Recent Accolades
2019- 8'* Safest City in the United States
2019- Best Suburb in New Hampshire
2019- 13** Best-Run City in the United States
2018- Nashua Named one of the Safest Places to Retire in the Country
2018- Nashua Named one of the Best Run Cities in the Country
2018- Nashua Named the Best Place for Millennials in Hillsborough
County
2018- Nashua Named the Most Diverse Place to live in NH
2018- AAA Bond Rating from S&P and Fitch Ratings
Mayor’s POST COVID-19
Recommendations
Cut spending of one-time state aid by $1.9 million and
Redirect $1.9 million to Tax Relief
No increases to proposed operating budgets above
2.25% for Schools, Police, Fire, and DPW and 2.00% for
all other Departments
Include new Healthcare Plan Design in all Collective
Bargaining Agreements
Hiring Freeze for non-essential personnel
May 20, 2020 13
COVID-19 Employment Crisis
¢ Many Nashuans are hurting
¢ More than 8,200 Nashuans are currently
unemployed (does not include Nashua residents
that work in MA and have been laid off or
furloughed)
¢ COVID-19 Unemployment rate is 15.8%
May 20, 2020 12
$10.3 Billion Tax Base — Will it Erode
because of a Weaker Post COVID-19
Economy?
¢ We don’t know
¢ Lower Commercial Property Values could mean
higher taxes for homeowners
¢ The Economy will recover but we don’t know
when
May 20, 2020 11
FY 2021 Revenue
State Aid — Is It At Risk?
¢ City Related
— Meals and Rooms Tax $4,500,000
— Highway Block Grant $1,655,254
¢ School Related
— State Adequacy Aid $35,541,100
¢ One-Time Revenue
— State Adequacy Aid $2,900,000
— Municipal State Aid $1,800,000
May 20, 2020 10
FY 2021 Budget Challenges
Potential Reductions in State and Local
Revenue
Cost of City Provided Healthcare
- $3.0 million addition to FY2021 Operating Budget
- On top of the $3.3 million in FY2020
School, Police, Fire and DPW — 2.25% Target
Increase
- All other Divisions - 2.00%
May 20, 2020 9
Proposed FY 2021 Budget
¢ Proposed Operating Budget - $284.6 Million
— Increase Over FY 2020 Budget - $8.95 million
¢ 2.1% increase ($5.95 million) w/o healthcare costs
¢ $3.00 million increase in healthcare costs
— Revenues:
¢ Revenues continue to be budgeted conservatively
¢ Continued low interest rate environment
¢ Potential reduction in State aid funds — COVID 19
May 20, 2020 8
Healthcare Cost Mitigation
Strategies
New Plan Design - Higher Deductibles and Co-pays
Encourage Enrollment in the High Deductible Plan
Use of Smart Shopper
Education by WBS on healthcare costs to divisions and
CBA groups
Wellness Alternatives - Telehealth and Sydney (app)
Audit to confirm that all dependents are eligible
May 20, 2020 7
$55,000,000
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
\.
FY14-FY21
City of Nashua Health Care Expenses
FY14
FY15
FY16
FY17
May 20, 2020
FY18
FY19
FY20
FY21
Healthcare
FY2021 proposed budget health care costs are up $3 million or
8.6%
FY2021 budgeted expenses including Dental, Administrative
costs & fees, Stop loss insurance, Health claims, and Wellness
activities total $51.6 million
Healthcare costs increased by 11% in FY2020 or $3.3 million
Together this $6 million, equates to a 3% increase in the tax rate
May 20, 2020 5
