To the Editor: 

The fiscal year 2012 budget is balanced. If gas prices don’t rise, equipment doesn’t break down, and there are no other unforeseen circumstances, Wareham may scrape by for another year. Those are some pretty big “if’s.”  

Those who are familiar with town finances recognize the challenges facing this town. Wareham operates on a "structural deficit." We aren’t necessarily spending too much – we have a revenue shortage. There are some line items which could be cut further. (Streetlights being one of our suggestions based on prior years expenditures - not based on turning off the lights!) But there are many more departments that may not be able to operate fully under the current budget appropriations. (Municipal Maintenance heads that category). 

The town has a list of capital needs that dates back 10 years and totals in excess of $95 million. There are heavy obligations, which may range as high as $80 to $100 million, to fund pensions and health care obligations for future retirees. 

These are many of the same issues that are being faced at the state and federal levels, but Wareham must find solutions on the local level. 

The administration is already investigating different ways to receive and provide services. The use of technology to reduce costs, reorganization, and regionalization must all be looked at as part of the solution. Although we hear catchy buzz words like “community development” and “smart growth,” those are long-term solutions. 

For the short term - two to three years - we need to establish recurring revenues. We need to start discussions on debt exclusion and the responsible use of an override. Yes, these measures will raise the tax rate, but they will allow us to maintain a functioning municipal government and provide some level of services to the residents of Wareham.

The first step is to formulate a financial management plan for the town. The Board of Selectmen recently approved guidelines for the Stabilization Fund which outlines the funding of a savings account for the town. This action will enhance the town’s bond rating and allow us to build up reserves for a rainy day. 

We urge the Board of Selectmen and School Department to develop and implement financial policies and procedures during the 2012 fiscal year. We urge the Board of Selectmen and the School Department to work with the Town Administrator and the Finance Committee to adopt a comprehensive five-year financial management plan as required by the Town Charter.  

We also recommend the formation of an Audit Committee which would work with our auditors on an annual basis to determine the scope and schedule of the annual audit and periodically during the year measure progress towards correcting accounting weaknesses and other issues addressed in the annual management letter issued by the auditor.  

Additionally, the Finance Committee would like to address and clarify some statements made at Town Meeting. The FY 2012 budget was balanced in part due to a roughly $1.5 million reduction in the amount held in reserve for employee health insurance. Town employees will receive a corresponding suspension in premium payments. This “health care premium holiday” is an emergency measure and is intended as a one-time fix. 

Many spoke out against the idea at Town Meeting, but no one offered an alternative, perhaps in recognition that the alternative would result in a significant number of personnel reductions, layoffs, and an unacceptable cut in services within both the town departments and the school system.  Therefore, we felt the health care premium holiday was the better of the poor choices open to the town.

We approached the FY 2012 budget with the stated goal of working for consensus among the Board of Selectmen, the Town Administrator, the School Department and the Finance Committee. Lack of timely information, incomplete data, reports with errors, and the inability to access key persons greatly hindered our ability to do our job.  We will not allow this to happen next year. The work on the FY13 budget begins now.  We invite all concerned citizens to contribute to the process.

Very truly yours,

Wareham Finance Committee 

Donna Bronk, Chair

Marilyn Connors Donahue, Vice Chair

William R.C. White, Clerk

Richard Paulsen

David P. Trudell

Bonnie Jean Cottuli

Dominic A. Cammarano, Jr.

Franklin Heath

Samuel Gray