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Merrimac Finance Committee flags roughly 20% budget shortfall, weighs cuts and lower COLA
Summary
Committee members said the town faces about a 20% budget shortfall and discussed cost-saving steps including potential staff cuts, reduced services, and lowering a proposed 3.5% COLA to 2%; department heads presented modest line-item increases and staffing adjustments. No formal budget votes were recorded.
The Merrimac Finance Committee on Jan. 7 said the town appears to face about a 20% budget shortfall and spent much of the meeting reviewing possible cost-saving measures and department budget requests.
Committee members discussed options including cutting department personnel, exploring artificial intelligence for efficiencies, identifying town‑owned land for potential sale, and reducing services such as the library and the Council on Aging. Members also raised lowering a proposed townwide cost-of-living adjustment (COLA) from 3.5% to 2% as a way to reduce the deficit, with the committee noting that any change could affect upcoming union negotiations.
Town Accountant Anne Jim told the committee departments are proposing a 3.5% COLA and offered several small line‑item changes: reallocating postage funds to office supplies and a $625 reduction for software costs. Jim also reported that a new assistant accountant has begun handling accounts payable and provides backup coverage for the office.
Tax Collector Michelle Barry reported a proposed 3.5% COLA for her office and requested a $2,380 increase for billing, collection and printing expenses, driven by higher postage and a lockbox provider fee. Principal Assessor Heather Roche proposed a 3.5% salary increase while reducing one Assistant Assessor position to an administrative assistant at 30 hours per week (from 35 hours), and requested a $722 increase for Catalist software; she also noted the Patriot Properties contract was renewed for five years and that the vendor’s customer service changed after a sale.
Finance Director and Town Administrator Carol McLeod reiterated a proposed 3.5% COLA townwide and requested a $300 increase for dues and memberships based on last year’s shortfall. Committee members asked department heads to identify mandatory, regulatory costs versus expenses that could be deferred.
There were no recorded formal votes on budget items during the meeting. The committee noted the Governance Committee will review town organization, and that the Collins Center contract — which expires Jan. 30 — is on the Select Board agenda and may be extended; the Select Board is expected to discuss a timeline at its next meeting.
