Council to Review $30.7M Town Budget

Merrimack Town Manager Eileen Cabanel believes she has put together a "responsible" proposed $30.7 million town budget that addresses Merrimack's needs and covers higher health insurance premiums, state retirement system costs and much needed capital expenditures.

“One of the goals that was established for me and with me with the Town Council to improve the capital expenditures so that various roads and bridges could be addressed,” said Cabanel.

The Town Council is scheduled to conduct its budget review process from Jan. 13 to Jan. 27, according to Finance Director Paul Micali.

Micali said the grand total of the proposed 2014 budget is $30,768,992. He said the General Fund portion of the proposed spending package is $23,273,935, which is $652,000, or 2.88 percent higher than the current town budget.

He said the overall budget increase is $1,779,866, or 6.14 percent, and $2,491,000 of the total proposed budget is for capital expenditures.

If budget is approved as it is currently proposed at the April 11 town election, Micali said it will generate a 20-cent increase on the town portion of the property tax rate, which $5.29 per thousand of assessed value (town portion) 22 percent of the overall tax rate.

The town's overall tax rate for 2013 for $23.91, which is comprised of the county portion ($1.18), schools ($15.09) and $2.35 for the school income tax portion, he said.

“We think that it takes the needs of the community with more capital fund needs”

Micali said some of the items in the proposed budget include:  

• $145,000 increase for health insurance costs
• $25,000 in a milfoil prevention account
• $68,000 increase in capital reserve funding
• $279,000 for new computer software and equipment

Cabanel said the proposed spending package is "pretty much the same” as last year’s budget. She said health insurance went up 5 percent this year, which amounts to 10 percent of the total budget. It also addresses the union contracts costs

Even though none of the town's union employees will receive a COLA increase, she said eligible employees in the town's five unions are still due to get STEP increases.

The town manager's proposed 2014 budget can be viewed here.