I am Hamatron5000.

Don't keep throwing TA's overboard and if you underfund the sewer system, you'll cause big time budget problems.

That's been two major arguments of critics of the previous board of selectmen all along and low and behold, we're finally vindicated in a DOR report.

It's a good day for Wareham...and a bad day for the Hypocrite Elite.

Last edited by Hamatron5000 (2010-08-04 01:14:29)

Ham of Peace here.

On the sewer, it sounds like they were "robbing Peter to pay Paul" as the old line goes - keeping sewer rates artificially low so as to buy votes and funding the sewer system with betterment money, rather than charge an appropriate rate and save the betterment money for what it was charged for - bettering the sewer - apparently content to let someone else down the road figure out how to fix such a mess tommorrow as long as they could buy enough sewer user votes to stay in office today.

This report should be re-titled, "Everything the BS Buddies Ever Said Wareham Should Do Was Stupid and Ignorant and Everything Their Critics Said Was 100 Percent Right."

Good morning all. I want to comment on this section for a couple of reasons. The practice of using betterment pre-paids (paid in full up front) to subsidize the sewer treatment facility is a very poor fiscal approach. I can understand if there is a shortfall during a given year due to extenuating circumstances, but as a normal practice, it is problematic.

As an example, if we took $1million of the the $1,3 million used and invested it in a safe income generating vehicle (CD, bonds, etc..) we could potentially realize 5% annually. Over a term of 15 years, you could double your investment. ($1million @ 5%, 15 year term =$1.1million interest earned) This could result in paying off some of the long term debt early and reducing the betterment fee to citizens or utilizing the gain to assist in lowering other betterments.

The short term effect of this poor practice is keeping the usage fees level. The long term effect will be an increase that will be unacceptable to the sewer users. The good news for the sewer commissioners that are making these decisions is that they will long gone when their poor financial decisions come back to roost. The bad news is they are selling the financial future of Wareham to pay for the NOW.

From The hate blogger from halifax

hate blogger from halifax wrote:

The most amusing Take Back Wareham spin regards the DOR’s analysis of the Pollution Control Facility budget. The DOR reached the same conclusion Andrews reached months ago: the facility operates with a structural deficit. According to the DOR, "over the preceding three fiscal year the facility has relied on over $1,263,880 in retained earnings to support ongoing operations as reported to DOR, the bulk of which has been generated from betterment assessments paid in full rather than over the apportioned period. This use of retained earnings is lawful, but not prudent."
     That’s 100 percent accurate. But the DOR doesn’t state why this occurred. The Take Back Wareham crew knows, and they are ignoring the truth in order to justify re-implementing the sewer administration fee (which has always been their intention). When the previous board began eliminating the bogus sewer administration fee (which amounted to double-dipping sewer users to balance the town budget), the former Pollution Control Facility director was told to make the necessary cuts in his budget to account for the decrease in this revenue stream. Not only didn’t he do that, he came in over-budget. That’s may be why he’s now the former Pollution Control Facility director.

How can you not laugh at this foolish attempt to lay the blame on the outgoing director? Why did this occur? It is simple. For three years, the leadership (read Sewer Commissioners) has neglected their duty.

DOR report wrote:

The selectmen should then set user fees at an appropriate level to recover those costs and to generate a reasonable surplus, which would remain available for use only for enterprise purposes. However, it is clear from historical data that the enterprise fund operates with a structural deficit.

That seems pretty simple to me. Who sets the rate? The Selectmen set the rate, not the Director. If you want to quote the DOR report, please quote ALL the pertinent facts. Let’s see if I understand this correctly.

Halifax Harlot wrote:

The former Pollution Control Facility director was told to make the necessary cuts in his budget to account for the decrease in this revenue stream.

.  If you take the figure of 1,263,880 and divide it by 3 years (per the DOR report), the amount that was over budget (per year) is $421,293. Considering the rules and restrictions that govern the Facility, how in the world could a Director pull that sum out of his budget? The majority of expense comes from wages, insurance, and electricity. The plant operates 24 hours a day, 365days a year. The fixed portion of the expense is huge. With the reduction of the Director’s salary, you still cannot come to the $421k deficit. Does it make sense to you?
It is simple math, but logic should prevail. RAISE THE RATE! It is clear you can only squeeze so much out of a dried up orange. Maybe someone needs to ask the Sewer Commissioners what their plan is to eliminate poor fiscal practice and compensate for the deficit?

Watching the Move Wareham Forward(MWF) folks  try to spin their way out out the DOR report is going to be more fun than watching Cape Cod League baseball !  The only honest way out for MFW now would be to face up both to the mess their idols have created and to their intention to "stay the course".

What they must do ASAP is come up with a new name for themselves... one that neatly encapsulates their true mission. Actually, I've thought of one that "nails it"  and which would allow them to keep the same MFW acronym : Making Wareham Fail.    Brilliant!!

It would be a strategy that would appeal to those who are addicted to making unwise choices, and it has the potential of attracting at least several more people to the polls in 2011. This new name has great awareness raising potential all by itself, but by borrowing slogans such as , "Yes We Can!", and "Together We Can!", they would benefit exponentially.  Furthermore, now that they have a staff economist they will be able to back up their chants with scholarly proof of their promise : If given just three more years of governance by the MFW-backed candidates they can put Wareham into receivership.

It is time to demand that the town has ELECTED sewer commissioners. We need engineers, hydrogeologists, financial experts etc. No offense, but I voted for selectmen but I got an unwanted twofer. The qualities I look for in a bos candidate are NOT the same as those I would look for in a sewer commissioner!!!

Also we need a metered sewer system. Most sewered towns do it that way for a good reason. Just don't mention this during citizen's participation or you will be called an idiot!!!!!!

Ham of Peace here to spread the peace.

I heard the original title for this report was "When Wareham Takes Financial Advice From Unemployed Losers, It Gets What It Gets."

Amazing to hear some people who actually were the commissioners of the sewer operations blame everyone but themselves.
Selectmen are supposed to watch the hen house, not join the fox, later blushing and saying, "It was HIS fault!"
They can spin all they want, but every time they write something, and quote incompetent idiots, the dumber they all look.
The amount of intellect, reduced to liquid, in that whole group wouldn't fill a thimble.
I feel sorry for them because they haven't received closure from their embarrassing losses during the last election and Town Meetings.
Listen folks...you can't heal until you ACCEPT...accept the fact that you got your ass kicked, then go through the grieving process, then come back out with a clear head and try to figure out what happened.
Dumbasses!

I love Nora Bicki.

MWF = Making Wareham Fail...I love it..and a far more accurate description of that (dis)organization.

danoconnell wrote:

I LOVE that picture!

TBW
P-SPAN

Ok, Ok

the Tshirt looks good...

Dan looks great....

But, doncha think that it takes Stewie pants to complete the picture?

Just one person's opinion.....

Nice shirt, Dan-O!

I see Brockton Brenda has a letter to the Lackey Gazette.  Boy oh Boy, this report has been out and available all summer long, none of them have anything to say about it, we start commenting on it and suddenly they're going into spin cycle like there's no tommorrow. 

They can spin it all they like.  They can play their usual trick of trying to cast blame on everyone before them.  The people of Wareham can read and when they read the report, they'll see the report puts the blame squarely on the mistakes made by the Hypocrite Elite over the past three years.  Tin hats may be fooled by spin, the rest of Wareham won't be.

Funny how if none of us had blogged about it, they were apparently never going to say a word about it.

Last edited by Hamatron5000 (2010-08-04 21:51:38)

I agree P-Span...where can I get a pair?

Brockton Brenda wrote:

We can try to point fingers at different people over the last decade...

Actually, we can't.  Not when the DOR report doesn't point a finger at people from "the last decade."  It does, however, point a great big GIANT finger at the incompetent brainless babbling idiots that have been running the joint for the PAST THREE YEARS, and anyone with a second grade reading comprehension who reads the report can see that.

Ham of Peace here with some Hamnalysis of the DOR report that the Hypocrite Elite does not want you to see.  It's chock full of information, and criticism of the Hypocrite Elite, so it'll take some wading through, but I think it is important to go through the whole thing, so I'll try to do it in parts.

The first thing you'll notice is this report is dated "June, 2010."  Here it is August, no one ever knew it was out until people starting talking about it on this site.

SWEEPING IT UNDER THE RUG - THE REPORT THE HYPOCRITE ELITE DIDN'T WANT YOU TO SEE

The Hypocrite Elite never said word one about it until we started talking about it.  The previous board of selectmen asked for it.  Why didn't Janey and Brenda bring it up during a selectmen's meeting?  Why didn't Bagel Boy write about it?

No one wrote a word about it until we started talking about it.  Then it was spin city.  When they're going on the defensive, you know the report is bad for them.  Anyone who reads it is unlikely to vote for Hypocrite Elite candidates next April.

No Town Accountant for Six Months

DOR wrote:

Contributing to the lack of consistent financial management leadership was the six-month vacancy in the town accountant’s position. From January 2009 to July 2009, only basic accounting activities were completed. During this period, the town employed the services of Financial Advisory Associates (FAA) to perform essential day-to-day activities, but no real policy or analytical support was available.

For the past few years, these clowns have been throwing out department heads left and right for not kissing enough butt and then taking way too long to replace them.  Six months without a town accountant damaged this town's financial situation badly. 

If six months without a town accountant hurt the town's finances, how did two years without a permanent library director hurt the library?

Anyone with eyes can take a look at the business scene and the dying strip mall in East Wareham and see how this town was hurt by being without a town planner for three years...

I will admit that I have read the sensational tabloid coverage of the DOR report. What I find very odd is that while certain elected officials are piling the blame on former employees, they forgot the most important element...LEADERSHIP. So, even if someone decided to go over budget or had math errors, it falls directly on the LEADERSHIP to correct these problems in a timely manner. 3 years of deficits is too many. That would mean that they ignored the problem for 3 years, which is unacceptable, or they knew about the problem and did not act on it, which is unacceptable.

One of the key points of being a leader is accepting that you are in charge and the blame, responsibility, and corrective action falls directly on YOU. LEADERSHIP does shuck the blame, they accept it, make corrective actions and make the statement that they are responsible and accept the blame.

LEADERSHIP......LEADERSHIP.....LEADERSHIP.....

LARRY YOUR RITE THE KEY IS LEADERSHIP , I GUESS THERE  NO  PRES TRUMANS IN BRENDA OR JANE  THE BUCK STOP HERE.

I agree Nora:

From the DOR Report:

"Despite efforts to cope with this period of depressed economic activity, the town’s financial condition has only worsened.  Wareham’s FY2011 budget ($58,958,893) passed by town meeting this spring is less than a one percent increase over FY2010 spending level ($58,547,153). This budget, however, may not be in balance because local officials relied on the local aid estimates contained in the Governor’s Budget (House 2) even though the House Ways & Means budget, which included a local aid reduction, had been released.  As a result, the necessity to call a special town meeting in the fall, after the fiscal year has begun, will likely arise, which is a practice that should be discouraged.  As it stands today, Wareham’s budget may be more than $500,000 out of balance, based on local aid estimates of the FY2011 House final budget."

Good points Nota....and the reserve fund...why is there no money? What is the Town's bond rating?

“Wareham’s budget maybe more than $500,000 out of balance based on the local aid budget for estimates of the FY2011 House final budget”

So the DOR is saying we are probably going to be out of balance. Is anyone doing anything to resolve this deficit? Didn’t the TA say we were in the black by about $400,000? That should help with the deficit if indeed we do have a surplus. Does anyone remember how shocked and freaked out Biz was when they wanted to increase the reserve money from $100,000 to $200,000? The look on her face was utter shock. If we do indeed have a surplus of $400,000 why not double the money for the reserve. Why was she so freaked out at the suggestion to double the reserve money? She practically killed herself running up on stage to talk to the TA carrying all her paperwork with her.

Bob Brady you were up at Town Meeting going over every single number they were throwing out lol. Do you think we have a surplus of $400,000? Did you take the TA up on his offer to go over the numbers with you? Numbers are numbers you either have a surplus or a deficit. It was Wall Street that first messing with the numbers so more people would invest in their companies. I hope Wareham hasn’t fallen into the same creative bookkeeping Wall Street is known to use.

This one statement from the DOR should get everyone one’s attention how are we going to make that money up. How many more people are going to loose their jobs?

I know some of you are financial advisors (real ones, not the fake kind like the former Chairman).
The bond rating shown in based on 2009 figures. What is the bond rating TODAY after the DOR report?
Issuers of bonds have close ears to the ground. I have no doubt they have heard of Wareham.
Would one of you find out please?
Thank you.

Save Wareham

I don't think there are many more jobs left to loose, Marny.  Funny how Wareham had alot of jobs before these clowns, then they were all cut, but your tax bill wasn't.  Where'd all the money go?  Show us the money!!!

DanO & Marny,

No need to wait until tuesday evening for an answer to the question regarding bond ratings. Four people in the town Hall should know that as well as they know their own phone number.

1. the T/A   -   and possibly others in his office.

2. Sanguinet 

3. Biz

4. the treasurer/collector & and some individuals on his staff.

So. three steps:

1. Call them all on Monday AM

2. If no replies, repeat on Tuesday AM

3. If STILL no replies, bring it up at citizen's participation on Tuesday evening.

Here's what I know....and don't know. the bond rating agency has a conference call with key financial types at least once per year. Based on the data they gather in that call & other sources, they issue a rating for the Town. Don't know if this strictly annual, or whether new information (such as the DOR report) will trigger a change in the rating. Will try to find an answer.

If you read the Wall Street Journal, then you know that these agencies are under a lot of scutiny and their business is in flux. What does that mean to local communities? Don't know, and it is doubtful that anyone has firm answers, yet.

One more thing. Remember that interest rates are at all-time lows. See today's Wall Street Journal for multiple articles addressing this point. currently, changes in the bond rating will have little impact on the Town's interest expense. Over time, this could change. One hopes that the Town's financial picture does as well, for the better.

Ham…  Bob Brady tried to make that exact point at the spring Town Meeting. It was all very confusing but the TA kept telling him that even though the job wasn’t filled town accountant, library director, etc the money was still set aside in the budget. ( I think that’s what he was trying to say) Bob kept saying well the money may have been set aside but since there wasn’t any to collect the money where did the money go? Correct me if I’m wrong Bob but wasn’t that one of the points you were trying to make. Anyway after much back and forth the TA’s answers were as clear as mud.

Ham, one person they could get rid of is John Sanquinet. I think he makes something like $80,000 a year.

Take a look at the difference in bond ratings and the reports from the DOR on the Town of Hingham.
Which would you invest in?
Wareham is on the verge of bankruptcy, has virtually no reserve fund for emergencies, has no qualified Town Accountant, has a Town Administrator that has never held the position, has a Library system in complete disarray because of the BOS, and the list goes on.
So...who wants to invest there?
Time to clean house and get the financial affairs in order for Wareham. Time is running out.
Two new Selectmen this coming election, intellects with business knowledge, should help in the process.
All is not lost...it is stalled. Success will come over time, but you must be VERY vigilant and watch each and every expenditure as though it were your own family's budget.

The wonderful events and clean up activities over the last few weeks have been due to VOLUNTEERS like Tiny Lopes, no elected officials had the foresight to do these things. It takes a community working together, without relying on government, to successfully keep a town going in the right direction. Depend on each other, not government, and see what happens. It is all positive.

Save Wareham

Dan Bobo  has no idea what it means to have a B rating he is clueless.

Dan I also noticed Hingham’s rating which is Aaa. By the way there rating is posted on their web site along with lots of information about each department. Hingham has almost the same population as Wareham we have about 21,000 they have 22,000. Their average income is 83,000 ours is $45,000. Regardless of the income they have been going through the same bad economic times we have been going through. The difference is that they have plan that they stick to and they have priorities, fiscal responsibility being high on their list. Look at how many people they are willing to employ to keep their finances in order and look at the results.



“The Town Accountant's office consists of the Town Accountant/Finance Director, Ted C. Alexiades, one full time Staff Accountant, one full time Payroll Administrator, one full time Accounts Payable Specialist, one full time Manager of Information Systems and one part time Systems Analyst.”


Town of Hingham Recognized
for Excellence in Financial Reporting

For the thirteenth consecutive year (1996-2008), the Government Finance Officer's Association of the U.S. and Canada (GFOA) has awarded The Certificate of Achievement for Excellence in Financial Reporting to the Town of Hingham for its Comprehensive Annual Financial Report (CAFR.)
The certificate has been presented to Ted C. Pleiades, Town

Accountant/Finance Director. In its announcement, the GFOA states that "the Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management".

“Long-term Financial Planning
The Town’s Finance Director works closely with the Board of Selectmen, the Advisory Committee and Department Directors to develop short-term and long-term financial goals and to address the financial stability of the Town.

Major Initiatives
Since the mid 1990’s the Town has consistently made capital expenditures a high priority, and to that end the Capital Outlay Committee recommended a total of $475,000 for capital improvements for Fiscal 2010. Due to current economic conditions and budget restraints this amount of capital spending was reduced from normal levels of $2-$3 million annually. The Town expects to be able to appropriate capital spending in the $2.0 million range for fiscal year 2011.”

Wouldn’t it be nice if Wareham could get one award for being fiscally responsible, wouldn’t it be nice if we could spend 2 million for capital planning.

marney & DanO,

You guys are raising good, real issues here. Let me comment on some...


Marny on the BobBrady v. T/A @ Town Meeting. I was appalled at the dance of the sugar plum fairies pulled off by the T/A in 'response', or non-response to Mr. Brady. The T/A has a tendency to put on the dancing shoes and shuck 'n' jive around answers. Your question needs to be addressed in the context of fiscal years. For FY10, which ended June 30, 2010, these vacancies would likely create a surplus within those accounts. This surplus can be used in different ways, such as paying for consultants to aide the Accountant in her job. Or, it can be turned back to the General fund and used to cure deficits in other accounts; such as Snow & Ice, which is chronically underfunded and usually runs a deficit (true in many communities). These are known as "Transfers from Available Funds",  and they are shown on a form known as B-2, which is attached to and becomes a part of the Recap sheet, which is used to calculate the tax rate.

but Mr. Brady's question was asked during debate on the FY2011 budget. At TM time, one must assume that these positions (plural  -  can you believe it?) will be filled at some point during FY11. Therefore, you must fund the position from July 1 thru June 30. Otherwise, you would be looking for money during the fiscal year, which would not work very well. That happened in Stoughton this spring, when the BoS hired a Town Manager for 30-35,000 more than the position was budgeted for FY10 or FY11. this caused much nastiness, which is not yet resolved.


DanO on the bond thing. Please note that due to poor wording by the BoBo (what a surprise!), he gave the impression that Wareham is 8th on some list. In the County, the State, the Country, What? What he was trying to say, in his mangled syntax. It appears that the Town's bond rating is in the no. 8 position out of 17 bond ratings that he cited; that is, the rating, not the Town. The Town's rating is in the middle of the range. This means it will pay a higher interest rate on any bonding, say compared to Hingham; but it will pay a lower interest rate compared to Springfield.

but still, there will be buyers for any bond issues from Wareham. Remember, there are very few defaults on municipal bonds. The last one in Massachusetts that I remember was Fall River during the depression. There may be some since, but I am not aware. Even nationally: there were a couple in California, a county in Alabama is close, and the city of Harrisburg, PA is on the verge due to a SEWER project.

I have a great suggestion for the Finance Committee...someone who has served on it in the past, and has been elected to office to know the importance of the Finance Committee's oversight...Bob Brady!
Sorry Bob.
But...I do mean it...

Wareham Week has written a synopsis of the MASS DOR Report that exposes the mind-boggling incompetence of the former dictatorship.  Hope everyone in town reads it then votes to throw the bums out next year like they did this year.