NASHUA — Mayor Jim Donchess formally introduced his proposed fiscal 2027 city budget, warning aldermen that steep increases in fixed costs are driving a projected tax rate hike even as he seeks to avoid cuts to core services. In a meeting that also drew emotional testimony about immigration enforcement, the Board of Aldermen adopted a resolution calling for transparency in federal immigration actions and unanimously approved a new four-year contract for Nashua Police Patrolman’s Association.
Mayor outlines rising costs, aims to hold tax hike under 8%
Speaking at the start of the meeting, Donchess said the administration moved up the budget submission to the first meeting in April at the board’s request and is contending with jumps in health care, insurance, school transportation and landfill costs that far outpace typical inflation.
“Looking at the coming fiscal year, we are faced with some very significant challenges which are fixed costs which are rising far more than the 3 or 4% cost of living,” Donchess told the Board of Alderman.
Health insurance premiums alone are up 13%, a $6.5 million increase the mayor said equates to more than two percentage points on the tax rate. Liability, auto and workers’ compensation insurance costs are up 20%, or $1.7 million, while the school department faces roughly $600,000 more in electricity costs and a 15% increase in regular school busing, or about $1.2 million. Special education expenses are up to about $1.8 million, including more than $1 million in additional out-of-district placement costs, he said.
The city’s effort to extend the life of its municipally operated landfill is adding $1.9 million in debt service, Donchess said. The police department also must replace its body cameras after the expiration of a five- or six-year contract, at a cost of about $900,000.
“If you add those numbers up, you come up to $13 million or thereabouts before we even get to wages and many other expenses that the city has,” Donchess said.
Initial department requests would have translated to a 9% tax rate increase, according to the mayor. He said his budget trims that to “below 8%” by consolidating a shared position between City Hall and the school department, cutting the school department’s requested increase from 6% to 5.5%, delaying three new fire department training officers until midyear, phasing in a recently adopted unaffiliated employee salary schedule over two years, reducing economic development funding by about $300,000 and limiting capital reserve funding to $2 million with hopes of supplementing it later with any year-end surplus.
The budget would reduce school department staffing by more than 50 positions, which Donchess said it may mirror a decline in enrollment, but he emphasized there are no proposed closures of fire stations or layoffs of police officers. “Reasonable people can differ about budgetary items,” he said, adding that the Board of Aldermen’s Budget Review Committee will have to “struggle with this” in the weeks ahead.
Public comment centers on immigration enforcement and contracts
During the first public comment period, speakers were limited to items scheduled for action Tuesday. Several residents and advocates spoke in support of Resolution R-26-016, which addresses federal immigration enforcement activity in Nashua and its impact on community safety and well-being.
Jaimeika Lewis of Spruce Street urged aldermen to support the resolution, saying immigration enforcement practices that lack transparency and communication can deter people from calling for help, going to work or sending their children to school. “This resolution is not about preventing enforcement. This is about people. It’s about families,” Lewis said.
Aldermen adopt immigration resolution
On a 12–2 vote, the board gave final approval to R-26-016, the immigration resolution sponsored by Alderwoman-at-Large Shoshanna Kelly.
The resolution calls for transparency, clear identification of federal officers,communication and de-escalation when possible, and coordination with local leaders when immigration enforcement occurs in the city. Aldermen Sullivan and Johnson voted no, while the remaining members present voted in favor.
Police union contract wins unanimous support
In contrast to the debate raised during public comment, aldermen unanimouslyapproved Resolution R-26-017, which ratifies a collective bargaining agreement between the Board of Police Commissioners and the Nashua Police Patrolman’s Association covering July 1, 2026, through June 30, 2030. Budget Review Committee
Chair Alderman-at-Large Richard Dow said the contract was the result of “extensive coordination” between commissioners and the union and keeps Nashua officers competitive without making them the highest paid in the state.
Dow and others argued that the city must remain able to recruit and retain officers,and noted Nashua is currently 13 officers short and risks losing personnel to better-paying agencies if it falls behind.
Ward 4 Alderman Tom Lopez said he has disagreed with police commissioners onpolicy questions, including the city’s camping-ban ordinance and whether commissioners should be elected or appointed, but he still supports the contract. “They never failed to show up when I need them,” Lopez said, arguing that the city should invest in “quality, educated police officers” rather than risk the kind of problems seen nationally when departments lack transparency and community connection.
