Special Board of Aldermen 6-13-2022 Page 8
Alderman Clemons
And | would agree with you. Thank you.
Alderman Cathey
Thank you Madam Chair. | believe this question will be for Attorney Bolton among many questions. In the language
of the SB52 it states that “such a tax cut shall provide for an override threshold”. Am | to understand that piece of
legislation is dictating to us to create an override when it says “shall”? Like it’s telling us you have to put this into the
language of your tax cap laws or it just saying it can include it?
Steve Bolton, Corporation Counsel
No. The Statute requires that there be an override. That’s what the Supreme Court of New Hampshire held in 2019.
The spending cap in Nashua’s Charter was invalid because it did not have such an override provision. Last year in
2021, the Legislature passed a law that said essentially, not in these precise words, but essentially said that any tax or
spending cap passed prior to 2011 was valid regardless of any other problem. So the fact that it doesn’t have the
override which would otherwise be required, the Legislature basically said it’s valid anyway.
Alderman Cathey
So does that mean that we are in violation of this Statute that was passed in SB52 because we did not create an
override provision in our Charter to an Ordinance? Is that something that we need to do?
Steve Bolton, Corporation Counsel
No, it has to be in the Charter.
Alderman Cathey
Has already exist in the Charter.
Steve Bolton, Corporation Counsel
It has to be in the Charter.
Alderman Cathey
But we could add one?
Steve Bolton, Corporation Counsel
If you amend the Charter.
Alderman Cathey
But we’re not being told we have to now go do that?
Steve Bolton, Corporation Counsel
Well as the Supreme Court decided in 2019 without it, that provision in the Charter was invalid. The Legislature
basically said no the Charter is valid even without it. So we don’t have to do anything. Basically we’ve got the Charter
language as it is basically to do the best we can to make sense of it. It’s already been pointed out in some places it
may not make perfect sense.
Alderman Cathey
Thank you. For my own edification and maybe for others, are there any accounting principles, laws whether they’re
federal, or State, or even local that dictate how our accounting system works? Because to Alderman Sullivan’s point,
there is a difference between what they did then and what we’re doing now. And so for me, | need to go to what is the
underlying principle and process for how municipal budgets are completed whether it’s in Nashua or anywhere around
