This is the proposed address to Town Meeting voters by the Finance Committee

To Town Meeting voters:

The decisions that you face on April 28 are important to the future of the Town of Wareham. In the simplest of terms, you will decide the path we take over the next five years. The Finance Committee recognized that in order to make this decision we needed to provide more information, therefore the balanced budget (Article No. 6) contained in the Town Meeting warrant and report of the Finance Committee includes a five year projection as does the contingent appropriation (Article No. 7).

This will allow the voters to see the impact to the town through 2019. We have added appendices to the report that include the rules of town meeting, a glossary of terms, the detailed EMS budget, and the detail for the sewer enterprise budget. It is our belief that well informed voters will make wise decisions.

Balanced Budget

The balanced budget shows a structural deficit of $7.2 million over the next four years. That number does not include the $2.5 million that was reduced from the fiscal year 2015 budget in order to balance it. In total, the budget scenario shows a total of $9.7 million in reductions for a five year period.

The balanced budget does not include funding for stabilization and minimal capital for police vehicles. Expected growth of revenue through 2019 is 11.2 percent while the expected growth of expenditures through 2019 is 16.6 percent.

The Finance Committee voted favorable action on the balanced budget but we recognize that this budget does not meet the needs of the town voters. But to continue operation of the town as of July 1, 2014 (fiscal year 2015) we are required by law to present a balanced budget.

Employee benefits expenditures grow $4 million or 32.9 percent through 2019. This is an extremely critical area that will require considerable effort to address the impact on future budgets. Another area of concern is county and state assessments, which includes school choice. The projected impact within the balanced budget is a 51 percent or $1.5 million.

With each year it becomes more difficult to cut the budget without impacting core services. The continued fiscal problems in Wareham results in fewer teachers and school staff, fewer police officers, less money for technology, and less money for maintenance of our infrastructure. It will also impact our ability to borrow at even higher rates due to our ability to pay, and leave the Town exposed in the face of unexpected challenges.

It is difficult to project cuts beyond fiscal year 2017. We will have reduced services by $4.4 million by that point.

Contingent Appropriation

The contingent appropriation seeks to appropriate $4.5 million in tax revenue to address several critical areas and position the town for the future. It does not fix all the problems, but it does put us on the right path. It will require good sound fiscal management by our leaders and a commitment to the plan.

It seeks to fund stabilization with $2 million through fiscal year 2018; address capital needs, reinstate needed services and employees, and fund additional employees that enhance services for Wareham voters.

While Town Meeting will vote on this article, the contingent appropriation will require a vote of the Selectmen to place this on a special election ballot. If the ballot question passes, it becomes the new balanced budget.

Conclusion

Article No. 6 and Article No. 7 paint a deep contrast in the future of Wareham. We have compounded a structural deficit with the poor fiscal management of the past decade. Lacking a plan, we have made unfortunate decisions that negatively affect our fiscal health.

The budget and contingent appropriation was not a school plan combined with a town plan, this was a cooperative effort where both parties sat down at the same table and worked on a Town budget and contingent appropriation. We have bright and talented leadership that sees the value of working together for the common good of Wareham. The leadership of Wareham must now demonstrate their commitment to sound fiscal management in order to regain the trust of the voters.

We ask the voters to support our efforts to invest in the Town of Wareham.

Thank you,

Larry McDonald, Chairman-Wareham Finance Committee

Marilyn Donahue, Vice Chairman

Bonnie Cottuli, Clerk

Thomas Worthen, Member

Dominic Cammarano, Member

Marilyn Jordan, Member

David Heard, Member

Joan Fontes, Member

Jeffrey Tufts, Member