Merrimack council tells manager to prioritize needs ahead of next budget as costs rise

Town Manager Paul (presenting the town manager's report) told the council that the town is entering budget season amid a second consecutive default year and that the town faces rising costs for fuel, tipping fees, natural gas, health insurance and workerscomp. He said the town's fund balance was reduced following the outlet-mall litigation and that long-term capital needs, especially for paving and building maintenance, remain underfunded.

The manager said some numbers are still pending — workers' compensation and liability not-to-exceed figures were not final — but warned that health-insurance costs could rise about 10% and that a third consecutive default would likely force layoffs and larger service cuts. "The third year of default... No department's gonna be safe," he said. Councilors responded that the budget should be built "needs, not wants," and asked staff to prepare a needs-based budget and bring back options, while considering whether to put the town master plan on a warrant article for voter consideration.

Councilors and staff also discussed citizen engagement strategies (targeted social posts, leveraging high-viewership town programming, and weekend outreach) to encourage turnout and informed voting on budget and warrant items. The council did not adopt a final budget or pass any budgetary appropriation during the meeting; it provided guidance to the manager on priorities and requested follow-up materials during the regular budget schedule.