A special meeting of the Board of Aldermen was held Monday, January 23, 2017, at 6:30 p.m. in the
Aldermanic Chamber.
President Brian S. McCarthy presided; City Clerk Patricia D. Piecuch recorded.
Prayer was offered by City Clerk Patricia D. Piecuch; Alderman Ken Siegel led in the Pledge to the Flag.
The roll call was taken with 12 members of the Board of Aldermen present; Alderman Clemons, Alderman
McGuinness and Alderwoman Melizzi-Golja were recorded absent.
Mayor James W. Donchess is attending his Ward meeting and unable to attend.
Corporation Counsel Steven A. Bolton was also in attendance.
COMMUNICATIONS
MOTION BY ALDERMAN WILSHIRE THAT ALL COMMUNICATIONS BE READ BY TITLE ONLY
MOTION CARRIED
From: Brian S. McCarthy, President, Board of Aldermen
Re: Special Board of Aldermen Meeting
MOTION BY ALDERMAN WILSHIRE TO ACCEPT AND PLACE ON FILE
MOTION CARRIED
President McCarthy
We didn’t have public comment on the agenda because the agendas are just done specially for special
meetings. If there is anyone who would like to speak please come forward and give your name and address.
PUBLIC COMMENT
Mr. Fred Teeboom, 24 Cheyenne Drive
| will refer to R-17-087. | completely agree with everything in this resolution. Yesterday in the newspaper you
can see | did a substantial article on the subject and I’ve done a lot of studying on the subject and I’ve learned
a lot of information on the New Hampshire Retirement System and the people that run the fund and on that
’ve based a lot of my information. Now referring to this resolution | would like to make some suggestions.
First of all, on the second paragraph where it mentions that Nashua was induced to join the NHRS based on
the fact that the state would contribute a sizable amount of money. The state contributed 35% and in 2012
they reduced that to zero. There was a one-time payment that year of $3.5 million and that was it so now local
municipalities and this is throughout the state are left to pay the entire bill. The state contributes nothing
except for their own employees. | would suggest in the third paragraph that you mention 35%. It mentions
here about the powers of return and | don’t Know if you noticed it but the rate of return last year on the pension
fund was 1%, not 7.25%, not 7.75% but 1%. The second thing that | wanted to mention is that it mentions
here the public works retirement system. | placed some questions into Dave Fredette who | guess is involved
with that system but if you look at the 2016 CAFR report on page 87 you will find that the public works pension
fund is funded at 80% and | suggest you take a look at the 2016 CAFR report on page 87. It mentions 80%.
There is nothing wrong with 80%. Many financial managers say that 70% - 80% is fine. 80% is fairly
accepted but 100% is crazy. If you owe a mortgage on a house, let’s say you owe $400,000 on your home
and you make payments of $1,000 or $2,000 per month, it means that you put in a bank account the full
$400,000 just in case you lose your job and everything else falls apart you’ve got $400,000 to pay for your
debt, it’s crazy, nobody does it. By comparison social security's fund, if you assume that the $4 trillion is
actually cashed it’s a security |OU but if that is an asset the social security if fund is funded at about 24% and
that’s very low. 80% should be mentioned here instead of 85%. The next paragraph over it mentions what
