It all began with a simple question. In October, I wanted to verify the balance in a special fund (Capital Reserve Fund) set up for the maintenance of the Performing Arts Center, which opened on April 1, 2023. The City’s Board of Aldermen (BOA) approved this fund in August 2023. It was meant to be a dedicated account that grows over time and won’t disappear at the end of the fiscal year. Nashua has around 140 such accounts, making the setup straightforward.
So, where does the money for this account come from? The company managing the Arts Center, Spectacle Live, sends a check to the City every three months, which includes a small portion of the earnings from ticket sales, food, drinks, merchandise, and donations. Based on checks received, the account should have around $80,000.
I tried to find information about this account on the City’s financial website but couldn’t locate it. I reached out to a finance-savvy friend who was just as puzzled. In early November, she requested the bank statements related to the fund, but, as is often the case in Nashua, the Records Administrator did not lawfully comply. After a follow-up, she received a vague financial summary that obscured some important details. When we looked at the account balance, it showed only $19,000, raising red flags.
Determined to uncover the truth, I continued my inquiries. The RTK Administrator indicated there was a trust accountant but didn’t identify who that person was or provide any links to the reports. I pressed for the name of this accountant since state laws require that these records be available for public viewing. Through citizen research, we discovered that the money may have been shifted into the general city budget and spent improperly, which is prohibited.
In response to my inquiries, Mr. Perrin asserted that I hadn’t submitted the correct formal request for information and declined to answer my simple question. This experience highlights the frustrating tactics employed by the city’s leadership, including Mayor Donchess and his team. A simple request devolved into a convoluted formal process. Irritated, I submitted an official request for the job description and latest paycheck of the individual overseeing the trust fund to determine who was responsible.
After twelve days of back and forth—during which I also voiced my concerns at a televised city meeting—the City finally identified the person.
When I reviewed the documents related to the creation of this special fund, I found that it was established under specific State laws meant to oversee trust accounts. Under state laws, these funds are supposed to be managed by a Board of Trustees for all City Trust Funds defined by the City’s Charter. This board shall include the mayor, the BOA president, the financial officer, and two mayoral appointees.
We now need to file even more record requests to delve deeper into this situation. A legislative assistant took five hours to confirm that no records of these meetings exist. During the Mayor’s nine-year tenure, he failed to appoint anyone to this crucial Board. He and other City officials knew this Board did not exist, but led us on a wild goose chase to continue their abusive pattern and practice towards citzens. In blatant disregard of state laws, the City has inadequately managed $75 million in trust fund money over the past nine years. It appears they may have submitted financial reports that falsely stated these funds were overseen by a Trustee Board that doesn’t actually exist. The state’s Department of Justice -Charitable Trust Unit and the Department of Revenue Administration need to audit Nashua’s Trust Accounts and address this alarming situation. Nashua Leaders are undermining the public’s trust of government.
