Board of Aldermen — 2/19/2019 Page 2
But today we are in the midst of a Citywide, multi-year, $41 million dollar paving plan of action.
We have repaved 70 miles of streets and crack sealed 46 miles, neighborhood and arterial
streets including both Kinsley Street and Concord Street.
Over the past four years we have also invested in repairing and upgrading the Wastewater
Treatment Plant. This Infrastructure work has included replacement of the headworks,
upgrades to the primary tanks, the secondary clarifiers and the aeration tanks and new dryers
for the sludge. We have also replaced or lined over 10 miles of sewers and we've added 2.5
acres of land to the Wastewater Treatment Plant which will provide expansion space necessary
for phosphate treatment if and when that is required.
Commuter Rail — for Nashua and New Hampshire is critical as a means to a stronger, healthier
economy; as a tool for our businesses to attract new employees and as a better alternative for
Nashuans who travel to Boston. By working with our Legislators, we have made long sought
progress on Commuter Rail for Nashua. Last Spring, the Legislature authorized the final
planning phase of the Capital Corridor Rail Project. The New Hampshire DOT is now moving
forward. 35% of New Hampshire’s State Domestic Product is generated right here in Nashua
and Manchester. The State needs to realize that linking us to Boston will create a healthier
economy for the entire State of New Hampshire.
As in the rest of the country, many Nashua families are living paycheck to paycheck and | get it.
It can be hard to come up with the money to pay the property tax bill. So | am committed to
effective and efficient City Government and to working to limit tax increases for Nashua
homeowners and businesses. Nashua has been recognized for spending our tax dollars wisely.
For two years running, Nashua has earned a spot on Wallet Hub’s list of Best Run Cities in
America, for delivering high quality services at an affordable cost. We must keep in mind that
New Hampshire has high property taxes. In New Hampshire 2/3 of the total of State and Local
Taxes are Property Taxes and that is the highest in the Nation. Over the last four years, here in
Nashua, we have successfully limited tax increases to an average of 2.6% per year despite
significant financial challenges created by the downshifting of cost by the State of New
Hampshire.
The biggest single downshift happened when the State of New Hampshire broke the
commitment that it made when it persuaded Nashua to join the State Pension System. The
State’s promise was to pay 35% of City Pension Cost. The State’s violation of this pledge
several years ago, has already cost Nashua Tax Payer’s a cumulative total of almost $50 million
dollars. We now face the financial challenge of rapidly rising healthcare costs. Nashua is not
alone. Healthcare costs across the Nation are unstable and are rising. This year, City
healthcare costs rose 11% or $3.3 million dollars. They will rise another $3 million dollars next
year. Our healthcare experts tell us that this trend with continue. We are taking aggressive
steps to bend the curve on rising healthcare costs by encouraging employees to elect high
deductible plans, by promoting the use of SmartShopper and by working on a new plan design
for City Healthcare Benefits. But by itself, this two-year $6,000,000.00 increase in health care
costs equates to a 3% increase in the tax rate. So while City healthcare costs are rising at $3
million dollars a year, the City’s financial team and | have been recommending that we limit the
approval of wage increases especially in longer term contracts to the cost of living. If we don’t
do this while healthcare costs are increasing so rapidly, then we will build non-sustainable
budgets.
