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THE CITY OF NASHUA
"The Gate City"
Financial Services Division
Office of the Chief Financial Officer
TO: President Lori Wilshire
Members of the Board of Aldermen
ce: Mayor Jim Donchess
FROM: John L. Griffin, Chief Financial Officer/Comptroller
DATE: June 2, 2020
RE: Fire Union [AFF Local #789 Collective Bargaining Agreement
The purpose of this communication is to provide a bit more detail regarding concerns that have
been raised about the affordability of the recently submitted collective bargaining agreement
between the City and the Nashua Fire Rescue [AFF Local #789 unit.
The Total Base Pay and Other Salary Costs on line 26 of the Cost Analysis shows that total
salary costs called for in the contract would rise 17.3% by July 1, 2022 (the start of FY23).
These costs would rise 4.2% in FY20, 3.8% in FY21, 4.2% in FY22 and 4.1% in FY 23. At the
end of the contract period, the base pay and other salary costs would increase from $15.0 million
to $17.6 million ($17.3%). The 3.5% increases in base pay for the four years of the contract do
not account for the complete increases in salaries.
Pension and Benefits costs are anticipated to rise from a base of $7.9 million in FY2019 to
approximately $9.4 million in FY2023, an increase of $1.5 million (18.1%) in these cost items.
On an average employee basis, the sum of these costs, also referred to in the analysis as the Total
Compensation Package, will increase from $134,916 in FY2019 to $158,601 in FY2023, an
increase of $23,685 (17.6%).
229 Main Street « Nashua, New Hampshire 03060 « Phone (603) 589-3173 « Fax (603)
589-3168
