Board of Aldermen 02-16-2021 Page 6
Every time the State does something like this, your property taxes go up. The costs the State
downshifting this time amount to a 5.5% property tax increase forced upon the hard-working
taxpayers of Nashua, all without any involvement by us here in Nashua.
We are working with our legislative delegation and with other cities to help our taxpayers. |
have testified before House and Senate committees over the past few weeks for and against a
number of bills that would affect our budget. But the results of the legislative process are
uncertain. | am thankful to our delegation and the other mayors for all of your efforts.
Back when the State of New Hampshire lured Nashua and other New Hampshire cities and
towns into the State pension system, they promised to pay 35% of our pension costs. The State
broke that promise almost a decade ago and reduced their contribution to zero. So far, this has
cost Nashua taxpayers a cumulative total of $74 million dollars.
Here’s another example of the State raising your property taxes: for the past 10 years the State
has frozen the amount coming to cities and towns from the Rooms and Meals tax. The State
hasn't paid to and of the communities the full 40% of the revenues that was promised when the
Rooms and Meals Tax was passed. This has cost Nashua taxpayers a total of another $34
million. While these financial challenges are coming from the State, we are also faced with local
pressures in our own budget.
Our Successful Plan to Bend the Curve on Rising Health Care Costs
Two years ago, in the 2019 State of the City Address, | raised a red flag about rising health care
costs. Over the past two years, health care costs have risen dramatically — up over 20%, more
than $6 million per year. We are taking aggressive steps to cut the rate of increase. We have
developed a reformed HMO plan designed for City HMO health care benefits, this would result
in significant savings for the City if adopted for all City employees.
So far, this reformed health care plan has been agreed to by a number of employee unions.
However, to most effectively reduce the rate of increase in health care costs, we need the
support of the Board of Aldermen. The reformed HMO plan must be for every group of City
employees — no exceptions, no exclusions. We are also encouraging employees to elect the
medical savings plans and to use Smart Shopper, both of which save money for the employee
and for the City.
Hardworking Nashua Taxpayers Cannot Afford an 7% Tax Increase
By working together, the Board of Aldermen and | have accomplished a lot — our response to the
pandemic, full day kindergarten for all Nashua students, our ongoing Paving Plan of Action
which has already paved 100 miles of the City’s streets, the adoption and the accomplishment of
“A Greener Nashua" energy goals, the successful addition of over 500 units of downtown and
Millyard housing, expanded outdoor dining, and many other things.
However, over the past couple of years there has been one significant disagreement between
the Board of Aldermen and myself — a difference over the controlling of costs. During this period
of rapidly rising health care costs, | have advocated that we set priorities. | have said what the
facts make clear: while facing major financial challenges, the City cannot make long-term
commitments that exceed the cost-of-living year after year without raising taxes more than our
taxpayers can afford.
