Attorney William Barry III administers to Oath of Office to Mayor James Donchess during the 112th City Government Inauguration at the Performing Arts Center on Jan. 9. Telegraph photo by Christopher Roberson

NASHUA – Taxes combined with the lack of affordable housing will continue to be of the utmost importance for Mayor James Donchess as he begins his third term as Nashua’s chief executive.

“Certainly the housing front is a big priority,” he said.

However, bolstering the city’s housing stock is no easy task. Donchess said there are developers who have purchased property, yet they have expressed no intention of building. Examples include a property at Spring and Temple streets and the Corriveau-Routhier parcel at 159 Temple St.

“That’s a frustration,” said Donchess.

However, he said up to 300 units are planned for the city-owned Nimco property in the Nashua Millyard and that bids will be going out for the Riverfront Improvement Project.

“We want to give people more access to the [Nashua] River,” said Donchess. “We need to continue to have a city where people want to live.”

The tax rate is also a source of friction and is currently set at $18.23 per $1,000 of valuation, according to the state Department of Revenue Administration.

“The state decides what the rate is going to be,” said Dochess.

The current tax rate represents a 16-cent increase or .89 percent over last year.

“This is the first time in 15 years the tax rate increased by less than one percent,” said Donchess, adding that the Department of Revenue Administration decides the tax rate based on the city’s finances. “It has to be done according to state law.”

The recent revaluation process, which was also required by the state, showed that Nahsua’s housing values had increased significantly during the past four years.

“Homes went up 40-plus percent, commercial properties did not,” said Donchess.

Therefore, 70 percent of the city’s tax burden has shifted to the residential side.

Regarding capital expenses, he said a few projects include renovating the parking garages, the Nashua Public Library and the Public Works garage.

“There are many potential capital projects and we can’t afford them all,” said Donchess. “We need to concentrate on being as frugal as we possibly can.”