A sharp increase in the annual town operating budget and the question, both financial and philosophical, of whether to continue participation in the Massachusetts Estuaries Project are the key issues that will come before Chilmark voters at their annual town meeting Monday night.

The meeting begins at 7:30 p.m. in the Chilmark Community Center; longtime moderator Everett Poole will preside over the 22-article warrant. The annual town election is Wednesday.

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The final Massachusetts Estuaries Project report on the health of Lagoon Pond was unveiled this week in Oak Bluffs, and the blunt diagnosis was summed up in two words: “significantly impaired.”

Dr. Brian Howes, technical director for the project, a joint venture of the state Department of Environmental Protection and the University of Massachusetts at Dartmouth, said that almost all of the 89 estuaries in southeastern Massachusetts are impaired. Lagoon Pond is no exception.

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On Thursday morning all was right with the Lagoon Pond. The water was clear, blue-green crystal, by all appearances the very picture of estuarine health. Just a day before, the water was clouded by an unsightly yellowish-brown fog from the head to the mouth of the Lagoon. It was an explosion of prorocentrum, an algae, and the largest one that Martha’s Vineyard Shellfish Group director Rick Karney has ever seen.

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The town of Oak Bluffs is signalling its seriousness about combatting the threat of nitrogen in Vineyard ponds with a warrant article that begins the process of sewering subdivisions along Lagoon Pond. In the annual town meeting warrant selectmen are asking the town to transfer $150,000 from the town’s wastewater retained earnings account to fund the initial planning of the sewering project.

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