NASHUA – Mayor Jim Donchess won aldermanic approval Tuesday of his first budget on a 9-6 vote, with opponents criticizing the projected 2.5 percent property tax increase and rising union salaries while city services remain relatively flat.

The $247.8 million package for the fiscal year that begins July 1 is $3.1 million higher than the current year’s budget and generally maintains services and staff at current levels while covering contractual salary increases for unionized employees. It is about $100,000 under the 1.3 percent cap on allowable spending increases – the tightest the city faced in recent memory.

It provides additional support to police efforts to combat the heroin and opioid crisis, installs new lights along the rail trail that is a lifeline for many residents in the Tree Street neighborhood and will buy a carousel specially designed for disabled children at the new Legacy Park playground.

It also hikes school funding by 2.25 percent and gives Nashua Fire Rescue a 1.9 percent increase.

“Under all the constraints that we had with the spending cap, this budget is fair. It maintains city services. It provides the right emphasis to the right spots and, hopefully, we will have a good year,” said Ward 2 Alderman Richard Dowd, who chairs the budget review committee.

The board approved the budget as presented by the mayor without changes. Voting against were Aldermen-at-Large Mark Cookson and Dan Moriarty, Ward 1 Alderman Sean McGuinness, Ward 3 Alderman David Schoneman, Ward 5 Alderman Don LeBrun and Ward 6 Alderman Ben Clemons.

Most aldermen who voted against the budget noted it will increase property taxes about 2.5 percent while providing virtually no increase in services to taxpayers. They particularly took aim at contractual salary increases granted to police and firefighters.

“The increases (in the budget) went all to salaries primarily – raises that were given largely in excess of the cap. I think the taxpayers pay a price for that,” Schoneman said. “We see salaries up. Pensions up. Services flat. And taxes up.”

LeBrun, who is also a state representative, compared himself to other senior citizens who have not seen recent increases in Social Security benefits but are paying higher taxes.

“I also paid my (property) tax bill recently, and I do not get the services,” LeBrun said. “I cannot vote for this budget. I will not vote for this budget.”

Clemons used his opposition to the budget to call out the city’s spending cap, which holds spending increases to a percentage of the prior year’s budget. The increase is determined by an inflation index.

“I don’t want to see me pay more in taxes, but get less in services,” Clemons said.

He called on board members to eliminate the spending cap, saying that “is a viable option the board could consider.”

He questioned whether the city would have to “become like Fitchburg or Brockton” before action is taken, referring to two Massachusetts cities.

The spending cap is set by city charter, not the board of aldermen.

The budget also will result in new lights being installed along the 1.4-mile Heritage Rail Trail, $140,000 for sidewalk improvements and a total $370,000 spend to improve existing playing fields and a build a new one. It also creates two new part-time parks positions.

The budget also contains $60,000 for a special merry-
go-round for disabled children. The carousel is the last piece of equipment needed to complete the all-accessible play space being built at Legacy Playground at Labine Park. The playground is expected to open by summer’s end.

In other matters, Donchess and Ward 9 Aldermen Ken Siegel proposed legislation that would create an expendable trust fund for pension costs the city must pay the New Hampshire Retirement System.

The account would allow aldermen to transfer surplus money at year’s end into it.

Unlike an earlier proposal to create an expendable trust fund that failed last month, this bill does not attempt to appropriate or transfer any funds into it. It solely creates an account to which funds could be transferred.

Kathryn Marchocki can be reached at 594-6589, kmarchocki@nashuatelegraph.com or @Telegraph_KMar.

Newsletter