$170,000 shortfall postpones approval of Water Department’s budget
By Cyndi Murray | Apr 11, 2011 Share
The Water Department budget was tabled after former Prudential Committee member Margaret Ishihara pointed out a $170,000 budget shortfall during the Wareham Fire District Annual and Special Meetings Monday.

Despite assurances from the current Prudential Committee that steps were being taken to get more money into the fund before it would be needed, voters unanimously agreed to postpone a vote on the Water Department budget until a special district meeting can be presented with a balanced budget.
The fund in question, the "betterment reserve fund," is used to repay the money borrowed for water line extension projects. It is funded by the "betterment" fees paid by property owners served by the water line extensions.
It is not clear why there is not enough money in the fund. Betterment fees are set to assure that they will cover all borrowing. The shortfall could be due to property owners not paying betterment fees on time, some betterment fees being used to cover operating expenses, or some combination of the two.
The fund is managed by Fire District Clerk and Treasurer Marybeth Fernandes. Mounting tension between Fernandes and the Water Department was evident last night.

Water Department Superintendent for the Wareham Fire District Michael Martin said the Water Commissioners have raised concern about the financial stability of the betterment reserve fund since 2006. He stated there have been a dozen memorandums to the Clerk/ Treasurer regarding the issue, but all have gone unanswered.

On March 29, the Water Commissioners drafted a Memorandum of Understanding seeking a resolution to this matter. The agreement would require the District to audit the betterment reserve account, and make up for the coming year’s shortfall using water revenue funds.

Fernandes has not yet signed off on the agreement, according to Water Department Superintendent for the Wareham Fire District Michael Martin.

As such, the Water Commissioners will need to amend the budget to remove the debt. There will be a Special Meeting on the issue in coming weeks. No date has been set.

There was also a betterment reserve shortfall in the Fiscal Year 2010 budget, but that was made up by a $463,105 transfer from the water revenue surplus account at the Water Commissioners last District Meeting in June 2010.

Also during Monday's meeting, the Wareham Fire District's fiscal year 2012 budget passed unanimously.  And, funds were approved for a new fire engine and other equipment to aid firefighters.