Manchester Mayor Jay Ruais is working with Mayor James Donchess to reduce a 20 percent tax increase proposed by the Hillsborough County Executive Committee. Courtesy photo/City of Manchester

NASHUA – Mayor James Donchess and Manchester Mayor Jay Ruais recently launched a collaborative effort opposing a 20 percent tax increase proposed by the Hillsborough County Executive Committee.

As it stands, the tax bill for fiscal year 2026 is $16.8 million for Nashua and $17.7 million for Manchester. Last year, Nashua paid the county $14 million while Manchester contributed $14.7 million.

“At a time when inflation and rising costs continue to strain household budgets, this increase is more than our residents can reasonably bear,” Donchess and Ruais said in their June 17 letter to State Rep. Megan Murray (D-Amherst), chairwoman of the Hillsborough County Delegation. “On behalf of the taxpayers of our cities, we respectfully request you reconsider and reduce the proposed tax increase. A 20.05 percent increase, amounting to millions in additional cost for our communities, would place a challenging burden on our residents and threaten our ability to maintain local services without additional strain.”

On May 27, Nashua’s Board of Aldermen voted 11-3 to pass the city’s $474.8 million budget for fiscal year 2026. The final figure represented an increase of $18.1 million over last year. Within the total budget, the city’s General Fund now sits at $361 million, reflecting an increase of six percent. Another $50.3 million was allocated to the Enterprise Fund and $63.4 million was allocated to the Special Revenue Fund, which includes grants.

One of the major drivers is the cost of healthcare benefits for city employees, which have climbed by $4.1 million.

Mayor James Donchess is working with Manchester Mayor Jay Ruais to reduce a 20 percent tax increase proposed by the Hillsborough County Executive Committee. Courtesy photo/Kelli Wholey/Lumina Portraits

The $191.2 million budget for the Nashua School District represents an $8.9 million increase over last year. It includes funding for employee benefits, which have gone up by seven percent as well as a $1.8 million boost for the transportation contract with First Student.