One of the great sages of Chatham is former Selectman and veteran of the Finance Committee Parker Wiseman. He has grown increasingly distressed with the overspending in Chatham over the years. More than 45% growth of the budget in just eight years! People who pay the bills who live in town are stretched enough, particularly in these tough times, to go on like that. They don't need higher property taxes and they don't need deficit spending paid for by raiding savings accounts.

Peter has penned a letter to the Chronicle that he's waiting to have published, which hasn't happened yet. It says some important things for voters to know before Town Meeting about why taxpayers should shout STOP to ovespending.

To the Editor of the Cape Cod Chronicle:

VOTE NO ON ARTICLE 6, THE OUT-OF-CONTROL CHATHAM OPERATING BUDGET

The printed Warrant for Chatham's May 11th Town Meeting contains, in Article 6 (and related Articles), what appears to be a balanced budget for the 2010 financial year but is not.

Over the strong objection of Chairman Sean Summers, who voted no, his four Selectmen colleagues voted yes to recommend this article to the taxpayers.

In contrast, a majority of the members of the Finance Committee voted NOT to recommend Article 6. That decision was strongly supported by the recently formed nonpartisan Concerned Chatham Taxpayers group founded and led by Fran Meaney of North Chatham and other residents.

The purpose of this report is to ensure Chatham taxpayers understand what is behind this serious disagreement between two of the most influential Town government groups.

Here, as briefly as possible, is what happened.

Bill Hinchey, Town Manager, announced that, to cover the proposed fiscal year 2010 budget of $32.757 million, a property tax increase of about $1.3 million, which would require an override vote (the first in ten years) of approximately $630,000, would be necessary to pay for the 4.3% budget increase..

As $730,000 of the deficit was mainly due to pay for sizeable increases for police, fire and school personnel, union contracts were involved. It was hoped that the well publicized, serious financial problems of the Federal government, Commonwealth of Massachusetts and many towns and cities would convince Chatham's unionized personnel to forego salary increases included in the 2010 fiscal year budget. That was not to be as the unions turned thumbs down. Only the non-unionized town employees offered to accept the call.

In the meantime nominal savings were offered by the School Committee although further cost reductions suggested by Superintendent Dr. Mary Ann Lonzo were ignored by the Committee. Concurrently, Bill Hinchey took advantage of the big reductions in estimated costs of heating oil, gasoline and diesel and other third-party charges. He then added together cash balances from accounts normally untouched except for the unexpected or one time purchases. These include Free Cash, the Stabilization Fund and the yearly substantial savings from the long planned reduction of town debt now called "debt drop off" which is supposed to reduce debt service costs, not be used to offset increases in operating expenses.

All of a sudden, the need for an override vote magically melted away. Members of the Finance Committee, Sean Summers, Chairman of the Board of Selectmen, Fran Meaney and members of the public objected to this sleight-of-hand. The budget had been "balanced" by using emergency and savings money, NOT by reducing the cost of town government. This is why the FY2010 operating budget, article 6 in the FY2010 Warrant, should be voted down at Town Meeting.

If the FY10 budget is not reduced now, next year's deficit will be much higher and result in tax increases and overrides in FY2011 and every year in the future until expense is covered by current income. Even the Town Manager predicts that if school spending is not brought under control, it alone will force yearly overrides.

The unavoidable, frightening truth is supported by the diminishing receipts of what was once well over $1,000,000 in school choice money paid by neighboring towns whose students are educated in Chatham schools.

Added to that negative is the likely reduction in "growth" money currently estimated to amount to $250,000 in FY2010. The Town has been increasing the tax base as new expensive homes or additions have been built. These funds have allowed Chatham’s tax base to be continually and legally increased to help pay for otherwise unsustainable Town spending. Included in this darkening picture are almost certain reductions in the Town’s share of hotel/motel room tax revenues, vehicle excise taxes and investment income.

CONTINING INCREASE IN OUR REAL ESTATE TAX IS NO LONGER AN OPTION. SPENDING MUST BE REDUCED TO INCOME AND NOT HIDDEN BY ROBBING OUR TOWN SAVINGS ACCOUNTS.

If anyone doubts how serious the present problem is they only have to think of the unbelievable situation which will soon occur when the astronomical costs of handling the wastewater situation begin to be factored into Town operating costs.

VOTE NO ON ARTICLE 6 THE OPERATING BUDGET *

Parker C. Wiseman

*Article 6 is the key budget item; however, articles 7, 8, 10, 11 and 12 also represent operational deficit spending paid out of savings.

Parker C. Wiseman is a former Chatham selectman and former member of the Finance Committee.

Posted by Chatham Concerned Taxpayer on Friday, May 1, 2009 at 9:17 AM | Comments (0)
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