Town Meeting easily approved a $5.5 million budget for sewer operations - but not before hearing concerns that funds raised through "betterment fees," intended to repay money borrowed for expansion of the sewer system, have been improperly used to subsidize routine sewer operations.

The discussion also shed light on the abrupt dismissal in March of the sewer plant's chief operator and an administrative assistant.

Finance Committee Chair Richard Paulsen said his committee did not yet "have the numbers" to answer many of the questions posed by citizens. But he said his panel would be getting those numbers, digging into them, and working with the Board of Selectmen to correct any problems that have occurred.

As he and other officials describe the situation:

In Wareham, the annual operating cost of the sewer system is supposed to be paid entirely by those whose properties are tied into the system. The "sewer user fee" is supposed to be set at a level to have users covering all operating costs.

Separately, owners of property in newly sewered areas of town are assessed a "betterment fee," often in excess of $15,000. It can be paid immediately or over a period of up to 20 years. No matter how and when betterment fees are paid, they are supposed to be used only to repay money the town borrowed to expand the sewer system.

But . . . lots of property owners pay betterment fees more quickly than is needed to repay the debt, so that fund has been showing a "surplus." Rather than increasing the user fee to cover increasing operating costs, it appears that the town dipped into the betterment money in 2010 and previous years as "a source of funding." That did not pose an immediate problem, but would be a significant problem when all the debt needs to be repaid.

When the borrowing-from-betterment-to-pay-operating-costs situation came to light in the 2011 budget process, it was agreed not to continue the practice into 2011. But -- without the "subsidy" from betterment money, the town would either have to raise the already unpopular user fee or cut costs. Town Administrator Mark Andrews explained Tuesday that he "made a very difficult decision" and chose to cut costs by dismissing plant operator David Simmons and his administrative assistant.

Although pushed by citizen questions, Paulsen said he did not yet have the numbers to determine how big a problem the past practice was or whether the sewer user fee would have to increase. But both he and Selectman Jane Donahue vowed that the numbers would be scrutinized and currently unanswered questions would be answered.

Concerns were also raised about whether the sewer department had enough money in a reserve fund to address unforeseen expenses. Andrews said that the fund is currently under $100,000 and that the town is seeking to increase that number. However, he said that a "perfect storm" of increased cost of operations and prices of chemicals, in addition to equipment that requires immediate replacing, has required that the budget reduce that fund.