
organization under Sections 401(a) and 501(a) of the Internal Revenue Code. The
plan is a contributory, defined benefit plan providing service, disability, death,
and vested retirement benefits to members and their beneficiaries. Substantially
all full-time state employees, public school teachers and administrators, permanent firefighters, and permanent police officers within the State of New
Hampshire are eligible and required to participate in the system. Full-time
employees of political subdivisions, including counties, municipalities, and school
districts, are also eligible to participate as a group if the governing body of the
political subdivision has elected participation.
The New Hampshire Retirement System, a Public Employees Retirement System
(PERS), is divided into two membership groups. State or local employees and
teachers belong to Group I. Police officers and firefighters belong to Group II. All
assets are held in a single trust and are available to each group. Additional
information is disclosed in the NHRS annual report publicly available from the
New Hampshire Retirement System located at 54 Regional Drive, Concord, New
Hampshire 03301-8507.
B. Benefits Provided
Group I members at age 60 or 65 (for members who commence service after
July 1, 2011) qualify for a normal service retirement allowance based on years of
creditable service and average final salary for the highest of either three or five
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years, depending on when their service commenced. The yearly pension amount
is 1/60 or 1.667% of average final compensation (AFC), multiplied by years of
creditable service. At age 65, the yearly pension amount is recalculated at 1/66 or
1.515% of AFC multiplied by years of creditable service.
Group II members who are age 60, or members who are at least age 45 with at
least 20 years of creditable service, can receive a retirement allowance at a rate of
2.5% of AFC for each year of creditable service, not to exceed 40 years. Members
commencing service on or after July 1, 2011 or members who have a non-vested
status as of January 1, 2012 can receive a retirement allowance at age 52.5 with
25 years of service or age 60. The benefit shall be equal to 2% of AFC times
creditable service up to 42.5 years. However, a member who commenced service
on or after July 1, 2011 shall not receive a retirement allowance until attaining the
age of 52.5, but may receive a reduced allowance after age 50 if the member has
at least 25 years of creditable service where the allowance shall be reduced, for
each month by which the benefit commencement date precedes the month after
which the member attains 52.5 years of age by ¼ of 1% or age 60.
Members of both groups may qualify for vested deferred allowances, disability
allowances and death benefit allowances subject to meeting various eligibility
requirements. Benefits are based on AFC or earned compensation and/or service.
C. Contributions
Plan members are required to contribute a percentage of their gross earnings to
the pension plan, which the contribution rates are 7% for employees and teachers
11.55% for police and 11.80% for fire. The City makes annual contributions to
the pension plan equal to the amount required by Revised Statutes Annotated
100-A:16, and range from 10.77% to 27.74% of covered compensation. The
City’s contributions to NHRS for the year ended June 30, 2015 was $19,432,673,
which was equal to its annual required contribution.
D. Summary of Significant Accounting Policies
For purposes of measuring the net pension liability, deferred outflows of resources
and deferred inflows of resources related to pensions, and pension expense,
information about the fiduciary net position of the NHRS and additions
to/deductions from NHRS’ fiduciary net position have been determined on the
same basis as they are reported by NHRS. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and
payable in accordance with benefit terms. Investments are reported at fair value.
E. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At June 30, 2015, the City reported a liability of $184,879,108 for its proportionate share of the net pension liability. The net pension liability was measured as of
June 30, 2014, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of June 30, 2013. The City’s
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proportion of the net pension liability was based on a projection of the City’s
long-term share of contributions to the pension plan relative to the projected
contributions of all participating employers, actuarially determined. At June 30,
2013, the City’s proportion was 4.8540%. At the most recent measurement date of
June 30, 2014, the City’s proportion was 4.9254%, which was an increase of
0.0714% from the previous year.
For the year ended June 30, 2015, the City recognized pension expense of
$13,082,742. In addition, the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Net difference between projected and actual
earnings on pension plan investments
$
Changes in proportion and differences
between contributions and proportionate
share of contributions
Deferred
Inflows of
Resources
$ 23,655,436
-
3,074,353
Contributions subsequent to the
measurement date
550,974
19,432,673
Total
$ 22,507,026
$ 24,206,410
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Year ended June 30:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
2016
2017
2018
2019
$ 20,201,262
768,588
768,588
768,588
$
Total
$ 22,507,026
$ 24,206,410
6,051,602
6,051,602
6,051,602
6,051,604
Actuarial assumptions: The total pension liability in the June 30, 2014 actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Valuation Date
July 1, 2013 rolled forward to July 1, 2014
Actuarial cost method
Entry-Age Normal
Inflation
3.00%
3.75 - 5.80% average, including inflation
Projected salary increases
Investment rate of return
7.75 %, net of pension plan investment expense,
including inflation
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Mortality rates were based on the RP-2000 mortality table, projected to 2020 with
Scale AA. The table includes a margin of 15% for men and 17% for woman for
mortality improvements.
The actuarial assumptions used in the June 30, 2013 valuation were based on the
results of the most recent actuarial experience study, which was for the period
July 1, 2005 – June 30, 2010.
The long-term expected rate of return on pension plan investments was selected
from a best estimate range determined using the building block approach. Under
this method, an expected future real return range is calculated separately for each
asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return net of investment
expenses by the target asset allocation percentage and by adding expected
inflation. The target allocation and best estimates of arithmetic real rates of return
for each major class are summarized in the following table:
Target
Allocation
Percentage
Asset Class
22.50 %
7.50
Large Cap Equities
Small/Mid Cap Equities
Total domestic equities
Weighted Average
Average LongTerm Expected
Real Rate of
Return
3.25%
3.25%
30.00
Int'l Equities (unhedged)
Emerging Int'l Equities
13.00
7.00
Total international equities
Core Bonds
High-Yield Bonds
Global Bonds (unhedged)
Emerging Market Debt (external)
Total fixed income
4.25%
6.50%
20.00
18.00
1.50
5.00
0.50
-0.47%
1.50%
-1.75%
2.00%
25.00
Private equity
Private debt
Real estate
Opportunistic
5.00
5.00
10.00
5.00
Total alternative investments
Total
25.00
100.00 %
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5.75%
5.00%
3.25%
2.50%
Discount rate: The discount rate used to measure the total pension liability was
7.75%. The projection of cash flows used to determine the discount rate assumed
that the plan member contributions will be made at the current contribution rate
and that employer contributions will be made at rates equal to the difference
between actuarially determined contribution rates and the member rate. For
purposes of the projection, member contributions and employer service cost
contributions are projected based on the expected payroll of current members
only. Employer contributions are determined based on the pension plan’s actuarial
funding policy and as required by RSA 100-A:16. Based on those assumptions,
the pension plan’s fiduciary net position was projected to be available to make all
projected future benefit payments to current plan members. Therefore, the longterm expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity of the proportionate share of the net pension liability to changes in the
discount rate: The following presents the City’s proportionate share of the net
pension liability calculated using the discount rate of 7.75%, as well as what the
City’s proportionate share of the net pension liability would be if it were
calculated using a discount rate that is 1 percentage-point lower (6.75%) or
1 percentage-point higher (8.75%) than the current rate:
Fiscal Year Ended
June 30, 2014
$
1% Decrease
(6.75%)
Current
Discount Rate
(7.75%)
1% Increase
(8.75%)
243,515,864
$ 184,879,108
$ 135,410,221
Pension plan fiduciary net position: Detailed information about the pension plan’s
fiduciary net position is available in the separately issued NHRS financial report.
Public Works Employees’ Retirement System
The City follows the provisions of GASB Statement No. 67 Financial Reporting for
Pension Plans – an amendment of GASB Statement No. 25 and GASB Statement
No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB
Statement No. 27, with respect to the employees’ retirement funds.
A. Plan Description
All Public Works employees of the City are members of the Public Works
Employees’ Retirement System (the System), a single employer-defined benefit
PERS. Eligible employees must participate in the System. The pension plan provides pension benefits and death and disability benefits to employees reaching
age 60, provided they have accumulated 10 years of service. A City ordinance
passed in 1947 established the System which is administered by a five-member
Board of Trustees. Amendments to benefit provisions are made by the Board of
Trustees with the concurrence of the Board of Aldermen. The Public Works
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Employees’ Retirement System does not issue independent financial statements.
Administrative costs are financed by Trust earnings.
Membership of each plan consisted of the following at July 1, 2014, the date of
the latest actuarial valuation:
Inactive plan members or beneficiaries receiving benefits
Inactive plan members entitled to but not yet
receiving benefits
Active plan members
95
1
160
Total
256
B. Benefits Provided
The System provides for retirement and death benefits. The retirement allowance
benefit is up to a maximum 65% of final compensation reduced proportionately
for creditable services less than 25 years (30 if hired after July 1, 2010). Benefit
payments are based upon a member’s age and length of creditable service.
Members become fully vested after 10 years of creditable service. A retirement
allowance may be received upon reaching ago 60 with 10 years of credited
service or upon attaining 25 years (30 years if hired after July 1, 2010) of
continuous service with the Board of Public Works. The plan also provides for
early retirement for 65% of final compensation reduced by 0.555% for each
month between age 60 and the member’s early retirement date. In addition, the
System provides for disability retirement allowance if age 60 or older with a
minimum of 10 years of creditable service, 65% (60% if under age 60) of final
compensation reduced proportionately for creditable service less than 25 years
(30 years if hired after July 1, 2010).
The death allowance benefits are based upon creditable service and classification.
Members become vested after 10 years of creditable service. Employee contributions must be left in the plan for the deferred vested benefit to be payable. Preretirement spouse benefits are paid at 50% of the benefit to which the member
would have been entitled had the member retired on the date of death, when
accidental death benefits are not payable, and if the member has 10 or more years
of service.
Post-Retirement benefits of $3,000 are paid to beneficiaries of retired members
upon the death of the retired member. Accidental death benefits are 65% of final
compensation to spouse until death or remarriage, or dependent child to age 18, or
dependent parent for life.
C. Contributions
The City employees each contribute 9.15% of their base salary, as specified by
ordinance. The City’s contribution is determined by the actuarial valuation. The
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City’s contribution to the System for the year ended June 30, 2015 was $772,343,
which was equal to its annual required contribution.
D. Summary of Significant Accounting Policies
The accounting policies of the System as reflected in the accompanying financial
statements for the year ended June 30, 2015 conform to generally accepted
accounting principles for public employee retirement systems (PERS). The more
significant accounting policies of the System are summarized below:
Basis of accounting: Contributory retirement system financial statements are
prepared using the accrual basis of accounting. Plan member contributions are
recognized as revenue in the period in which the members provide services to the
employer. Employer contributions are recognized when due and the employer has
made a formal commitment to provide the contributions. Benefits and refunds are
recognized when due and payable in accordance with the terms of the plan.
Investment policy: Investments are reported at fair value in accordance with
requirements. System assets are managed on a total return basis with a long-term
objective of achieving and maintaining a fully funded status for the benefits
provided through the pension plan.
Rate of return: For the year ended June 30, 2015, the annual money-weighted rate
of return on pension plan investments, net of pension plan investment expenses,
was 2.9888%. The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts
actually invested.
Net pension liability: For purposes of measuring the net pension liability, deferred
outflows of resources and deferred inflows of resources related to pensions, and
pension expense, information about the fiduciary net position of the System and
additions to/deductions from System’s fiduciary net position have been determined
on the same basis as they are reported by System. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable
in accordance with benefit terms. Investments are reported at fair value.
E. Net Pension Liability of Participating Employers
The components of the net pension liability of the participating employers at
June 30, 2015 were as follows (in thousands):
Total pension liability
$
Plan fiduciary net position
Employers' net pension liability
Plan fiduciary net postion as a
percentage of total pension liability
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44,393
(37,512)
$
6,881
84.50%
Actuarial assumptions: A summary of the actuarial assumptions as of the latest
actuarial valuation is shown below:
Valuation Date
July 1, 2014 rolled forward to
July 1, 2015
Actuarial cost method
Entry-Age Actuarial Cost
Inflation rate
3.00%
Projected salary increases
Inflation of 3.00%, plus merit
increases ranging from 2.00% to
0.05%, based on age
Investment rate of return
7.25%, net of investment-related and
administrative expenses
Actuarial valuation of the ongoing System involves estimates of the reported
amounts and assumptions about probability of occurrence of events far into the
future. Examples include assumptions about future employment mortality and
future salary increases. Amounts determined regarding the net pension liability
are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The actuarial
assumptions used in the June 30, 2014 valuation were based on the results of the
most recent actuarial experience study, which was for the period July 1, 2005 –
June 30, 2014.
Mortality rates in the June 30, 2014 valuation for non-disabled individuals reflects
the RP-2014 Mortality Table, with blue collar adjustment, projected to the
valuation date with Scale MP-2014. This changed from the June 30, 2013
valuation, which reflected the RP-2000 Blue Collar Mortality Table with separate
male and female rates projected to the valuation date with Scale AA.
Mortality rates in the June 30, 2014 valuation for disabled individuals reflects the
RP-2014 Mortality Table, with blue collar adjustment, projected to the valuation
date with Scale MP-2014, setback 10 years. This changed from the June 30, 2013
valuation, which reflected the RP-2000 Disabled Life Mortality Tables, with
separate male and female tables.
Mortality improvement rates in the June 30, 2014 valuation for disabled and nondisabled individuals are based on projections to the date of decrement using Scale
MP-2014 (generational mortality). This changed from the June 30, 2013 valuation,
which projected rates for non-disabled individuals using Scale AA for 10 years
after the valuation date, and no projections were made for disabled individuals.
The long-term expected rate of return on pension plan investments was selected
from a best estimate range determined using the building block approach. Under
this method, an expected future real return range (expected returns, net of pension
plan investment expense and inflation) is calculated separately for each asset
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class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return net of investment expenses
by the target asset allocation percentage and by adding expected inflation. The
target allocation and best estimates of arithmetic real rates of return for each
major class are summarized in the following table:
Asset Class
Intermediate Bond
US Large Cap Equity
US Small Cap Equity
International Equity
Total
Target
Asset
Allocation
Real
Return
Arithmetic
Basis
Long-term
Expected
Real Rate
of Return
40.00%
30.00%
10.00%
20.00%
2.00%
6.50%
8.00%
6.20%
0.80%
1.95%
0.80%
1.24%
100.00%
Inflation
4.79%
3.00%
Expected arithmetic nominal return
7.79%
Discount rate: The discount rate used to measure the total pension liability was
7.25%. The projection of cash flows used to determine the discount rate assumed
that the plan member contributions will be made at the current contribution rate
and that employer contributions will be made at contractually required rates,
actuarially determined. Based on those assumptions, the pension plan’s fiduciary
net position was projected to be available to make all projected future benefit
payments to current active and inactive plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the the net pension liability to changes in the discount rate: The
following presents the City’s proportionate share of the net pension liability
calculated using the discount rate of 7.25%, as well as what the City’s
proportionate share of the net pension liability would be if it were calculated
using a discount rate that is 1 percentage-point lower (6.25%) or 1 percentagepoint higher (8.25%) than the current rate:
Fiscal Year Ended
June 30, 2015
1% Decrease
(6.25%)
$ 11,850,571
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Current
Discount
Rate
(7.25%)
1%
Increase
(8.25%)
$ 6,881,217
$ 2,651,766
F. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At June 30, 2015, the City reported a liability of $6,881,217 for its net pension
liability. The net pension liability was measured as of June 30, 2015, and the total
pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2014. The City’s net pension liability was based
on a projection of the City’s long-term share of contributions to the pension plan
relative to the projected contributions of all participating employers, actuarially
determined.
For the year ended June 30, 2015, the City recognized pension expense of
$715,859. In addition, the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Differences between expected and actual
experience
$
72,958
Changes of assumptions
Deferred
Inflows of
Resources
$
-
Net difference between projected and actual
earnings on pension plan investments
Total
1,069,837
1,256,781
$
-
1,329,739
$ 1,069,837
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Deferred
Outflows of
Resources
Year ended June 30:
Deferred
Inflows of
Resources
2016
2017
2018
2019
2020
Thereafter
$
325,249
325,249
325,249
325,250
11,054
17,688
$
162,097
162,097
162,097
162,097
162,097
259,352
Total
$
1,329,739
$
1,069,837
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19.
Self-Insurance
The City self-insures against claims for workers compensation, general liability,
property, long-term disability, and employee health coverage. Annual estimated
requirements for claims are provided in the City’s annual operating budget.
Health Insurance
The City contracts with insurance carriers for claims processing. Under the terms of
the insurance coverage, the employee is only liable for the cost sharing premiums and
co-pays. The City retains the risk to $250,000 and maintains excess insurance for
claims that exceed $250,000. The claims liability represents an estimate of claims
incurred but unpaid at year-end, based on past historical costs and claims paid subsequent to year-end.
General Liability/Workers’ Compensation
The City is self-administered for claims processing of the City’s workers’ compensation, property, and casualty programs. The workers’ compensation, property, and
casualty liabilities represent an estimate of future costs based on historical analysis of
similar claims.
Changes in the aggregate liability for claims for the year ended June 30, 2015 are as
follows:
Year Ended
Year Ended
June 30, 2014
June 30, 2015
Claims liability, beginning of year
Claims incurred/recognized
Claims paid
$
Claims liability, end of year
$
8,963,872
41,811,273
(42,733,873)
8,041,272 *
$
$
9,553,764
40,023,611
(40,613,503)
8,963,872 *
* This liability is considered to be all current.
The $8,041,272 estimated liability for claims incurred, but not reported, includes only
an estimate for known loss events expected to later be presented as claims. The City
is unable to estimate the amount of unknown loss events expected to become claims
and expected future developments on claims already reported.
20.
Risk Management
The government is exposed to various risks of loss related to torts; theft of, damage to
and destruction of assets; errors and omissions; and natural disasters for which the
government carries commercial insurance. There were no significant reductions in
insurance coverage from the previous year and have been no material settlements in
excess of coverage in any of the past three fiscal years.
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21.
Beginning Net Position Restatement
In fiscal year 2015, the City’s beginning net position as of July 1, 2014 was restated
for the implementation of the new standard – Governmental Accounting Standards
Board (GASB) Statement 68, Accounting and Financial Reporting for Pensions, as
amended by GASB Statement 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date. Accordingly, the following reconciliation is
provided:
Business-Type Activities
GovernmentWide Financial
Statements
Fund Basis Financial Statements
Governmental
Activities
As previously reported
$
GASB 68 implementation
for net pension liability
As restated
211,648,058
Waste Water
Fund
$
(194,250,313)
$
17,397,745
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105,373,556 $
(1,622,705)
$
Solid Waste
Fund
(943,382) $
(1,262,104)
103,750,851 $ (2,205,486) $
Business-Type
Total
104,430,174
(2,884,809)
101,545,365
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Pennichuck Corporation and Subsidiaries
Notes to Financial Statements
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PENNICHUCK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 – Description of Business and Summary of Significant Accounting Policies
Description of Business:
Pennichuck Corporation (our “Company,” “we,” or “our”) is a holding company
headquartered in Merrimack, New Hampshire with five wholly owned operating subsidiaries:
Pennichuck Water Works, Inc., (“Pennichuck Water”) Pennichuck East Utility, Inc.,
(“Pennichuck East”) and Pittsfield Aqueduct Company, Inc. (“PAC”) (collectively referred to
as our Company’s “utility subsidiaries”), which are involved in regulated water supply and
distribution to customers in New Hampshire; Pennichuck Water Service Corporation
(“Service Corporation”) which conducts non-regulated water-related services; and The
Southwood Corporation (“Southwood”) which owns several parcels of undeveloped land.
Our Company’s utility subsidiaries are engaged principally in the collection, storage, treatment and distribution of potable water to approximately 35,400 customers throughout the
State of New Hampshire. The utility subsidiaries, which are regulated by the New Hampshire
Public Utilities Commission (the “NHPUC”), are subject to the provisions of Accounting
Standards Codification (“ASC”) Topic 980 “Regulated Operations.”
Summary of Significant Accounting Policies:
Basis of Presentation
The accompanying consolidated financial statements include the accounts of our Company
and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those
estimates.
Property, Plant and Equipment
Property, plant and equipment, which includes principally the water utility assets of our
Company’s utility subsidiaries, is recorded at cost plus an allowance for funds used during
construction on major, long-term projects and includes property funded with contributions in
aid of construction.
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Maintenance, repairs and minor improvements are charged to expense as incurred. Improvements which significantly increase the value of property, plant and equipment are capitalized.
Cash and Cash Equivalents
Cash and cash equivalents generally consist of cash, money market funds and other shortterm liquid investments with original maturities of three months or less.
Restricted Cash - RSF
This restricted cash balance consists of funds maintained for the Rate Stabilization Fund
(“RSF”), which was established in conformity with the requirements of New Hampshire
Public Utilities Commission (“NHPUC”) Order 25,292, as explained more fully in Note 11
of these financial statements. The RSF is an imprest fund of $5,000,000, which is subject to
funding above or below the imprest fund balance, reflecting actual revenue performance as it
relates to prescribed revenue levels supported by the RSF. Of the approximately $5.3 million
in restricted cash as of December 31, 2014 and in compliance with the rules governing the
use of the RSF, approximately $263,000 is reserved as a potential return to rate payers as a
component of the new water rates set as a result of the next promulgated rate case before the
NHPUC, for which that timing and occurrence is yet to be determined.
Restricted Cash – 2014 Bond Project Fund
This restricted cash balance consists of funds that resulted from the issuance of the Series
2014A tax-exempt bonds in December of 2014, as notated and fully described in Note 9 of
these audited financial statements. The new money proceeds, as described in Note 9, from
that bond issuance are maintained in a separate restricted cash account, and are subject to
withdrawal as a reimbursement of eligible capital project expenditures for the years 2014
through 2016, as defined by the indenture and issuance documents associated with the
offering. This fund was initially funded at a level of $19.5 million, at the time the bonds were
issued. In December of 2014, the first reimbursement withdrawal was processed from this
fund, in the amount of approximately $2.7 million, as a reimbursement of qualifying capital
projects completed and “used and useful” during 2014, resulting in the December 31, 2014
balance in the fund of approximately $16.8 million.
Restricted Cash – Bond Refund Escrow
This restricted cash balance also consists of funds that resulted from the issuance of the
Series 2014A tax-exempt bonds in December of 2014, as notated and fully described in
Note 9 of these audited financial statements. The refinance money proceeds, as described in
Note 9, from that bond issuance are maintained in a separate restricted cash account, pending
the completion of the refinance of existing tax-exempt bonds on January 20, 2015, the date at
which the required 30-day notice period to bondholders has expired from the date of
notification after the close of the December 15, 2014 bond closing. As of January 20, 2015,
the entire balance in this account, which included $23,350,000 of principal due on the bonds
being refunded, as well as approximately $375,000 of accrued interest due on these bonds,
was paid out to the holders of those debt instruments.
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Concentration of Credit Risks
Financial instruments that subject our Company to credit risk consist primarily of cash and
accounts receivable. Our cash balances are invested in a financial institution insured to
statutory limit by the Federal Deposit Insurance Corporation (“FDIC”). Our accounts
receivable balances primarily represent amounts due from the residential, commercial and
industrial customers of our regulated water utility operations as well as receivables from our
Service Corporation customers.
Accounts Receivable - Billed
Accounts receivable are recorded at the invoiced amounts. The allowance for doubtful
accounts is our best estimate of the amount of probable credit losses in our existing accounts
receivable, and is determined based on historical write-off experience and the aging of
account balances. We review the allowance for doubtful accounts quarterly. Account balances are written off against the allowance when it is probable the receivable will not be
recovered.
Accounts Receivable - Unbilled
We read our customer meters on a monthly basis and record revenues based on meter reading
results. Information from the last meter reading date is used to estimate the value of unbilled
revenues through the end of the accounting period. Estimates of water utility revenues for
water delivered to customers but not yet billed are accrued at the end of each accounting
period. Actual results could differ from those estimates.
Inventory
Inventory is stated at the lower of cost, using the average cost method, or market.
Deferred Land Costs
Included in deferred land costs is our Company’s original basis in its undeveloped landholdings and any land improvement costs, which are stated at the lower of cost or market.
All costs associated with real estate and land projects are capitalized and allocated to the
project to which the costs relate. Administrative labor and the related fringe benefit costs
attributable to the acquisition, active development and construction of land parcels are
capitalized as deferred land costs. No labor and benefits were capitalized for the years ended
December 31, 2014 and 2013.
Deferred Charges and Other Assets
Deferred charges include certain regulatory assets and costs of obtaining debt financing.
Regulatory assets are amortized over the periods they are recovered through NHPUCauthorized water rates. Deferred financing costs are amortized over the term of the related
bonds and notes. Our Company’s utility subsidiaries have recorded certain regulatory assets
in cases where the NHPUC has permitted, or is expected to permit, recovery of these costs
A-95
over future periods. Currently, the regulatory assets are being amortized over periods ranging
from 3 to 25 years.
Contributions in Aid of Construction (“CIAC”)
Under construction contracts with real estate developers and others, our Company’s utility
subsidiaries may receive non-refundable advances for the cost of installing new water mains.
These advances are recorded as CIAC. The utility subsidiaries also record to plant and CIAC
the fair market value of developer installed mains and any excess of fair market value over
the cost of community water systems purchased from developers. CIAC are amortized over
the life of the property.
Revenues
Standard charges for water utility services to customers are recorded as revenue, based upon
meter readings and contract service, as services are provided. The majority of our Company’s
water revenues are based on rates approved by the NHPUC. Estimates of unbilled service
revenues are recorded in the period the services are provided. Provision is made in the
financial statements for estimated uncollectible accounts.
Non-regulated water management services include contract operations and maintenance, and
water testing and billing services to municipalities and small, privately owned community
water systems. Contract revenues are billed and recognized on a monthly recurring basis in
accordance with agreed-upon contract rates. Revenues from unplanned additional work are
based upon time and materials incurred in connection with activities not specifically identified in the contract, or for which work levels exceed contracted amounts.
Revenues from real estate operations, other than undistributed earnings or losses from equity
method joint ventures, are recorded upon completion of a sale of real property. Our
Company’s real estate holdings outside of our regulated utilities are comprised primarily of
undeveloped land.
Investment in Joint Venture
Southwood uses the equity method of accounting for its investment in a joint venture in
which it does not have a controlling interest. Under this method, Southwood records its
proportionate share of losses under “Other, net” in the accompanying Consolidated Statements of Income with a corresponding decrease in the carrying value of the investment.
Income Taxes
Income taxes are recorded using the accrual method and the provision for federal and state
income taxes is based on income reported in the consolidated financial statements, adjusted
for items not recognized for income tax purposes. Provisions for deferred income taxes
are recognized for accelerated depreciation and other temporary differences. A valuation
allowance is provided to offset any net deferred tax assets if, based upon available evidence,
it is more likely than not that some or all of the deferred tax assets will not be realized.
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Investment tax credits previously realized for income tax purposes are amortized for financial
statement purposes over the life of the property, giving rise to the credit.
Recently Issued Accounting Standards
We do not expect the adoption of any recently issued accounting pronouncements to have a
material impact on our financial condition or results of operations.
Note 2 – Property, Plant and Equipment
The components of property, plant and equipment as of December 31, 2014 and 2013 were
as follows:
Useful Lives
(in thousands)
2014
2013
(in years)
Utility Property:
Land and land rights
Source of supply
Pumping and purification
Transmission and distribution, including
services, meters and hydrants
General and other equipment
Intangible plant
Construction work in progress
Total utility property
Total non-utility property
Total property, plant and equipment
Less accumulated depreciation
Property, plant and equipment, net
$
2,939
51,489
30,115
130,983
$
2,927
50,399
29,775
124,024
11,358
770
2,677
10,142
768
2,524
230,331
5
220,559
5
230,336
(57,049)
220,564
(52,853)
$ 173,287
3 - 75
14 - 64
15 - 91
7 - 75
20
5 - 10
$ 167,711
The provision for depreciation is computed on the straight-line method over the estimated
useful lives of the assets which range from 3 to 91 years. The weighted average composite
depreciation rate was 2.54% and 2.45% in 2014 and 2013, respectively.
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Note 3 – Accounts Receivable
Accounts receivable consisted of the following at December 31, 2014 and 2013:
(in thousands)
2014
2013
$ 2,240
(51)
$ 2,345
(44)
Accounts Receivable - billed, net
$ 2,189
$ 2,301
Accounts receivable - unbilled
Less allowance for doubtful accounts
$ 2,399
-
$ 2,102
-
$ 2,399
$ 2,102
Accounts receivable - billed
Less allowance for doubtful accounts
Accounts Receivable - unbilled, net
Note 4 – Deferred Charges and Other Assets
Deferred charges and other assets as of December 31, 2014 and 2013 consisted of the
following:
Recovery
Period
(in thousands)
(in years)
2014
2013
Regulatory assets:
Source development charges
Miscellaneous studies
Unrecovered pension and post-retirement
benefits expense
$
764
852
5 - 25
3 - 25
6,483
3,342
(1)
8,271
649
8,920
4,422
4,958
625
5,583
3,406
$ 13,342
$ 8,989
Total regulatory assets
Supplemental executive retirement plan asset
Subtotal
Debt issuance expenses
Total deferred charges and other assets
(1)
708
1,080
$
(1)
We expect to recover these amounts consistent with the anticipated expense recognition of these assets.
Note 5 – Post-retirement Benefit Plans
Pension Plan and Other Post-retirement Benefits
We have a non-contributory, defined benefit pension plan (the “DB Plan”) that covers substantially all employees. The benefits are based on years of service and participant compensation levels. Our funding policy is to contribute annual amounts that meet the requirements for
A-98
funding under the U.S. Department of Labor’s Pension Protection Act. Contributions are
intended to provide not only for benefits attributed to service to date but also for those
expected to be earned in the future.
We provide post-retirement medical benefits for eligible retired employees through one of
two plans (collectively referred to as our “OPEB Plans”). For employees who retire on or
after the normal retirement age of 65, benefits are provided through a post-retirement plan
(the “Post-65 Plan”). For eligible non-union employees who retire prior to their normal
retirement age and who have met certain age and service requirements, benefits are provided
through a post-employment medical plan (the “Post-employment Plan”). Future benefits
under the Post-65 Plan increase annually based on the actual percentage of wage and salary
increases earned from the plan inception date to the normal retirement date. The benefits
under the Post-employment Plan allow for the continuity of medical benefits coverage at
group rates from the employee’s retirement date until the employee becomes eligible for
Medicare. The OPEB Plans are funded from the general assets of our Company.
Upon retirement, if a qualifying employee elects to receive medical benefits under one of our
OPEB Plans, we pay up to a maximum monthly benefit of $322 based on years of service.
The following table sets forth information regarding our DB Plan and our OPEB Plans as of
December 31, 2014 and for the year then ended:
(in thousands)
DB Plan
Projected benefit obligations
Employer contribution
Benefits paid, excluding expenses
Fair value of plan assets
Accumulated benefit obligation
Funded status
Net periodic benefit cost
Amount of the funded status recognized in the
Consolidated Balance Sheet consisted of:
Current liability
Non-current liability
Total
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OPEB Plans
$
21,512
986
(429)
13,495
19,374
(8,017)
893
$
3,000
(34)
962
(2,038)
130
$
(8,017)
$
(22)
(2,016)
$
(8,017)
$
(2,038)
The following table sets forth information regarding our DB Plan and our OPEB Plans as of
December 31, 2013 for the year then ended:
(in thousands)
DB Plan
Projected benefit obligations
Employer contribution
Benefits paid, excluding expenses
Fair value of plan assets
Accumulated benefit obligation
Funded status
Net periodic benefit cost
Amount of the funded status recognized in the
Consolidated Balance Sheet consisted of:
Current liability
Non-current liability
Total
OPEB Plans
$
17,501
911
(410)
12,244
15,665
(5,257)
1,372
$
2,809
22
(36)
944
(1,879)
204
$
(5,257)
$
(21)
(1,858)
$
(5,257)
$
(1,879)
Changes in plan assets and benefit obligations recognized in regulatory assets, for the year
ended December 31, 2014, were as follows:
(in thousands)
DB Plan
OPEB Plans
Regulatory asset balance, beginning of period
Net actuarial loss incurred during the period
Prior service cost incurred during the period
Recognized net actuarial (gain)/loss
$
3,815
2,986
(133)
$
(473)
299
(51)
40
Regulatory asset balance, end of period
$
6,668
$
(185)
Changes in plan assets and benefit obligations recognized in regulatory assets, for the year
ended December 31, 2013, were as follows:
(in thousands)
DB Plan
OPEB Plans
Regulatory asset balance, beginning of period
Net actuarial gain incurred during the period
Recognized net actuarial (gain)/loss
$
7,874
(3,641)
(418)
$
222
(699)
4
Regulatory asset balance, end of period
$
3,815
$
(473)
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Amounts recognized in regulatory assets for the DB and OPEB Plans that have not yet been
recognized as components of net periodic benefit cost of the following as of December 31,
2014:
(in thousands)
DB Plan
OPEB Plans
Net actuarial (gain)/loss
Prior service cost
$
6,668
-
$
28
(213)
Regulatory asset
$
6,668
$
(185)
Amounts recognized in regulatory assets for the DB and OPEB Plans that have not yet been
recognized as components of net periodic benefit cost of the following as of December 31,
2013:
(in thousands)
DB Plan
OPEB Plans
Net actuarial (gain)/loss
Prior service cost
$
3,815
-
$
(311)
(162)
Regulatory asset
$
3,815
$
(473)
The key assumptions used to value benefit obligations and calculate net periodic benefit cost
for our DB and OPEB Plans include the following:
2014
2013
Discount rate for net periodic benefit cost, beginning of year
Discount rate for benefit obligations, end of year (a)
Expected return on plan assets for the period (net of investment expenses)
Rate of compensation increase, beginning of year
Healthcare cost trend rate (applicable only to OPEB Plans)
4.84%
3.85%
7.50%
2.75%
9.00%
4.00%
4.84%
7.50%
2.75%
9.50%
(a) An increase or decrease in the discount rate of 0.5% would result in a change in the funded status as of December 31,
2014, for the DB Plan and the OPEB Plans of approximately $1.59 million and $242 thousand, respectively.
The estimated net actuarial loss for our DB Plan that will be amortized in 2015 from the
regulatory assets into net periodic benefit costs is $332,000. The estimated net actuarial gain
and prior service cost for our OPEB Plans that will be amortized in 2015 from the regulatory
assets into net periodic benefit costs are $(2,000), and $(87,000), respectively.
In establishing its investment policy, our Company has considered the fact that the DB Plan
is a major retirement vehicle for its employees and the basic goal underlying the establishment of the policy is to provide that the assets of the Plan are invested in accordance with the
asset allocation range targets to achieve our expected return on Plan assets. Our Company’s
investment strategy applies to its OPEB Plans as well as the DB Plan. Our expected longterm rate of return on DB Plan and OPEB Plan assets is based on the Plans’ expected asset
allocation, expected returns on various classes of Plan assets as well as historical returns.
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The assets of our Post-65 Plan are held in two separate Voluntary Employee Beneficiary
Association (“VEBA”) trusts. We maintain our VEBA plan assets in directed trust accounts
at a commercial bank.
The investment strategy for our DB Plan and our OPEB Plans utilizes several different asset
classes with varying risk/return characteristics. The following table indicates the asset
allocation percentages of the fair value of the DB Plan and OPEB Plans’ assets for each
major type of plan asset as of December 31, 2014, as well as the targeted allocation range:
DB Plan
Asset
Allocation
Range
Equities
Fixed income
Cash and cash equivalents
Total
61%
39%
0%
30% - 100%
20% - 70%
0% - 15%
100%
OPEB Plans
Asset
Allocation
Range
71%
28%
1%
30% - 100%
0% - 50%
0% - 15%
100%
The following table indicates the asset allocation percentages of the fair value of the DB Plan
and OPEB Plans’ assets for each major type of plan asset as of December 31, 2013, as well
as the targeted allocation range:
DB Plan
Asset
Allocation
Range
Equities
Fixed income
Cash and cash equivalents
Total
64%
36%
0%
30% - 100%
20% - 70%
0% - 15%
100%
OPEB Plans
Asset
Allocation
Range
70%
28%
2%
30% - 100%
0% - 50%
0% - 15%
100%
Management uses its best judgment in estimating the fair value of its financial instruments.
However, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of
the amounts that we could have realized in a sales transaction for these instruments. The
estimated fair value amounts have been measured as of year-end and have not been reevaluated
or updated for purposes of these financial statements subsequent to those respective dates.
Investments in mutual funds are stated at fair value by reference to quoted market prices.
Money market funds are valued utilizing the Net Asset Value per unit based on the fair value
of the underlying assets as determined by the directed trustee.
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The DB Plan also holds assets under an immediate participation guarantee group annuity
contract with a life insurance company. The assets under the contract are invested in pooled
separate accounts and in a general investment account. The pooled separate accounts are
valued based on net asset value per unit of participation in the fund and have no unfunded
commitments or significant redemption restrictions at year-end. The value of these units is
determined by the trustee based on the current market values of the underlying assets of the
pooled separate accounts. Therefore, the value of the pooled separate accounts is deemed to
be at estimated fair value.
The general investment account is not actively traded and significant other observable inputs are
not available. The fair value of the general investment account is calculated by discounting the
related cash flows based on current yields of similar instruments with comparable durations.
The methods described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, while the Plans' management
believes the valuation methodologies are appropriate and consistent with other market
participants, the use of different methodologies or assumptions to determine the fair value of
certain investments could result in a different fair value measurement at the reporting date.
We use a fair value hierarchy which prioritizes the inputs to valuation methods used to
measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements).
The fair value of DB Plan and OPEB Plan assets by levels within the fair value hierarchy
used as of December 31, 2014 was as follows:
(in thousands)
DB Plan:
Equities:
Pooled separate accounts
Fixed Income:
General investment account
Pooled separate accounts
Total Pension Plan
Totals
$
8,204
Level 1
$
2,625
2,666
$ 13,495
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-
Level 2
$
$
-
$
8,204
Level 3
$
-
2,666
2,625
-
10,870
$ 2,625
(in thousands)
OPEB Plans:
Mutual funds:
Balanced/hybrid funds
U.S. equity securities funds
International equity funds
Fixed income funds
Totals
$
173
447
66
269
Cash and cash equivalents:
Money market funds
Total Post-retirement Plans
Totals
Level 1
$
7
$
173
447
66
269
Level 2
$
-
-
Level 3
$
7
962
$
955
$
7
$ 14,457
$
955
$
10,877
-
$
-
$ 2,625
The fair value of DB Plan and OPEB Plan assets by levels within the fair value hierarchy
used as of December 31, 2013 was as follows:
(in thousands)
DB Plan:
Equities:
Pooled separate accounts
Totals
$
Fixed Income:
General investment account
Pooled separate accounts
Total Pension Plan
OPEB Plans:
Mutual funds:
Balanced/hybrid funds
U.S. equity securities funds
International equity funds
Fixed income funds
Totals
$
2,940
1,409
-
Level 2
$
-
7,895
$
9,304
$
$
168
416
76
261
$
-
$
-
$
23
944
$
921
$
23
$ 13,188
$
921
$
9,327
Level 1: Based on quoted prices in active markets for identical assets.
Level 2: Based on significant observable inputs.
Level 3: Based on significant unobservable inputs.
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-
$ 2,940
-
23
$
2,940
-
$
168
416
76
261
Level 3
1,409
$ 12,244
Cash and cash equivalents:
Money market funds
Total Post-retirement Plans
7,895
Level 1
-
$
-
$ 2,940
The following table presents a period-end reconciliation of DB Plan assets measured and
recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3):
(in thousands)
2014
2013
Balance, beginning of year
$ 2,940
Plan transfers
(494)
Contributions
537
Benefits paid
(438)
Return on plan assets (net of investment expenses)
80
$ 1,704
864
729
(410)
53
Balance, end of year
$ 2,940
$ 2,625
In order to satisfy the minimum funding requirements of the Employee Retirement Income
Security Act of 1974, applicable to defined benefit pension plans, we anticipate that we will
contribute approximately $1.2 million to the DB Plan in 2015.
The following maximum benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated:
(in thousands)
DB Plan
OPEB Plans
2015
2016
2017
2018
2019
2020 - 2024
$
586
686
743
829
962
5,965
$
64
70
75
91
116
645
Total
$
9,771
$
1,061
Because we are subject to regulation in the state in which we operate, we are required to
maintain our accounts in accordance with the regulatory authority’s rules and regulations. In
those instances, we follow the guidance of ASC 980 (“Regulated Operations”). Based on
prior regulatory practice, we recorded underfunded DB Plan and OPEB Plan obligations as a
regulatory asset and we expect to recover those costs in rates charged to customers.
Defined Contribution Plan
In addition to the defined benefit plan, we have a defined contribution plan covering
substantially all employees. Under this plan, our Company matches 100% of the first 3% of
each participating employee’s salary contributed to the plan. The matching employer’s contributions, recorded as operating expenses, were approximately $207,000 and $197,000 for
the years ended December 31, 2014 and 2013, respectively.
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Note 6 - Commitments and Contingencies
Operating Leases
We lease our corporate office space as well as certain office equipment under operating lease
agreements. Total rent expense was approximately $315,000 and $305,000 for the years
ended December 31, 2014 and 2013, respectively.
Our remaining non-cancelable lease commitments for our corporate office space and leased
equipment as of December 31, 2014 were as follows:
(in thousands)
Amount
2015
2016
2017
2018
$
277
271
159
2
Total
$
709
Note 7 – Financial Measurement and Fair Value of Financial Instruments
Management uses its best judgment in estimating the fair value of its financial instruments.
However, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of
the amounts that we could have realized in a sales transaction for these instruments. The
estimated fair value amounts have been measured as of the period end and have not been
reevaluated or updated for purposes of these financial statements subsequent to those
respective dates.
We use a fair value hierarchy which prioritizes the inputs to valuation methods used to measure
fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable
inputs (Level 3 measurements). The three levels of fair value hierarchy are as follows:
Level 1: Based on quoted prices in active markets for identical assets.
Level 2: Based on significant observable inputs.
Level 3: Based on significant unobservable inputs.
An asset or liability’s level within the fair value hierarchy is based on the lowest level of
input that is significant to the fair value measurement.
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For assets and liabilities measured at fair value on a recurring basis, the fair value measurement by levels within the fair value hierarchy used as of December 31, 2014 and 2013 were
as follows:
December 31, 2014
(in thousands)
Total
Level 1
Level 2
Level 3
Interest rate swap
$ (583)
(in thousands)
Interest rate swap
Total
$ (386)
$ -
$ (583)
$
-
December 31, 2013
Level 1
Level 2
Level 3
$ -
$
$ (386)
-
The carrying value of certain financial instruments included in the accompanying Consolidated Balance Sheets, along with the related fair value, as of December 31, 2014 and 2013
was as follows:
2014
2013
Carrying
Fair
Carrying
Fair
(in thousands)
Value
Value
Value
Value
Liabilities:
Long-term debt
Interest rate swap liability
$ (224,307)
(583)
$ (270,191)
(583)
$ (177,396)
(386)
$ (197,797)
(386)
The fair value of long-term debt has been determined by discounting the future cash flows
using current market interest rates for similar financial instruments of the same duration. The
fair value for long-term debt shown above does not purport to represent the amounts at which
those debt obligations would be settled. The fair market value of our interest rate swap
represents the estimated cost to terminate this agreement as of December 31, 2014 and 2013
based upon the then-current interest rates and the related credit risk.
The carrying values of our Cash and Cash Equivalents, Accounts Receivable and Accounts
Payable approximate their fair values because of their short maturity dates. The carrying
value of our CIAC approximates its fair value because it is expected that this is the amount
that will be recovered in future rates.
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Note 8 – Income Taxes
The components of the federal and state income tax provision (benefit) as of December 31,
2014 and 2013 were as follows:
(in thousands)
2014
Federal
State
Amortization of investment tax credits
2013
$
343
241
(33)
$
(623)
(192)
(33)
Total
$
551
$
(848)
Current
Deferred
$
(33)
584
$
(848)
Total
$
551
$
(848)
The following is a reconciliation between the statutory federal income tax rate and the
effective income tax rate for 2014 and 2013:
2014
2013
Statutory federal rate
State tax rate, net of federal benefits
Permanent differences
Amortization of investment tax credits
34.0%
5.6%
-87.3%
2.7%
34.0%
5.6%
5.6%
1.8%
Effective tax rate
-45.0%
47.0%
The temporary items that give rise to the net deferred tax liability as of December 31, 2014
and 2013 were as follows:
(in thousands)
2014
Liabilities:
Property-related, net
Pension deferred asset
Other
Total liabilities
Assets:
Pension accrued liability
Net operating loss carryforward
Alternative minimum tax credit
NH Business Enterprise Tax credits
Other
Total assets
Net non-current deferred income tax liability
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2013
$ 25,626
2,641
1,061
$ 24,735
1,511
705
29,328
26,951
3,176
2,399
476
369
2,574
2,082
2,053
384
250
2,375
8,994
7,144
$ 20,334
$ 19,807
We had a federal net operating loss in 2014 and 2013 in the amounts of approximately $1.8
million and $319,000, respectively. The federal tax benefit of the cumulative net operating
loss is approximately $2.1 million which begins to expire in 2032, and is included in deferred
income taxes in the consolidated balance sheet as of December 31, 2014.
As of December 31, 2014 and 2013, we estimated approximately $476,000 and $384,000 of
cumulative federal alternative minimum tax credits that may be carried forward indefinitely
as a credit against our regular tax liability.
As of December 31, 2014 and 2013, we had New Hampshire Business Enterprise Tax
(“NHBET”) credits of approximately $369,000 and $250,000, respectively. NHBET credits
begin to expire in 2017. We anticipate that we will fully utilize these NHBET credits before
they expire; therefore we have not recorded a valuation allowance related to these credits.
Investment tax credits resulting from utility plant additions are deferred and amortized. The
unamortized investment tax credits are being amortized through the year 2033.
We had a regulatory liability related to income taxes of approximately $803,000 and
$825,000 as of December 31, 2014 and 2013, respectively. This represents the estimated
future reduction in revenues associated with deferred taxes which were collected at rates
higher than the currently enacted rates and the amortization of deferred investment tax
credits.
We made a review of our portfolio of uncertain tax positions. In this regard, an uncertain tax
position represents our expected treatment of a tax position taken in a filed tax return, or
planned to be taken in a future tax return, that has not been reflected in measuring income tax
expense for financial reporting purposes. As a result of this review, we determined that we
had no material uncertain tax positions. We will use tax planning strategies, if required, and
when possible, to avoid the expiration of any future net operating loss and/or tax credits.
We file income tax returns in the U.S. federal jurisdiction, the State of New Hampshire and
the Commonwealth of Massachusetts. Our 2010 through 2013 tax years remain subject to
examination by the Internal Revenue Service. Our tax year 2009 was audited by the Internal
Revenue Service and the year was closed with no changes. Our 2008 through 2013 tax years
remain subject to examination by one or more state jurisdictions.
Our practice is to recognize interest and/or penalties related to income tax matters in “Other,
Net” in the Consolidated Statements of Income. We incurred no interest or penalties during
the years ended December 31, 2014 and 2013.
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Note 9 – Debt
Long-term debt as of December 31, 2014 and 2013 consisted of the following:
(in thousands)
Unsecured note payable to City of Nashua, 5.75%,
due 12/25/2041
Unsecured senior note payable due to an insurance company
7.40%, due March 1, 2021
Unsecured Business Finance Authority:
Revenue Bonds (Series 2014A), interest rates from 3.00% to 4.125%,
due January 1, 2016 through January 1, 2045
Revenue Bonds (Series 2014B), 4.50%, due January 1, 2045
Revenue Bond (2005 Series BC-4), 5.375%, due October 1, 2035
Revenue Bond (2005 Series BC-3), 5.00%, due April 1, 2018
Revenue Bond (2005 Series A), 4.70%, due October 1, 2035
Revenue Bond (Series 2005A), 4.70%, due January 1, 2035
Revenue Bond (Series 2005B), 4.60%, due January 1, 2030
Revenue Bond (Series 2005C), 4.50%, due January 1, 2025
Revenue Bond, 1997, 6.30%, due May 1, 2022
Unsecured notes payable to bank, floating-rate, due March 1, 2030
Unsecured notes payable to bank, 3.62%, due June 20, 2023
Unsecured notes payable to bank, 4.25%, due June 20, 2033
Unsecured New Hampshire State Revolving Fund (“SRF”) notes (1)
Total long-term debt
Less current portion
Less original issue discount
Total long-term debt, net of current portion
2014
2013
$ 114,651
$ 116,336
4,800
5,200
41,885
5,300
12,125
7,475
12,100
1,765
2,310
1,175
2,600
3,708
1,633
880
12,152
12,125
7,475
12,125
1,785
2,320
1,175
2,800
3,886
1,694
910
9,829
224,559
(26,275)
(252)
177,660
(2,965)
(264)
$ 198,032
$ 174,431
(1) SRF notes are due through 2035 at interest rates ranging from 1% to 4.488%. These notes are payable in 120 to 240
consecutive monthly installments of principal and interest. The 1% rate applies to construction projects still in process
until the earlier of (i) the date of substantial completion of the improvements, or (ii) various dates specified in the note
(such earlier date being the interest rate change date). Commencing on the interest rate change date, the interest rate
changes to the lower of (i) the rate as stated in the note or (ii) 80% of the established 11 General Obligations Bond
Index published during the specified time period before the interest rate change date.
The aggregate principal payment requirements subsequent to December 31, 2014 are as
follows:
(in thousands)
Amount
2015
2016
2017
2018
2019
2020 and thereafter
$
Total
$ 224,559
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26,275
4,116
4,313
4,504
4,714
180,637
Several of Pennichuck Water’s loan agreements contain a covenant that prevents Pennichuck
Water from declaring dividends if Pennichuck Water does not maintain a minimum net
worth of $4.5 million. As of December 31, 2014 and 2013, Pennichuck Water’s net worth
was $127.8 and $125.6 million, respectively. Pennichuck Water Works also has debt
issuance covenants whereby they must also maintain a maximum total debt to capital ratio of
65%, a maximum funded debt to net property, plant and equipment ratio of 60%, and an
interest coverage ratio of at least 1.5; at December 31, 2014 and 2013 the total debt to capital
ratio was 37% and 29%, respectively, the funded debt to net property, plant and equipment
ratio was 55% and 38%, respectively, and the interest coverage ratio was 2.81 and 2.62,
respectively.
On December 15, 2014, Pennichuck Water issued tax-exempt Series 2014A (AMT) bonds
and taxable Series 2014B bonds, in the amounts of $41,885,000 and $5,300,000,
respectively. The Series 2014A bonds, which were issued at a premium of approximately
$1.9 million, include money raised to finance capital projects for the years 2014 through
2016 in the amount of $19.5 million, the refinance and refunding of the Series 2005C, Series
BC-3, Series BC-4 and 1997 bonds (collectively the “refinanced bonds”) included in the
table above in the amount of $23.375 million, and the cost of issuance associated with this
new series of debt obligations. The refinanced bonds are offset in total by the amount of cash
held in the Restricted Cash – Bond Refund Escrow account, as fully described in Note 1 to
these financial statements. The associated bond premium for the Series 2014A bonds is being
amortized over the lives of the underlying bond obligations. The Series 2014 bonds, which
were issued at par, includes $5.1 million to reimburse Pennichuck Water for capital projects
completed in calendar year 2013 and January 2014, and originally funded from working
capital or line of credit borrowings from the Company’s bank, as well as the associated cost
of issuance for this series of bonds. The cost of issuance associated with both the Series
2014A and Series 2014B bonds is being amortized over the 30-year life of the debt
obligations.
These bonds were issued under a new bond indenture and loan and trust agreement, which
contains certain covenant obligations upon Pennichuck Water, which are as follows:
Debt to Capital Covenant - Pennichuck Water cannot create, issue, incur, assume or
guarantee any short-term debt if (1) the sum of the short-term debt plus its funded
debt (“Debt”) shall exceed 85% of the sum of its short-term debt, funded debt and
capital stock plus surplus accounts (“Capital”), unless the short-term debt issued in
excess of the 85% is subordinated to the Series 2014 bonds. Thereby, the ratio of
Debt to Capital must be equal to or less than 1.0. As of December 31, 2014,
Pennichuck Water Works has a Debt to Capital Coverage ratio of 0.4.
All Bonds Test - Additionally, Pennichuck Water cannot create, issue, incur, assume
or guarantee any new funded debt, if the total outstanding funded debt (“Total Funded
Debt”) will exceed the sum of MARA (as defined in Note 11 of these audited
financial statements) and 85% of its Net Capital Properties (“MARA and Capital
Properties”), and unless net revenues or EBITDA (earnings before interest, taxes,
depreciation and amortization) shall equal or exceed for at least 12 consecutive
months out of the 15 months preceding the issuance of the new funded debt by
1.1 times the maximum amount for which Pennichuck Water will be obligated to pay
A-111
in any future year (“Max Amount Due”), as a result of the new funded debt being
incurred. Thereby, the ratio of Total Funded Debt to MARA and Capital Properties
must be equal to or less than 1.0; as of December 31, 2014, this coverage ratio was
0.5. Also the ratio of EBITDA to the Max Amount Due must be equal to or greater
than 1.1; as of December 31, 2014, this ratio was 4.0.
Rate Covenant Test - If during any fiscal year, the EBITDA of Pennichuck Water
shall not equal at least 1.1 times all amounts paid or required to be paid during that
year (“Amounts Paid”), then the Company shall undertake reasonable efforts to
initiate a rate-making proceeding with the NH Public Utilities Commission, to rectify
this coverage requirement in the succeeding fiscal years. Thereby, the ratio of EBITA
to Amounts Paid must be equal to or greater than 1.1; as of December 31, 2014, the
Rate Covenant coverage ratio was 3.52.
Pennichuck East’s loan agreement for its unsecured notes payable to a bank of $3.7 million
and $3.9 million at December 31, 2014 and 2013, respectively, contains a minimum debt
service coverage ratio requirement of 1.25. At December 31, 2014 and 2013 this ratio was
1.83 and 1.42, respectively. Also, Pennichuck East is required to maintain a maximum ratio
of total debt to total capitalization of 65%; at December 31, 2014 and 2013 this ratio was
44% and 41%, respectively.
The Company’s revolving credit loan facility with TD Bank contains a covenant that requires
the Company to maintain a minimum fixed charge coverage ratio of at least 1.0; at
December 31, 2014 and 2013 the fixed charge coverage ratio was 1.12 and 1.08,
respectively. The Company is also required to maintain an equity capitalization ratio of not
less than 35%; at December 31, 2014 and 2013, the equity capitalization ratio was 41% and
50%, respectively. Under this agreement the Company is also precluded from declaring or
paying dividends, or making any other payment or distribution of its equity without the
bank’s prior written consent, except for: (1) its obligations under Rate Order No. 25,292 as it
pertains to the Company’s specific obligations under the City Bond Fixed Revenue
Requirement (“CBFRR”) which provides for payments of approximately $707,000 per
month of the note payable to the City of Nashua (the “City”), and quarterly dividends to the
City for the remainder of this annual obligation, as defined by the order; and (2) a specific
allowance, under Rate Order No. 25,292, whereby the Company is allowed to make
distributions to the City from current earnings and profits in excess of the CBFRR, to provide
funds to allow the City to reimburse itself for the costs incurred by the City relating to its
efforts in pursuing the eminent domain proceedings from January 2002 through August 2009,
provided however that such amount shall not exceed $500,000 in any fiscal year, or
$5,000,000 in the aggregate, of all such distributions. During the year ended December 31,
2013, a special dividend of $500,000 was approved and paid relating to this. No special
dividend was declared or paid in 2014.
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Our short-term borrowing activity under this revolving credit loan facility for the years ended
December 31, 2014 and 2013 was:
(in thousands)
Established line as of December 31,
Maximum amount outstanding during period
Average amount outstanding during period
Amount outstanding as of December 31,
Weighted average interest rate during period
Interest rate as of December 31,
2014
2013
$ 10,000
5,446
2,833
0.10%
1.981%
$ 10,000
1,966
137
1,966
1.06%
2.665%
As of December 31, 2014 and 2013, we had a $3.7 million and $3.9 million, respectively,
interest rate swap which qualifies as a derivative. This financial derivative is designated as a
cash flow hedge. This financial instrument is used to mitigate interest rate risk associated
with our outstanding $3.7 million loan which has a floating interest rate based on the threemonth London Interbank Offered Rate (“LIBOR”) plus 1.75% as of December 31, 2014. The
combined effect of the LIBOR-based borrowing formula and the swap produces an “all-in
fixed borrowing cost” equal to 5.95%. The fair value of the financial derivative, as of
December 31, 2014 and 2013, included in our Consolidated Balance Sheets under “Deferred
credits and other reserves” as “Other liabilities” was $583,000 and $386,000, respectively.
Changes in the fair value of this derivative were deferred in accumulated other comprehensive
income (loss).
Swap settlements are recorded in the statement of income with the hedged item as interest
expense. During the years ended December 31, 2014 and 2013 $152,000 and $156,000 was
reclassified pre-tax from accumulated other comprehensive income (loss) to interest expense
as a result of swap settlements. We expect to reclassify approximately $143,000, pre-tax,
from accumulated other comprehensive income (loss) to interest expense as a result of swap
settlements, over the next twelve months.
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Note 10 – Accumulated Other Comprehensive Income
The following table presents changes in accumulated other comprehensive income by
component for the year ended December 31, 2014:
Interest
Rate
Contract
Beginning balance
$
Other comprehensive income
before reclassifications
298
(209)
Amounts reclassified from
accumulated other
comprehensive income
91
Net current period other
comprehensive income
(118)
Ending balance
$
180
The following table presents reclassifications out of accumulated other comprehensive
income for the year ended December 31, 2014:
Amount Reclassified
Affected Line Item in
Details about Accumulated Other
from Accumulated Other the Statement Where
Comprehensive Income Components Comprehensive Income Net Income is Presented
Gain (loss) on cash flow hedges
Interest rate contracts
$
152
(61)
Amounts reclassified from accumulated
other comprehensive income
$
91
Interest expense
Tax expense
Net of tax
Note 11 – Transaction with the City of Nashua
On January 25, 2012, in full settlement of an ongoing Eminent Domain lawsuit filed by the
City of Nashua (“City”) and with the approval of the New Hampshire Public Utilities
Commission (“NHPUC”), the City acquired all of the outstanding shares of Pennichuck
Corporation (“Pennichuck”) and, thereby, indirect acquisition of its regulated subsidiaries.
The total amount of the acquisition was $150.6 million (“Acquisition Price”) of which
$138.4 million was for the purchase of the outstanding shares, $5.0 million for the
establishment of a Rate Stabilization Fund, $2.6 million for legal and due diligence costs,
$2.3 million for severance costs, $1.3 million for underwriting fees, and $1.0 million for
bond discount and issue costs. The entire purchase of $150.6 million was funded by General
Obligation Bonds (“Bonds”) issued by the City of Nashua. Pennichuck is not a party to the
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Bonds and has not guaranteed nor is obligated in any manner for the repayment of the Bonds.
Pennichuck remains an independent corporation with an independent Board of Directors with
the City of Nashua as its sole shareholder.
Pennichuck Water Works, Inc. (“PWW”), Pennichuck East Utility, Inc. (“PEU”), Pittsfield
Aqueduct Company, Inc. (“PAC”), Pennichuck Water Service Corporation, and The
Southwood Corporation will continue as subsidiaries of Pennichuck Corporation and PWW,
PEU and PAC will continue as regulated companies under the jurisdiction of the New
Hampshire Public Utilities Commission. The terms of the merger and the requisite
accounting and rate-setting mechanisms were agreed to in the NHPUC Order 25,292 (“PUC
Order”) dated November 23, 2011.
Transactions with Related Party – City of Nashua
Pennichuck issued a promissory note to the City of Nashua in the amount of approximately
$120 million to be repaid over a thirty (30) year period with monthly payments of
approximately $707,000, including interest at 5.75%. Pennichuck recorded an additional
amount of approximately $30.6 million as contributed capital. The remaining outstanding
balance of the note payable to the City at December 31, 2014 and December 31, 2013 was
approximately $114.7 million and $116.3 million, respectively, as disclosed in Note 9 to
these consolidated financial statements. During 2014 and 2013, dividends of approximately
$277,000 and $777,000, respectively, were declared and paid to the City. The dividends paid
to the City during 2014 comprised approximately $277,000 of regular quarterly dividends
declared and paid; and no special dividend was declared or paid in 2014. The dividends paid
to the City during 2013 comprised approximately $277,000 of regular quarterly dividends
declared and paid, and a special dividend of $500,000 declared and paid in October 2013, as
resolved and authorized by the Board of Directors in their August 23, 2013 meeting.
Additional ongoing transactions occur in the normal course of business, between the
Company and the City, related to municipal water usage, fire protection and sewer billing
support services, and property taxes related to real property owned by the Company within
the City of Nashua. For the years ended December 31, 2014 and 2013, respectively,
approximately $3.3 million and $3.1 million were paid to the Company by the City for
municipal water consumption, fire protection charges, and sewer billing support services.
Conversely, the Company paid property taxes to the City of Nashua of approximately
$2.5 million for the year ended December 31, 2014, and approximately $2.4 million for the
year ended December 31, 2013.
Rate Stabilization Fund – Restricted Cash
As a part of the acquisition, Pennichuck agreed to contribute $5,000,000 of the proceeds
from the settlement transaction to PWW, which was used to establish a Rate Stabilization
Fund (“RSF”), allowing for the maintenance of stable water utility rates and providing a
mechanism to ensure the Company’s continued ability to meet its obligations under the
promissory note to the City, in the event of adverse revenue developments. Restricted cash
consists of amounts set aside in the RSF account, and is adjusted monthly as required in the
PUC Order, as discussed in Note 1 of these financial statements.
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Municipal Acquisition Regulatory Asset (“MARA”)
Pursuant to the PUC Order, Pennichuck established a new Regulatory asset (MARA) which
represents the amount that the Acquisition Price exceeded the net book assets of Pennichuck’s
regulated subsidiaries (PWW, PEU, and PAC) at December 31, 2011. The initial amount of the
MARA was approximately $89 million for the regulated companies, offset by a non-regulated
amount of approximately $4.8 million. The MARA is to be amortized over a thirty (30) year
period in the same manner as the repayment of debt service for the City’s acquisition bonds.
The balance in the MARA at December 31, 2014 was approximately $83.5 million, reduced by
the non-regulated credit of approximately $4.6 million.
Aggregate amortization expense for the years ended December 31, 2014 and 2013, totaled
approximately $1,835,000 and $2,542,000, respectively. During the year ended
December 31, 2012, the amortization of the MARA was calculated based upon the
amortization of principal for the Company’s unsecured note payable to the City of Nashua
(see Note 9). However, during 2013 the Company realized that the amortization of the
MARA, as authorized by NHPUC Order 25,292, dated November 23, 2011, was supposed to
be calculated based upon the principal repayment schedule of the bonds issued by the City, in
support of their acquisition of the Company in January 2012. As such, the Company made a
one-time adjustment to “true up” the amortization of the MARA during 2013, and as such,
approximately $716,000 of the amortization expense recorded in 2013 relates to amounts that
would have been booked in 2012, had the correct basis been applied initially. The
amortization amount for 2013 would have been approximately $1,826,000 after giving
consideration for this one-time correction.
The following table represents the total estimated amortization of MARA for the five
succeeding years:
Estimated
Amortization
(in thousands)
Expense
2015
2016
2017
2018
2019
$
(1,857)
(1,884)
(1,917)
(1,958)
(2,006)
Note 12 – Sale of Conservation Easement
In July 2013, the Company completed the sale of a conservation easement to the Society for
the Protection of New Hampshire Forests, with respect to a portion of its non-regulated land
holdings in Merrimack, New Hampshire, as approved by the Board of Directors in their
April 26, 2013 meeting. The transaction included gross proceeds for the value of the
easement of approximately $991,000, netted by approximately $100,000 of legal, surveying,
and professional fees. The net proceeds of approximately $891,000 from this transaction are
included in “Other, Net” on the Consolidated Statements of Income herein.
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Note 13 – Segment Reporting
The Company is comprised of Pennichuck Corporation and its five wholly-owned
subsidiaries, as described in Note 1 to these audited financial statements. For the years ended
December 31, 2014 and 2013, and as of those dates, the following financial results were
generated by the segments of the Company:
Operating Revenues:
Pennichuck Water Works, Inc.
Pennichuck East Utility, Inc.
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
Water Management Services
Other
Total Operating Revenues
Depreciation and Amortization Expense:
Pennichuck Water Works, Inc.
Pennichuck East Utility, Inc.
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
Water Management Services
Other
Total Depreciation and Amortization Expense
Operating Income:
Pennichuck Water Works, Inc.
Pennichuck East Utility, Inc.
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
Water Management Services
Other
Total Operating Income
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2014
2013
$ 28,193
6,992
766
35,951
2,854
10
$ 38,815
$ 27,755
6,354
690
34,799
2,885
10
$ 37,694
$
5,210
928
117
6,255
(107)
6,148
$
7,410
1,081
178
8,669
189
47
8,905
$
$
$
$
$
$
5,687
994
130
6,811
(150)
6,661
6,837
438
16
7,291
55
92
7,438
2014
Interest Expense:
Pennichuck Water Works, Inc.
Pennichuck East Utility, Inc.
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
Water Management Services
Other
Total Interest Expense
Income Taxes Provision (Benefit):
Pennichuck Water Works, Inc.
Pennichuck East Utility, Inc.
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
Water Management Services
Other
Total Income Taxes Provision (Benefit)
Net Income (Loss):
Pennichuck Water Works, Inc.
Pennichuck East Utility, Inc.
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
Water Management Services
Other
Total Net Income (Loss)
Total Assets:
Pennichuck Water Works, Inc.
Pennichuck East Utility, Inc.
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
Water Management Services
Other
Total Net Assets
A-118
2013
$
2,814
502
57
3,373
6,783
$ 10,156
$
2,775
503
56
3,334
6,794
$ 10,128
$
2,474
309
60
2,843
79
(2,371)
$
551
$
$
2,139
277
60
2,476
119
(4,370)
$ (1,775)
$
$ 288,349
42,521
4,418
335,288
286
(11,767)
$ 323,807
$ 231,121
41,377
4,526
277,024
201
(4,025)
$ 273,200
2,513
87
1
2,601
21
(3,470)
$
(848)
1,535
(138)
(42)
1,355
33
(2,344)
$
(956)
2014
2013
$ 160,535
28,391
2,107
191,033
56
108,128
$ 299,217
$ 105,485
26,594
2,130
134,209
58
112,173
$ 246,440
Total Long-Term Debt (including current portion):
Pennichuck Water Works, Inc.
$ 97,895
Pennichuck East Utility, Inc.
11,761
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
109,656
Water Management Services
Other
114,651
Total Long-Term Debt
$ 224,307
$ 50,312
10,748
61,060
116,336
$ 177,396
Total Liabilities:
Pennichuck Water Works, Inc.
Pennichuck East Utility, Inc.
Pittsfield Aqueduct Company, Inc.
Subtotal Regulated Segment
Water Management Services
Other
Total Liabilities
Note 14 – Subsequent Events
The Company has evaluated the events and transactions that have occurred through
March 18, 2015, the date that these financial statements were available for issuance.
On March 4, 2015, Pennichuck East completed a financing transaction with CoBank in the
amount of $625,000, for a term of 25 years at an interest rate of 4.9%. This debt is repayable
in monthly installments of $3,647, for principal and interest. This financing was completed as
a reimbursement for working capital funds used during 2014 for the completion or initiation
of capital projects during that year.
Additionally, on March 16, 2015, Pennichuck East completed a financing transaction with
the NHDES, under their State Revolving Fund program, in the amount of $510,000. This
financing was completed for a specified capital project to be completed in 2015. This
obligation will accrue interest at 1% during the construction phase of the project, and then be
subject to repayment over a 20-year term, with a rate of interest of 2.72%, with monthly
principal and interest payments.
Also, as referenced in Notes 1 and 9 of these audited financial statements, as of January 20,
2015, the entire balance in “Restricted Cash – Bond Refund Escrow” account, which included
$23,350,000 of principal due of the “refinanced bonds”, as well as approximately $375,000 of
accrued interest due on these bonds, was paid out to the holders of those debt instruments.
No other items requiring an adjustment to the financial statement or additional disclosure
were noted.
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NASHUA AIRPORT AUTHORITY NOTES
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A-122
NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
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
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 meets the
criteria as a component unit of the City of Nashua, New Hampshire (“the City”). Such
criteria includes appointment of the board of directors by the Mayor of the City, debt service
guarantees by the City, inclusion of the Authority’s employees in the City’s retirement
system (New Hampshire Retirement System) and budgetary appropriations from the City.
Basis of Accounting
The financial statements are presented on the accrual basis of accounting, wherein revenues
are recognized when earned and expenses are recognized when incurred.
Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America require management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results
may differ from those estimates. Significant estimates include depreciation expense.
Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America require management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results
may differ from those estimates. Significant estimates include depreciation expense.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net
Position
Cash and Cash Equivalents – For the purpose of the Statements of Cash Flows, cash and
cash equivalents are comprised of demand deposits and cash on hand.
A-123
Investments - Investments are recorded at their fair value. Certificates of deposit with a
maturity of greater than ninety days from the date of issuance are included in investments.
Accounts Receivable - At June 30, 2015, accounts receivable includes unpaid tie-down fees
and land lease rental fees. An allowance for estimated uncollected receivables is not deemed
necessary as of June 30, 2015.
Capital Assets – Capital assets are recorded at cost and updated for additions and retirements
during the year. Donated capital assets are recorded at their estimated fair values as of the
date received. Improvements are capitalized; costs of normal maintenance and repairs that do
not add to the value of the asset or materially extend an asset’s life are not. Interest incurred
during the construction phase of capital assets is also capitalized. All reported capital assets
except for land and construction in progress are depreciated. Depreciation is recorded using
the straight-line method over the estimated useful lives of the related assets. Estimate useful
lives are as follows:
Years
Land improvements
Buildings and improvements
Equipment
5-25
10-39
3-30
Compensated Absences - Employees earn vacation and sick leave as they provide services.
Employees earn 1.25 sick days per month. Employees hired prior to July 1, 1995, may
accumulate up to a maximum of 90 days of sick leave and upon retirement will be paid out
100% of unused sick time at current rates of pay. Employees hired after July 1, 1995, may
accumulate an unlimited number of sick days and upon retirement will be paid out 20% of
unused sick time at current rates of pay. Vacation amounts accrue according to length of
employment. Employees may carry forward vacation days into the next year up to two times
their annual accrual rate.
Other Post-employment Benefits - Other post-employment benefit liabilities that are required
to be reported by Governmental Accounting Standard Board (GASB) Statement 45 are not
material to these financial statements.
Pensions – During the year ended June 30, 2015, the Authority adopted Governmental
Accounting Standards Board (GASB) Statement No. 68 – Accounting and Financial
Reporting for Pensions. For purposes of measuring the net pension liability, deferred
outflows of resources and deferred inflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the New Hampshire Retirement
System (NHRS) and additions to/deductions from NHRS’ fiduciary net position have been
determined on the same basis as they are reported by NHRS. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms.
Net Position - Net position represents the difference between assets, deferred outflows of
resources, liabilities and deferred inflows of resources. The net investment in capital assets
consists of capital assets, net of accumulated depreciation, reduced by any outstanding
A-124
balances of bonds, notes or other borrowings used for the acquisition, construction or
improvement of those assets. Net Position is reported as restricted when there are limitations
imposed on their use either through enabling legislation adopted by the Authority or through
external restrictions imposed by creditors, grantors or laws or regulations of other governments. Unrestricted net position is the net amount of the assets, deferred outflows of
resources, liabilities and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted components of net position.
The Authority’s policy is to first apply restricted resources when an expense is incurred for
purposes for which both restricted and unrestricted net position is available.
Revenues and Expenses
Operating Revenues and Expenses - Operating revenues and expenses for the Authority are
those that result from providing services and producing and delivering goods in connection
with its principal ongoing operations. Operating expenses, which include depreciation on
capital assets, are necessary costs incurred to provide 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
Deposits and investments as of June 30, 2015 are classified in the accompanying financial
statements as follows:
2015
Statement of Net Position:
Cash and cash equivalents
Investments
Total deposits and investments
$
70,784
67,914
$ 138,698
Deposits and investments at June 30, 2015 consist of the following:
2015
Cash on hand
Deposits with financial institutions
Total deposits and investments
$
1,266
137,432
$ 138,698
The Authority’s investment policy requires that deposits and investments be made in New
Hampshire based financial institutions that are participants in one of the federal depository
insurance programs. The Authority limits its investments to demand deposits, money market
accounts, and certificates of deposit.
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Custodial Credit Risk
Custodial credit risk for deposits is the risk that in the event of a bank failure, the Authority’s
deposits may not be returned to it. The Authority does not have a formal investment policy
for assurance against custodial credit risk; however, the Authority has an agreement with its
primary bank to collateralize deposits in excess of the FDIC insurance limits.
NOTE 3 - DUE FROM OTHER GOVERNMENTS
Receivables from other governments consist of balances due from federal and state funding
for the various airport improvement projects. All receivables are considered collectible in full
and will be received within one year. A summary of the principal items of intergovernmental
receivables as of June 30, 2015 is as follows:
State and Federal share of Federal
Aviation Grants AIP Project SBG#-12-04-2010
AIP Project SBG#-12-06-2010
AIP Project SBG#-12-12-2014
AIP Project SBG#-12-13-2014
AIP Project SBG#-12-14-2014
AIP Project SBG#-12-15-2015
$
30,355
21,368
35,923
26,154
94,424
301,228
$ 509,452
NOTE 4 - CAPITAL ASSETS
The following is a summary of changes in capital assets during the years ended June 30, 2015:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Other capital assets:
Land improvements
Buildings and improvements
Equipment
Total other capital assets at historical cost
Less accumulated depreciation for:
Land improvements
Buildings and improvements
Equipment
Total accumulated depreciation
Total other capital assets, net
Total capital assets, net
$
Balance
7/1/14
Additions
3,227,508 $
447,750
3,675,258
$
1,084,756
1,084,756
$
(122,382)
(122,382)
3,227,508
1,410,124
4,637,632
-
-
27,903,490
1,525,306
2,023,409
31,452,205
(122,382) $
(6,885,994)
(890,434)
(841,719)
(8,618,147)
22,834,058
27,471,690
27,903,490
1,525,306
2,023,409
31,452,205
(5,680,492)
(1,205,502)
(848,149)
(42,285)
(765,010)
(76,709)
(7,293,651)
(1,324,496)
24,158,554
(1,324,496)
$ 27,833,812 $ (239,740) $
A-126
Reductions
Balance
6/30/15
NOTE 5 - PENSION PLAN
Plan Description
The Authority contributes to the New Hampshire Retirement System (NHRS), a public
employee retirement system that administers a single cost-sharing, multiple-employer
defined benefit pension plan as defined in Governmental Accounting Standards Board
(GASB) Statement No. 67, Financial Reporting for Pension Plans – an amendment of GASB
Statement No. 25. The plan is a contributory, defined benefit plan providing service,
disability, death and vested retirement benefits to plan members and beneficiaries. Substantially all full-time state employees, public school teachers and administrators, permanent
firefighters and permanent police officers within the State of New Hampshire are eligible and
required to participate in the Pension Plan.
The NHRS issues a publicly available financial report that includes financial statements and
required supplementary information for NHRS. That report may be obtained by writing to
New Hampshire Retirement System, 54 Regional Drive, Concord, New Hampshire 03301.
Benefits Provided
Benefit provisions are established and may be amended by the New Hampshire State legislature.
The Pension Plan is divided into two membership groups. State and local employees and
teachers belong to Group 1. Permanent police and firefighters belong to Group II.
Group I members at age 60 or 65 (for members who commence service after July 1, 2011)
qualify for a normal service retirement allowance based on years of creditable service and
average final salary for the highest of either three or five years, depending on when their
service commenced. The yearly pension amount is 1/60 or 1.667% of average final
compensation (AFC), multiplied by years of creditable service. At age 65, the yearly pension
amount is recalculated at 1/66 or 1.525% of AFC multiplied by years of creditable service.
Group II members who are age 60, or members who are at least age 45 with at least 20 years
of creditable service, can receive a retirement allowance at a rate of 2.5% of AFC for each
year of creditable service, not to exceed 40 years. Members commencing service on or after
July 1, 2011 or members who have a nonvested status as of January 1, 2012 can receive a
retirement allowance at age 52.5 with 25 years of service or ago 60. The benefit shall be
equal to 2% of AFC times creditable service up to 42.5 years. However, a member who
commenced service on or after July 1, 2011 shall not receive a retirement allowance until
attaining the age of 52.5, but may receive a reduced allowance after age 50 if the member has
at least 25 years of creditable service where the allowance shall be reduced, for each month
by which the benefit commencement date precedes the month after which the member attains
52.5 years of age by ¼ of 1% or age 60.
Members of both groups may qualify for vested deferred allowances, disability allowances
and death benefit allowances subject to meeting various eligibility requirements. Benefits are
based on AFC or earnable compensation and/or service.
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Funding Policy
Plan members are required to contribute 7.0% of their covered salary and the Authority is
required to contribute at an actuarially determined rate. Per RSA-100:16, plan member
contribution rates are established and may be amended by the New Hampshire State
legislature, and employer contribution rates are determined by the NHRS Board of Trustees
based on an actuarial valuation. The Authority’s contribution rates for the year ended June 30,
2015 was 10.77%. The Authority contributes 100% of the employer cost for its employees. The
Authority’s contributions to the pension plan for the year ended June 30, 2015 were $24,507.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
The net pension liability was measured as of June 30, 2015, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of
June 30, 2013. The roll-forward of the net pension liability from June 30, 2013 to June 30,
2014 reflects expected service cost and interest reduced by actual benefit payments, refunds,
and administrative expenses for the plan year. At June 30, 2015, the Authority reported a
liability of $269,731 for its proportionate share of the net pension liability. The Authority’s
proportion was approximately 0.00719% at June 30, 2015, which was a decrease of 0.0034%
from its proportion measured as of June 30, 2013. The Authority’s proportion of the net
pension liability was based on actual contributions by the Authority relative to the actual
contributions of all participating plan members, excluding contributions to separate financespecific liabilities of individual employers or the NHRS.
For the year ended June 30, 2015, the Authority recognized pension revenue of $7,704. At
June 30, 2015, the Authority reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
Authority contributions and proportionate share
of contributions
Authority contributions subsequent to the
measurement date
Total
$
-
23,394
$
23,394
Deferred
Inflows of
Resources
$
34,512
119,761
$ 154,273
The net amount of deferred outflows of resources and deferred inflows of resources related to
pensions is reflected as a decrease to unrestricted net position in the amount of $130,879. The
Authority reported $23,394 as deferred outflows of resources related to pensions resulting
from the Authority’s contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending June 30, 2016. Other
amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
A-128
Year ended June 30:
2015
2016
2017
2018
2019
$
Total
(34,620)
(34,620)
(34,620)
(34,620)
(15,793)
$ (154,273)
Actuarial Assumptions
The total pension liability in the June 30, 2013 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation
3.0 percent
Wage inflation
3.75 percent
Salary increases
5.8 percent, average, including inflation
Investment rate of return
7.75 percent, net of pension plan investment expense,
including inflation
Mortality rates were based on the RP-2000 mortality table projected to 2020 with Scale AA.
The table includes a margin of 15% for men and 17% for women for mortality improvements.
The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an
actuarial experience study for the period July 1, 2005 – June 30, 2010.
The long-term expected rate of return on pension plan investments was selected from a bestestimate range determined using a building-block approach. Under this method, an expected
future real return range is calculated separately for each asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future
real rates of return net of investment expenses by the target asset allocation percentage and
by adding expected inflation. The following table presents target allocations and weighted
average long-term expected real rates of return for each major class of asset:
Asset Class
Fixed income
Domestic equity
International equity
Real estate
Private equity
Private debt
Opportunistic
Total
Target
Asset
Allocation
25%
30%
20%
10%
5%
5%
5%
100%
A-129
Weighted Average Long-term
Expected Real Rate of Return
(1.75) - 2.00%
3.25%
4.25 - 6.5%
3.25%
5.75%
5.00%
2.50%
Discount Rate
The discount rate used to measure the collective pension liability was 7.75%. The projection
of cash flows used to determine the discount rate assumed that employee contributions will
be made at the current contribution rate and that employer contributions will be made at rates
equal to the difference between actuarially determined contribution rates and the member
rate. For purposes of the projection, member contributions and employer service cost contributions are projected based on the expected payroll of current members only. Based on those
assumptions, the pension plan’s fiduciary net position was projected to be available to make
all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the collective pension liability.
Sensitivity of the Authority’s Proportionate Share of the Net Pension Liability to Changes
in the Discount Rate
The following presents the Authority’s proportionate share of the net pension liability calculated using the discount rate of 7.75%, as well as what the Authority’s proportionate share of
the net pension liability would be if it were calculated using a discount rate that is onepercentage-point greater or one-percentage-point lower than the current single discount rate:
NOTE 6 – LONG-TERM OBLIGATIONS
Changes in Long-Term Obligations
The changes in the Authority’s long-term obligations for the year ended June 30, 2015 are as
follows:
Type
Compensated absences
Balance
7/1/14
$ 49,339
Additions
$
1,600
Reductions
$
37,739
Balance
6/30/15
$ 13,200
Amounts
Due Within
One Year
$
-
NOTE 7 – SHORT-TERM OBLIGATIONS
During September 2014, the Authority secured a loan with a local bank in the amount of
$200,000 with a maturity date of March 2015. The purpose of the loan was for the acquisition of property around the airport runway approaches. Interest on the loan is calculated at
the Wall Street Journal Prime Rate plus 0.75 percentage points, 4.0% at June 30, 2015.
Repayment of the note payable is funded through federal reimbursement grants. The
Authority renegotiated repayment terms with the local bank to include interest only for an
unspecified period of time, with the principal portion to be repaid upon receipt of grant
reimbursement. During the year ended June 30, 2015, the Authority made principal payments
of $120,000 toward the note payable. At June 30, 2015 the note has a balance of $80,000 and
is expected to be repaid within the next fiscal year.
A-130
NOTE 8 - OPERATING LEASE
The Authority leases land from the City of Nashua, New Hampshire under a master lease
commencing October 8, 1974. The lease expires December 31, 2047. The rent for the term of
the lease is $1.
The Authority subleases a portion of this land pursuant to twenty year operating leases. The
base rent is adjusted biannually by the consumer price index. For the year ended June 30,
2015, yearly lease income was $310,362.
The Authority also leases the control tower under terms of a lease, which expires August 13,
2020. The rent for the term of the lease is $1.
NOTE 9 - CONTINGENCIES
Litigation
There may be various claims and suits pending against the Authority, which arise in the
normal course of the Authority’s activities. In the opinion of Authority management, the
potential claims against the Authority, which are not covered by insurance, are immaterial
and would not affect the financial position of the Authority.
Federal Grants
The Authority participates in a number of federally assisted grant programs. These programs
are subject to financial and compliance audits by the grantors or their representatives. The
amounts, if any, of expenses which may be disallowed by the granting agency cannot be
determined at this time, although the Authority expects such amounts, if any, to be immaterial.
NOTE 10 – RESTATEMENT OF NET POSITION
During the year ended June 30, 2015, the Authority adopted Governmental Accounting
Standards Board (GASB) Statement No. 68 – Accounting and Financial Reporting for
Pensions. This new standard requires employers participating in a pension plan provided to
employees of state and local governmental employers that are administered through a trust to
recognize their proportionate share of the collective net pension liability, deferred outflows of
resources, deferred inflows of resources and pension expense. The impact of the restatement on
beginning net position is as follows:
Net Position - June 30, 2015 (as previously reported)
Amount of restatement due to:
Net Pension Liability (NPL) as of June 30, 2013
Recognition of deferred outflow of resources for
contributions subsequent to NPL measurement date
$ 28,174,076
Net Position - June 30, 2014, as restated
$ 27,742,368
A-131
(455,021)
23,313
CITY OF NASHUA, NEW HAMSPHIRE
SCHEDULE OF FUNDING PROGRESS
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2015
(Unaudited)
Actuarial
Value of
Assets
(a)
Actuarial
Valuation
Date
07/01/13
07/01/11
07/01/09
07/01/08
07/01/07
$
$
$
$
$
-
Other Post-Employment Benefits
Actuarial
Accrued
Liability
Unfunded
(AAL) AAL
Funded
Entry Age
(UAAL)
Ratio
(b)
(b-a)
(a/b)
$ 39,415,168
$ 43,075,476
$ 42,017,700
$ 42,699,000
$ 42,699,000
$ 39,415,168
$ 43,075,476
$ 42,017,700
$ 42,699,000
$ 42,699,000
A-132
0.0%
0.0%
0.0%
0.0%
0.0%
Covered
Payroll
(c)
UAAL as
a Percentage of
Covered
Payroll
[(b-a)/c]
$ 123,880,502
$ 120,292,886
$ 118,962,778
$ 102,640,996
$ 102,640,996
31.8%
35.8%
35.3%
41.6%
41.6%
CITY OF NASHUA, NEW HAMPSHIRE
SCHEDULE OF PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2015
(Unaudited)
2015
New Hampshire Retirement System:
Proportion of the net pension liability for the most
recent measurement date
4.925%
Proportionate share of the net pension liability for the
most recent measurement date
$
184,879,108
Covered-employee payroll for the most recent
measurement date
$
102,555,267
Proportionate share of the net pension liability (asset)
as a percentage of its covered-employee payroll
180.27%
Plan fiduciary net position as a percentage of the total
pension liability
66.32%
Schedules are intended to show information for 10 years. Additional years will be displayed as
they become available
See Independent Auditors' Report.
A-133
CITY OF NASHUA, NEW HAMPSHIRE
SCHEDULE OF CONTRIBUTIONS
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2015
(Unaudited)
2015
New Hampshire Retirement System:
Contractually required contribution for the current fiscal year
$
Contributions in relation to the contractually required
contribution
(19,432,673)
$
Contribution deficiency (excess)
Covered-employee payroll for the current fiscal year
Contributions as a percentage of covered-employee payroll
19,432,673
102,555,267
18.95%
Schedules are intended to show information for 10 years. Additional years will be displayed
as they become available
See Independent Auditors' Report.
A-134
CITY OF NASHUA, NEW HAMPSHIRE
BOARD OF PUBLIC WORKS' RETIREMENT SYSTEM
Schedule of Changes in the Net Pension Liability
(Unaudited)
2015
Total pension liability
Service cost
Interest on unfunded liability - time value of $
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member contributions
$
Net change in total pension liability
833,083
3,165,454
84,012
(1,231,934)
(2,526,991)
323,624
Total pension liability - beginning
44,069,736
$ 44,393,360
Total pension liability - ending (a)
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member contributions
Administrative expense
$
Net change in plan fiduciary net position
772,343
772,343
1,104,870
(2,526,991)
(2,359)
120,206
Plan fiduciary net position - beginning
37,391,937
Plan fiduciary net position - ending (b)
$ 37,512,143
Net pension liability (asset) - ending (a-b)
$
6,881,217
Schedule is intended to show information for 10 years. Additional years will be displayed as they become
available.
See notes to the City's financial statements for summary of significant actuarial methods and assumptions.
See Independent Auditors' Report.
A-135
CITY OF NASHUA, NEW HAMPSHIRE
BOARD OF PUBLIC WORKS' RETIREMENT SYSTEM
Schedules of Net Pension Liability, Contributions, and Investment Returns
(Unaudited)
Schedule of Net Pension Liability
2015
Total pension liability
Plan fiduciary net position
$
44,393,360
37,512,143
Net pension liability (asset)
$
6,881,217
Plan fiduciary net position as a percentage of the total pension liability
Covered employee payroll
84.50%
$
Participating employer net pension liability (asset)
as a percentage of covered employee payroll
8,448,146
81.45%
Schedule of Contributions
2015
Actuarially determined contribution
Contributions in relation to the actuarially determined contribution
$
Contribution deficiency (excess)
$
Covered employee payroll
$
Contributions as a percentage of covered employee payroll
772,343
772,343
8,448,146
9.14%
Schedule of Investment Returns
Year Ended June 30
2015
Annual money weighted rate of return, net of investment expense
2.9888%
Schedule is intended to show information for 10 years. Additional years will be displayed as they
become available.
See Independent Auditors' Report.
A-136
Combining Financial Statements
A-137
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are established to account for resources obtained and expended for
specified purposes and restricted by law or local action.
Special Revenue Funds are established for the following purposes:
Police Grants: to account for federal and State grants for the Police Department.
Fire Grants: to account for federal and State grants for the Fire Department.
Community Health and Services Grants: to account for federal and State health and
human services grants.
Parks and Recreation Grants: to account for federal and State parks and recreation grants.
Transit Grants: to account for federal and State transportation grants.
CDBG/Home Grants: to account for the Community Development Block and HOME
grants.
Community Development Division Grants: to account for the federal and State grants for
the Community Development Department.
Other Public Safety Grants: to account for federal and state public safety grants.
Other City Grants: to account for all other City grants.
Food Services: to account for the School Department’s Food Service Program.
School Grants: to account for the School Department’s federal, State and local grants.
City Revolving Funds: to account for the City’s revolving funds.
School Revolving Funds: to account for the School Department’s revolving funds, other
than Food Service.
Other Trust Funds: to account for other City’s Trust Funds.
A-138
CAPITAL PROJECT FUNDS
Capital Project Funds are established to account for resources obtained and expended for the
acquisition of major capital facilities or equipment other than those employed in the delivery
of services accounted for in Enterprise Funds.
The current funds were established for the following purposes:
Fire Projects: to account for Fire Department Capital Projects.
Public Works Projects: to account for Public Works Department Capital Projects.
Community Development Projects: to account for Community Development Department
Capital Projects.
School Department Projects: to account for School Department Capital Projects.
Technology Projects: to account for Technology projects.
City Building Projects: to account for capital projects related to City facilities.
City-wide Communication Projects: to account for capital projects related to city-wide
communication issues.
PERMANENT FUNDS
Permanent Funds are established to account for certain assets held by the City in a fiduciary
capacity as trustee. The following is a description of City Permanent Funds:
Cemetery Permanent Funds: to account for the City’s Cemetery Funds.
Library Permanent Funds: to account for the City’s Library Funds.
Other Permanent Funds: to account for Other Nonexpendable Funds.
A-139
CITY OF NASHUA, NEW HAMPSHIRE
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2015
Special Revenue Funds
Police
Grants
ASSETS
Cash and short term investments
Investments
Departmental and other receivables
Intergovernmental receivables
Loans receivable
Due from other funds
Total Assets
LIABILITIES
Accounts payable
Accrued liabilities
Due to other funds
Total Liabilities
$
71,447
-
Fire
Grants
$
24,622
-
Community
Health & Services
Grants
$
Parks &
Recreation
Grants
283,579
-
$
1,871
$ 71,447
$ 24,622
$ 283,579
$
1,871
$
$
$
$
-
3,711
38,202
20,510
4,638
275,489
41,913
20,510
-
-
-
-
29,534
-
4,112
-
3,452
-
1,871
-
29,534
4,112
3,452
1,871
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCE
$ 71,447
$ 24,622
$ 283,579
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Nonspendable
Restricted
Committed
Unassigned
Total Fund Balance
A-140
280,127
-
$
1,871
Special Revenue Funds
Transit
Grants
$
CDBG/Home
Grants
Community
Other
Development Public Safety
Division Grants
Grants
288,855
-
$
267,642
-
$
$ 288,855
$
267,642
$
$
990
7,240
259,412
10,994
185,076
196,070
267,642
198,873
-
162,505
-
$
6,562
$ 198,873
$ 162,505
$
6,562
$
$
$
-
-
$
Other
City Grants
80
160,307
10,607
146,120
160,387
156,727
-
-
-
-
-
-
92,785
-
-
38,486
-
5,778
-
6,562
-
92,785
-
38,486
5,778
6,562
$ 198,873
$ 162,505
$ 288,855
$
267,642
$
6,562
(continued)
A-141
(continued)
Special Revenue Funds
Food
Services
ASSETS
Cash and cash equivalents
Investments
Departmental and other receivables
Intergovernmental receivables
Loans receivable
Due from other funds
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Nonspendable
Restricted
Committed
Unassigned
Total Fund Balance
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCE
$
City
Revolving
Funds
School
Grants
School
Revolving
Funds
213,629
339,400
$
2,894,633
-
$
152,965
625,073
6,136,519
$
16,075
1,832
1,079,162
$ 553,029
$
2,894,633
$
6,914,557
$
1,097,069
$
$
322,497
2,407,916
$
45,308
-
$
3,170
-
3,286
3,286
2,730,413
45,308
3,170
163,655
40,569
67,355
549,743
-
565
-
6,828,680
-
1,026,544
-
549,743
565
6,828,680
1,026,544
-
$ 553,029
A-142
$
2,894,633
$
6,914,557
$
1,097,069
Special Revenue Funds
Other
Trust Funds
Capital Project Funds
Public
Works
Projects
Fire
Projects
Subtotal
Community
Development
Projects
$
1,867,354
2,267,064
136,622
$
1,867,354
2,267,064
169,040
4,407,617
625,073
7,700,136
$
7,828
$
5,198,176
9,328,152
$
-
$
4,271,040
$ 17,036,284
$
7,828
$ 14,526,328
$
-
$
2,212
-
$
$
-
$
$
-
2,212
-
$
990
413,743
3,493,032
-
3,907,765
-
-
-
271,579
-
-
-
4,268,828
-
732,888
12,124,052
-
4,427
3,401
-
14,484,613
74,935
(33,220)
-
4,268,828
12,856,940
7,828
14,526,328
-
4,271,040
$ 17,036,284
7,828
$ 14,526,328
$
$
-
(continued)
A-143
(continued)
Capital Project Funds
School
Department
Projects
ASSETS
Cash and cash equivalents
Investments
Departmental and other receivables
Intergovernmental receivables
Loans receivable
Due from other funds
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
City
Building
Projects
Technology
Projects
City-wide
Communications
Projects
$
826,875
$
1,116,029
$
69,268
$
$
826,875
$ 1,116,029
$
69,268
$ 2,700,826
$ 19,247,154
$
150
-
$
$
-
$
$
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Nonspendable
Restricted
Committed
Unassigned
Total Fund Balance
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCE
$
-
2,700,826
Subtotal
-
$
5,198,176
14,048,978
150
-
150
-
-
-
150
-
-
-
-
-
1,448,169
650,000
(1,271,444)
1,116,029
-
6,652
62,616
-
2,700,826
-
19,760,716
790,952
(1,304,664)
826,725
1,116,029
69,268
2,700,826
19,247,004
826,875
$ 1,116,029
69,268
$ 2,700,826
$ 19,247,154
A-144
$
Permanent Funds
Cemetery
Permanent
Funds
$
Library
Permanent
Funds
Other
Permanent
Funds
Subtotal
797,403
16,098,784
-
$
261,497
4,420,157
-
$
$ 16,896,187
$
4,681,654
$ 171,018
$ 21,748,859
$ 58,032,297
$
$
17,819
$
$
$
188,722
188,722
-
13,102
157,916
-
Total
Nonmajor
Governmental
Funds
2,051
17,819
2,051
-
-
$
1,072,002
20,676,857
-
208,592
208,592
-
$
2,939,356
22,943,921
169,040
9,605,793
625,073
21,749,114
990
413,893
3,701,624
4,116,507
271,579
16,050,672
656,793
-
4,094,256
569,579
-
159,682
9,285
-
20,304,610
1,235,657
-
20,304,610
21,729,261
12,915,004
(1,304,664)
16,707,465
4,663,835
168,967
21,540,267
53,644,211
4,681,654
$ 171,018
$ 21,748,859
$ 58,032,297
$ 16,896,187
$
A-145
CITY OF NASHUA, NEW HAMPSHIRE
Combining Statement of Revenues, Expenditures,
and Changes in Fund Equity
Nonmajor Governmental Funds
For Fiscal Year Ended June 30, 2015
Special Revenue Funds
Police
Grants
Revenues:
Property taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Investment income
Miscellaneous
Contributions
$
Total Revenues
Expenditures:
Current:
General government
Police
Fire
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Principal
Interest
234,117
69,346
Fire
Grants
$
1,001,103
-
Community
Health & Services
Grants
$
1,070,776
24,000
(3,909)
Parks &
Recreation
Grants
$
2,000
303,463
1,001,103
1,090,867
2,000
347,125
-
1,093,478
-
1,103,858
-
259
-
-
-
-
Total Expenditures
347,125
Excess (deficiency) of revenues
over expenditures
(43,662)
(92,375)
(12,991)
1,741
51,622
(20,243)
96,487
-
-
-
31,379
96,487
-
-
(12,283)
4,112
(12,991)
1,741
41,817
-
16,443
Other Financing Sources (Uses):
Issuance of bonds
Bond premiums
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net change in fund balance
Fund Balance, beginning of year
Fund Balance, end of year
$
29,534
A-
1,093,478
-
$
4,112
1,103,858
$
3,452
259
130
$
1,871
Special Revenue Funds
Transit
Grants
$
617,114
1,551,132
125,480
-
CDBG/Home
Grants
$
$
344,748
-
Other
Public Safety
Grants
$
175,323
6,000
Other
City Grants
$
890
495
2,293,726
1,742,172
344,748
181,323
1,385
2,654,769
-
1,742,172
-
411,238
-
178,249
-
515
2,431
3,323
-
-
-
2,654,769
$
1,742,172
-
Community
Development
Division Grants
-
1,742,172
-
411,238
-
178,249
6,269
(361,043)
-
(66,490)
3,074
(4,884)
415,460
-
-
-
-
(13,296)
415,460
-
-
-
(13,296)
54,417
-
(66,490)
3,074
(18,180)
38,368
-
104,976
2,704
24,742
92,785
$
-
$
38,486
$
5,778
$
6,562
(continued)
A-147
(continued)
Special Revenue Funds
Food
Services
Revenues:
Property taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Investment income
Miscellaneous
Contributions
$
Total Revenues
Expenditures:
Current:
General government
Police
Fire
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt services
Principal
Interest
$
Total Other Financing Sources (Uses)
Net change in fund balance
Fund Balance, beginning of year
$
$
327,334
700,000
366,494
1,226,967
1,475,435
23,033
576,517
34,591
$
942,043
33,174
8,633
-
8,196,171
4,730,371
983,850
4,876,212
-
8,199,497
-
339,185
1,457,185
13,955
257,854
3,562
219,478
52,168
-
1,345,301
-
-
60,000
28,854
8,199,497
102,699
Other Financing Sources (Uses):
Issuance of bonds
Bond premiums
Transfers in
Transfers out
8,196,171
-
School
Revolving
Funds
4,978,911
4,876,212
Excess (deficiency) of revenues
over expenditures
Fund Balance, end of year
1,939,414
3,039,442
55
-
-
Total Expenditures
City
Revolving
Funds
School
Grants
-
2,432,241
(3,326)
1,345,301
2,298,130
(361,451)
-
-
8,205
(63,743)
-
-
-
(55,538)
-
102,699
(3,326)
2,242,592
447,044
3,891
4,586,088
549,743
$
A-
565
$
6,828,680
(361,451)
1,387,995
$
1,026,544
Capital Project Funds
Special Revenue Funds
Other
Trust Funds
$
59,368
(52,191)
7,200
525,433
Subtotal
$
539,810
26,389,900
149,627
1,478
6,583
69,606
40,820
450
42,029
-
489,327
1,805,788
1,292,265
14,490,616
301,105
1,107,870
265,089
4,860,347
-
-
$
327,334
700,000
366,494
4,784,906
18,864,483
(29,103)
741,830
633,956
Public
Works
Projects
Fire
Projects
$
-
$
-
1,193,757
-
60,000
28,854
14,654,599
255,135
-
Community
Development
Projects
$
-
14,909,734
-
19,324,391
2,850
-
-
-
-
-
310,593
24,701,261
1,193,757
19,327,241
-
229,217
1,688,639
(1,193,757)
(4,417,507)
-
7,278,499
721,500
155,000
(788)
-
8,154,211
-
20,332
(200,250)
592,106
(297,532)
(179,918)
294,574
1,197,158
49,299
1,983,213
3,401
3,736,704
-
4,219,529
10,873,727
4,427
10,789,624
-
4,268,828
$
12,856,940
976,500
110,519
110,139
-
$
7,828
$
14,526,328
$
(continued)
A-1
(continued)
Capital Project Funds
School
Department
Projects
Revenues:
Property taxes
Auto permits
Penalties, interest and other taxes
Charges for services
Intergovernmental
Investment income
Miscellaneous
Contributions
$
Total Revenues
-
$
-
Expenditures:
Current:
General government
Police
Fire
Education
Public works
Health and human services
Culture and recreation
Community development
Communications
Debt services
Principal
Interest
-
$
-
7,708,282
-
-
City-wide
Communications
Projects
$
-
292,141
-
-
Total Expenditures
City
Building
Projects
Technology
Projects
$
-
34,921
166,514
-
-
-
Subtotal
14,909,734
3,381,160
-
14,654,599
255,135
-
327,062
1,193,757
7,708,282
19,490,905
2,850
3,381,160
-
-
7,708,282
292,141
201,435
3,381,160
32,104,016
(7,708,282)
(292,141)
(201,435)
(3,381,160)
(17,194,282)
7,988,500
801,750
650,000
(53,445)
449,500
50,500
-
94,163
-
5,195,750
804,250
-
21,888,749
2,488,519
1,009,302
(54,233)
Total Other Financing Sources (Uses)
9,386,805
500,000
94,163
6,000,000
25,332,337
Net change in fund balance
1,678,523
207,859
(107,272)
2,618,840
8,138,055
908,170
176,540
81,986
11,108,949
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses):
Issuance of bonds
Bond premiums
Transfers in
Transfers out
Fund Equity, beginning
Fund Equity, ending
(851,798)
$
826,725
$
A-150
1,116,029
$
69,268
$
2,700,826
$
19,247,004
Permanent Funds
Cemetery
Permanent
Funds
$
(361,484)
74,673
$
164,436
3
-
Other
Permanent
Funds
$
7,861
5
-
(286,811)
164,439
7,866
72,731
-
100,868
-
835
257
-
-
$
Library
Permanent
Funds
-
Total
Nonmajor
Governmental
Funds
Subtotal
$
-
(189,187)
8
74,673
$
327,334
700,000
366,494
4,784,906
33,519,082
(218,290)
996,973
708,629
(114,506)
41,185,128
73,566
257
100,868
-
889,955
1,805,788
2,486,022
22,198,898
19,792,010
1,108,127
368,807
4,860,347
3,381,160
-
60,000
28,854
72,731
100,868
1,092
174,691
56,979,968
(359,542)
63,571
6,774
(289,197)
(15,794,840)
(326,663)
-
(2,051)
(328,714)
21,888,749
2,488,519
1,601,408
(680,479)
(326,663)
-
(2,051)
(328,714)
25,298,197
(686,205)
63,571
4,723
(617,911)
9,503,357
17,393,670
4,600,264
164,244
16,707,465
$ 4,663,835
$
168,967
22,158,178
$
21,540,267
A-151
44,140,854
$
53,644,211
Detail and Combining Budget
and Actual Schedules
A-152
CITY OF NASHUA, NEW HAMPSHIRE
Detail Schedule of Revenues and Other Financing Sources Budget and Actual - General Fund
For the Year Ended June 30, 2015
Original
Budget
Property Tax
$
Auto permits
188,644,284
Final
Budget
$
188,644,284
Variance
With
Final Budget
Adjusted
Actual
$
188,644,284
$
-
10,907,000
10,907,000
12,457,967
385,000
320,000
350,000
3,000
385,000
320,000
350,000
3,000
452,997
325,289
321,954
-
1,058,000
1,058,000
1,100,240
42,240
1,017,034
1,017,034
1,235,108
218,074
1,017,034
1,017,034
1,235,108
218,074
395,116
35,944,077
2,557,795
150,000
1,600,000
4,183,061
50,510
395,116
35,944,077
2,557,795
150,000.00
1,600,000
4,183,061
50,510
390,159
35,943,297
2,557,795
171,755.00
1,822,206
4,183,061
51,189
(4,957)
(780)
21,755
222,206
679
44,880,559
44,880,559
45,119,462
238,903
430,500
151,600
579,950
430,500
151,600
579,950
565,039
173,644
643,541
134,539
22,044
63,591
1,162,050
1,162,050
1,382,224
220,174
Interest and dividends
400,000
400,000
446,507
46,507
Miscellaneous:
Cable TV franchise
Fines and forfeits
Sale of property
Rental of property
Reimbursements and other
850,000
25,000
1,000
607,362
39,136
850,000
25,000
1,000
607,362
39,136
977,091
22,994
180,027
766,985
151,398
127,091
(2,006)
179,027
159,623
112,262
1,522,498
1,522,498
2,098,495
575,997
619,587
1,734,911
1,718,362
(16,549)
Total Transfers In
619,587
1,734,911
1,718,362
(16,549)
Other Financing Sources:
Bond premiums
Use of fund balance
5,340,000
5,340,000
165,585
5,340,000
165,585
-
Penalties, interest and other taxes:
Interest and cost on redemption
Payments in lieu of taxes
Interest on taxes
Other
Total Penalties, interest and other taxes
Charges for services:
Income from departments
Total Charges for services
Intergovernmental:
State catastrophic aid
State adequacy grant
State aid - buildings
Vocational education
Medicaid
Meals and room tax
Other
Total Intergovernmental
Licenses and permits:
Building permits
Business licenses and permits
Other licenses and permits
Total Licenses and permits
Total Miscellaneous
Transfers In:
Transfers from other funds
Total Other Financing Sources
Total
5,340,000
$
255,551,012
A-153
5,340,000
$
256,666,336
$
1,550,967
67,997
5,289
(28,046)
(3,000)
5,505,585
165,585
259,708,234
$ 3,041,898
CITY OF NASHUA, NEW HAMPSHIRE
Detail Schedule of Expenditures and Other Financing Uses
Budget and Actual - General Fund
For the Year Ended June 30, 2015
Original
Budget
General Government:
Mayor
Board of Aldermen
Legal
City Clerk
Civic and Comm. activities
Human resources
Insurance - Benefits
Pensions
Telecommunications
Information technology
Financial services
Risk Management
Building maintenance
Purchasing
Hunt building
Assessors
GIS
Cemeteries
Contingencies
Capital
Total General Government
$
414,879
220,803
546,613
531,845
936,060
290,555
150,000
1,000
156,000
2,380,645
2,177,649
3,271,735
413,597
412,891
20,877
736,402
139,886
691,655
302,988
675,000
Final
Budget
$
411,848
217,809
543,383
548,276
971,060
310,646
150,000
1,005,645
156,000
2,394,853
2,201,547
3,271,735
413,543
376,134
20,493
735,517
139,524
689,035
252,988
675,000
Variance
With
Final Budget
Adjusted
Actual
$
402,214
217,650
534,352
546,479
962,648
291,601
121,615
600
135,666
2,343,089
2,141,018
3,271,735
413,506
345,965
17,150
735,445
133,083
653,414
237,931
675,000
$
9,634
159
9,031
1,797
8,412
19,045
28,385
1,005,045
20,334
51,764
60,529
37
30,169
3,343
72
6,441
35,621
15,057
-
14,471,080
15,485,036
14,180,161
1,304,875
Police
27,752,915
28,497,744
28,328,074
169,670
Fire
21,336,559
21,573,001
21,564,983
8,018
2,634,760
2,634,760
2,632,342
2,418
Water fire protection
133,799,926
132,765,375
132,730,608
34,767
Public Works:
PW Division and Engineering
Street department
Street lighting
Parking lots
Education
1,264,732
6,792,968
779,800
271,480
1,261,364
6,984,307
779,800
293,390
1,260,602
6,983,571
771,862
289,270
762
736
7,938
4,120
Total Public Works
9,108,980
9,318,861
9,305,305
13,556
336,903
490,558
460,809
492,741
660,000
330,978
485,345
457,409
488,977
660,000
296,579
453,781
449,461
479,045
657,894
34,399
31,564
7,948
9,932
2,106
2,441,011
2,422,709
2,336,760
85,949
3,045,172
3,112,422
3,072,458
3,080,627
3,063,749
3,017,832
8,709
62,795
6,157,594
6,153,085
6,081,581
71,504
2,464,864
2,433,135
2,414,031
19,104
334,153
333,460
309,587
23,873
12,944,680
5,128,008
13,029,680
5,043,008
13,025,778
5,043,213
3,902
(205)
Health and Human Services:
Community services
Community health
Environmental health
Welfare administration
Welfare costs
Total Heath and Human Services
Culture and recreation:
Parks and recreation
Public libraries
Total Culture and Recreation
Community Development
Communications
Debt Service:
Principal
Interest and cost
Total Debt Service
Intergovernmental
Interfund Transfers:
Transfer to Solid Waste Fund
Transfers to Other Funds
Total
18,072,688
18,072,688
18,068,991
3,697
10,383,051
10,383,051
10,383,051
-
3,731,019
2,862,412
3,731,019
2,862,412
3,731,019
2,862,412
-
6,593,431
6,593,431
6,593,431
$ 255,551,012
$ 256,666,336
$ 254,928,905
A-154
$ 1,737,431
Proprietary Fund Types
Internal Service Funds
Internal Service Funds are proprietary fund types established for the City’s self-insurance
programs.
The City of Nashua has the following Internal Service Funds:
Employee Benefits Fund: To account for the operation of the City’s self-insurance program
for employees’ healthcare.
Property and Casualty Fund: To account for the operation of the City’s self-insurance
program for general property and casualty insurance.
A-155
CITY OF NASHUA, NEW HAMPSHIRE
INTERNAL SERVICE FUND
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2015
Employee
Benefits
Fund
Governmental Activities
Internal Service Fund
Property
& Casualty
Fund
Total
ASSETS
Current:
Due from other funds
Other assets
5,394,627
-
$ 25,712,011
717,508
21,034,892
5,394,627
26,429,519
Current:
Accrued liabilities
Other liabilities
3,601,487
750,175
4,439,785
-
8,041,272
750,175
TOTAL LIABILITIES
4,351,662
4,439,785
8,791,447
16,683,230
954,842
17,638,072
954,842
$ 17,638,072
TOTAL ASSETS
$ 20,317,384
717,508
$
LIABILITIES
NET POSITION
Unrestricted
TOTAL NET POSITION
$ 16,683,230
See notes to financial statements.
A-156
$
CITY OF NASHUA, NEW HAMPSHIRE
INTERNAL SERVICE FUND
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
FOR FISCAL YEAR ENDED JUNE 30, 2015
Employee
Benefits
Fund
Operating Revenues:
Employer contributions
Employee and retiree contributions
Other
Total Operating Revenues
Operating Expenses:
Non-personnel expenses
Total Operating Expenses
$ 25,302,237
10,884,670
1,429,540
$ 28,573,972
10,884,670
1,743,873
37,616,447
3,586,068
41,202,515
38,365,298
3,445,975
41,811,273
38,365,298
3,445,975
41,811,273
(748,851)
Nonoperating Revenues:
Investment income
Total Nonoperating Revenues, Net
Change in Net Position
Net Position at End of Year
$
Total
3,271,735
314,333
Operating Income (Loss)
Net Position at Beginning of Year
Governmental Activities
Internal Service Fund
Property
& Casualty
Fund
140,093
4,769
1,271
6,040
4,769
1,271
6,040
(744,082)
141,364
17,427,312
$ 16,683,230
See notes to financial statements.
A-157
(608,758)
$
(602,718)
813,478
18,240,790
954,842
$ 17,638,072
CITY OF NASHUA, NEW HAMPSHIRE
INTERNAL SERVICE FUND
COMBINING STATEMENT OF CASH FLOWS
FOR FISCAL YEAR ENDED JUNE 30, 2015
Employee
Benefits
Fund
Cash Flows From Operating Activities:
Receipts from customers and users
Receipts from interfund services provided
Payments to vendors
$
Net Cash (Used for) Operating Activities
12,314,210
25,302,237
(39,009,277)
Governmental Activities
Internal Service Fund
Property
& Casualty
Fund
$
314,333
3,271,735
(3,702,445)
$
Total
12,628,543
28,573,972
(42,711,722)
(1,392,830)
(116,377)
(1,509,207)
Cash Flows From Noncapital Financing Activities:
Payments from interfund loan agreements
1,388,061
115,106
1,503,167
Net Cash Provided By Noncapital Financing Activities
1,388,061
115,106
1,503,167
4,769
1,271
6,040
Net Change in Cash and Short-Term Investments
-
-
-
Cash and Short-Term Investments, Beginning of Year
-
-
-
Cash Flows From Investing Activities:
Investment income
Cash and Short-Term Investments, End of Year
$
Reconciliation of Operating Income to Net Cash
Provided by (Used For) Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Changes in assets and liabilities:
Other assets
Accrued liabilities
Other liabilities
Net Cash (Used for) Operating Activities
$
A-158
(748,851)
$
$
1,800
(664,756)
18,977
$
See notes to financial statements.
-
(1,392,830)
-
140,093
$
$
1,374
(257,844)
$
(116,377)
-
(608,758)
3,174
(922,600)
18,977
$
(1,509,207)
FIDUCIARY FUNDS
AGENCY FUND
Agency Funds are established to account for fiduciary assets held by the City in a custodial
capacity as an agent on behalf of others.
Agency Funds represent monies held in escrow from developers in the City.
A-1
CITY OF NASHUA, NEW HAMPSHIRE
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended June 30, 2015
Balance
July 1,
2014
Additions
Deductions
Balance
June 30,
2015
Developer Escrows
Assets - cash and short-term investments
Assets - due from external parties
Total Assets
Liabilities - other liabilities
Liabilities - due to external parties
Total Liabilities
$ 313,953
-
$
2,827
-
$
(56,490)
-
$ 260,290
-
$ 313,953
$
2,827
$
(56,490)
$ 260,290
$ 306,956
6,997
$
89,811
143,849
$ (136,777)
(150,546)
$ 259,990
300
$ 313,953
$ 233,660
$ (287,323)
$ 260,290
A-160
CITY OF NASHUA, NEW HAMPSHIRE
STATISTICAL SECTION
The City of Nashua comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures,
and required supplementary information says about the government’s overall financial
health.
Page
Financial Trends
These schedules contain trend information to help the reader
understand how the government’s financial performance and wellbeing have changed over time.
162
Revenue Capacity
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property
tax.
168
Debt Capacity
These schedules present information to help the reader assess the
affordability of the government’s current levels of outstanding debt
and the government’s ability to issue additional debt in the future.
174
Demographic and Economic Information
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the government’s
financial activities take place.
177
Operating Information
These schedules contain service and infrastructure data to help the
reader understand how the information in the government’s financial
report relates to the service the government provides and the activities
it performs.
179
A-161
City of Nashua, New Hampshire
Net Position by Component
(1)
Last Ten Fiscal Years
(accrual basis of accounting)
2006
Governmental Activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
$
Business-type activities
Net investment in capital assets
Restricted
Unrestricted
Total business-type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
$
71,330,362
30,981,554
34,217,644
136,529,560
2007
$
75,371,785
33,679,170
46,055,519
155,106,474
2008
$
82,615,430
29,126,492
55,983,443
167,725,365
2009
$
91,043,817
21,686,588
48,672,885
161,403,290
81,467,773
1,732,999
11,181,863
94,382,635
94,270,446
2,336,365
40,245
96,647,056
109,669,910
2,913,041
(13,599,364)
98,983,587
115,532,890
3,612,918
(21,136,265)
98,009,543
152,798,135
32,714,553
45,399,507
230,912,195
169,642,231
36,015,535
46,095,764
251,753,530
192,285,340
32,039,533
42,384,079
266,708,952
206,576,707
25,299,506
27,536,620
259,412,833
$
$
$
2010
$
103,436,163
21,611,710
43,639,686
168,687,559
2011
$
99,864,775
3,773,376
(5,306,300)
98,331,851
$
203,300,938
25,385,086
38,333,386
267,019,410
$
111,077,357
24,687,379
35,368,271
171,133,007
2012
$
119,796,245
24,925,380
41,041,536
185,763,161
2013
$
133,385,506
32,456,683
30,724,278
196,566,467
$
139,619,179
43,985,208
28,043,671
211,648,058
$
158,392,742
35,756,406
(154,754,432)
39,394,716
102,157,830
3,972,974
(6,555,882)
99,574,922
105,608,828
3,863,829
(8,272,538)
101,200,119
105,525,905
4,270,548
(6,549,015)
103,247,438
93,304,028
4,472,662
6,653,484
104,430,174
94,936,719
4,473,789
2,348,049
101,758,557
213,235,187
28,660,353
28,812,389
270,707,929
225,405,073
28,789,209
32,768,998
286,963,280
238,911,411
36,727,231
24,175,263
299,813,905
232,923,207
48,457,870
34,697,155
316,078,232
253,329,461
40,230,195
(152,406,383)
141,153,273
$
$
Data Source:
Audited Financial Statements
Notes:
(1)
Roads and sidewalks retroactive to 1980 were reported in FY2006 (compliant with GASB 34 requirements).
(2)
In FY2015, the City's beginning net position as of July 1, 2014 was restated for the implementation of Governmental Accounting Standards Board (GASB) Statement 68, Accounting and Financial Reporting for Pensions.
A-162
2015(2)
2014
$
$
City of Nashua, New Hampshire
Change in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2006
Expenses
Governmental activities:
(2)
General government
Police
Fire
Water Fire Protection Services
Education
Public Works
Health and Human Services
Culture and Recreation
Community Development
Communications
$
(6)
11,147,538
23,070,949
19,193,738
1,634,047
127,629,646
10,893,022
3,454,063
7,605,481
5,935,757
1,003,608
2007
$
10,634,275
22,210,688
17,918,642
1,781,355
125,136,253
9,968,194
3,959,298
6,671,417
6,316,105
1,031,116
2008
$
24,124,526
24,713,982
17,965,927
2,205,303
132,479,339
11,408,120
4,217,761
6,972,660
6,798,877
1,037,747
2009
$
$
$
$
$
$
$
221,480,923
238,576,163
248,073,303
252,291,904
261,615,902
256,929,814
268,223,823
276,155,099
278,236,719
Business-type activities:
Wastewater services
Solid waste services
Total business-type activities expenses
Total primary government expenses
10,776,209
5,836,163
16,612,372
245,116,025
9,431,492
5,444,335
14,875,827
236,356,750
9,563,755
6,383,897
15,947,652
254,523,815
10,396,778
5,950,822
16,347,600
264,420,903
$
10,770,142
6,177,791
16,947,933
269,239,837
11,082,780
5,277,700
16,360,480
277,976,382
10,840,594
5,554,950
16,395,544
273,325,358
10,897,541
6,730,422
17,627,963
285,851,786
11,548,040
6,023,797
17,571,837
293,726,936
12,931,195
6,766,342
19,697,537
297,934,256
(6,297) $
824,514
94,589
4,151,332
763,471
211,484
3,153,839
1,096,769
85,145
3,962,169
797,022
189,391
$
$
$
$
-
$
-
$
13,232,729
25,054,260
30,448,888
22,657,301
2,607,342
153,499,901
11,816,177
3,271,988
7,123,288
7,580,687
526,204
228,503,653
-
13,927,637
24,632,593
28,778,248
21,098,266
2,576,767
153,294,183
11,330,904
3,235,196
7,166,496
10,179,583
630,134
2015
Total governmental activities expenses
-
5,279,022
22,777,079
27,321,535
21,094,654
2,591,814
149,765,273
10,644,976
3,137,470
7,181,489
9,266,113
515,783
2014
9,241,763
-
5,220,526
22,497,654
27,563,038
21,696,948
2,611,535
146,755,939
11,378,882
3,217,342
7,593,302
7,165,410
1,170,742
2013
6,611,817
(3)
5,612,006
22,129,077
28,223,669
22,111,191
2,471,096
150,017,895
10,792,781
3,964,857
8,156,558
7,375,291
1,152,961
2012
9,233,128
Intergovernmental
6,096,780
20,288,378
27,426,675
21,026,095
2,152,983
143,489,872
10,030,585
4,065,289
7,929,703
9,156,255
1,114,063
2011
7,702,676
Interest, costs and amortization
6,651,921
20,301,156
26,257,722
21,093,703
2,234,921
140,999,742
11,542,212
4,340,447
7,918,634
7,287,986
-
2010
-
$
13,650,683
-
$
-
$
Program Revenues
Governmental activities:
(1)
Charges for services
General government (4)
Police
Fire
Education
Public Works
Health and Human Services
$
Culture and Recreation (5)
Community Development
1,021,847
2,675,975
806,487
7,912,683
1,173,293
437,627
$
904,182
1,417,615
41,571
3,982,594
853,065
257,735
$
754,146
1,153,325
168,004
5,048,693
866,151
236,922
$
$
5,585,985
1,399,425
98,393
4,277,635
732,071
186,295
$
1,822,436
931,703
95,041
3,860,116
841,118
188,493
$
2,478,975
747,150
131,744
3,529,902
527,491
165,273
$
3,112,192
1,050,173
114,823
3,206,524
499,116
170,721
$
685,849
1,026,770
105,110
3,180,186
480,655
161,729
955,609
1,342,026
608,880
1,225,355
601,723
1,250,864
80,052
1,155,276
632,545
1,068,159
904,781
1,118,703
580,426
1,389,901
685,656
1,467,693
783,194
1,705,084
486,871
1,525,076
16,325,547
45,251,496
7,105,541
68,682,584
9,290,997
46,220,633
8,486,039
63,997,669
10,079,828
52,854,392
6,067,839
69,002,059
7,274,421
48,769,370
4,775,411
60,819,202
10,985,039
65,039,056
5,823,681
81,847,776
14,303,288
63,121,867
4,278,212
81,703,367
9,709,234
61,098,263
8,473,140
79,280,637
9,733,884
63,830,475
9,255,920
82,820,279
10,641,827
63,496,397
15,561,488
89,699,712
7,652,246
64,217,133
19,443,198
91,312,577
8,696,732
4,463,357
8,355,360
3,540,753
8,449,653
3,422,189
8,251,735
2,782,627
8,969,303
2,588,522
8,762,187
2,640,001
10,182,311
2,393,635
10,208,509
2,744,245
10,849,984
2,632,259
11,804,073
2,800,729
Total charges for services
Operating grants and contributions
13,160,089
-
11,896,113
-
11,871,842
-
11,034,362
-
11,557,825
-
11,402,188
-
12,575,946
-
12,952,754
-
13,482,243
-
14,604,802
-
(2)
3,189,482
16,349,571
85,032,155
848,793
12,744,906
76,742,575
2,263,301
14,135,143
83,137,202
814,289
11,848,651
72,667,853
1,458,288
13,016,113
94,863,889
776,358
12,178,546
93,881,913
1,255,104
13,831,050
93,111,687
696,256
13,649,010
96,469,289
526,173
14,008,416
103,708,128
Total charges for services
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities:
Wastewater services
Solid Waste services
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
Net (Expenses)Revenue
Governmental activities
Business-type activities
Total Primary government net expense
$
$
$
$
(159,821,069) $
(262,801)
(160,083,870) $
$
(157,483,254) $
(2,130,921)
(159,614,175) $
$
(169,574,104) $
(1,812,509)
(171,386,613) $
$
(188,381,457) $
(4,498,949)
(192,880,406) $
$
(170,444,128) $
(3,931,820)
(174,375,948) $
$
(179,912,535) $
(4,181,934)
(184,094,469) $
$
(177,649,177) $
(2,564,494)
(180,213,671) $
$
(185,403,544) $
(3,978,953)
(189,382,497) $
$
(186,455,387) $
(3,563,421)
(190,018,808) $
460,422
15,065,224
106,377,801
(186,924,142)
(4,632,313)
(191,556,455)
General Revenues and Other Changes in Net Position
Governmental activities:
Property tax
$
146,928,299 $
Auto Permits
12,078,138
Penalties, interest and other taxes
1,032,775
Grants and contributions not restricted to
5,696,471
specific programs
Investment income
5,093,220
Miscellaneous
1,393,811
Transfers, net
(1,388,652)
Permanent fund contributions
6,825
Total governmental activities
170,840,887
6,173,967
4,335,585
995,117
(2,500,000)
98,353
176,060,168
6,297,569
5,600,182
950,109
(2,697,663)
23,308
182,192,995
6,237,452
2,935,434
1,232,553
(2,690,322)
109,227
182,059,382
3,971,032
1,262,208
1,067,955
(3,975,592)
109,227
177,728,397
4,720,761
422,349
1,023,290
(5,177,336)
152,443
182,357,983
5,599,971
1,297,950
1,410,241
(3,543,251)
100,140
192,279,331
5,453,477
1,042,839
2,273,681
(5,385,555)
78,349
196,206,850
4,890,823
1,356,452
2,233,187
(4,149,363)
70,555
201,536,978
5,957,113
177,712
3,098,340
(4,300,133)
68,585
208,921,113
Business-type activities:
Grants and contributions not restricted to
(4)
specific programs
Investment income
Transfers, net
Total business-type activities
Total primary government
$
784,155
1,111,187
2,500,000
4,395,342
180,455,510
$
1,059,579
391,798
2,697,663
4,149,040
186,342,035
$
826,769
7,814
2,690,322
3,524,905
185,584,287
$
230,507
48,029
3,975,592
4,254,128
181,982,525
$
214,895
32,774
5,177,336
5,425,005
187,782,988
$
610,336
36,104
3,543,251
4,189,691
196,469,022
$
618,567
22,150
5,385,555
6,026,272
202,233,122
$
581,824
14,970
4,149,363
4,746,157
206,283,135
$
540,023
5,349
4,300,133
4,845,505
213,766,618
Change in Net Position
Governmental activities
Business-type activities
Total primary government
$
18,576,914
2,264,421
20,841,335
$
12,618,891
2,336,531
14,955,422
$
(6,322,075) $
(974,044)
(7,296,119) $
7,284,269
322,308
7,606,577
$
2,445,448
1,243,071
3,688,519
$
14,630,154
1,625,197
16,255,351
$
10,803,306
2,047,319
12,850,625
$
15,081,591
1,182,736
16,264,327
$
$
1,134,149
1,388,652
2,522,801
173,363,688
$
11,019,818
2,260,000
13,279,818
$
$
154,449,099
11,642,585
865,462
$
$
158,896,532
11,528,023
1,594,935
$
$
161,979,688
10,836,895
1,418,455
$
163,353,082
10,427,551
1,512,934
$
$
169,333,116
10,347,555
1,535,805
$
$
174,911,173
11,077,345
1,425,762
$
$
Data Source:
Audited Financial Statements
Notes:
(1)
In FY05 and FY06, "Charges for Services" includes employee benefit witholdings. Beginning in FY07, employee benefit witholdings are netted against the appropriate function's expenses rather than
included with "Charges for Services".
(2)
Beginning in FY07, State Aid Grants were reclassified from Program Revenues to General Revenues, per GFOA recommendation.
(3)
Beginning in FY08, Intergovernmental expenses were reclassified to General Government expenses, per GFOA recommendation.
(4)
Negative charges for services in FY09 is due to the loss in the market value of investments of the cemetery permanent funds.
(5)
Decrease in charges for services in FY09 is due to the loss in the market value of investments of the library permanent funds.
(6)
Beginning in FY13, Interest, costs and amortization includes the amortization of the investment in Pennichuck Corporation.
A-163
179,660,929
11,422,224
1,660,906
$
$
183,226,901
12,352,468
1,555,955
$
$
189,294,796
13,157,966
1,466,734
21,996,971
213,192
22,210,163
City of Nashua, New Hampshire
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
General Fund
Reserved(1)
Unreserved(2)
$
4,526,670
$
6,808,655
$
5,040,391
$
5,163,134
$
-
$
-
-
-
$
-
-
$
-
-
$
-
28,037,193
33,293,567
33,249,976
Nonspendable(4)
-
-
-
-
184,062
225,671
226,123
214,361
214,361
191,877
Committed(4)
-
-
-
-
16,685,057
13,851,725
13,352,749
11,834,058
12,342,869
9,051,500
Assigned(4)
-
-
-
-
6,550,000
5,950,000
9,738,926
8,907,711
11,009,824
9,677,264
$ 31,768,259
$ 34,845,848
$ 38,333,958
$ 38,413,110
26,560,824
$ 49,979,943
25,540,287
$ 45,567,683
25,940,691
$ 49,258,489
26,570,103
$ 47,526,233
27,350,130
$ 50,917,184
27,729,910
$ 46,650,551
$ 21,388,586
$ 18,311,928
$ 17,162,438
$ 15,639,501
$
$
$
$
$
$
23,410,292
(12,114,644)
590,337
24,692,996
3,134,217
710,518
25,947,458
3,161,390
903,422
19,994,384
2,558,311
960,742
Nonspendable(4)
-
-
-
-
14,429,616
17,497,014
16,380,114
16,751,522
18,477,710
20,304,610
Restricted(4)
-
-
-
-
3,899,609
5,106,464
11,785,274
12,327,951
20,633,754
26,041,685
Committed(4)
-
-
-
-
8,733,406
7,740,332
9,063,280
10,160,993
10,193,612
12,915,004
$ 33,274,571
$ 46,849,659
$ 47,174,708
$ 39,152,938
Unassigned(4)
Total General Fund
-
$
27,241,589
-
-
Other Governmental Funds
Reserved(3)
Unreserved:
Special Revenue Funds
Capital Project Funds
Permanent Funds
Unassigned(4)
Total Other Governmental Funds
-
-
-
-
-
-
(1,728,518)
(491,584)
(947,259)
(224)
(851,798)
(1,304,664)
$ 25,334,113 $ 29,852,226 $ 36,281,409 $ 39,240,242 $ 48,453,278 $ 57,956,635
Data Source:
Audited Financial Statements
Notes:
(1)
FY2005 - $8 million is reserved for School Capital Reserve Fund.
(2)
FY2005 - $11 million is designated for FY06 tax rate; $4 million for FY07/08 School bonded debt .
(3)
FY2006 - Reclassified $7,821,553 in School Capital Reserve Funds from Reserved Fund Balance into Unreserved Fund Balance, Special Revenue Funds.
(4)
FY2010 - Fund balances reflect implementation of GASB 54
A-164
-
City of Nashua, New Hampshire
Change in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$ 146,864,377
$ 154,488,154
$ 158,353,188
$ 160,881,410
$ 162,964,723
$ 169,105,924
$ 174,375,557
$ 179,815,669
$ 183,788,788
$ 189,370,011
13,234,555
1,357,033
6,846,669
54,956,875
4,153,022
1,282,935
1,149,442
12,846,500
1,250,253
6,914,168
57,917,495
7,745,663
1,173,971
539,057
12,311,950
1,594,935
7,024,328
64,085,098
4,793,461
1,921,409
96,002
11,311,752
1,447,191
7,324,028
74,194,941
2,833,498
1,500,780
510,942
11,200,038
1,471,786
7,888,220
71,166,117
4,168,180
1,599,369
460,903
11,805,705
1,425,762
7,813,660
66,239,007
1,812,632
2,136,516
7,068,853
12,794,538
1,660,906
5,973,297
67,730,460
2,769,585
2,443,340
9,323,019
13,867,699
1,555,955
6,022,688
73,373,088
4,192,046
2,499,563
9,364,136
14,538,140
1,466,734
5,872,118
78,695,688
254,684
3,370,605
9,471,751
229,844,908
242,875,261
250,180,371
249,273,530
262,087,855
267,060,537
272,677,692
282,510,814
294,663,963
303,039,731
Revenues
Taxes
Licenses and Permits(1)
Penalties, interest and other taxes
Charges for services
Intergovernmental
Interest earnings
Miscellaneous
Contributions
Total revenues
11,558,473
1,418,455
7,289,468
66,192,430
(303,680)
1,882,909
354,065
Expenditures by Function
General Government (2)
Public safety
Water supply/hydrants
Education
Public Works
Health and human services
Culture and recreation
Community development
Communications
Debt service
Principal
Interest
Intergovernmental
Total expenditures
47,642,841
37,722,214
1,634,047
98,086,304
9,536,606
2,687,438
5,436,393
11,396,347
246,026
51,202,587
30,897,525
1,781,355
96,233,019
8,689,653
3,373,460
5,121,466
9,168,047
228,044
54,841,257
32,191,601
2,205,303
100,296,133
9,540,761
3,516,881
5,898,670
6,396,239
237,896
53,859,718
35,887,184
2,234,921
110,099,584
10,452,441
3,693,028
5,923,548
6,004,281
280,361
55,969,477
35,144,492
2,152,983
110,680,934
11,766,925
3,328,537
5,357,914
9,495,558
285,390
60,784,069
37,093,411
2,471,096
113,933,265
10,100,177
3,141,990
5,725,091
7,942,209
289,648
63,115,094
34,474,733
2,611,535
118,234,670
11,822,833
2,595,897
5,581,693
6,607,068
364,299
62,840,355
34,242,016
2,591,814
114,855,962
15,807,593
2,601,117
5,400,579
7,610,838
1,980,823
14,444,055
48,920,203
2,576,767
150,005,656
24,212,322
3,191,206
6,753,340
11,429,576
1,454,151
14,325,858
55,413,117
2,607,342
155,393,270
32,002,905
3,300,614
6,965,269
6,976,564
3,680,775
12,073,570
7,779,830
9,233,129
243,474,745
12,118,441
6,222,224
9,241,763
234,277,584
12,111,061
7,052,893
9,489,137
243,777,832
12,300,467
6,243,971
9,546,322
256,525,826
12,221,828
5,892,249
9,367,968
261,664,255
11,924,348
5,455,421
9,416,623
268,277,348
12,259,833
5,796,412
9,569,306
273,033,373
16,364,611
10,308,650
9,420,187
284,024,545
16,496,389
10,209,365
9,763,895
299,456,925
16,365,778
10,450,189
10,383,051
317,864,732
Excess of revenues
Over (under) expenditures
(13,629,837)
8,597,677
6,402,539
(7,252,296)
Other Financing Sources (Uses)
Issuance of bonds
Issuance of refunding bonds
Pennichuck acquisition
Bond premiums
Bond premiums on refunding bonds
Payment to refunded escrow agent
Capital lease proceeds
Transfers in
Transfers out
Total other financing sources (uses)
15,512,898
(16,901,550)
(1,388,652)
10,555,000
4,482,821
(6,982,821)
8,055,000
108,285
7,454,175
(10,151,838)
(2,589,378)
10,584,784
(11,275,106)
(690,322)
$ (15,018,489) $
16,652,677
Net Change in fund balances
Debt Service as a percentage of
non-capital outlay expenditures
8.84%
8.13%
$
3,813,161
8.09%
$
(7,942,618) $
7.45%
423,600
6,045,974
(8,721,566)
(2,675,592)
(2,251,992) $
7.24%
(1,216,811)
(355,681)
(1,513,731)
(4,792,962)
(14,825,001)
6,000,000
3,907,733
(8,585,069)
1,322,664
164,030,000
(150,011,079)
2,649,793
(6,193,044)
10,475,670
7,136,000
1,054,848
4,087,955
(9,538,495)
2,740,308
19,480,000
2,068,011
1,041,003
(5,192,065)
17,396,949
21,888,749
4,760,000
2,488,519
610,993
(5,386,403)
2,256,555
(6,556,688)
20,061,725
105,853
6.80%
$
10,119,989
7.12%
$
1,226,577
10.07%
$
12,603,987
9.83%
Data Source:
Audited Financial Statements
Notes:
(1)
Includes Auto Permits.
(2)
Includes City-wide employee health and pension benefits through FY13. Beginning in FY14 employee health and pension benefits are allocated from General Government to applicable departments/divisions.
A-165
$
5,236,724
9.65%
City of Nashua, New Hampshire
Expenditures and Other Financing Uses by Department and Budget Category, General Fund
Last Ten Fiscal Years
(modified accrual basis of accounting)
2006
Expenditures and Other Financing
Uses by Department
Financial Services
Administrative Services(1)
Information Technology(2)
$
1,322,705
2,788,574
2007
$
1,236,659
1,991,401
2008
$
1,469,502
2,131,361
2009
$
2,727,354
-
2010
$
2,878,399
-
2011
$
3,771,283
-
2012
$
2,785,087
-
2013
$
2,767,961
-
2014
$
3,622,100
-
2015
$
3,891,072
-
-
784,969
1,102,648
1,237,701
1,230,025
1,459,019
1,534,232
2,031,718
2,334,058
2,441,848
General Government(3)
Police
Fire
Water Supply/Hydrants
Community Health and Welfare
Street Department
Parks and Recreation
Other Public Works
Community Development Division
Public Libraries
Communications
Transfers Out
Total City Departments
43,233,659
15,062,015
13,876,296
1,634,047
2,301,368
5,156,101
2,672,691
3,140,497
1,432,102
2,249,446
246,026
11,696,153
106,811,680
47,080,238
14,920,270
13,068,849
1,781,355
2,149,131
4,923,751
2,539,850
3,203,179
1,322,027
2,040,754
228,044
4,337,325
101,607,803
49,114,240
16,918,427
13,122,412
2,205,303
2,188,388
6,051,230
2,545,439
2,413,679
1,327,753
2,225,556
237,896
6,028,358
109,082,192
48,839,886
18,551,324
15,670,602
2,234,921
2,437,681
6,736,230
2,944,658
2,410,901
1,416,773
2,439,439
280,361
4,185,445
112,113,276
49,966,148
18,343,212
15,211,313
2,152,983
1,966,721
7,278,181
2,741,007
2,406,616
1,461,688
2,293,340
285,390
5,916,468
114,131,491
51,667,255
19,165,600
16,203,772
2,471,096
1,894,004
6,856,012
3,015,085
2,515,392
1,445,969
2,295,731
289,648
6,301,394
119,351,260
54,103,026
17,753,964
14,148,512
2,611,535
1,673,763
6,891,075
2,767,434
2,340,871
1,545,458
2,320,114
280,075
4,231,574
114,986,720
54,753,971
17,954,600
14,312,925
2,591,814
1,755,105
8,556,496
2,862,915
1,847,306
1,416,358
2,195,853
425,232
6,450,979
119,923,233
7,261,566
26,394,497
20,534,919
2,576,767
2,178,171
8,262,774
3,373,369
2,163,812
1,993,206
2,959,337
302,102
4,685,182
88,641,860
7,102,983
29,200,580
21,920,727
2,607,342
2,192,487
9,985,150
3,681,695
2,225,745
2,116,217
2,914,767
299,615
5,226,209
95,806,437
Education (includes transfers out)
82,965,529
81,504,499
85,575,583
94,120,678
92,619,046
93,588,224
93,475,962
97,637,607
130,325,123
133,844,372
Debt service
Principal
Interest
Total Debt Service
12,073,570
7,779,830
19,853,400
12,118,441
6,222,224
18,340,665
12,051,061
7,003,835
19,054,896
12,240,467
6,200,867
18,441,334
12,161,828
5,851,245
18,013,073
11,864,348
5,416,517
17,280,865
12,199,833
5,200,837
17,400,670
12,914,611
4,897,909
17,812,520
13,186,389
4,664,660
17,851,049
13,025,778
4,938,213
17,963,991
Intergovernmental
9,233,129
9,241,763
9,489,137
9,546,322
9,367,968
9,416,623
9,569,306
9,420,187
9,763,895
10,383,051
$ 218,863,738
$ 210,694,730
$ 223,201,808
$ 234,221,610
$ 234,131,578
$ 239,636,972
$ 235,432,659
$ 244,793,547
$ 246,581,927
$ 257,997,851
Total expenditures (includes transfers out)
Expenditures as a percentage of total
City Departments
Education
Debt service
Intergovernmental
Total
Expenditure Percentage Change
City Departments
Education
Debt service
Intergovernmental
Total
48.8%
37.9%
9.1%
4.2%
100.0%
48.2%
38.7%
8.7%
4.4%
100.0%
48.9%
38.3%
8.5%
4.3%
100.0%
47.9%
40.2%
7.9%
4.1%
100.0%
48.7%
39.6%
7.7%
4.0%
100.0%
49.8%
39.1%
7.2%
3.9%
100.0%
48.8%
39.7%
7.4%
4.1%
100.0%
49.0%
39.9%
7.3%
3.8%
100.0%
35.9%
52.9%
7.2%
4.0%
100.0%
37.1%
51.9%
7.0%
4.0%
100.0%
15.5%
1.0%
1.9%
0.6%
7.7%
-4.9%
-1.8%
-7.6%
0.1%
-3.7%
7.4%
5.0%
3.9%
2.7%
5.9%
10.3%
15.5%
0.5%
3.3%
11.2%
4.6%
8.2%
-5.5%
-1.3%
4.9%
6.5%
-0.6%
-6.3%
-1.4%
2.3%
0.7%
0.9%
-3.4%
2.1%
0.6%
0.5%
4.3%
3.1%
0.0%
2.2%
-22.9%
39.4%
2.6%
2.0%
4.7%
-20.1%
37.1%
0.9%
10.2%
5.4%
Data Source:
Audited internal City of Nashua Financial Statements and Audited Financial Statements
Notes:
(1)
FY09 - Departments within the Administrative Services Division were reassigned to the Financial Services Division and Miscellaneous General Government functions.
(2)
Information Technology separated from Administative Services division in FY07.
(3)
Includes City-wide employee health and pension benefits through FY13. Beginning in FY14 employee health and pension benefits are allocated from General Government to applicable departments/divisions.
A-166
City of Nashua, New Hampshire
Combined Enterprise Funds Revenue, Expenditures, Other Financing Sources and Uses and Change in Total Net Position
Last Ten Fiscal Years
Fiscal
Intergovern-
Year
mental
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$
540,023
581,824
618,567
809,505
764,434
1,394,420
826,769
1,059,579
784,155
2,813,045
Revenue and Other Financing Sources
Charges for
Transfers
Services
$ 14,284,435
13,246,142
12,732,254
12,343,860
11,031,678
11,310,759
10,800,223
11,642,137
11,748,817
13,050,184
Other
$
325,716
251,071
242,650
268,190
403,284
295,095
241,953
621,503
2,107,276
1,620,491
In
Total
$ 4,355,133
4,149,363
5,385,555
3,543,251
5,177,336
3,985,092
2,690,322
2,697,663
2,500,000
1,400,652
$ 19,505,307
18,228,400
18,979,026
16,964,806
17,376,732
16,985,366
14,559,267
16,020,882
17,140,248
18,884,372
Maintenance
$
Increase
(Decrease)
Total Net
Position(3)
Expenses & Other Financing Uses
Interest
Transfers
Operations &
Depreciation
11,396,186
10,243,280
10,134,405
9,112,439
9,043,390
9,902,650
9,899,937
10,187,447
9,188,126
10,609,849
$
6,707,836
6,211,677
6,258,987
5,846,516
5,677,492
5,874,516
5,363,027
4,631,222
4,429,469
4,607,965
Expense
$ 1,593,515
1,116,880
1,234,571
1,436,589
1,639,598
1,170,767
1,084,636
1,128,983
1,258,232
1,394,558
Out
Total
$
-
$
19,752,537
17,571,837
17,627,963
16,395,544
16,360,480
16,957,433
16,347,600
15,947,652
14,875,827
16,612,372
Contributed
Total Net
Capital
$ (3,132,039) $
656,563
1,351,063
569,262
1,016,252
27,933
(1,788,333)
73,230
2,264,421
2,260,000
Position
460,422
526,173
696,256
1,055,935
226,819
294,375
814,289
2,263,301
-
$ 101,758,557
104,430,174
103,247,438
101,200,119
99,574,922
98,331,851
98,009,543
98,983,587
96,647,056
94,382,635
Includes Wastewater and Solid Waste funds
Wastewater Fund Revenue, Expenditures, Other Financing Sources and Uses and Change in Fund Equity
Last Ten Fiscal Years
Fiscal
Intergovern-
Year
mental
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$
(1)
Revenue and Other Financing Sources
Charges for
Transfers
Services
331,785
373,201
190,843
199,169
549,539
1,163,913
595,705
540,960
611,891
$ 11,727,364
10,849,064
10,197,610
10,161,716
8,762,187
8,969,303
8,251,735
8,449,653
8,354,834
2,756,730
8,650,837
Other
$
In
80,843 $
4,112
14,089
31,258
12,170
18,992
(10,990)
292,271
1,785,550
Total
-
$ 12,139,992
11,226,377
10,402,542
10,392,143
9,334,446
10,152,208
8,836,450
9,282,884
10,752,275
-
12,760,062
10,550
1,352,495
Maintenance
$
Increase
(Decrease)
Total Net
Position(3)
Expenses & Other Financing Uses
Interest
Transfers
Operations &
Depreciation
6,701,574
6,300,878
5,734,690
5,697,549
5,881,704
5,987,223
5,920,909
5,558,151
5,561,226
$
6,661,219
Expense
4,993,740
4,468,223
4,562,988
4,401,079
4,319,104
4,438,309
4,111,586
3,592,752
3,409,069
$ 1,235,881
778,939
599,863
741,966
881,972
344,610
364,283
412,852
461,197
3,605,550
509,440
Out
$
Total
55,000
9,500
-
$
6,000
12,986,195
11,548,040
10,897,541
10,840,594
11,082,780
10,779,642
10,396,778
9,563,755
9,431,492
Contributed
Position
$ (2,468,908) $
460,422
(321,663)
526,173
(494,999)
677,133
(448,451)
930,935
(1,748,334)
226,819
(627,434)
294,375
(1,560,328)
814,289
(280,871)
2,263,301
1,320,783
-
10,782,209
Total Net
Capital
1,977,853
$ 103,365,070
105,373,556
105,169,046
104,986,912
104,504,428
106,025,943
106,359,002
107,105,041
105,122,611
-
103,801,828
Solid Waste Fund Revenue, Expenditures, Other Financing Sources and Uses and Change in Fund Equity
Last Ten Fiscal Years
Fiscal
Intergovern-
Year
mental
2015
2014
2013
2012
2011
2010
$
2009
208,238
208,623
427,724
610,336
214,895
230,507
Revenue and Other Financing Sources
Charges for
Transfers
Services
$
2,557,071
2,397,078
2,534,644
2,182,144
2,269,491
2,341,456
Other
$
In
244,873
246,959
228,561
236,932
391,114
276,103
$ 4,355,133
4,149,363
5,385,555
3,543,251
5,166,786
3,985,092
Total
$
7,365,315
7,002,023
8,576,484
6,572,663
8,042,286
6,833,158
Maintenance
$
Increase
(Decrease)
Total Net
Position(3)
Expenses & Other Financing Uses
Interest
Transfers
Operations &
Depreciation
4,694,612
3,942,402
4,399,715
3,414,890
3,161,686
3,915,427
$
1,714,096
1,743,454
1,695,999
1,445,437
1,358,388
1,436,207
Expense
$
357,634
337,941
634,708
694,623
757,626
826,157
Out
Total
$
-
$
6,766,342
6,023,797
6,730,422
5,554,950
5,277,700
6,177,791
$
Contributed
(663,131) $
978,226
1,846,062
1,017,713
2,764,586
655,367
Total Net
Capital
Position
-
19,123
125,000
-
$
(1,606,513)
(943,382)
(1,921,608)
(3,786,793)
(4,929,506)
(7,694,092)
231,064
2,548,488
252,943
2,690,322
5,722,817
3,979,028
1,251,441
720,353
-
5,950,822
(228,005)
-
(8,349,459)
518,619
3,192,484
329,232
2,697,663
6,737,998
4,629,296
1,038,470
716,131
-
6,383,897
354,101
-
(8,121,454)
2007
172,264
3,393,983
321,726
2,500,000
6,387,973
3,626,900
1,020,400
797,035
-
5,444,335
943,638
-
(8,475,555)
2006
56,315
4,399,347
267,996
1,400,652
6,124,310
3,948,630
1,002,415
885,118
6,000
5,842,163
282,147
-
(9,419,193)
2008
(2)
Data Source:
Audited Financial Statements
Notes:
(1)
Operations & Maintenance expenses include a one-time charge of $1,017,225 for asbestos contaminated soil removal.
(2)
Operations & Maintenance expenses include $1.2 million in current year and prior year (previously understated) landfill closure costs.
(3)
Due to the implementation of GASB 68, the restatement of Net Position is not applied to FY2014, but rather to the Total Net Position Increase/(Decrease) in FY2015.
A-167
City of Nashua, New Hampshire
General Government Tax Revenues by Source
Last Ten Fiscal Years
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Property
Taxes
$
189,118,341
183,735,667
179,452,907
174,426,233
169,572,998
163,664,814
161,465,821
158,565,422
155,452,947
147,765,609
Current Use
Penalties
$
251,000
48,000
372,500
770
92,890
45,000
73,130
762,870
238,430
417,880
Railroad
Tax
$
3,500
6,409
407
4,096
7,172
12,175
2,389
7,731
7,786
Boat
Tax
$
Yield
Tax
-
$
Data Source:
Audited Internal Financial Statements
A-168
670
5,121
2,032
4,651
2,654
2,052
1,257
5,571
13,535
11,506
Payment in
Lieu of Tax
$
325,289
234,523
429,355
119,273
130,243
111,386
118,117
138,605
116,182
121,350
Excavation
Tax
$
389
1,041
115
139
203
1,037
-
Tax Interest
& Penalties
$
774,951
914,147
836,626
843,508
787,463
771,023
731,810
624,141
488,548
416,798
Total
$
190,473,751
184,943,867
181,093,827
175,398,919
170,594,460
164,606,565
162,392,663
160,096,812
156,318,410
148,740,929
City of Nashua, New Hampshire
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Collected within the
Fiscal Year of the Levy
Amount
% of Levy
Property Tax
Levied for
Fiscal Year
$
191,893,860
185,563,420
181,191,086
180,052,101
170,706,403
165,010,958
162,492,774
160,045,795
156,687,784
148,834,769
$
189,619,825
183,499,092
178,655,327
177,497,774
168,303,403
162,496,172
160,152,238
157,811,037
154,976,500
147,558,424
Lien Amount
Balance at
Fiscal Year End
of Levy Year
98.8 % $
98.9
98.6
98.6
98.6
98.5
98.6
98.6
98.9
99.1
2,274,035
2,064,328
2,535,759
2,554,327
2,403,272
2,514,786
2,340,536
2,234,758
1,711,284
1,276,345
Subsequent
Tax lien
Collections
$
461,585
312,751
350,811
376,603
539,882
359,829
337,289
289,153
236,234
754,988
Data Source:
Audited Internal Financial Statements, Property Tax Warrants and Reports of Tax Lien Executions
Notes:
Once a lien is executed a taxpayer has 2 years and 1 day to redeem the taxes before a deed may be executed.
A-169
Balance at end
of Current
Fiscal year
$
1,812,450
1,751,577
2,184,948
2,177,724
1,863,350
2,154,957
2,003,247
1,945,605
1,475,050
521,357
Total Collections to Date
Amount
% of Levy
$
190,081,410
183,811,843
179,006,138
177,874,377
168,843,413
162,856,001
160,489,527
158,100,190
155,212,734
148,313,412
99.1 %
99.1
98.8
98.8
98.9
98.7
98.8
98.8
99.1
99.6
Number of Parcels
in Levy
Liened
% Liened
28,173
28,082
28,072
28,010
27,992
27,983
28,004
27,954
27,446
27,000
632
640
601
685
671
741
738
707
539
460
2.2 %
2.3
2.1
2.4
2.4
2.6
2.6
2.5
2.0
1.7
City of Nashua, New Hampshire
Assessed and Estimated Full Value of Real Property
Last Ten Fiscal Years
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Local Assessed Value(1)
Commercial/
Industrial
Utilities
Residential
$
5,232,018,998
5,203,931,164
5,737,764,215
5,724,498,363
5,716,945,366
5,696,232,358
6,578,232,904
6,553,746,660
6,520,190,304
6,472,850,667
$
2,650,084,562
2,655,590,811
2,647,698,426
2,665,435,268
2,637,335,441
2,626,290,983
2,727,069,006
2,715,276,344
2,651,715,145
2,666,131,229
$
267,676,980
263,764,280
259,493,680
247,580,080
233,956,480
214,500,880
205,170,480
182,868,180
174,690,180
173,339,680
Less
Exemptions
to Assessed
(1)
Value
Total Assessed
Value
$
8,149,780,540
8,123,286,255
8,644,956,321
8,637,513,711
8,588,237,287
8,537,024,221
9,510,472,390
9,451,891,184
9,346,595,629
9,312,321,576
$
129,962,577
134,185,527
147,079,600
139,825,150
146,159,148
147,658,598
157,178,400
170,666,650
175,974,650
158,734,700
Data Sources:
(1)
State MS-1 Report of Assessed Values, and NHDRA website to conform with final residential values.
(2)
NH Department of Revenue Administration's annual Equalization Survey including utilities and railroad.
Notes:
Residential values include value of land in current use.
A-170
Total Direct
Tax Rate per
$1,000 of
Assessed Value
Total Taxable
Assessed
Value(1)
$
8,019,817,963
7,989,100,728
8,497,876,721
8,497,688,561
8,442,078,139
8,389,365,623
9,353,293,990
9,281,224,534
9,170,620,979
9,153,586,876
$
22.76
22.28
20.38
19.84
19.28
18.70
16.54
16.39
16.21
15.33
Estimated
Full Value(2)
$
8,684,907,808
8,386,760,928
7,949,863,821
8,248,187,902
8,519,356,326
8,575,136,081
9,018,506,088
9,358,505,782
9,714,255,257
9,297,862,943
Ratio of Total
Assessed
Value to
Total Estimated
Full Value
93.8
96.9
108.7
104.7
100.8
99.6
105.5
101.0
96.2
100.2
%
City of Nashua, New Hampshire
Principal Taxpayers
Current Year and Ten Years Ago
Taxpayer
Type of Business
Pheasant Lane Realty Trust
Pennichuck Water Works Inc
Public Service Co of NH
Aimco Royal Crest-Nashua LLC
Flatley, John J Company
St. Joseph Hospital and Trauma Center
Energy North Natural Gas d/b/a Liberty Utilities
Southern New Hampshire Hospital
BAE Systems Info & Elec System
Nashua Oxford-Bay Associates
Shopping Mall
Water Distributor
Utility
Apartment Complex
Office/Land/Apts/Retail
Hospital
Utility
Hospital
Electronics Manufacturer
Real Estate
Compaq Computer Corporation(1)
Computer Hardware
Fiscal Year 2015
Assessed
Value
$
-
Total Principal Taxpayers
Total Net Assessed Taxable Value
142,785,496
104,161,500
97,147,800
83,203,000
64,156,800
58,564,900
56,281,400
55,988,100
43,151,200
38,807,800.00
744,247,996
$
8,019,817,963
Data Source:
City of Nashua Assessing Records and State MS-1 Report
Notes:
(1)
Previously identified as Digital Equipment Corp.
A-171
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total Assessed
Value
1.78 %
1.30
1.21
1.04
0.80
0.73
0.70
0.70
0.54
0.48
Fiscal Year 2006
Assessed
Value
$
9.28 %
145,731,096
65,920,986
69,499,000
79,587,500
39,221,300
38,047,700
37,822,100
45,943,100
37,854,800
8
10
6
9
1.59 %
0.72
0.76
0.87
0.43
0.42
0.41
0.50
0.41
49,914,500
5
0.55
609,542,082
$
Rank
9,153,586,876
1
4
3
2
7
Percentage of
Total Assessed
Value
6.66 %
City of Nashua, New Hampshire
Property Tax Rates per $ 1,000 of Assessed Value
Direct and Overlapping Governments
Last Ten Fiscal Years
Overlapping
Rate
City Direct Rates
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Local
School
City
$ 9.28
9.01
8.56
8.30
7.87
7.91
6.50
6.73
6.17
5.06
$
11.00
10.72
9.39
9.16
9.03
8.37
7.79
7.39
7.70
7.77
State
School
$
2.48
2.55
2.43
2.38
2.38
2.42
2.25
2.27
2.34
2.50
Total
School
$
Data Source:
NH State Department of Revenue Administration
13.48
13.27
11.82
11.54
11.41
10.79
10.04
9.66
10.04
10.27
Total
Direct
$
County
22.76
22.28
20.38
19.84
19.28
18.70
16.54
16.39
16.21
15.33
$
Total
1.29
1.22
1.11
1.13
1.12
1.12
1.01
1.01
0.99
0.99
$
24.05
23.50
21.49
20.97
20.40
19.82
17.55
17.40
17.20
16.32
Estimated
Full Value
Rate
$
22.13
22.31
22.89
21.53
20.15
19.33
18.15
17.21
16.20
16.02
FY2015 Tax Rate Allocation:
Local School
46%
Statewide
School
10%
City
39%
County
5%
A-172
City of Nashua, New Hampshire
Nashua's Share of the Hillsborough County Tax Apportionment
Last Ten Fiscal Years
(based on percentage of equalized value)
Total Equalized Values
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Nashua
$
8,684,907,808
8,386,760,928
7,949,863,821
8,248,187,902
8,519,356,326
8,575,136,081
9,018,506,088
9,358,505,782
9,714,255,257
9,297,862,943
County
$
40,242,829,534
38,831,207,211
37,627,191,420
38,621,608,517
39,269,708,789
40,168,096,310
43,052,141,297
44,735,255,285
45,453,407,212
44,045,516,136
Nashua's %
21.581 %
21.598
21.128
21.356
21.694
21.348
20.948
20.920
21.372
21.110
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
County
Tax Levy
$
Data Source:
NH Department of Revenue Administration
A-173
48,074,150
46,213,110
44,109,420
44,109,421
44,109,838
44,720,387
45,633,047
44,400,065
43,779,760
43,487,679
Apportionment of County Tax Levy
Nashua's
Nashua's
Nashua's Share
Share %
Share $
$ Change
21.598% $
21.128%
21.356%
21.694%
21.348%
20.948%
20.920%
21.372%
21.110%
21.232%
10,383,051
9,763,895
9,420,187
9,569,306
9,416,623
9,367,968
9,546,322
9,489,137
9,241,763
9,233,128
$
619,156
343,708
(149,119)
152,683
48,655
(178,354)
57,185
247,374
8,635
55,681
Nashua's Share
% Change
0.06 %
0.04
(0.02)
0.02
0.01
(0.02)
0.01
0.03
0.00
0.01
City of Nashua, New Hampshire
Ratios of Long Term Debt Outstanding and Legal Debt Limits
Last Ten Fiscal Years
2006
Debt at June 30
General Obligation Debt
City Depts. (includes unamortized bond premium)
School Dept. (includes unamortized bond premium)
Pennichuck Acquisition
Total Governmental Activities
$
Solid Waste Fund
General Obligation Debt (includes unamortized bond premium)
State Revolving Loan Funds
Wastewater Fund
General Obligation Debt (includes unamortized bond premium)
State Revolving Loan Funds
Total Business-Type Activities
24,334,746
140,641,187
164,975,933
2007
$
33,897,537
133,514,959
167,412,496
2008
$
31,361,558
123,391,873
154,753,431
2009
$
28,811,689
113,176,096
141,987,785
2010
$
26,300,733
103,171,230
129,471,963
2011
$
30,123,644
93,590,969
123,714,613
2012
$
33,709,247
88,662,534
150,570,000
272,941,781
2013
$
35,856,708
81,345,462
147,180,000
264,382,170
2014
$
50,161,880
74,986,901
143,930,000
269,078,781
2015
$
60,724,460
75,220,291
140,650,000
276,594,751
205,391
20,400,320
177,336
19,154,055
149,818
17,907,784
7,523,890
16,661,514
6,977,332
15,415,257
6,431,222
14,168,989
5,885,555
12,922,713
5,341,304
11,676,455
4,796,886
10,264,126
4,992,616
9,041,467
3,167,677
6,919,056
30,692,444
2,584,171
6,457,788
28,373,350
2,007,752
5,996,515
26,061,869
1,445,326
5,535,245
31,165,975
883,710
19,773,978
43,050,277
514,167
18,577,707
39,692,085
144,667
18,023,657
36,976,592
13,068,529
17,018,570
47,104,858
14,738,336
27,658,815
57,458,163
13,929,634
30,260,415
58,224,132
Total Debt at June 30
$
195,668,377
Base Value for Debt Limits
$ 9,438,642,749
$ 9,861,998,165
$ 9,497,984,632
$ 9,150,834,250
$ 8,574,513,075
$ 8,519,004,742
$ 8,247,999,918
$ 7,947,891,505
$ 8,377,389,979
$ 8,675,523,269
City - 2%(1)
188,772,855
197,239,963
189,959,693
183,016,685
171,490,262
170,380,095
164,959,998
158,957,830
167,547,800
173,510,465
School - 6%(1)
566,318,565
591,719,890
569,879,078
549,050,055
514,470,785
511,140,285
494,879,995
476,873,490
502,643,399
520,531,396
24,334,746
140,641,187
33,897,537
133,514,959
31,361,558
123,391,873
28,811,689
113,176,096
26,300,733
103,171,230
30,123,644
93,590,969
33,709,247
88,662,534
35,856,708
81,345,462
50,161,880
74,986,901
60,724,460
75,220,291
30,692,444
28,373,350
26,061,869
31,165,975
43,050,277
39,692,085
187,546,592
194,284,858
201,388,163
198,874,132
$
195,785,846
$
180,815,300
$
173,153,760
$
172,522,240
$
163,406,698
$
309,918,373
$
311,487,028
$
326,536,944
$
334,818,883
Legal Debt Limits (% of Base Value)
Debt Against Legal Debt Limits
City Depts.
School Dept.
Exempt from Legal Debt Limits
Total Debt at June 30
$
195,668,377
$
195,785,846
$
180,815,300
$
173,153,760
$
172,522,240
$
163,406,698
$
309,918,373
$
311,487,028
$
326,536,944
$
334,818,883
Unused Capacity of Legal Debt Limits
City Depts.
School Dept.
$
164,438,109
425,677,378
$
163,342,426
458,204,931
$
158,598,134
446,487,205
$
154,204,996
435,873,959
$
145,189,528
411,299,555
$
140,256,451
417,549,316
$
131,250,751
406,217,461
$
123,101,122
395,528,028
$
117,385,920
427,656,497
$
112,786,006
445,311,105
% of Legal Debt Limits Used
City Depts.
School Dept.
12.9%
24.8%
17.2%
22.6%
16.5%
21.7%
15.7%
20.6%
Data Source:
Audited Financial Statements
N.H. Department of Revenue Administration
Notes:
(1)
City has imposed more restrictive limits (2% City; 6% School) than state statute allows (3% City; 7% School).
A-174
15.3%
20.1%
17.7%
18.3%
20.4%
17.9%
22.6%
17.1%
29.9%
14.9%
35.0%
14.5%
Ratios of Outstanding Debt by Debt Type
Last Ten Fiscal Years
Fiscal
Year
City
Departments
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$
57,275,606
50,161,880
35,856,708
32,874,310
29,310,621
25,644,190
28,096,205
30,544,656
32,970,385
23,901,230
Governmental Activities - General Obligation Debt
Pennichuck
School
Less Est. State
Acquisition
Department
Total
School Aid
$ 140,650,000
143,930,000
147,180,000
150,570,000
-
$
70,948,145
74,986,901
81,345,462
86,466,471
91,064,992
100,595,773
110,365,580
120,177,775
129,863,111
138,135,705
$ 268,873,751
269,078,781
264,382,170
269,910,781
120,375,613
126,239,963
138,461,785
150,722,431
162,833,496
162,036,935
$
21,284,444
22,496,070
24,403,639
25,939,941
27,319,498
30,178,732
33,109,674
36,053,333
38,958,933
41,440,712
Tax Supported
Debt
% of Net Debt
to Assessed
Value
$ 247,589,308
246,582,711
239,978,531
243,970,840
93,056,115
96,061,231
105,352,111
114,669,099
123,874,563
120,596,224
3.1 %
3.1
2.8
2.9
1.1
1.1
1.1
1.2
1.4
1.3
Business-Type Activities - General Obligation Debt and State Revolving Loan Funds
Solid Waste
Wastewater
Less Est.
Net
Fiscal
Year
Fund
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$
13,892,717
15,061,012
17,017,759
18,702,268
20,484,211
22,266,589
24,049,404
18,057,602
19,331,391
20,605,711
Fiscal
Year
Total
Primary
Government
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$ 325,691,883
326,536,944
311,487,028
306,781,373
159,951,698
169,164,240
169,491,760
176,784,300
191,206,846
192,729,379
Fund
$
42,925,415
42,397,151
30,087,099
18,168,324
19,091,874
20,657,688
6,980,571
8,004,267
9,041,959
10,086,733
Less
State Aid
$
21,284,444
22,496,070
27,276,680
29,186,040
30,964,312
34,236,633
37,959,422
41,729,496
45,447,640
48,754,989
State Aid (1)
Total
$
56,818,132
57,458,163
47,104,858
36,870,592
39,576,085
42,924,277
31,029,975
26,061,869
28,373,350
30,692,444
Net Debt
$
2,873,041
3,246,099
3,644,814
4,057,901
4,849,748
5,676,163
6,488,707
7,314,277
Debt
$
% of Net Debt
to Assessed
Value
$ 304,407,440
304,040,874
284,210,348
277,595,333
128,987,386
134,927,607
131,532,338
135,054,805
145,759,206
143,974,391
3.8 % $
3.8
3.3
3.3
1.5
1.6
1.4
1.5
1.6
1.6
56,818,132
57,458,163
44,231,817
33,624,493
35,931,271
38,866,376
26,180,227
20,385,706
21,884,643
23,378,167
Net Debt
per capita
3,498
3,504
3,297
3,214
1,490
1,541
1,510
1,550
1,664
1,636
$
2,845
2,842
2,784
2,825
1,075
1,097
1,209
1,316
1,414
1,371
Net debt
% of Personal
Income
653
662
513
389
415
444
301
234
250
266
% of Personal
Income
10.2 %
11.5
10.2
10.4
4.3
4.8
4.6
5.0
5.5
5.0
Notes:
The State of NH has suspended the State Aid Grant (SAG) program relating to debt issued after 7/1/2008 for business type activities
A-175
$
per capita
Data Source:
Audited Financial Statements
U.S. Census Bureau
Assessors Department MS-1 Report
(1)
Tax Supported
Debt per capita
1.9 %
2.2
1.6
1.3
1.2
1.4
0.9
0.8
0.8
0.9
City of Nashua, New Hampshire
Computation of Overlapping Debt
Hillsborough County Long Term Debt
Last Ten Fiscal Years
End of
Net General
Obligation
Debt
Percentage
Applicable to
Amount
Applicable to
Fiscal Year
Outstanding(1)
Government(2)
Government
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
-
21.598%
21.128%
21.356%
21.694%
21.348%
20.948%
20.920%
21.372%
21.110%
21.232%
-
Data Sources:
(1)
Hillsborough County Audited Financial Statements at fiscal year end including interest, does not include leases.
(2)
NH Department of Revenue Administration.
A-176
City of Nashua, New Hampshire
Demographic Statistics
Last Ten Fiscal Years
City(3)
Fiscal
Year
Population(1)
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
87,029
86,766
86,211
86,366
86,543
87,566
87,111
87,150
87,605
87,986
Median Family
Personal
Per Capita
Income(2)
Income
Income(2)
$
77,923
77,441
81,905
76,612
75,999
74,807
82,489
75,413
76,345
70,419
$
2,981,613,540
2,639,074,656
2,794,184,721
2,671,904,942
2,993,262,741
2,789,940,326
2,870,133,228
2,702,608,650
2,628,588,025
2,531,269,234
$
34,260
30,416
32,411
30,937
34,587
31,861
32,948
31,011
30,005
28,769
Labor
Unemployed
2,470
2,950
3,030
3,040
3,340
3,430
2,020
1,870
1,990
2,010
Force
48,850
50,140
50,030
49,370
49,750
49,380
49,310
49,500
49,390
49,280
Unemployment Rates
State
City(3)
of NH(3)
5.1 %
5.9
6.1
6.1
6.7
7.0
4.1
3.8
4.0
4.1
4.3 %
5.3
5.5
5.5
6.2
6.2
3.9
3.5
3.5
3.6
US(3)
6.2 %
7.4
8.1
8.9
9.6
9.3
5.8
4.6
4.6
5.1
Data Sources:
(1)
Population Estimates - New Hampshire Office of Energy and Planning (2004-2014 calendar year data), http://www.nh.gov/oep/data-center/population-estimates.htm
(2)
U.S. Census Bureau, American Community Survey (2005-2014 calendar year data), DP03, 1-year estimates, http://factfinder2.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t
(3)
New Hampshire Employment Security, Economic & Labor Market Information Bureau (2004-2014 calendar year data), www.nhes.nh.gov/elmi/statistics/laus-arch.htm
A-177
City of Nashua, New Hampshire
Principal Employers
Current Year and Ten Years Ago
2015
Type of Business
Employer
(1)
Employee
Rank
2006
Percentage of
Total City
Employment
Employee
Rank
Percentage of
Total City
Employment
BAE Systems
Aerospace/Electronics
3,100
1
6.35 %
2,850
1
5.78 %
Southern New Hampshire Medical Center
Hospital
2,217
2
4.54
1,921
3
3.90
Nashua School District
Schools
1,679
3
3.44
2,001
2
4.06
St. Joseph Hospital and Trauma Center
Hospital
1,675
4
3.43
1,893
4
3.84
City of Nashua
City Government
808
5
1.65
794
6
1.61
Oracle Corporation
Software
620
6
1.27
418
10
0.85
Federal Aviation Administration
Air Traffic Control
490
7
1.00
500
8
1.01
Amphenol(2)
Backplane Connection Systems
439
8
0.90
580
7
1.18
Benchmark Electronics
US Post Office
Hi-tech manufacturing
Postal Service
400
385
9
10
0.82
0.79
486
9
0.99
Hewlett Packard(3)
Computer Software/Hardware
-
-
-
1,500
5
3.04
Total Principal Employers
11,813
Total City Employment
48,850
Data Source:
Various Human Resources Departments; NHES Top Employer List
Notes:
(1) Previously identified as Sanders, a Lockeed Martin Company.
(2) Previously identified as Teradyne Connection Systems Inc. (TER).
(3) Previously identified as Digital Equipment Corporation; Compaq Computer Corporation.
A-178
24.18 %
12,943
49,280
26.26 %
City of Nashua, New Hampshire
Operating Indicators by Function
Last Ten Fiscal Years
Function
Finance
Taxable property parcels assessed
Property transfers processed(1)
Motor vehicles registered
Planning - Inspection Division
Building inspections
Estimated construction value in millions
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
27,151
27,446
27,094
27,968
27,983
27,992
28,010
28,072
28,082
28,173
2,200
90,503
2,379
87,985
1,918
87,999
2,087
82,324
2,351
85,379
1,946
83,606
1,943
87,575
2,192
87,932
2,310
89,364
2,288
90,924
6,475
84
6,057
54.7
5,300
123
6,571
101
6,329
61
6,442
98
7,571
112
8,362
88
8,405
125
7837
164
(2)
Police
Physical arrests
Traffic violations
Parking violations
Fire and Rescue(3)
Calls answered
Emergency responses
Fires extinguished
Number of inspections conducted
Emergency medical responses
Public Works
Refuse collected (tons) (4)
Recycling (tons)(5)
Streets resurfaced (miles)
Potholes repaired
Wastewater System
Daily average treatment (millions of gallons)
Public Library
Items in collection
Items circulated
Public Health-Environmental Health
Food service establishment inspections
Residential inspections
Pools/spas sampled
Public Health-Welfare/Assistance
General assistance
Number of contacts
Applicants
Interviews
Assisted cases
Public Health-Community Health/Clinic Services
Childhood immunizations
Adult influenza vaccinations
Outreach clients
Clinic counseling and testing
4,519
23,473
34,257
4,111
18,391
28,170
4,411
31,727
25,509
4,157
32,275
24,612
4,335
32,786
24,217
4,731
35,518
22,528
4,616
31,596
21,799
4,511
31,616
20,899
4,473
28,430
22,205
3,247
19,244
18,565
7,801
3,777
300
66
2,875
7,691
3,940
317
104
3,025
7,744
4,019
370
149
3,086
8,312
4,053
450
519
3,974
9,318
4,503
540
1,612
4,503
9,847
5,678
648
1,634
4,781
10,662
5,914
778
1,848
5,100
10,724
6,052
934
2,050
5,079
10,855
5,985
1,121
2,103
5,338
30,061
8,927
1,983
1,556
4,186
54,475
59,325
58,315
57,111
53,762
50,534
50,456
52,440
52,098
51,230
11,200
7.9
717
9,106
10.2
1,024
12,301
4.2
1,178
17,884
3.3
1,077
17,490
5.9
1,385
11,451
5.0
1,412
12,578
9.9
853
12,122
7.7
945
12,103
4.5
1,310
12,375
7.8
1,151
14.2
12.1
11.7
12.2
11.9
10.3
11.2
10.8
10.5
10.9
243,724
692,939
240,496
731,274
263,974
798,704
269,427
810,573
262,929
817,953
263,462
769,606
254,104
709,322
243,281
640,353
230,321
599,881
201,678
519,346
*
*
*
*
*
*
1,506
117
254
1,357
26
114
1,619
31
147
1,565
17
141
1,395
248
81
1,732
115
108
1,692
390
84
1,145
363
46
1,281,992
12,066
5,206
5,206
3,693
1,044,358
11,268
2,232
5,182
3,427
1,281,992
11,410
2,137
4,336
2,937
1,192,483
13,257
1,329
4,839
3,371
857,843
11,440
2,160
3,906
2,600
693,291
11,373
2,084
3,572
2,260
602,989
10,146
1,857
3,111
1,996
620,190
9,181
1,695
2,888
1,868
605,677
8,490
1,540
2,673
1,641
559,665
8,115
1,371
2,362
1,385
*
*
*
*
*
*
*
*
499
1,365
326
1,091
418
1,770
523
1,045
1,401
1,917
503
910
507
1,407
502
922
1,971
768
133
101
2,116
1,370
182
58
1,741
1,523
182
112
1,900
978
262
312
Data Source:
Various city departments
Notes:
(1)
Based on an estimate per the City of Nashua, Assessing Department.
(2)
Police data is based on a calendar year. The current year's data is for January through September 22, 2015.
(3)
In FY2015, Nashua Fire Rescue began counting all calls for service, prior year numbers counted only "red light" incidents.
(4)
Refuse consists of residential, commercial, and industrial municipal solid waste (MSW) by calendar year; 2005 data is year-to-date through October.
(5)
Recycling consists of mixed paper, mixed containers, scrap metal, soft yard waste, auto tires and batteries by calendar year; 2005 data is year-to-date through October.
*
Data unavailable for these years.
A-179
City of Nashua, New Hampshire
Capital Asset Statistics by Function
Last Ten Fiscal Years
Function
2006
Police
Number of stations
Number of patrol units(1)
Fire and Rescue
Number of stations
Number of ladder trucks
Number of pumpers
Number of support vehicles
Public Works
Miles of streets
Miles of storm drains
Number of traffic lights
Number of bridges
Culture and Recreation
Number of Parks
Park acreage
Playgrounds
Baseball fields
Softball fields
Football fields
Soccer fields
Swimming pools
Tennis courts
Sewage System
Miles of sanitary sewers
Number of treatment plants
Number of service connections
Average Daily Flow (MGD)
Maximum daily capacity of treatment (MGD) dry weather
Maximum daily capacity of treatment (MGD) wet weather
Education
Elementary School Buildings
Middle School Buildings
High School Buildings
2007
2008
2009
2010
2011
2012
2013
2014
1
1
1
1
1
1
1
1
1
1
23
23
23
23
25
25
25
25
25
25
7
4
8
25
7
4
8
25
7
4
8
25
7
4
8
25
7
4
8
25
7
4
8
25
7
4
8
25
7
4
8
25
7
4
8
25
7
4
8
25
322
130.8
84
19
322
131.0
85
19
323
131.1
87
19
343
133.0
92
19
344
133.6
92
19
344
133.9
92
19
344
135.41
92
19
344
135.41
92
19
344
135.00
91
19
344
135.00
94
19
49
632
24
27
12
3
14
3
17
49
632
24
27
12
3
14
3
17
50
688
24
27
12
3
14
3
17
51
930
24
27
12
3
14
3
17
52
931
24
27
12
3
14
3
17
52
931
24
27
12
3
14
3
17
53
932
25
27
12
3
14
3
17
53
932
25
27
12
1
14
3
17
53
932
25
27
12
1
14
3
17
53
1,200
25
27
12
2
14
3
15
285.3
1
22,408
14.2
16.0
50.0
285.7
1
22,669
12.1
16.0
50.0
285.7
1
22,782
11.7
16.0
50.0
285.7
1
22,955
12.2
16.0
110.0
285.7
1
22,993
11.9
16.0
110.0
285.7
1
23,074
10.3
16.0
110.0
285.7
1
23,107
11.2
16.0
110.0
285.7
1
23,117
10.8
16.0
110.0
285.7
1
23,246
10.5
16.0
110.0
285.7
1
23,311
10.9
16.0
110.0
12
4
2
12
4
2
12
4
2
12
4
2
12
4
2
12
3
2
12
3
2
12
3
2
12
3
2
12
3
2
Data Source:
Various city departments
Notes:
-1
2015
Updated FY2006-FY2015 based on description of "Patrol" as sourced from:
Gauthier, Stephen J. "Appendix E, Illustrative Accounts, Classifications, and Descriptions." Governmental Accounting, Auditing, and Financial Reporting. Chicago, IL: Government Finance Officers Association, 2005. 657. Print.
A-180
City of Nashua, New Hampshire
City Government Employees by Division - Full Time Equivalents
Last Ten Fiscal Years
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
General Government Division
Mayor's Office
Legal
Board of Aldermen
Citistat(1)
Employee Benefits
Office of the City Clerk
Human Resources
Government & Education Access Channels(2)
Total General Government
Division
5.0
4.9
1.8
7.0
3.9
22.6
5.0
4.9
1.8
7.0
3.9
1.0
23.6
5.0
4.9
1.8
7.0
3.9
2.0
24.6
4.0
5.0
1.8
2.0
1.8
7.0
4.1
2.0
27.6
6.0
4.9
1.8
2.0
2.8
7.0
4.1
2.0
30.6
6.0
5.0
1.8
2.0
3.2
6.0
3.7
2.0
29.6
6.0
5.0
1.8
2.0
3.2
6.0
3.7
2.0
29.6
6.0
5.0
1.8
2.0
3.2
6.0
3.4
2.0
29.3
5.8
5.0
1.8
2.0
3.2
6.0
3.5
2.0
29.2
5.0
5.0
1.7
3.2
6.0
3.4
2.0
26.2
Financial Services Division
Finance
Risk Management
Purchasing
Building Maintenance
Hunt Building
Assessing
Total Financial Services
30.6
5.0
4.0
5.6
11.0
56.2
31.4
5.0
4.0
5.6
11.0
57.0
31.4
5.0
4.0
4.6
10.0
55.0
31.3
5.0
4.0
4.6
0.5
10.0
55.4
31.0
5.0
4.0
4.6
0.5
10.0
55.1
32.0
5.0
4.0
4.6
0.5
10.0
56.1
32.0
5.0
4.0
4.6
0.5
9.0
55.1
30.4
5.0
4.0
4.6
0.5
10.0
54.5
30.5
5.0
4.0
4.6
0.5
10.0
54.7
32.7
5.0
4.0
4.6
0.5
10.0
56.8
Administrative Services Division(3)
1.9
1.9
1.9
-
-
-
-
-
-
-
Information Technology Division(4)
9.0
13.0
12.0
13.0
12.0
13.0
13.0
13.0
13.0
13.0
244.0
176.0
420.0
252.0
174.0
426.0
252.1
176.0
428.1
252.6
176.0
1.8
430.4
240.9
175.0
1.8
417.7
245.9
175.0
1.8
422.7
245.9
175.0
1.0
1.8
423.7
245.9
175.0
1.0
1.8
423.7
247.7
176.0
1.0
1.8
426.5
247.7
176.0
1.0
1.8
426.5
7.8
8.6
6.0
6.9
29.3
7.8
10.4
7.0
7.9
33.1
8.0
10.3
7.0
7.9
33.2
8.3
10.3
7.0
7.4
32.9
6.9
9.7
6.0
7.4
29.9
6.1
8.9
6.0
7.0
28.0
6.1
8.9
6.0
7.0
28.0
7.2
8.3
6.0
7.0
28.5
7.2
8.3
6.0
7.0
28.5
7.4
8.0
6.0
7.0
28.4
16.0
29.0
56.0
10.0
1.0
35.0
33.0
180.0
17.0
27.0
59.5
10.0
1.0
31.0
31.5
177.0
14.0
28.0
58.0
10.0
1.0
35.0
31.5
177.5
14.0
36.0
57.5
10.0
1.0
35.0
31.5
185.0
14.0
28.0
56.5
9.5
2.5
35.0
30.5
176.0
14.0
27.0
55.5
9.5
3.1
35.0
30.0
174.1
14.0
27.0
55.5
9.5
3.1
35.0
30.0
174.1
15.3
27.0
59.8
3.1
37.0
30.0
172.1
13.6
25.0
60.8
3.1
40.5
32.3
175.2
13.6
25.0
60.7
3.1
40.3
33.5
176.2
2.3
7.6
1.4
6.0
10.0
3.0
30.3
2.3
8.0
1.4
7.0
10.0
3.0
31.7
2.0
8.0
1.4
11.0
10.0
3.0
35.4
2.0
8.0
1.5
11.0
9.3
3.0
34.8
2.0
8.0
1.5
10.0
9.3
3.0
33.8
2.2
8.0
1.5
3.5
8.2
3.0
26.4
2.2
8.0
1.5
3.5
8.2
3.0
26.4
2.2
8.0
2.0
6.0
8.2
3.0
29.4
2.5
8.0
2.0
6.8
7.8
3.0
30.0
2.5
8.0
2.0
6.9
7.8
3.0
30.2
4.0
4.0
8.0
4.0
4.0
8.0
4.0
4.0
8.0
4.0
4.0
8.0
4.0
4.0
8.0
4.0
4.0
8.0
4.0
4.0
8.0
4.0
4.0
8.0
4.0
4.0
8.0
4.0
4.0
8.0
Public Safety Division
Police
Fire
Emergency Management
Communications
Total Public Safety
Public Health & Community Services Division
Community Services
Community Health
Environmental Health
Welfare
Total Health & Comm. Services
Public Works Division
Admin/Engineering
Parks & Recreation
Streets
Traffic(5)
Parking
Wastewater
Solid Waste
Total Public Works
Community Development Division
Community Development
Planning
Office of Economic Development
Urban Programs
Building
Code Enforcement
Total Community Development
Public Services
Edgewood Cemetery
Woodlawn Cemetery
Total Public Services
45.8
45.8
45.8
45.2
44.5
41.5
41.5
43.0
43.0
42.9
School Department
Teachers
Other staff
Total School Department
Library Department
821.0
856.0
1,693.0
824.0
850.0
1,674.0
830.0
862.0
1,692.0
834.0
817.2
1,651.2
800.0
811.0
1,611.0
793.0
903.6
1,696.6
798.0
864.2
1,662.2
797.3
865.7
1,663.0
801.7
870.3
1,672.0
803.9
875.4
1,679.3
Total All Functions
2,496.1
2,491.1
2,513.5
2,483.5
2,418.5
2,495.9
2,461.5
2,464.4
2,480.0
2,487.4
Percent of Total
General Government Division
Financial Services Division
Administrative Services Division
Information Technology Division
Public Safety Division
Public Health & Community Services Division
Public Works Division
Community Development Division
Public Services Division
Library Department
School Department
Total
0.9%
2.3%
0.1%
0.4%
16.8%
1.2%
7.2%
1.2%
0.3%
1.8%
67.8%
100.0%
0.9%
2.3%
0.1%
0.5%
17.1%
1.3%
7.1%
1.3%
0.3%
1.8%
67.2%
100.0%
1.0%
2.2%
0.1%
0.5%
17.0%
1.3%
7.1%
1.4%
0.3%
1.8%
67.3%
100.0%
1.1%
2.2%
0.0%
0.5%
17.3%
1.3%
7.4%
1.4%
0.3%
1.8%
66.5%
100.0%
1.3%
2.3%
0.0%
0.5%
17.3%
1.2%
7.3%
1.4%
0.3%
1.8%
66.6%
100.0%
1.2%
2.2%
0.0%
0.5%
16.9%
1.1%
7.0%
1.1%
0.3%
1.7%
68.0%
100.0%
1.2%
2.2%
0.0%
0.5%
17.2%
1.1%
7.1%
1.1%
0.3%
1.7%
67.5%
100.0%
1.2%
2.2%
0.0%
0.5%
17.2%
1.2%
7.0%
1.2%
0.3%
1.7%
67.5%
100.0%
1.2%
2.2%
0.0%
0.5%
17.2%
1.1%
7.1%
1.2%
0.3%
1.7%
67.4%
100.0%
1.1%
2.3%
0.0%
0.5%
17.1%
1.1%
7.1%
1.2%
0.3%
1.7%
67.5%
100.0%
Data Source
City of Nashua Budget. Full time equivalent based on 40 hours per week.
Notes:
(1)
CitiStat was dissolved in FY2015 with departmental functions reassigned to the Financial Services Division.
(2)
New addition to FY2015 CAFR.
(3)
The Administrative Services Division was dissolved in FY2009 with departmental functions reassigned to the Financial Services and General Government Divisions.
(4)
Information Technology was established as a new Division during FY2007.
(5)
Traffic Department was merged with the Street Department in FY2013.
A-181
City of Nashua, New Hampshire
Student/Teacher Statistical Information
Last Ten Fiscal Years
Fiscal Year
2010
2011
2006
2007
2008
2009
5,469
3,240
4,274
12,983
5,378
3,076
4,258
12,712
5,486
2,768
4,261
12,515
5,592
2,632
4,122
12,346
5,632
2,575
4,178
12,385
339
214
230
38
821
340
214
230
40
824
345
213
232
40
830
331
212
259
32
834
317
200
250
33
800
2012
2013
2014
2015
5,633
2,646
3,887
12,166
5,587
2,557
3,752
11,896
5,644
2,508
3,750
11,902
5,433
2,425
3,642
11,500
5,335
2,435
3,598
11,368
317
193
250
33
793
327
193
243
35
798
326
193
243
35
797
329
194
244
35
802
344
193
215
51
803
Student Enrollment:
Elementary
Middle School
High School
Total
Teacher FTEs:(1)
Elementary
Middle School
High School
District-wide
Total
Data Source:
Nashua School District
Notes:
(1)
The distribution among teachers by grade level is an estimate.
A-182
City of Nashua, New Hampshire
School Department Operating Statistics
Last Ten Fiscal Years
Pupil/
Fiscal
Operating
Year
Budget
20152
2014
$
(2)
(1)
132,760,058
$
Debt
Total
Service
Budget
11,776,596
$
Enrollment
144,536,654
11,368
$
Cost per
Percentage
Teaching
Teacher
Pupil
Change
Staff
Ratio
12,714
2.9 %
804
14.1
129,733,916
12,401,961
142,135,877
11,500
12,360
35.3
802
14.3
2013
2
95,871,330
13,090,777
108,718,824
11,902
9,135
1.0
797
14.9
2012
2
94,478,076
13,274,475
107,752,551
11,896
9,041
2.6
798
14.9
2011
2
93,425,591
13,729,516
107,155,107
12,166
8,808
6.9
793
15.3
20102
87,630,820
14,384,073
102,014,893
12,385
8,237
0.8
800
15.5
20092
86,025,543
14,818,757
100,844,300
12,346
8,168
3.4
834
14.8
2008
2
83,554,436
15,273,288
98,827,724
12,515
7,897
3.3
830
15.1
2007
2
80,791,428
16,377,196
97,168,624
12,712
7,644
-0.6
824
15.4
2006
2
83,101,595
16,776,199
99,877,794
12,983
7,693
4.3
821
15.8
Data Source:
Budget information from City Adopted Budget and enrollment/teaching staff information provided by the School Department.
Notes:
(1)
Budget is for the General Fund only and excludes special revenue funds and grants
(2)
Beginning in FY2014, employee health and pension costs previously budgeted in General Government are allocated to
the School operating budget.
A-183
ALLY LE
PROPOSED FORM OF LEGAL OPINION
APPENDIX B
(Date of Delivery)
David G. Fredette, Treasurer
City of Nashua
Nashua, New Hampshire
$16,920,000
City of Nashua, New Hampshire
General Obligation Bonds
Dated February 23, 2016
We have acted as bond counsel to the City of Nashua, New Hampshire (the “City”) in
connection with the issuance by the City of the above-referenced bonds (the “Bonds”). In such
capacity, we have examined the law and such certified proceedings and other papers as we have
deemed necessary to render this opinion.
As to questions of fact material to our opinion we have relied upon representations and
covenants of the City contained in the certified proceedings and other certifications of public
officials furnished to us, without undertaking to verify the same by independent investigation.
Based on our examination, we are of the opinion, under existing law, as follows:
1.
The Bonds are valid and binding general obligations of the City and, except to the
extent they are paid from other sources, the principal of and interest on the Bonds are payable
from taxes which may be levied upon all taxable property in the City without limitation as to rate
or amount; provided that, to the extent the City has established any development districts
pursuant to Chapter 162-K of the New Hampshire Revised Statutes Annotated, taxes levied on
certain taxable property located within any such district may be restricted and unavailable to pay
the principal of and interest on the Bonds.
2.
Interest on the Bonds is excluded from the gross income of the owners of the
Bonds for federal income tax purposes. In addition, interest on the Bonds is not a specific
preference item for purposes of the federal individual or corporate alternative minimum taxes.
However, such interest is included in adjusted current earnings when calculating corporate
alternative minimum taxable income. In rendering the opinions set forth in this paragraph, we
have assumed compliance by the City with all requirements of the Internal Revenue Code of
1986 that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon
be, and continue to be, excluded from gross income for federal income tax purposes. The City
has covenanted to comply with all such requirements. Failure by the City to comply with certain
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of such requirements may cause interest on the Bonds to become included in gross income for
federal income tax purposes retroactive to the date of issuance of the Bonds. We express no
opinion regarding any other federal tax consequences arising with respect to the Bonds.
3.
The interest on the Bonds is exempt from the New Hampshire personal income
tax on interest and dividends. We express no opinion regarding any other New Hampshire tax
consequences arising with respect to the Bonds or any tax consequences arising with respect to
the Bonds under the laws of any state other than New Hampshire.
This opinion is expressed as of the date hereof, and we neither assume nor undertake any
obligation to update, revise, supplement or restate this opinion to reflect any action taken or
omitted, or any facts or circumstances or changes in law or in the interpretation thereof, that may
hereafter arise or occur, or for any other reason.
The rights of the holders of the Bonds and the enforceability of the Bonds may be subject to
bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’
rights heretofore or hereafter enacted to the extent constitutionally applicable, and their
enforcement may also be subject to the exercise of judicial discretion in appropriate cases.
LOCKE LORD LLP
AM 57015847.1
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APPENDIX C
PROPOSED FORM OF
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and
delivered by the City of Nashua, New Hampshire (the “Issuer”) in connection with the issuance
of its $16,920,000 General Obligation Bonds dated February 23, 2016 (the “Bonds”). The Issuer
covenants and agrees as follows:
SECTION 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being
executed and delivered by the Issuer for the benefit of the Owners of the Bonds and in order to
assist the Participating Underwriters in complying with the Rule.
SECTION 2. Definitions. For purposes of this Disclosure Certificate the following
capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the Issuer pursuant to, and
as described in, Sections 3 and 4 of this Disclosure Certificate.
“Listed Events” shall mean any of the events listed in Section 5(a) of this Disclosure
Certificate.
“MSRB” shall mean the Municipal Securities Rulemaking Board as established pursuant
to Section 15B(b)(1) of the Securities Exchange Act of 1934, or any successor thereto or to the
functions of the MSRB contemplated by this Disclosure Certificate. Filing information relating
to the MSRB is set forth in Exhibit A attached hereto.
“Obligated Person” shall mean the Issuer.
“Owners of the Bonds” shall mean the registered owners, including beneficial owners, of
the Bonds.
“Participating Underwriter” shall mean any of the original underwriters of the Bonds
required to comply with the Rule in connection with offering of the Bonds.
“Rule” shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as the same may be amended from time to time.
SECTION 3. Provision of Annual Reports.
(a)
The Issuer shall, not later than 270 days after the end of each fiscal year, provide
to the MSRB an Annual Report which is consistent with the requirements of Section 4 of this
Disclosure Certificate. The Annual Report may be submitted as a single document or as separate
documents comprising a package, and may cross-reference other information as provided in
Section 4 of this Disclosure Certificate; provided that the audited financial statements of the
Issuer may be submitted when available separately from the balance of the Annual Report.
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(b)
If the Issuer is unable to provide to the MSRB an Annual Report by the date
required in subsection (a), the Issuer shall send a notice to the MSRB, in substantially the form
attached as Exhibit B.
SECTION 4. Content of Annual Reports. The Issuer's Annual Report shall contain or
incorporate by reference the following:
(a)
quantitative information for the preceding fiscal year of the type presented in the
Issuer's Official Statement dated February 11, 2016 relating to the Bonds regarding (i) the
revenues and expenditures of the Issuer relating to its operating budget, (ii) capital expenditures,
(iii) fund balances, (iv) property tax information, (v) outstanding indebtedness and overlapping
debt of the Issuer, (vi) pension obligations of the Issuer, and (vii) other post-employment benefits
liability of the Issuer, and
(b)
the most recently available audited financial statements of the Issuer, prepared in
accordance with generally accepted accounting principles (except for the omission, if any, of a
statement of fixed assets). If audited financial statements for the preceding fiscal year are not
available when the Annual Report is submitted, the Annual Report will include unaudited
financial statements for the preceding fiscal year and audited financial statements for such fiscal
year shall be submitted when available.
Any or all of the items listed above may be incorporated by reference from other
documents, including official statements of debt issues of the Issuer or related public entities,
which (i) are available to the public on the MSRB internet website or (ii) have been filed with the
Securities and Exchange Commission. The Issuer shall clearly identify each such other
document so incorporated by reference.
SECTION 5. Reporting of Significant Events.
(a)
The Issuer shall give notice, in accordance with the provisions of this Section 5,
of the occurrence of any of the following events with respect to the Bonds:
1.
Principal and interest payment delinquencies.
2.
Non-payment related defaults, if material.
3.
Unscheduled draws on debt service reserves reflecting financial difficulties.
4.
Unscheduled draws on credit enhancements reflecting financial difficulties.
5.
Substitution of credit or liquidity providers, or their failure to perform.
6.
Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other
material notices or determinations with respect to the tax status of the Bonds, or other material
events affecting the tax status of the Bonds.
7.
Modifications to rights of the Owners of the Bonds, if material.
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8.
Bond calls, if material, and tender offers.
9.
Defeasances.
10.
material.
Release, substitution or sale of property securing repayment of the Bonds, if
11.
Rating changes.
12.
Bankruptcy, insolvency, receivership or similar event of the Obligated Person.*
13.
The consummation of a merger, consolidation, or acquisition involving an
Obligated Person or the sale of all or substantially all of the assets of the Obligated Person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake such an
action or the termination of a definitive agreement relating to any such actions, other than
pursuant to its terms, if material.
14.
Appointment of a successor or additional trustee or the change of name of a
trustee, if material.
(b)
Upon the occurrence of a Listed Event, the Issuer shall, in a timely manner not in
excess of ten (10) business days after the occurrence of the event, file a notice of such occurrence
with the MSRB.
SECTION 6. Transmission of Information and Notices. Unless otherwise required by
law, all notices, documents and information provided to the MSRB shall be provided in
electronic format as prescribed by the MSRB and shall be accompanied by identifying
information as prescribed by the MSRB.
SECTION 7. Termination of Reporting Obligation. The Issuer's obligations under this
Disclosure Certificate shall terminate upon the prior redemption or payment in full of all of the
Bonds. If such termination occurs prior to the final maturity of the Bonds, the Issuer shall give
notice of such termination in the same manner as for a Listed Event under Section 5(b).
SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate and any provision of this
Disclosure Certificate may be waived if such amendment or waiver is permitted by the Rule, as
evidenced by an opinion of counsel expert in federal securities law (which may include bond
counsel to the Issuer), to the effect that such amendment or waiver would not cause the
*
As noted in the Rule, this event is considered to occur when any of the following occur: (i) the appointment of a
receiver, fiscal agent or similar officer for the Obligated Person in a proceeding under the U.S. Bankruptcy Code or
in any proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction
over substantially all of the assets or business of the Obligated Person, or if such jurisdiction has been assumed by
leaving the existing governing body and officials or officers in possession but subject to the supervision and orders
of a court or governmental authority, or (ii) the entry of an order confirming a plan of reorganization, arrangement or
liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets
or business of the Obligated Person.
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Disclosure Certificate to violate the Rule. The first Annual Report filed after enactment of any
amendment to or waiver of this Disclosure Certificate shall explain, in narrative form, the
reasons for the amendment or waiver and the impact of the change in the type of information
being provided in the Annual Report.
If the amendment provides for a change in the accounting principles to be followed in
preparing financial statements, the Annual Report for the year in which the change is made shall
present a comparison between the financial statements or information prepared on the basis of
the new accounting principles and those prepared on the basis of the former accounting
principles. The comparison shall include a qualitative discussion of the differences in the
accounting principles and the impact of the change in the accounting principles on the
presentation of the financial information in order to provide information to investors to enable
them to evaluate the ability of the Issuer to meet its obligations. To the extent reasonably
feasible, the comparison shall also be quantitative. A notice of the change in the accounting
principles shall be sent to the MSRB.
SECTION 9. Default. In the event of a failure of the Issuer to comply with any
provision of this Disclosure Certificate any Owner of the Bonds may seek a court order for
specific performance by the Issuer of its obligations under this Disclosure Certificate. A default
under this Disclosure Certificate shall not constitute a default with respect to the Bonds, and the
sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply
with this Disclosure Certificate shall be an action for specific performance of the Issuer's
obligations hereunder and not for money damages in any amount.
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SECTION 10. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit
of the Owners of the Bonds from time to time, and shall create no rights in any other person or
entity.
Date: February 23, 2016
CITY OF NASHUA, NEW HAMPSHIRE
By______________________________
Treasurer
______________________________
Mayor
[EXHIBIT A: Filing Information for the MSRB]
[EXHIBIT B: Form of Notice of Failure to File Annual Report]
AM 57015894.1
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