Search

Guarantor agrees to cause all persons occupying or present on any of its properties to comply in all
material respects with all Laws relating to such properties.

(C) Insurance. Maintain insurance with insurance companies or associations
acceptable to CoBank in such amounts and covering such risks as are usually carried by companies
engaged in the same or similar business and similarly situated.

{(D)} Property Maintenance. Maintain all of its property that is necessary to or
useful in the proper conduct of its business in good working condition, ordinary wear and tear excepted.

(E) Books and Records. Keep adequate records and books of account in which
complete entries will be made in accordance with GAAP consistently applied.

(F) Inspection. Permit CoBank or its agents, upon reasonable notice and during
normal business hours or at such other times as the parties may agree, to examine its properties, books,
and records, and to discuss its affairs, finances, and accounts, with its respective officers, directors,
employees, and independent certified public accountants.

(G) Reports and Notices. Furnish to CoBank:

(i) Annual Financial Statements. As soon as available, but in no event
more than 120 days after the end of each fiscal year of the Guarantor occurring during the term hereof, a
copy of:

(a) a consolidated balance sheet of the Company and its
Subsidiaries as at the end of such year, and

(b) consolidated statements of income, changes in shareholders’
equity, and cash flows of the Guarantor and its Subsidiaries, for such year,

setting forth, in each case, in comparative form, the figures for the previous fiscal year, all in reasonable
detail, prepared in accordance with GAAP, and accompanied by an unqualified opinion thereon of
independent certified public accountants of recognized national standing, which opinion shall state that
such financial statements present fairly, in all material respects, the financial position of the companies
being reported upon and their results of operations and cash flows and have been prepared in conformity
with GAAP, and that the examination of such accountants in connection with such financial statements
has been made in accordance with generally accepted auditing standards, and that such audit provides a
reasonable basis for such opinion in the circumstances; provided that the delivery within the time period
specified above of the Company’s Annual Report on Form 10-K for such fiscal year (together with the
Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange
Act) prepared in accordance with the requirements therefor and filed with the Securities and Exchange
Commission, together with the accountant’s certificate described above, shall be deemed to satisfy the
requirements of this Subsection;

(2) Quarterly Statements. As soon as available, but in no event more than
60 days after the end of each fiscal quarter of the Guarantor (other than the last quarterly fiscal period of
each such fiscal year), a copy of the Company’s Quarterly Report on Form 10-Q prepared in compliance
with the requirements therefor and filed with the Securities and Exchange Commission;

(3) Notice of Default. Promptly after becoming aware thereof, notice of the
breach of any covenant contained in this Guaranty or any instrument or document executed in connection
herewith.

(4) Notice of Non-Environmental Litigation. Promptly after the
commencement thereof, notice of the commencement of all actions, suits, or proceedings before any
court, arbitrator, or governmental department, commission, board, bureau, agency, or instrumentality
affecting the Guarantor which, if determined adversely to the Guarantor, could have a material adverse
effect on the financial condition, properties, profits, or operations of the Guarantor.

(5) Notice of Environmental Litigation, Etc. Promptly after receipt
thereof, notice of the receipt of all pleadings, orders, complaints, indictments, or any other
communication alleging a condition that may require the Guarantor to undertake or to contribute to a
cleanup or other response under environmental Laws, or which seek penalties, damages, injunctive relief,
or criminal sanctions related to alleged violations of such Laws, or which claim personal injury or
property damage to any person as a result of environmental factors or conditions.

(6) Other Information. Such other information regarding the condition or
operations, financial or otherwise, of the Guarantor as CoBank may from time to time reasonably request,
including but not limited to copies of all pleadings, notices, and communications referred to in
Subsections 7(G)(iv) and (v) above.

(H) Condemnation. (1) Notify CoBank promptly after the litigation (or any portion
thereof) referenced in the Application has been resolved or settled (including, without limitation, by
entering into any agreement to sell assets or stock in lieu thereof); and (2) until CoBank notifies the
Guarantor that it does not consider the outcome (or any portion of the outcome) thereof to give rise to an
Event of Default under Section 8.13 of the MLA, it will retain from the proceeds thereof an amount in
cash sufficient to pay all Guaranteed Obligations in full, plus, in the event any unused commitments are
available to the Company, the amount thereof.

SECTION 8. Negative Covenants. Unless otherwise agreed to in writing by CoBank, while this
Guaranty is in effect, whether or not any Guaranteed Obligations are outstanding, the Guarantor will not
and will not permit its subsidiaries to:

(A) Mergers, Acquisitions, Etc. Merge or consolidate with any other entity or
permit any subsidiary to merge or consolidate with any other entity, unless the Guarantor or such
subsidiary is the surviving entity, or acquire all or a material part of the assets of any person or entity, or
form or create any new subsidiary or affiliate, or commence operations under any other name,
organization, or entity, including any joint venture.

(B) Transfer of Assets. Sell, transfer, lease, or otherwise dispose of any of its
assets, except in the ordinary course of business,

(C) Change in Business. Engage in any business activities or operations
Substantially different from or unrelated to the Guarantor's present business activities or operations.

SECTION 9. Expenses. In the event CoBank employs counsel to protect or enforce its rights
hereunder against the Guarantor, all reasonable attorneys’ fees arising from such services and all expenses,
costs, and charges in any way or respect arising in connection therewith or relating thereto shall be paid by

such Guarantor.

SECTION 10. Notices. All notices provided for herein shall be in writing (including facsimile)
and shall be mailed or delivered to the following addresses or facsimile numbers or to such other address

or facsimile number as either party may specify by notice to the other:

If to CoBank, as follows: If to the Guarantor, as follows:
CoBank, ACB Pennichuck Corporation

5500 South Quebec Street 25 Manchester Street

Greenwood Village, Colorado 80111 Merrimack, New Hampshire 03054
Facsimile: (303) 740-4002 Facsimile: (603) 913-2305
Attention: Energy & Water Group Attention: President

SECTION 11. Amendments, Etc. THIS WRITING IS INTENDED BY THE PARTIES AS A
FINAL EXPRESSION OF THEIR AGREEMENT AND IS ALSO INTENDED AS A COMPLETE AND
EXCLUSIVE STATEMENT OF THE TERMS OF THAT AGREEMENT. NO AMENDMENT OR
WAIVER OF ANY PROVISION OF THIS GUARANTY NOR CONSENT TO ANY DEPARTURE BY
THE GUARANTOR HEREFROM SHALL BE EFFECTIVE UNLESS THE SAME SHALL BE IN
WRITING AND SIGNED BY COBANK, AND THEN SUCH WAIVER OR CONSENT SHALL BE
EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE FOR WHICH

GIVEN.

SECTION 12. No Waiver; Remedies. No failure on the part of CoBank to exercise, and no
delay in exercising, any right hereunder shall operate as waiver thereof; nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other

right.

SECTION 13. Applicable Law, Jurisdiction. Except to the extent governed by applicable
federal law, the laws of the State of Colorado, without reference to choice of law doctrine, shall govern
this Guaranty, all disputes and matters between the parties to this Guaranty, and the rights obligations of
the parties to this Guaranty. The parties agree to submit to the non-exclusive jurisdiction of any federal or
state court sitting in Colorado for any action or proceeding arising out of or relating to this Guaranty. The
Company hereby waives any objection that it may have to any such action or proceeding on the basis of

forum non-conveniens.

SECTION 14. Patriot Act Notice. CoBank hereby notifies the Guarantor that pursuant to the
requirements of the USA Patriot Act, Title II of Pub. L. 107-56 (signed into law October 26, 2001) (the
“Patriot Act”), it and its affiliates are required to obtain, verify and record information that identifies the
Guarantor, which information includes the name, address, tax identification number and other
information regarding the Guarantor that will allow CoBank to identify the Guarantor in accordance with
the Patriot Act. This notice is given in accordance with the requirements of the Patriot Act and is
effective for CoBank and its affiliates.

SECTION 15. Successors and Assigns. This Guaranty shall be binding upon and inure to the
benefit of the Guarantor and CoBank and their respective successors and assigns, except that the
Company may not assign or transfer its rights or obligations under this Guaranty without the prior written
consent of CoBank. CoBank may sell or assign its rights and obligations hereunder and under the other
Loan Documents or may sell participations in its rights and obligations hereunder

SECTION 16. Notice of Acceptance. The Guarantor hereby waives notice of acceptance hereof.

IN WITNESS WHEREOFP, the Guarantor has caused this Guaranty to be executed as of the date
shown above by its duly authorized officers.

PENNICHUC RPORATION _.
veo -
By: €

Title: CeO

Cultural Connections Committee

Rafael Calderon (New Appointment)
394 Notre Dame Avenue
Manchester, NH 03102

Sylvia E. Gale (New Appointment)
4 Clergy Circle
Nashua, NH 03064

Deepa Mangalat (New Appointment)
18 Wild Rose Drive
Nashua, NH 03063

Director of Public Health
Bobbie Bagley (New Appointment)

17 Bunker Hill Drive
Londonderry, NH 03053

Downtown Improvement Committee

Simon Sarris (New Appointment)
23 Auburn Street
Nashua, NH 03064

APPOINTMENT BY THE MAYOR
FEBRUARY 23, 2016

For a Term to Expire: February 28, 2018

For a Term to Expire: February 28, 2018

For a Term to Expire: February 28, 2019

Indefinite Term at the Pleasure of the Mayor

For a Term to Expire: December 13, 2016

| respectfully request that these appointments be confirmed.

Jim Donchess
Mayor

A special meeting of the Board of Aldermen was held Tuesday, February 16, 2016, at 7:00 p.m. in the
Aldermanic Chamber.

President Brian S. McCarthy presided; City Clerk Patricia D. Piecuch recorded.

Prayer was offered by City Clerk Patricia D. Piecuch; Alderman-at-Large Daniel T. Moriarty led in the Pledge to
the Flag.

The roll call was taken with 15 members of the Board of Aldermen present.
Mayor James W. Donchess was also present.
MAYOR’S ANNUAL STATE-OF-THE-CITY ADDRESS

Good evening President McCarthy, Vice President Wilshire, members of the Board of Aldermen, Board of
Education members, BPW Commissioners, other elected officials, city division directors, city staff, community
members, and guests. I'd like to thank you all for being here this evening. |’d also like to thank my wife, Vicki,
for being here.

| have now been in office for a little over a month. Many people have asked me what it is like to be Mayor
again. While many things are similar and some of the challenges are different, one thing is the same - the
quality and dedication of the people who work for the city — our city employees — is still very high. | am proud
to be leading them in serving the citizens of Nashua.

Since my term began, I’ve held a town hall in every Ward of the city. I’ve spoken with residents, and listened
to your ideas and your concerns and many members of the Board of Aldermen have joined me. | have been
inspired by the hundreds of people who have attended, showing their support and concern for the city’s future.
At our town halls we have discussed many issues and problems raised by Nashuans — roads and streets
paving, sidewalk plowing, the importance of our schools, greater river access, traffic lights and timing, lighting
on the rail trail, our riverwalks, downtown housing, and many more issues. We've learned that Nashuans are
certainly not passive. They want to play an active role in the well-being and vitality of our community. This
commitment is an undeniable asset for our city.

As Mayor my goal is to make Nashua a city that works for all of our people, for our senior citizens and our
younger generations, for high tech engineers, and for teachers, firefighters, police and custodians, for lifelong
Nashuans and for new residents. This was one of my goals in holding the town halls — to hear from all citizens
in their own neighborhoods about their hopes for Nashua over the next four years and beyond — in order to
make our city one that works for everyone. | welcome the opportunity to work with the Board of Aldermen over
the next four year’s. The Board is my partner in city government. | have enabled Board members to work
directly with city employees to make city government work more effectively on behalf of the citizens of Nashua.
My door is always open to any Aldermen who want to work on any city issue or problem.

In addition to the passion of our people and the capability of our Board of Aldermen and city employees,
Nashua is blessed to have a strong Veteran’s community. Bob Coutemanche is one of those Veterans who
might be here tonight. Bob and his wife Barbara work tirelessly for Veterans in Nashua and throughout New
Hampshire. The financial health of the city is strong. Fitch recently affirmed their Triple A bond rating and
Standard and Poor’s reaffirmed their AA+ rating, one notch below Triple A. | want to thank City CFO John
Griffin and City Treasurer David Fredette, who is here for all of their work on the city’s finances and with the
rating agencies.

As Mayor one of my main responsibilities is to focus on city operations — making sure the snow is plowed and
the garbage picked up, taking care of our parks and public spaces, making sure that our money is spent
carefully, trying to improve traffic flow, etc., but as Mayor | also work broader concerns like the long term
economic health of our city.

Board of Aldermen — State-of-the-City-Address Page 2
February 16, 2016

In order to make our economic development efforts more effective, | am focusing on five economic
development priorities — first jobs, particularly technology jobs; second, working to bring commuter rail to
Nashua; third, making sure that Nashua has well qualified people to fill jobs in all sectors of the economy;
fourth, strengthening public education; and finally, energizing our downtown.

Technology, innovation, and entrepreneurship are in Nashua’s DNA. In the nineteenth century our historic
Mills and our Millyard was a major technological center of America’s industrial revolution. The mills and all of
the Millyard facilities were ingeniously organized as one gigantic machine. Back then, the mill workers like my
wife’s grandparents whose names were Costie and Victoria — thousands of them were immigrants - produced
textiles for the whole country and the world. We still have a deep bench of technology expertise in Nashua.
We have BAE Systems, an advanced leader in defense, aerospace, and cyber security which employs 4,500
people. We have numerous tech successes that have been founded by former employees of Digital
Equipment Corporation, the computer systems giant that in the 80s and 90s employed 6,000 people in Nashua
and southern New Hampshire. | want to grow even more tech jobs in Nashua — in our south end, on Simon
Street and in our Millyard.

We are fortunate to have businesses that are established members of Nashua’s culture of innovation. Our
south end is home to Oracle, Dell, Benchmark, Data Gravity, Plexxis, XCube, Simquest and many other tech
businesses. These companies employ thousands of people and their presence in our community continues to
grow. The Flatley Company runs the annual Flatley Challenge in the south end which brings numerous tech
companies into that area. Flatley bought the huge 750,000 square foot former Digital facility which was empty
as recently as 2007. Now over 1,500 people work in that former DEC space. The Flatley Company has plans
to double the size of their tech footprint with as much as 750,000 square feet of new tech R & D space at their
Gateway Hills development in the south end. In our downtown we have Make-It Labs, New Hampshire’s first
makerspace, which provides budding entrepreneurs with the tools they need to generate ideas and prototypes
for products. We need to build upon this progress in the years ahead. | also will be working on a summer jobs
program. A summer job teaches a young person the fundamentals of holding a job and is a good foundation
for a successful life of work. Nashua should have a summer jobs program that includes public and private
sector jobs.

A second economic development priority is commuter rail service for Nashua. Rail will add jobs, connect our
people with the growing biological sciences industry and the industrial internet companies to our south, and
help us to retain and attract the young people that we need for Nashua’s success. General Electric, which has
recently announced that it’s moving its headquarters to Boston, understands the importance of connecting with
Boston’s growing economy and we should learn from their example. The initial groundwork for rail service has
been laid but ultimate success has as much to do with all of us as it has to do with the Mayor’s office or city
government. The $4 million that is necessary for the next steps in the rail project are included in the
Governor's 10-year transportation plan. The Governor has proposed taking these steps in a way that costs the
State of New Hampshire not one dime. The funds consist of federal money that cannot currently be
repurposed for any other use and a state match of $800,000 of toll credits. These credits satisfy state
matching requirements and they have been awarded by the federal government — they are not state dollars.
The State has a $250 million surplus in toll credits, more than it can use, according to the DOT, in the
foreseeable future.

| went to the House Public Works Committee to testify in favor of keeping the rail money in the Governor’s 10-
year plan, and | can tell you that there is a lot more work to be done. | was grateful to other Nashuans who
came to express their support. Tracy Hatch from the Chamber testified effectively again, Sister Buley of Rivier
University attended, and several Nashua residents, like Paul Patti from Ward 8, came in support. Some
members of the house committee expressed opposition to taking this next rail step even though it requires no
expenditure for any state money. This of course is hard to understand.

In the coming months, | will bring together a coalition of businesses in the Nashua region who will work
together to advocate for commuter rail. This effort will be in partnership with the Greater Nashua Chamber of
Commerce, an organization that for years has been advocating effectively for rail service for our city.

Board of Aldermen — State-of-the-City-Address Page 3
February 16, 2016

Simultaneously, we will work with city and area residents to build a robust grassroots coalition to support rail.
Together, we will contact our legislators in Concord and fight for rail as an integral part of Nashua’s and New
Hampshire’s futures.

A third element of the economic development strategy will be workforce development. Workforce development
means working across our community to help ensure that we have qualified people available to fill the jobs we
have now and the jobs of the future. Nashua’s economy has strengthened since the Great Recession of 2008.
Our unemployment rate in New Hampshire is a little over 3% and economists would call this a full employment
economy. However, the number of jobs in New Hampshire is about the same as it was before the 2008
recession. Our business leaders, like Tracy Hatch tell us that there are many jobs that are going unfilled at the
present time, especially high-paying professional and high-skilled jobs. What do these facts tell us? If we want
to build a strong economy, we must work to ensure that we educate and develop the qualified employees that
our businesses need to thrive and grow which | am calling the workforce development. We need to work with
our businesses, our schools, our community college, and our universities to make sure that available jobs get
filled and that Nashua people can find great jobs and opportunities for careers right here in Nashua.

Fourth, our schools are vital to the long term health of our city and must be part of our economic development
strategy. We need the strongest public schools we can have, not only so that each of our kids can optimize his
or her potential, but also so that businesses that are making decisions regarding growing here or locating here
can feel confidence that they can find qualified, capable, skilled employees. There are many steps that our
Board of Education should consider to improve education in Nashua — for example, broader pre-kindergarten
education or, a more intensive focus on young children which would ensure that each child reads at grade level
at the end of third grade. However, we are constrained by the funds that we have available, so accomplishing
these goals certainly will not be easy or immediate.

At our high schools the high level of accomplishment is remarkable. Far more Nashua students than anywhere
else in New Hampshire take and pass advanced placement, the so-called AP courses in many different
disciplines. Our CTE programs — from computer networking and bio-robotics to auto mechanics and electrical
contracting are outstanding. The honors won by our high school students are so numerous and impressive
that | cannot recognize them all here. One example — The Nashua High School South Economics Team won
the 2015 Harvard University Pre-Collegiate Economics Challenge, the first public school to ever win in the
history of the challenge. Another example — in 2015, the South Forensics Team placed in the top 12 teams out
of 800 at the NYU Cybersecurity Competition. And | could go on and on.

However, | our schools we definitely have educational challenges that must be meet. We have rising numbers
of children who qualify for free or reduced lunch which a measure of low income, it is now about 43%. We
have rising numbers of kids whose primary language is not English and we have a rising number of children
with disabilities. Some of the kids who come to school are from families suffering a high degree of stress and
they are not ready for a learning environment. Our teachers at our elementary schools do a great job in
nurturing and educating kids who come to kindergarten and/or first grade totally unprepared in reading and
math.

Unfortunately, substance use is a major challenge that has an impact on our schools. More kids than people
realize, have parents or other family members who are heroin abusers, and the problems that kids encounter
at home or on the street spill over into the school environment. When secondary principals are asked what
they need the most, their answer is actually drug counselors and social workers. In addition to our public
schools, Rivier University and the other institutions of higher learning that we have in Nashua are vital to the
state of our city and | want to strengthen the city’s relationships with them. Rivier has transformed its campus
and the gateway to our downtown on lower Main Street. Under the leadership of Sister Paula Marie Buley,
Rivier has taken the bold step of guaranteeing student loans for graduates who may not get jobs after
matriculation. Rivier is doing a great job in attracting hundreds of international students into its graduate
programs in computer science. Rivier is a strong proponent of rail service for Nashua because rail will make
Rivier more attractive to the students they want to bring to Nashua. Rivier and our other colleges and
universities can play a vital role in our workforce development initiatives, in our pro-rail coalition, and in our

Board of Aldermen — State-of-the-City-Address Page 4
February 16, 2016

downtown. | know that by working closely together with these institutions that we can accomplish a lot by
working together.

In Nashua education has always been an effort on the part of all community members and I’m proud to support
all of the people who make our school system and our higher education system successful. | hope that we
continue to recognize the outstanding achievements of our educational professionals and volunteers. We have
an extraordinary educational community in this city, and we should never take them for granted.

Finally, another critical component of our economic development efforts is our downtown. Fortunately we have
many inspiring people who are devoted to Nashua’s downtown. Paul Shea of Great American Downtown,
James Vayo, another imaginative young member of our community, Marylou Blaisdell of DesignWorks, the
Ruddock family of Riverwalk, Jessisa DePontbriand of JaJabelle’s, Billy and Chris Fokas of Martha’s, and
many more people. These downtown leaders are shaping a culture that will bring newcomers downtown to live
and engage. If we want to attract young people and empty-nesters to move into downtown, we must offer a
mix of market rate and affordable housing opportunities. Fortunately, many of these developments are already
occurring. The Apartments at Cotton Mill Square opened in 2014. The Brady-Sullivan conversion of the
Franklin Street mill and the Renaissance Downtowns project on Bridge Street will bring a wide variety of
people into downtown to live. | am committed to working with developers to bring additional residential
opportunities into the heart of our city. Our downtown will also be strengthened through a dynamic culture of
the visual and performing arts. Organizations such as City Arts Nashua, Symphony NH, Peacock Players,
Great American Downtown, the Riverwalk Cafe, Friends of the Library and many others have played a role in
expanding the presence of arts and culture in downtown Nashua. We must also support our performing arts
organizations by improving the performance space options in our city. The Nashua Arts Commission hired
consultant Duncan Webb to do a feasibility study for a new performing arts center in downtown Nashua. The
results of this study will provide a roadmap for the best process for sizing, funding, and establishing a city
performing arts center. We are looking forward to the results of the study. The addition of a performing arts
center and more housing together will revitalize downtown and lead to future economic development
opportunities.

We cannot talk about the state of our city without mentioning our fire and police departments. Our fire
department is saving lives every day. Firefighters administered 169 doses of Narcan in the last two-thirds of
last year and they are continuing with this life-saving work this year. Our fire department responds so quickly
and effectively to fire calls that most fires never get going. Chief Andrew Lavoie at the police department is
doing a great job in making sure that the department is building a relationship of trust and understanding with
our minority communities. The police department is also on the front lines of the fight against the heroin trade
in Nashua. Our narcotics unit and the POP unit track down and arrest heroin dealers and all officers work to
stop drug-related crime. | truly believe we have the best fire and police departments in the State of New
Hampshire, something of which | am very proud.

In the coming years we must focus on our public parks and rivers. Mine Falls Park and Greeley Park need to
be pristine and our smaller parks the same. The city now has Dr. Madeline Mineau as a river specialist. | have
asked her to focus on making new uses of our river waterfront and even the canal which has been unused for
too long.

In talking about the state of our city we need to talk about some of our challenges, the most striking of which is
our public health crisis surrounding the use of heroin and opioid addiction. Families across Nashua have been
impacted by this terrible epidemic. Our EMS and Fire Rescue teams are responding to overdose calls on a
daily basis. There were thirty-nine ODs including two deaths in Nashua in January. Our treatment centers are
full to their capacity and their waiting lists are growing. There is high demand for a strong recovery community
here in Nashua, where those who have struggled with substance abuse can unite in hope. There is also a
demand for stronger prevention efforts to educate parents and kids regarding the dangers and signs of
substance abuse. Last month, | established a task force of individuals and organizations whose experience
and expertise can help streamline city efforts to deal with the crisis of heroin. We can increase the
effectiveness of our efforts by working together and communicating regularly. The Mayor’s Opioid Task Force

Board of Aldermen — State-of-the-City-Address Page 5
February 16, 2016

will meet monthly to discuss specific plans regarding substance abuse prevention, treatment, recovery, and
law enforcement intervention.

Another challenge is state and federal downshifting of costs and responsibilities onto the city and its taxpayers.
The magnitude of this downshifting is beyond what many people realize. Let’s take a single example — the
state run and state mandated pension system for city employees. Over the past several years the State of
New Hampshire downshifted between $10 and $13 million in additional pension costs onto the City of Nashua,
that’s per year. These were costs the state had previously borne in recognition that the system is state
mandated, state controlled and state managed. For the same $10 to $13 million in pension costs that the state
has downshifted onto city taxpayers, the city could have early childhood education for all children, we could
have a program to ensure that third graders can read at grade level, we could have another POP unit in the
police department to help us fight drug related crime, we could have a lot more street paving and we would still
have significantly lower taxes.

We will be watching any future efforts of the state to raise taxes on city taxpayers, and will be sounding the
alarm when this occurs. State officials should no longer be allowed to avoid their responsibilities by quietly
raising property taxes. An issue which will be discussed in 2016 is the potential outside contracting of our
custodial services. During 2015, the Board of Education requested proposals for the privatization of the
custodial services for school buildings. Privatization would put 101 employees out of work. This is a step that |
do not believe is in the long-term best interests of the City of Nashua. Over the past months | have come to
know many of our custodians and understand better the role that they play in our schools. Custodians are
members of each school community. Not only to they maintain our school buildings, the city’s most valuable
physical asset, but they also contribute in many other ways like helping with children and staying late to make
after school activities possible and also in many other ways.

| also want to draw your attention to the importance of infrastructure in our city. At our town halls citizens have
raised the condition of our streets and their transportation needs over and over again. We need to help our
people get from place to place with ease and without obstacle. Over the course of 2016, the Board of
Aldermen, the city and | will be making progress on some significant infrastructure projects. In 2016, | believe
we will be taking a needed leap forward in street paving. The city has fallen way behind in street paving over a
number of years and residents all over the city have been raising this problem for a long time. We must catch
up. We will soon be bringing on line a software system that will enable us to simultaneously evaluate the
condition of all the city’s 1,300 streets. We will then bond for the paving of most of the city’s arterial streets and
a lot of the neighborhood streets during the 2016 and 2017 construction seasons.

Another big project is the improvement of the property the city bought last year at the end of Burke Street. This
is a four acre parcel of land with a massive garage and an attached 50,000 square foot office space. This
purchase accomplished some important objectives. First, the land we bought is adjacent to the city’s sewage
treatment plant which has used up all the land around it so that we will now have the land to make any
necessary expansion. Second, the city needs a new public works garage. Our current garage is more than 40
years old and is not large enough for our needs. The DPW has to keep dump trucks and other vehicles
outside which shortens their life. The Burke Street project will give us the space we need to house all of the
DPW and Parks Department vehicles indoors with room to spare. Third, the dilapidated parks buildings in
Greeley Park need to be replaced and they have for a long time. Instead of spending money to do that we will
move these park functions to the new facility on Burke Street.

Finally, the 50,000 square foot office building is large enough to house all public works and engineering
employees. It is also large enough for our school administration. Moving the school administration to Burke
Street will enable us to use the current school administration building for a program for children with severe
disabilities which will save the city $68,000 per year in rent. It cost the city $4 million to buy the Burke Street
property and the estimate is that it will take another $10 to $15 million dollar investment to improve the facility
for city use. It would cost the city more than $60 million dollars to construct a new facility like the one on Burke
Street so by moving forward on this project we can save tens of millions of dollars. We will be hosting a tour of
the Burke Street facility for the public on a Saturday morning in March and the Board of Aldermen will be part