WHO'S KIDDING WHOM?
Dear Customers and Shareholders:That’s a question Nashua taxpayers should be asking city officials as they begin what will be a long and expensive attempt to take Pennichuck Corporation’s assets by eminent domain. We think it’s time to clear up some false impressions that city officials apparently believe will become true if they repeat them often enough.
FALSE IMPRESSION #1:
The $300,000 of taxpayer money that aldermen appropriated last week will not worsen the city’s $5,800,000 financial crisis. According to city officials, that $300,000 is “not going to save a school,” nor prevent elimination of kindergarten, employee layoffs and cutbacks in services. The same goes for the $300,000 the city has already spent with nothing to show for it, and another $557,000 the city will need through 2005 to pay for its expert consultants.The Truth:
All of the money the city is spending on the hostile attempt to take Pennichuck is coming out of the city treasury – it is taxpayer money. If it’s not digging a deeper hole into the city budget, then why did the Board of Aldermen and Budget Committee spend weeks deliberating about whether to spend the money?FALSE IMPRESSION #2:
There’s no need to worry about the city spending well over $1,000,000 just for trying to take Pennichuck’s assets, with no guarantee of the outcome. Either a revenue bond or increased real estate taxes on Pennichuck will reimburse the city.The Truth:
Raising Pennichuck’s real estate taxes without reassessing other properties in the city is illegal. Even if it were legal, raising Pennichuck’s property taxes would result in higher water rates for our customers. The amount of the revenue bond, which only comes into play if the city succeeds in its hostile takeover attempt, will determine how much water rates will need to increase in order to pay for the bond. Either way, water customers or taxpayers will end up paying the city’s bill.FALSE IMPRESSION #3:
City leaders say they have a mandate from the voters to take the assets of Pennichuck, New Hampshire’s oldest continuously operating business.The Truth:
Since the January 2003 referendum, Nashua taxpayers have learned a lot more about the real costs and serious financial impact of this issue – important facts that city officials have failed to share in detail with voters. Today, research shows that a majority of Nashua residents now oppose taking Pennichuck and strongly oppose the city spending more money on this effort.FALSE IMPRESSION #4:
According to the city’s expert consultants, when it comes to control of the regional water authority, Nashua is the “800-pound gorilla” and Nashua alone should set the rates, determine the capital improvements and the bonding issues for the regional water users.The Truth:
The truth is, the proposed creation of a regional water authority is none of Pennichuck’s business. But the potential impact of Nashua’s actions on our customers is our business. Pennichuck has always balanced the interests of all its customers. Our customers and the volunteer members of the committee that worked on the draft charter for the past year may not be too happy to see such an arrogant and domineering position being advanced by the city's consultants.One other question Nashua taxpayers may want to ask city leaders:
How is it in the public’s best interest to spend taxpayer money to take the assets of a company that has been doing a good job of providing water services to the city for 152 years, especially when that money is sorely needed to support kindergarten and schools?
Pennichuck Corporation
New Hampshire’s Oldest
Continuously Operating Business
March 28, 2004
