Mayor James Donchess (left) and Chief Financial Officer John Griffin field questions during the May 14 budget hearing at Nashua High School North. Courtesy photo/Nashua Community Television

NASHUA – Resident William Ferriero criticized Mayor James Donchess for requesting more money than is needed to fund the city’s budget for fiscal year 2026.

This year’s budget topped out at $474.5 million, an increase of $17.8 million over last year.

Within the total figure, $360.6 million would be allocated to the General Fund, for an increase of 5.8 percent. Another $50.3 million would be allocated to the Enterprise Fund and $63.4 million would be allocated to the Special Revenue Fund, which includes grants.

During the May 14 public hearing, Ferriero asked how the Mayor’s Office could request a four percent increase when all the other departments were held to three percent.

“Your own department, you can’t get it down to three percent,” said Ferriero. “You’re only about $4,500 over, you could’ve set an example.”

Administrative Services Director Timothy Cummings fields questions during the May 14 budget hearing at Nashua High School North. Courtesy photo/Nashua Community Television

In response, Donchess said several departments are housed at City Hall, some of which are very small. He also maintained that the City Hall budget “as a whole” has gone up by three percent.

Regarding Parking Enforcement, Ferriero asked about the $311,742 that is being requested for wages compared to last year’s figure of $301,168. He said that as of March 31, $134,979 had been spent from last year’s allocation.

Donchess said that although there are openings in that department, the budget reflects the cost of filling every position.

“This is where surplus comes from at the end of the year,” he said.

Ferriero disagreed, saying the mayor should request supplemental budget authorization from the Board of Aldermen rather than ask for money to fund vacant positions.

Resident William Ferriero peppered the mayor with questions about overspending during the May 14 budget hearing at Nashua High School North. Courtesy photo/Nashua Community Television

“That’s like budgeting for ghosts,” said Ferriero.

Donchess said it is easier to have money in the budget now should the positions be filled. He said the process of getting supplemental budget authorization would take too long as a public hearing would be needed as well as 10 affirmative votes from the aldermen. During that time, prospective employees would seek employment elsewhere.

“There’s a lot of procedure, it would take months to react,” said Donchess. “It would make hiring impossible.”

He also said the aldermen voted to use $6 million in surplus funding from FY25 to defray property taxes.

“If we used the practice you’re suggesting there would be no money to buy down the tax rate,” said Donchess. “There would be no money left at the end of the year.”

Regarding electricity expenses, Ferriero said departments are requesting funding that is either the same or more than last year although their actual expenses are “significantly” less than what was allocated for FY25.

“You have an energy manager now,” he said. “Can’t she forecast what the rates are going to be for the next 12 months?”

Donchess said specific formulas are used to calculate electricity expenses.

“It’s not just like throwing a dart at a dartboard,” he said. “There’s more than one electric contract, there’s different rates for different things.”

Speaking about the Assessing Department budget, Ferriero said Whitney Consulting Group released a report suggesting that the city have additional in-house staffing and minimize the use of outside contractors.

“Does this budget align with Whitney’s recommendation?” he asked.

Administrative Services Director Timothy Cummings said Whitney’s report did not include reducing the number of outside contractors.

“They did suggest that the city add an assessor in January 2026,” he said. “This budget does not reflect that.”

Turning his attention to Financial Services, Ferriero said $24.1 million was allocated for FY25 and $25.9 million is being requested for FY26. However, $288.4 million had been spent as of March 31.

Chief Financial Officer John Griffin said property taxes make up the difference between $24.1 million and $288.4 million.

“We don’t budget for property taxes,” said Griffin, adding that during his 15 years with the city, property taxes have never been included in the budget.

However, Ferriero said property taxes should be listed.

“There’s not a line for revenue that says: property taxes,” he said. “Why wouldn’t you budget for that? Is it not revenue for the city?”