Full Text of the State of the City Address

In a true C-SPANish moment, we're bringing you the complete text of the 2012 State of the City Address, delivered Tuesday night by Mayor Donnalee Lozeau. Analysis aside, this is truly the best way to get a handle on the mayor's vision for the next year, and beyond.

It's meaty, so take your time.

But don't take too long. Because we will be sitting down with the mayor tomorrow, so please feel free to send us your questions, concerns and feedback. While we're certain the business community will have some important questions for the mayor over breakfast at the Courtyard Marriott at $25 per plate, we believe it's important for the people to speak up, too.

We'll run your questions by the mayor and get back to you.

State of the City Address

Delivered by Mayor Donnalee Lozeau before the Board of Aldermen

Tuesday, February 21, 2012

"Thank you, Mr. President and Good evening to you and members of the Board of Aldermen. I am pleased to be here to present to you the state of our city.

Though we have gone through some very tough economic times during the last four years, not only is Nashua in good shape, I am happy to say that together we have achieved some incredible accomplishments! Doubters might not have thought some of those accomplishments possible.

We gained great momentum over the last four years. We built a strong team of leaders and established efficient and cost saving practices across the city and its departments.

Less than two years ago we made the first steps to update our fleet of vehicles to make it more energy efficient and environment friendly by purchasing hybrid automobiles for Public Works. Through a public/private partnership with AVSG today we have a Compressed Natural Gas fueling station. That station is available to the citizens and businesses to fuel their CNG powered vehicles, which means the station has the potential to generate revenue for the city.

Not only is this achievement a cost saving measure for us, and potential revenue source, it also reduces emissions and noise pollution in our city. In our Solid Waste department we now have 7 new trucks that run on Compressed Natural Gas with 4 more on the way. In fact, these trucks are so quiet that were it not for the unavoidable noise of the trash actually falling into the truck, residents might not get that last minute reminder to get their trash to the curb in time for the pickup.

Our efforts have generated so much attention that we have been recommended by New Hampshire Department of Environmental Services for a more than seven hundred thousand dollar ($700,000) grant to cover the cost differential for an additional 16 Public Works vehicles that will operate on CNG, 3 police alternative fuel vehicles and, 3 fire vehicles. This recommendation will be before the Governor and Executive Council in March. These vehicles are all identified to be purchased in our 10 year fleet assessment for FY11- 12 -13 and 14. This is such a remarkable opportunity.

Our negotiated price for CNG is $2.30 per gallon. Looking at today's unleaded and diesel prices, along with hybrids that don't even use fuel unless they exceed 30mph, the wisdom of this decision is clear!

The renovations at the Hunt Memorial Building are nearly complete. New and updated energy efficiencies are implemented, accessibility issues have been addressed, necessary repairs and updates have been accomplished and office rental spaces have been carved out, in an effort to bring it closer to self sufficiency.

I want to thank the Hunt Building Board of Trustees and the Building Administrator for their diligence in overseeing this renovation. I would also like to thank the Friends of the Hunt for their efforts securing a $20,000 grant from the State of New Hampshire Cultural Conservation Fund toward renovations at the Hunt. If you have not yet visited the renovated Hunt, I strongly encourage you to do so.

Before it becomes old news let me just briefly touch on the recent acquisition of our water supply.

I believe the acquisition of Pennichuck Corporation, a publicly traded, for-profit corporation, will go down in history as one of the most significant actions of our time. When the process started ten years ago the path that this acquisition would take was not known. Each step taken by different individuals and entities played an important part. Bottom line, Nashua is now in control of its water supply, and we did it without using tax dollars for the purchase itself; as well as keeping tax dollars out of running the business; an accomplishment that becomes more impressive the more it “sinks in.” (pun intended).

As operations of Pennichuck Corporation will now become part of our routine business I would like to take this opportunity to thank one more time those who played a role in this unprecedented accomplishment over the last decade. As with all important things we do, the transaction represents a real team effort by many people, and I can't thank them enough.

The Nashua community is made up of a wonderful assortment of talent and dedication. Initiatives and programs are more successful when there is a collaboration of ideas and input from many. I am pleased to report that a lot of what is being accomplished in this community is just that--a community effort.

I spoke to you last year about a community branding initiative that the city was preparing for bids. I am so pleased to point out yet another public/private partnership. The City of Nashua and The Greater Nashua Chamber of Commerce have been working collaboratively on the shared purpose of creating a branding campaign for the City of Nashua. Both organizations recognize the need for projecting a positive and attractive brand for the community. The branding initiative includes a coalition of community based organizations, businesses and individuals seeking to create a "top of the mind awareness of Nashua␣ for the purpose of recruiting new businesses, residents, and visitors to Nashua. Together the city and the Chamber have brought people to the table and that team is well on their way to unveiling a final product in the fall.

This effort will only enhance what many businesses already know about Nashua and have already acted on. Companies recovering from the economic downturn are starting to make new investments and many are choosing Nashua as the place to do so. Three hi-tech companies, Resonetics, FLIR Commercial Systems, and Laser Advantage have recently expanded in, or relocated to Nashua, continuing Nashua's legacy of innovative companies utilizing the city's highly skilled labor force.

A majority of the members of the new Downtown Improvement Committee have been appointed and are ready to pick up the work of identifying and prioritizing funding for downtown improvements. I want to thank these individuals for being active participants in what ultimately will affect not only them and their businesses but our whole community. I look forward to sharing our thoughts and ideas with them to kick start some real work downtown.

Speaking of kick starting some work, our arts commission has been successful in getting the message out about arts in our community. They, along with the Keefe Auditorium Commission, inspired some of the members of the Greater Nashua Chamber of Commerce's 2011 Leadership Greater Nashua class. This group of up and coming leaders in our community formed the Greater Nashua Arts Initiative and made it their mission to improve the Edmund Keefe Auditorium.

They single handedly organized a sold out concert at the Keefe headlining the Indigo Girls and ultimately contributed $60,000 for some much needed renovations and improvements to the auditorium. I would again like to thank those individuals for their community mindedness and leadership.

When it comes to community mindedness and leadership I have to mention The Nashua International Design Competition. The jury, comprised of architects and landscape architects, economic development, planning, historic preservation, and local stakeholders have been working for months to put together a call for designs that was well thought out and provided a wealth of information about the design area to make for a much richer competition.

They have been incredibly successful demonstrated by the fact that 18 approved entries were submitted. Upon receipt of the entries the jury met and chose a group of eight finalists. They have now put the finalists designs on display at 100 Main Street and 89 Main Street and on their website as a way to get more public feedback. So far so good! They plan to select the recommended best design in March. While we may not be able to afford a complete design, some ideas and concepts may be doable and have a positive impact on the neighborhood that includes the Millyard and Pine St. This will become a critical gateway and the possibilities for improvement are endless.

Clearly we have some wonderful people in our community that go above and beyond what might be expected. We also have others working in this community everyday who serve the community in another capacity, our city staff.

I am pleased to have welcomed two new cabinet members in 2011.

Justin Kates, our new Emergency Management Director, who was baptized by fire, or should I say wind and snow, and handled it wonderfully I might add, with Hurricane Irene in August and the snowstorm in October.

Barbara Hill has joined us as Human Resources Director. After an 18 month search for just the right person to fill that position, I am so pleased we found her.

Both Justin and Barbara have relocated here from other communities so I welcome them as new staff and new community members.

With the retirement of Chief Donald Conley the city has a new chief, John Seusing, a soon to be 30 year veteran of the force. I have had the pleasure of meeting with Chief Seusing and look forward to working with him as a contributor to my cabinet and a valuable resource to the community and its safety.

One of the things I am most proud of is the level of customer service that we provide to our citizens. I am committed to customer service as Job One. Customer service is not just a priority in my office, but in every department of the city. I know that my cabinet shares my philosophy. And it starts at the top. Citizens can expect to have their questions answered, their issues addressed.

We are continuing to make great headway in making information available to everyone. With investment in technology and a dedication to transparency it is now easier than ever to access information. I am proud of the A rating we received this year from the Sunshine Review an organization dedicated to state and local government transparency.

The City of Nashua has a wonderful workforce, dedicated and qualified. In fact, we have some of the most qualified staff in the state holding some of the highest certifications in their fields.

Over the next few weeks I plan to come in and update you on the status of our union contracts, but let me give you an overall snapshot.

Last year I discussed the financial challenges we were facing. Those challenges were primarily driven by declining revenues, health care increases, and pension costs. I met with all the employer boards, school, library, police and fire and our non-union employees to show them specific dollars and what it meant to the city budget.

I proposed a solution that included level budgets, employee concessions, and a responsible tax increase. I did this because I thought it was fair to share the challenge. I am pleased to report that we have successfully negotiated 5 out of 14 contracts in 2011. One is the library contract and the other 4 are in the School Department.

I would like to thank the Board of Education and Superintendent Conrad, and the Library Trustees and Director Hinderer for working with me and working toward the solutions I requested last year when discussing the challenges for FY 12. In particular, President of the School Board, Robert Hallowell, who took an extraordinary amount of time to look over the city's financial challenges and agreed to work with us toward some real solutions.

Each contract negotiated so far has shown an effort on the part of the union members to acknowledge the value of the medical benefits programs provided and their willingness to accept an increased contribution. They have agreed to pay an additional 10% contribution toward their healthcare benefits and to accept a .5% increase in their wages. In addition, 242 non union employees have received a .5% salary increase and are paying the higher contribution as well.

Together they represent 70% of the healthcare subscribers. I thank them all for acknowledging the value of these benefits and bearing an increased portion. It is by no means lost on me that this year they are taking home less pay than they were a year ago. I sincerely thank them for their willingness to be part of this solution.

Still there are 9 contracts that have been expired since July that are currently at impasse. The employees working under the expired contracts continue to pay 10% less than other employees. We have 2807 employees. 1883 of them receive health benefits. 1339 of those receiving medical benefits contribute at an increased rate while 544 others enjoy the same medical coverage at contribution levels agreed to under expired contracts. The cost difference to the City for the remaining 544 employees is $85,000 monthly. It is very important to recover these costs from these employees retroactively.

Just to be clear, I view this as an issue of fairness. Gone are the days when employees can expect their employers and taxpayers to absorb double digit increases in healthcare without the employees who receive this benefit having to pay a larger share. The additional 10% will mean either a total of 20% or 30% of the premiums depending on the plan they choose.

I am calling on the four police unions, the fire union, two UAW unions, clerical and professional and the Public Works AFSME union to join their coworkers in recognizing the cost of these benefits and accept more of the responsibility of keeping the level of benefits for them and their families.

75 percent of the overall budget goes to salaries, benefits and pensions. When we look at the costs of the employee contracts and the value of benefits packages, it is not a small portion of our overall operating budget, but in fact a major portion of it that once negotiated leaves little room for adjustment aside from actual staffing.

As we look ahead at planning for the FY 13 Budget many challenges will be similar to last year's. We can no longer realistically think that state revenues and cost sharing at former levels will be restored in the near future, if ever. I have noted in the past the decreased state revenues. We must operate within the current reality.

The 2012 budget plan incorporated three critical legs. Those legs were divisions, employees, and citizens. Each leg shared the burden of supporting the financial responsibility.

• Divisions cut their budgets, with the exception of schools

• Employees had a limited wage increase and increased health care contributions.

Let me emphasize that the divisions' budgets with the exception of schools were actually cut below the prior year; something that I have not done before.

Let me also point out that even with the budget cuts and lower than anticipated revenues, the Fiscal Year 2011 ended with a $2.8 million surplus. This again, shows careful planning and management by senior management and elected officials. Because of this thoughtful planning, we were again able to keep tax increases reasonable.

As we begin planning for the next budget everyone needs to continue to do their part. All divisions are now accustomed to developing budgets that reflect an eye toward efficiency and historical trends and data.

I am grateful for the efforts made by Superintendent Conrad to craft a proposed budget for the schools that falls in line with my request this year that all divisions aim for no more than a 1% budget increase.

Employees who have not yet come to understand the value of the healthcare benefits need to consider the alternatives left to the city to bring the budget in at an affordable cost to our citizens.

It is my goal to again develop a balanced budget that maintains a high level of service while striking the right balance between needs and wants and recognizes that wise investments and tax stability are not a wish but a necessity. I plan for the introduction of the budget at the first Board of Aldermen meeting in May, which will be Tuesday, May 8th.

I understand there has been some discussion about previous administrations that brought their budgets in earlier, which I also did in my first year. But I have come to understand the wisdom, especially in these times, of carefully watching our revenues and expenses, having a better understanding of changes on the state level, and getting closer to year end to be able to bring in a well thought out budget that affords us all the opportunity to know better what it means to our taxpayers. To date that approach has proved most effective.

There is no denying that we have some challenges on our hands. I am confident that we will meet those challenges just as we always have by working together to craft solutions. Let's face it; some things take longer than others. The acquisition of Pennichuck is proof of that.

It should come as no surprise that along with good employee management, wise investments, and sound planning and decision making Nashua has maintained its stability and good standing in the financial community. Our undesignated fund balance is at 11.2%; above the 10% goal set by city ordinance. Our bonds are at 19.3% of our overall bonding capacity.

The City enjoys high financial ratings that reflect the confidence the financial community has in the way we do business. This did not occur by accident, but rather reflects thoughtful and often difficult decision making by elected officials and management.

We have accomplished some amazing things in recent history, experienced some devastating reductions in state and local revenues and still managed to deliver the same high level of services and invest in our future. All while keeping property tax rates at reasonable levels.

If all goes as planned, you will see a whole new look to the budget this year as a result of our Nashua Government Innovation Project (NGiN). Staff continues to make much progress with the development of the new financial and human resources systems. During the past few weeks, the financial team has been testing the new “FINPRO” system. Staff training will begin soon. Current plans call for a March 31st Go-Live date for the new financial systems (human resources to follow)

We are likely to again visit with the Finance and perhaps the Budget Committee with additional changes in the ordinances to take advantage of the new system's full capabilities. Staff will manage our finances more efficiently, working smarter not harder. I look forward to providing additional updates as we continue to implement these new systems.

Speaking of things that take longer -- the Broad Street Parkway. Now that we have the Record of Decision approved by the State and the Federal Highway Departments we are seeing progress. Work is taking place on Pine and Palm Streets, the boiler house should be down in the next few weeks, and the final design is underway. Like many of you, I am committed to seeing its completion through, on time and on budget!

Last year in my State of the City I was excited to share that Leon Kenison was moving from the position of Public Works Director to the position of the Broad Street Parkway Administrator. I knew that his lifetime experience at the state Department of Transportation and his municipal experience would be the best thing that could happen to the parkway. He was looking forward to wrapping up his career with the completion of the parkway as he recalled learning about it at DOT when he started there more than 40 years ago.

Sadly, not long after starting in the new position he came face to face with a devastating health challenge. We lost Leon last week. His service on Friday was a testament to the man he was; hours long with both sadness and joy when recounting memories of the Leon that so many people respected and looked to for both wisdom and humor.

I'll use his ords to say this about the Parkway: “No worries, we'll get it squared away, and it will be done right!”

On another note where patience may prove to be a virtue, there is the issue of bringing passenger rail and more freight rail service to Nashua. Last year at this time we were celebrating the $4.1 Million federal grant New Hampshire received to study the feasibility of bringing rail into and through New Hampshire via Nashua and at the same time concerned that the New Hampshire legislature was repealing the Rail Authority.

As many of you are aware, the Legislature did pass the bill to repeal the Rail Authority, but Governor Lynch vetoed that legislation and the veto was sustained. The federal grant approval has not yet come before the Governor and Council but is on their March agenda. I will attend that meeting and continue to advocate for this very important transportation project.

Although I am happy to continue to support a state wide project, I believe that the best chance of success is to get the rail to Nashua. The best way to do that from my perspective and many others' is to build Exit 36 South which could be home to a multimodal transit center. The study for this is underway. As you know this project requires the support from both Nashua and Tyngsboro along with New Hampshire and Massachusetts. The study for this is underway. So far so good and we'll keep at it, and I'm confident that we will make progress.

Speaking of the New Hampshire Legislature, the watch item right now is the status of the Hillsborough County South Superior Court and the proposal before the legislature to relocate the Nashua Superior Court to Manchester.

We had a great cross section of folks from Nashua testify before the House Judiciary Committee hearing on February 9th. We represented business, law enforcement, prosecutors, the financial and the legal communities, and of course the city. We made a compelling case, and we were supported with help from our Nashua legislators, in particular Deputy Majority Leader Silva and those on the committee, along with our two senators who have given their thoughts and advice.

I am pleased to tell you this evening that today the House Judiciary Committee unanimously voted to kill the proposal for this move, and the next step is action by the full house in early March!

On the local level, thanks go out to David Gottesman who had an ear to the ground and raised the first alarm on this. He put together a great team and in the end; we came out with a win for our region.

Each year at this time I have taken the opportunity to recognize and thank some of our citizens and staff for what they do and bring to the community. This year is no exception.

Let me begin by congratulating the Dr. Norman Crisp Elementary School! Dr. Crisp met the US Department of Agriculture's qualifications as the vaulted silver level for its Healthier US School Challenge. Dr. Crisp is one of only three schools in New Hampshire to be recognized this year and the only school to qualify in the Silver category, quite an accomplishment.

Mr. Ryan, the Principal of Nashua High School North, has been named Principal of the Year by The New Hampshire Association of School Principals, and Jason Robie has been named New Hampshire Football Coach of the Year. The National Federation of State High School Associations named Jason to its highest award.

The arts are alive and well in Nashua. I was honored and proud to have recently attended the New Hampshire Theatre Arts Awards in Manchester.

Thanks to an invitation from Dennis Schneider our Keefe Auditorium Commission Chairman, Liz Racioppi and I had the thrill of sharing the evening with the many, many award winners and finalists from Nashua. If these awards are an indicator, theatre in Nashua will be alive and well for many years. In the five youth categories the Peacock Players won four and was a finalist in the other. Along with the winners and finalists from Nashua in the other categories Nashua was well represented and did the city proud. Well done to our local thespians!

And in October, the Greater Nashua Chamber of Commerce named Sy Mahfuz as the Chamber Citizen of the Year. This is a well deserved honor for one of Nashua's hardworking and helpful businessmen. But Sy is not just a business man. He is a devoted husband, father and new grandfather, a proud Rotarian, and a committed volunteer.

When I gave my first State of the City I spoke about imagining the possibilities. During my first term, together we made it possible for so many things to happen. We have achieved great things over the last four years, much of it with many of you in this room, with our staff, and with the backing of other boards, commissions, volunteers and the public.

Along with the things I've already mentioned, let me give you a small sample:

• We have renovated City Hall and our parking garages and 9 city parks, and built a new parkto be dedicated in the spring.

• We relocated and redesigned our Mine Falls boat ramp

• We completed our wet weather facility at Wastewater

• Put a schedule in place to maintain crosswalks and culverts.

• Created a database of drainage problems throughout the city and prioritized them allowing the opportunity to fix them, Haines Street being our best example.

• Replaced and synchronized the traffic lights on DW Highway to run a more effective system, along with road improvements, that corridor is much improved.

• Our new Mill and Fill program has had a remarkable impact on problem areas, primarily potholes.

• For one dollar we took ownership of Gilson Road property, formerly the treatment plant run by the state now our storage facility for Public Works.

• We've made amazing progress on the energy front, with our CNG station and new vehicles, single stream recycling and building improvements.

• We are utilizing third party energy suppliers for the city's electricity and natural gas purchases.

• Using the new electricity supplier, we are estimating at least $150,000 in savings this fiscal year! We are also estimating approximately $20,000 in natural gas savings due to the favorable pricing that we secured last fiscal year. The implementation of fuel software brought better than $50,000 in savings.

• The Division of Public Health and Community Services partnered with over 25 agencies to complete the city's 2011 Community Health Assessment.

o partnered with the schools and the NE Patriots, and replaced the turf at Stellos Stadium

o and we helped the YMCA build a new facility that included a land swap to help the nearby elderly housing.

• Thanks to the vision of many, including a volunteer committee, we found the right baseball team for our historic Holman Stadium.

• Our budget document has grown to provide much more information than in years past, our bond schedule looks well into the future, and all our financials are open and accessible on the city website.

As Michelangelo wisely observed: The greatest danger for most is not that our aim is too high and we miss it, but that our aim is too low and we reach it.”

With that sentiment in mind, this term as mayor I am imagining endless possibilities. As I mentioned last month in my inaugural address, “Let us not be in danger of NOT setting lofty goals and expectations because we think we can't reach them. Together we have done some incredible things. I want us to aim high. I am willing to take the risk of not reaching our mark in order to get as close to it as possible.”

Let me share some of the exciting goals I'd like us accomplish over the next four years:

• Continue to prioritize our infrastructure;

• Increase the funds placed in our new Capitol Expendable Trust fund for use toward renovations, repairs and maintenance of city buildings

Believe it or not these are but a sampling of the possibilities.

None of these projects are beyond our combined ability. Many of these we have talked about and some of you have already indicated a willingness to help. Some of these are ideas you have put on the table. When we combine our ideas and goals, the possibilities are truly endless! Together we have done some terrific things and together we can achieve the goals we aim for.

I've mentioned a number of people tonight; some by name and some by inference. There are many more, like the hundreds of volunteers that serve on our boards and commissions, our firefighters, police officers and soldiers, and school parent volunteers. I could go on for hours just listing the many good citizens and employees that grace this city with their generosity and still I would run the risk of leaving someone out. We live in a wonderful community with wonderful people.

Abraham Lincoln said, “I like to see a man proud of the place in which he lives. I like to see a man live so that his place will be proud of him.”

This quote was spoken last week at the memorial for Leon Kenison. The state of New Hampshire and many places within it were proud of Leon, including Nashua.

There are many more in this community, in this place, that we can be proud of.

As we fulfill our obligations to the citizens working to to make Nashua a place to be proud of, let's do it in a way that makes this place, Nashua, proud of us. Everyone brings something to the table. We all have a role to play. There are things we are required to accomplish, and there are possibilities that have not yet been imagined.

I look forward to what we must, can, and will do together."

– Mayor Donnalee Lozeau