Board of Aldermen Page 4
June 28, 2016
Alderman Deane
When the trash trucks were purchased we had a federal subsidy and that subsidy is now going to go away. |
believe that is what he is referring to.
Mayor Donchess
Of the total purchase price of about $3.9 million the city shares a little shy of $300,000 and we are receiving
about 85% of federal funds because they are CNG buses otherwise that number would be 80%. Plus there
are federal funds through the State of New Hampshire that are contributing about 7.5% so we, Nashua, for this
purchase price is providing about 7.5% of the funds necessary. As far as continuing operations, the bus
system has been operating since 1984 or 1985 and there has always been and | think always will be, federal
support for this system. We receive a significant amount of federal funds to operate the system every year and
that has always been the case. | think it comes from the highway fund which a portion of which is used to fund
alternate means of transportation. | don’t think the fear that all of this money is going to go away is realistic.
Alderman Schoneman
When we started in the 80’s were they diesel buses or CNG buses?
Mayor Donchess
They were diesel.
Alderman Schoneman
My specific question is anything going to go away regarding CNG? So there is no danger of CNG funding
drying up for us?
Mayor Donchess
Well this is a purchase and we will own these buses. When it comes time to replace them | am sure we will
use whatever incentives there are but right now it is our choice whether to buy diesel or CNG. If we were to go
diesel we would still get federal support but there is an incentive to go CNG because the level of federal
support is higher. It’s about $150,000 more to go for the CNG buses. Replacement of these busses could be
in 7 or 8 years from now and | think there will still be federal money and if there’s not a decision would have to
be made at that time.
Alderman Schoneman
Do we have any sense of what the cost difference between a diesel bus and a CNG bus is?
Mayor Donchess
It’s more, the CNG bus is more.
Alderman Siegel
We are getting a highly leveraged piece of capital equipment so | don’t see that the going away is much of an
issue. Mayor Donchess, isn’t it the case that the CNG is generated by our landfill?
