The handbook adequately addresses both traditions you have noted.
bdwood3 wrote:False Tradition #1: Budget allowance is not an option to pay for summer camps.
False Tradition #2: Summer camps should be fully funded through fundraising, if not then ask participant families to pay the difference.
Both of these are addressed in Handbook 2,
13.2.8,
Funding For Activities. This reference addresses funding for all activities are to come from the ward budget. However, note in paragraph 3 it is recognized the ward budget may not be sufficient to cover the costs of one annual camp for Scouts, young women camp, and the day camp for primary children. In this case an exception to the ward budget being the only source for funding activities is permitted. When the ward budget is insufficient to fund these camps then the handbook states "leaders may ask participants to pay for part or all of them." As a last resort the handbook states "If funds from participants are not sufficient, the bishop may authorize one group fund-raising activity annually that complies with the guidelines in
13.6.8". So the order for funding summer camps is 1) ward budget, 2) participants pay, 3) fund-raising.
It appears the funding traditions for funding summer camps in your ward are in the reverse order of funding identified in Handbook 2, 13.2.8 & 13.6.8. The 2004 letter was superseded by the 2010 Handbook revision. The paper copies of the handbook may be out of date. Letters changing the handbook are quickly incorporated into the online handbook now. The official source for the handbooks are the online versions which are kept up to date as changes are made.