Finance Director Jennifer Mince has launched a forensic accounting investigation into the town’s wastewater fund to reconcile a deficit she believes was caused by years of miscoded capital expenses. Mince informed the Finance Committee on February 26 that her review has already uncovered activity that should never have been booked in that fund, suggesting that projects unrelated to wastewater—potentially including past fire station work—may have been erroneously attributed to the enterprise account by previous administrations. Mince noted that while unwinding these errors has been her nemesis, she cannot finalize the corrections until she secures specific backup documentation.

The forensic update came alongside a presentation from the Water and Wastewater Commission, which is preparing for the largest infrastructure effort in its history: a $17.5 million water main upgrade spanning 2.5 miles of Route 28. Superintendent Jason Trap reported that the project has faced two years of delays due to permitting hurdles with the state Department of Transportation. While current water rates recently increased from $45 to $55, Utility Controller Sandy Seager cautioned that a new rate study is planned for this fiscal year to ensure the department can cover mounting debt service and maintain healthy retained earnings. Commission Chair Norine Digum defended her department’s fiscal integrity during the forensic review, stating that her staff has been doing this for 20 years and should not be associated with the booking errors identified by the finance office.

The committee also scrutinized the proposed $86.7 million FY27 general government budget, which represents a 4.6% increase over the current year. Town Manager James McGrail explained that the administration utilized a modified zero-based budget approach to justify every dollar spent. Jen challenged everything, McGrail said, noting that the town opted to leave several long-vacant positions unfunded—including the Town Engineer role—until staffing needs are re-evaluated. Despite the lean approach, the budget faces a significant external pressure: a 4.7% placeholder for the Monomoy school assessment, which remains a point of contention as the district has requested a much higher 7.67% hike.

Committee members expressed particular concern regarding the relocation of human services and preschool funding out of the operating budget and into separate warrant articles. Member Dana DeCosta noted that the Jim Nunan human services line has previously gone to a permanent override twice, suggesting it might be safer within the regular budget. Vice Chair Scott Norum queried whether shifting a $250,000 childcare subsidy to an article meant it would be funded through one-time sources like free cash rather than recurring revenue. Member Daniel Tworek pushed for more detail on the zero-based methodology, while Member Peter Hughes queried the department regarding any potential liabilities linked to a recent $250,000 PFAS settlement.

As the meeting progressed under the threat of an early building closure due to winter weather, Chair Robert MacCready moved to defer the review of specific warrant articles to a future session. Members Mark Ameres and Mark Peterson joined the committee in reviewing the preliminary revenue estimates, which conservatively project $550,000 in new growth. Chair MacCready noted the committee’s tight timeline, acknowledging the meeting had to conclude by 7:00 PM. I'll put articles on the agenda for next week and any invitations for petition articles, MacCready said, as the committee prepared to dive deeper into the narrow $92,000 property tax margin currently shielding the town from a deficit.