Nashua Finance Committee Meeting: Audit, Transit Contract, and State Funding Concerns - September 17, 2026

The Nashua Finance Committee met on September 16, 2026 (the meeting continued into early hours of September 17) to discuss the FY25 audit, approve several contracts including a major transit operations contract, and address public concerns. Key topics included the city's financial statements, an adverse opinion on Pennichuck Corporation, and a nearly $5 million reduction in state adequacy grants.

Public Comments & Testimony

• Lori Ordelano raised concerns about the late release of the FY25 audit (15–16 months after year-end), questioning its usefulness. She also asked about a $7.1 million loan and a $9.5 million loan related to the art center that were not recorded on financial statements, a DOJ finding of commingled trust funds, and outstanding property tax and wastewater collections.
• In a second public comment, Ordelano criticized city officials for labeling her and alleged a lack of records regarding trauma counseling. She accused the city of creating a false narrative. Mayor Dodges denied calling her the C-word.

Discussion Items

FY25 Audit Presentation

• CFO Don Enright introduced the FY25 Annual Comprehensive Financial Report (ACFR) and new Comptroller Lisa Carls. Auditor Lara Stone (CBIS) presented a high-level overview.
• Financial Highlights: General fund unassigned fund balance: $30.7 million; total fund balance: $106.4 million. Unrestricted net position is in a deficit due to long-term obligations ($309 million in pension and OPEB liabilities). General fund revenues exceeded expenditures by $17.4 million, but $12.1 million was transferred out (half to capital projects, half to subsidize solid waste enterprise fund).
• Pennichuck Corporation Component Unit: An adverse opinion was issued for the discretely presented component units, solely due to Pennichuck. This resulted from a reevaluation after changes in Pennichuck's board makeup (adding two city-appointed members) triggered a requirement to report under GASB standards. Pennichuck opted to report under FASB instead, leading to a dual opinion (unmodified on FASB, adverse on GASB). Aldermen questioned why this change occurred now and whether it was retroactive.
• Timing: The audit was delayed because of the Pennichuck issue; the audit firm pulled staff to address it in March 2026.
• Alderman Sullivan asked about warning signs; Stone noted no red flags but will do a deeper review for FY26. The city turned back $11.2 million in budgeted expenditures and overcollected by nearly $13 million.

Communications (Contract Approvals)

1. HVAC Maintenance: Approved a one-year contract with Palmer and Sicard Inc. for fire department HVAC maintenance, not to exceed $25,710. (Motion passed)
2. Holiday Lighting: Approved a contract with New England Holiday Light Co. for downtown holiday lighting, not to exceed $26,100, for permanent tree lighting. (Motion passed)
3. Sewer Flow Metering for Casino: Approved a contract with Hazen and Sawyer for sewer capacity analysis related to a proposed casino on Tara Boulevard, not to exceed $34,800.09, funded by the casino applicant. (Motion passed)
4. Transit Operations Contract: Approved a 2.75-year contract with Transdev Inc. for fixed-route and paratransit services, not to exceed $9,789,870, with options for extensions up to seven years. Discussion focused on:
   • CDL vs. non-CDL billing: New structure bills at two different hourly rates to reflect actual driver type (non-CDL cheaper).
   • Insurance shift: Plan to shift liability from city self-insurance to vendor insurance starting year two, with a potential opt-out after year one if terms not agreed. Estimated insurance cost of $800,000 in years 2–3.
   • Performance measures: A 24-page supplementary conditions document includes detailed performance metrics and operational standards (e.g., uniform policy, driver conduct).
   • Aldermen questioned risk and cost analysis; Community Development Director Sullivan noted the city will analyze claims data over time.

Remarks by Alderman Clemens

• Alderman Clemens reported that Nashua is losing nearly $5 million in state adequacy grants compared to last year, which will significantly impact the next budget. He urged questioning state representatives and the governor.

Key Outcomes

• Approved four contracts: HVAC maintenance ($25,710), holiday lighting ($26,100), sewer flow metering ($34,800.09), and transit operations ($9,789,870). All motions passed unanimously.
• Approved record of expenditures for August 28 – September 10, 2026.
• No action on the FY25 audit; it was presented for information. The adverse opinion on Pennichuck will be monitored.
• The transit contract includes a commitment to negotiate insurance terms over six months, with city option to opt out after year one if not agreed.
• Alderman Clemens' remarks about state funding will be considered in upcoming budget discussions.
• Meeting adjourned at 8:04 PM (local time, Sept 16).

Note: The meeting occurred on September 16, 2026, but the given timestamp is September 17, 2026 at 01:17:03 UTC. The summary reflects the meeting date as stated in the transcript.