Special Meeting of the Board of Alderman on Capital Projects Planning - August 12, 2025

On August 12, 2025, the Nashua Board of Aldermen held a special meeting at 7:00 PM in the Old Dominic Chamber to receive a presentation from Administrative Services Director Tim Cummings and Treasurer Don Enright on capital project planning and debt management. The meeting included a review of existing debt, proposed five-year debt issuance plans, and discussion of future capital priorities. Thirteen aldermen were present, with two absent (Aldermen Lopez and Jenny). Alderwoman Kelly attended remotely due to medical reasons.

Discussion Items

• Director Cummings provided an overview of the ad hoc joint mayoral and Board of Alderman Committee on Capital Expenditures and Debt Service, emphasizing a target of approximately $25 million in new debt per year over a five-year period. He highlighted imminent projects: DPW garage (under design), Holman Stadium repair/renovation, Mohawk Tannery pedestrian bridge, hydroelectric improvements, deferred capital maintenance, fire department HVAC repairs (about $1.5 million/year), and school facility projects (about $2 million/year). Additional projects requiring further community engagement or study include Mount Pleasant elementary school renovation, auditorium, Court Street Theater, Riverside Athletic Fields, a new fire station, low-barrier shelter, passenger rail, city hall renovation, ERP system upgrade, police cell booking area, branding/wayfinding, Main Street reconfiguration (NHDOT match), and police parking lot. Newer projects not in the ad hoc process include fire training facility upgrade, annual sidewalk repair plan, pool repairs, HVAC library controls, and a truck wash.
• Treasurer Enright presented a five-year general obligation bond sale plan and a 20-year debt service projection. Current debt service is $23.7 million in FY26, declining over time due to maturing debt. The plan aims to keep debt service relatively stable (between 3-5% year-over-year) by issuing new debt consistent with the $25 million target plus 3% inflation annually. The five-year total projected issuance is $114 million, below the $140 million inflationary target.
• Alderman Teball asked why the city carries so much debt and how it impacts taxes. Treasurer Enright explained that managing debt at a consistent level maintains good credit and is responsible; eliminating debt is not realistic. He noted that $1.5 million in debt service equals approximately 1% on the tax rate, but consistent debt service does not increase taxes year-over-year.
• Alderman Sullivan sought clarification on existing debt figures ($77 million in the budget vs. $23 million in the presentation). Treasurer Enright clarified that the $77 million includes enterprise funds paid by fees, while the $23 million refers to general obligation debt in the budget. Alderman Sullivan also asked about the difference between “issued” and “sold.” Director Cummings clarified that “authorized” means legal ability to pursue debt, while “selling” occurs when bonds are actually issued and affect debt service.
• Alderman Senate asked about using surplus cash to fund design phases of projects (e.g., library, fire station) instead of bonding, and suggested the ad hoc committee meet sooner than late fall/early winter to discuss this approach. Director Cummings confirmed that using cash for design would require a supplemental appropriation and could support projects such as passenger rail study, ERP, placemaking, and police parking lot, but the board would need to decide on the threshold for cash vs. bonding.

Key Outcomes

• No formal actions or votes were taken on capital plans; the meeting was informational.
• A motion to adjourn passed unanimously (13-0) at 7:30 PM.
• Next steps include potentially reconvening the ad hoc committee in late fall/early winter to refine project priorities, discuss using surplus for design phases, and prepare for new debt authorizations during the spring budget process.