Budget committee tables Nashua's proposed 2027 budget after debate over motor‑vehicle revenue and interest income

On May 14, 2026, the Nashua Board of Aldermen's budget review committee took up the mayor's proposed fiscal 2027 budget and, after extended discussion on revenue assumptions and capital funding, voted to table the measure to the next budget meeting.

Committee members and city finance staff spent the evening pressing on several revenue lines and on the reliability of budgeted estimates. Resident Bill Ferriero opened public comment with a series of pointed questions about how the city develops numbers for motor‑vehicle permit fees, interest income and department benefit calculations; he told the committee, “If you purposely under plan it by many millions of dollars to develop a surplus, just say that.”

CFO Dawn Enright told the committee the motor‑vehicle revenue line was increased by $1,000,000 in the proposed budget and that staff often budgets conservatively on that line to avoid year‑end shortfalls. “This line, historically has been slightly under budgeted so that we can assure that we will collect enough revenue to be able to cover our budget,” she said. Enright said excess motor‑vehicle revenue, when it occurs, is used to reduce the tax rate.

On interest income, Enright said market volatility makes forecasting difficult. Staff avoided an optimistic projection after last year's incorrect assumption about rate cuts: “This number is very difficult to calculate…the way the market has been,” she said, describing why the proposed budget does not assume robust investment returns.

Don Enright, the city's CFO who answered later procedural questions, explained why property‑tax collections do not appear as a conventional revenue line in the budget document: the Department of Revenue determines the collection amount as part of the state's tax‑rate‑setting process, so it is effectively the result of the budget rather than an input staff enters in the same way as other revenue sources.

Treasurer and tax collector Diane Mulholland outlined operational changes and recent tax‑deeding activity. She said the city has modernized online services for tax and motor‑vehicle customers and is centralizing accounts receivable; she also reported that since April 2023 the city has tax‑deeded 47 properties, 27 were repurchased by original owners, 9 were auctioned and the city currently owns eight parcels.

Members queried appropriations increases in the finance division (Enright said appropriations grew about 12% overall but were only about 3.55% excluding salaries and benefits), auditing costs, and a proposed new financial analyst position to replace previously contracted services. Enright also said the city refunded 2013–2015 bonds producing roughly $125,000 per year in savings for the next 10 years, and that new bonds will be issued this fall to fund planned capital projects.

After discussion and public comment the committee acted on the budget ordinance. Earlier in the meeting members removed R‑26‑028 (the FY2027 proposed budget) from the table to allow discussion; at the end of the session an alderman moved to table R‑26‑028 to the next budget meeting. The motion carried by voice vote.

The committee scheduled further budget review sessions and indicated a public hearing will likely be held in Nashua High North's conference room so the meeting can be telecast. The budget will return to the committee for additional review and possible amendments before a final Board vote.