Agenda

Restricted Cash — Bond Project Funds

Maintenance, repairs and minor improvements are charged to expense as incurred. Improve-
ments 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 short-
term liquid investments with original maturities of three months or less.

Restricted Cash — RSF

PENNICHUCK CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Description of Business and Summary of Significant Accounting Policies

Description of Business

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Pennichuck Corporation and Subsidiaries
Notes to Financial Statements

97

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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

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liability as these respective employees are included only in the City’s plan that does not
have assets held in a trust for future OPEB liabilities.

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

OPEB Expense and Deferred Outflows of Resources and Deferred (Inflows) of Resources
Related to OPEB

For the year ended June 30, 2021, the City recognized an OPEB expense of $4,694,079. At
June 30, 2021, the City reported deferred outflows and (inflows) of resources related to OPEB
from the following sources:

Deferred Deferred
Outflows of (Inflows) of
Resources Resources
Differences between expected and actual
experience $ 667,879 $ (5,639,344)
Changes of assumptions 5,496,932 -
Total $ 6,164,811 $ (5,639,344)

teacher retiree ends when the retiree is eligible for Medicare. The following table shows the
Explicit and Implicit Liability amounts:

Explicit Implicit Totals
Current Retirees $ 0.1 million $ 8.5 million $ 8.6 million
Future Retirees 4.9 million 41.5 million 46.4 million
Totals $ 5.0 million $ 50.0 millon $ 455.0 million

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate

The actuarial assumptions used in the valuation were based on the results of an actuarial
experience study as of June 30, 2010.

Discount Rate

The discount rate used to measure the total OPEB liability was 2.19%. The projection of
cash flows used to determine the discount rate assumed that contributions from plan
members will be made at the current contribution rate.

Changes in the Total OPEB Liability
The following summarizes the changes to the total OPEB liability for the past year.