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Hamilton, Wenham are focus of consolidation study

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November 19, 2008


Hamilton and Wenham, which already share a school system, a library and other municipal functions, are the subject of a Division of Local Services study that will analyze the potential for consolidating the two towns.

The study, scheduled to be completed by April, could serve as a template for communities elsewhere in the state, particularly lightly populated towns in Western Massachusetts, a Department of Revenue spokesman told the Boston Globe.

Town administrators in Hamilton and Wenham, which share a significant border but have been separate municipalities for more than 200 years, describe a merger as still only a theoretical possibility, subject to substantial legal and political obstacles. But they said they welcome DLS’s willingness to study the potential costs and benefits.

Hamilton and Wenham formed a regional school district several decades ago, and in 2001 they became the only towns in the state to create a regional library. The towns also share a recreation department, collaborate on a shuttle service for seniors, and work together on the annual Fourth of July celebration.

Hamilton Town Administrator Candace Wheeler said the DLS study could provide “real documentation of whether in fact there would be a substantial economic benefit to the residents of the two communities” if they were consolidated.

It is possible, she said, that a merger would put the combined community in better financial standing, with less reliance on overrides to cover critical spending needs.

But, she added, “There’s no doubt that the cost of the transition itself would be significant. … It’s not one of those things that you say, ‘It’s a no-brainer, let’s do it.’”

One argument in favor of consolidation, Wheeler said, is that it would eliminate disputes about how much each community should contribute to the regional school district and the regional library.

The two towns, which have a combined population of close to 13,000, in recent years also explored consolidating their police and fire services. But the idea was rejected partly out of concerns about creating another entity that would have independent budgeting authority.

While some municipal costs would presumably decrease following a merger, Wheeler said, others could rise.

As an example, she cited ambulance service, which Hamilton currently provides through its police department, an arrangement she said generates net revenue for the town. Wenham, the smaller of the two communities, contracts with a commercial ambulance service for what Wheeler described as a “very modest price of around $50,000 a year.”

If Hamilton and Wenham merged, the cost of ambulance service would probably exceed the current cost to the police department and the cost of contracting out the service.

Wenham’s town administrator, Jeff Chelgren, suggested that the DLS report is unlikely to lead to more than incremental steps. But he noted that as fiscal conditions have worsened over the past year, arguments on behalf of consolidating services have gained legitimacy.

“This [economic climate] is forcing every community to look at options that have previously been taboo,” he said.