Board of Aldermen — 4/11/17 Page 8
| put that number into the equation in my spreadsheet and now at the end of 25 years, there’s a $79.1 million
deficit. How is that going to get paid? This Board cannot commit to any future Board to authorize a bond
payment. Every board is acting on its own, unless you, yourself, have another $37.5 million in bonds
authorized after the current $37.5 million that is before you. So this is serious business. How is this going to
get paid? You don’t believe me? | gave you the spreadsheet. If you find an error, let me know.
That is the financial part of the problem. Now let’s look at the technical problem. The consultant, Stantec,
made this presentation on the PCI, pavement condition index, 100 percent to zero. One hundred percent is
perfect, percent is, | guess, you can’t walk or drive on.
| put up this one chart. | hope you can see it, I'll be happy to point out where it is in the presentation. The top
is the PCI curve, starting around 80 for the aerial and collector streets, the major thoroughfares. They go up
fast. This is not ten years. | asked the consultant. The scale is 20 years. In about 8 years, you build up to
about 97 percent on the aerial arterial streets. Perfect. You spend almost $23 million on the arterial streets. It
doesn’t matter if you have a $75 million program or a $59 million program. If you look at page 3 of the
consultant’s presentation, you will see $23 million.
But the local streets which seems to be the attention of your sponsoring aldermen who had great pictures
when Mayor Lozeau, they wanted to concentration the local streets. But the local streets actually go from 77,
the PCI goes down. It degrades. We spend all this money and we’re getting degradation of the local streets.
Why is that? The money that they use goes to arterial streets. It favors arterial streets because the model
looks at the number of the drivers on those streets. Obviously you’ve got more drivers on arterial streets than
local streets. The model favors spending more money early on on the arterial streets. If the objective of the
sponsoring aldermen who criticized Mayor Lozeau for not paying attention for your local streets, who wants to
pay attention to local streets, this model doesn’t do it. This model isn’t doing it.
Clearly the arterial streets are being paid attention to and local streets degrade until about 8-10 years. That’s
on page 13 of the consultant’s report. | asked him those questions. I’m not against paving. | think we need to
pave. I’m against $75 million worth of bonding. |’m against this model. | think this hasn’t been thought
through very well. It hasn’t been discussed very much. The only budget meeting | was in, | was the only
private person there. This model isn’t doing it, not if you don’t pay attention to local streets.
The answer is send it back to committee. It’s going to take ten votes to approve this bond. Don’t vote for this
at this point. Go back. Mayor Lozeau, by the way, had a $17 million program. Nowhere near $37 million,
nowhere near $75 million. Take a look at that program again. I’m not sure why she got shot down. The
criticism was she didn’t pay attention to the local streets. This isn’t paying attention to the local streets, not for
the first 8-10 year period.
The next thing | want to talk about is O-17-031. That’s the famous sewer fund. I’m not going to talk about
comingling which is a state concern. Tracy Pappas addressed that. This isn’t the Board of Public Works.
What | would like to address is the misinformation in the budget committees. Let me not go over all the
arguments again, but let me briefly review Nashua’s Spending Cap. What is it?
The bond ratings agencies consistently mention the spending cap every year in assigning AAA ratings to the
City of Nashua. We don’t over bond. We try to constrain spending. That’s how you get AAA ratings. You
want to spend a lot of money, you want to bond a lot, you are going to be like Detroit or a country like
Venezuela. Bankrupt.
The Nashua spending cap, described in Nashua Charter par. 56-c, places a limit on spending, not a limit on
taxes. Both taxes and fees fall under the Nashua spending cap; there is no exclusion for fees. State law does
not have exclusion fees. You can exclude state law certain accounts, but there is no exclusion for fees .
Certainly Nashua does not have an exclusion for fees. Taxes and fees fall under the Spending Cap. You can
laugh and smile, aldermen, but that’s the fact. It is.