Hi Sue,
Last trip to Merimbula we stayed in the Sapphire Valley CP. Walking distance to town, (a little over one Km), and they have a section for those with dogs/pets. Nice enough spot. It is part of the top tourist chain I think. It is on Sapphire Coast Drive that heads north toward Tura Beach. Bowling Club is really close for meals.
We may be staying there next month again after camping with friends at Mallacoota. Might see you there??
Cheers,
Bob & Pauline