Mayor Proposes $236 Million Budget

UPDATE: The 2014 proposed budget is now uploaded with this article. Click on the pdf link to read it. 

Mayor Donnalee Lozeau Tuesday night proposed a $236 million operating budget, which reflects a 2.3 percent increase over last year's budget. Of that amount, 1.5 percent is fixed and accounts for mandated retirement system increases.

About 75 percent of the budget covers the cost of salaries for the city's 2,807 employees.

Not reflected in that $236 million budget figure is $18.3 million in operating budget for "Enterprise Funds," including solid waste and wastewater budgets, which are self sustaining, minus about $3 million paid by user fees for a total additional expenditure of $15.1 million.

In discussing the budget prior to Tuesday night's meeting, Lozeau said she feels this proposal "strikes the right balance."

"People talk about cutting and spending, but we need to talk about investing. When you talk about operating government like a business, to do that you reinvest in your business; you take care of buildings and vehicles, and take care of your people," Lozeau said. 

The proposed budget is $343,114 below the spending cap, a total increase of 2.2 percent over last year's budget.

Based on the proposed budget, residents will pay less than than 3 percent more for taxes in 2014. A final analysis depends on other variables, which won't be determined until the books on this budget cycle are closed, by late summer.

Lozeau said that what some residents may not understand is that the city tax rate is directly impacted by state property, county, municipal, and school tax changes, which are out of the city's control. 

"Those are all the moving parts," Lozeau said. "Which is why I prefer to wait a little later in process to bring in budget because I'd rather bring in a document that doesn't require major reconstruction," Lozeau said in explaining the process in Nashua.

One big change in how this budget is laid out logistically is that the cost for benefits is now listed under each department, which changes the year-over-year comparison process.

An online version of the budget is supposed to be posted on the city's gonashua.com site as of Wednesday. We'll add a link for you here on Nashua Patch.