A nine-page memorandum was released last week by Londonderry Town Manager Shaun Mulholland addressing claims that were made during at the Dec. 8 budget workshop by former Town Council Chairman and current Deputy Treasurer John Farrell.
The document provided clarification on wage adjustments, transparency, IT hiring, software contracts, and other fiscal matters.
Employee Wage Adjustments
Farrell alleged that employees received pay increases of 16 percent to 30 percent without Council approval. Mulholland countered that all adjustments were authorized under the Town Charter and funded within the existing FY2025 operating budget.
“No new warrant article or Council action was required because the FY2025 budget was not exceeded,” Mulholland stated, noting that the increases addressed market disparities and retention concerns.
He also defended a $10,000-plus adjustment for a recent hire, citing expanded responsibilities such as risk management and correcting insurance gaps that could have exposed the town to millions in liability.
Transparency and Budgeting
Responding to claims of secrecy, Mulholland said all wage adjustments were reflected in FY2027 budget documents and reviewed by the Budget Committee. He acknowledged limitations in current financial software and reiterated the need for a modern ERP system to improve reporting.
IT Department and Compliance Issues
Farrell questioned the urgency of hiring a new IT position. Mulholland explained that the role addresses federal and state labor law violations tied to contractor classifications, which carry daily fines for noncompliance. He confirmed the position was posted publicly and interviews are scheduled.
OpenGov Contract and Procurement
Concerns over an $800,000 SaaS contract were clarified as subscription-based, with annual appropriations and no long-term encumbrance. The first-year cost of $94,717 fell within the Town Manager’s purchasing authority. Mulholland said competitive procurement was conducted through market analysis and vendor demonstrations.
Other Issues Addressed
The memo also refuted rumors of dispatch consolidation funding, clarified union contract negotiations, and explained the shift of Old Home Day to a 501(c)(3) structure for sustainability. Mulholland concluded by reaffirming the town’s commitment to transparency and compliance with state law, the Town Charter, and auditing standards.