The Saugus Town Budget

Selectmen share their views on Town Manager Scott C. Crabtree’s proposed budget for the 2024 Fiscal Year

  (Editor’s Note: This week The Saugus Advocate asked each member of the Board of Selectmen for their major takeaway after receiving the 2024 Fiscal Year budget from Town Manager Scott C. Crabtree. “Any surprises or major concerns?” they were asked. Here’s how each member assessed the town manager’s preliminary budget.)

Board of Selectmen Chair Anthony Cogliano

  I believe the Manager has done a good job on creating a balanced budget for 2024. The two top issues for me were first, nothing specific to address the concern of better communication which the full board made a point of addressing during the Town Manager’s evaluation. We discussed the importance of it, and look forward to the manager addressing this as soon as possible.

  Second, the increase in the cost of insurance has gone up 4.9% or $785,000 over last year, and with proposition 2.5% increase each year, it is not clear where the money will come from. The Manager, along with the Finance Director, have been exploring other avenues to reduce the cost to the Town which I was glad to hear, even explaining the ones that have already been implemented and seeing the savings. Keeping vigilant in reducing the cost is important, I want to be clear that my concern is in the cost to the provider, not confusing this with taking away benefits from our employees.

  Also, continually seeing the cost of so many items such as fuel, electricity, services, etc. alarmingly increasing, we need to do as much as we can to conserve usage, just as we do in our own homes.

Board of Selectmen Vice Chair Debra Panetta

  Response:

  I appreciate that our Town Manager and Treasurer/Collector always provide us with a balanced budget. The budget has consistently been fiscally responsible which has contributed to the Town’s fiscal health and strong stabilization fund which has earned Saugus a AA+ Bond rating. Having spent much of my career working with budgets and forecasting, I appreciate the hard-work and time that goes into its preparation. The line-item detail that is provided is extremely helpful where the Town Manager and Treasurer/Collector make sure we have all the needed information prior to our review.

  Now that the Selectmen have voted unanimously on the budget, it is now in the hands of the Finance Committee who will have televised public hearings over the next several months to vet each department’s budget. Once the Finance Committee completes their recommendations, it will be discussed and voted on at the Annual Town Meeting. Town Meeting members will have the opportunity to not only attend the Finance Committee meetings, but also meet with the Town Manager to review the budget before it is deliberated and then voted on Town Meeting floor. As you can see, there are many checks and balances throughout this lengthy and transparent process with our Town government.

  Overall:

  I was pleased to see that the line items for Repairs and Maintenance of sidewalks as well as the Repairs and Maintenance of Street Paving both having a significant increase from FY 2023. Many of the resident concerns center around sidewalk issues and potholes, so an increase in budget is warranted. We also see an increase in budget in Repairs and Maintenance for the playgrounds and fields, which is important. Our Library, Senior Center, and Youth and Recreation Center are all fully funded, and we were able to fund the Police and Fire Departments to meet their needs.

  It was mentioned at the meeting that we would like the Town Manager to hire a Webmaster/Communications person to help make sure that our website is always up-to-date, and that residents are able to get the most current information. We also talked about some of the open positions that need to be filled, and the difficulty the Town has had filling these positions.

  The goal is to remain a full-service community while keeping our taxes as low as possible. We are also fortunate not to have a trash fee in Saugus.

  Concern Moving Forward:

  We still need to plan for how we are going to pay for our portion of the new Northeast Metropolitan Regional Vocational School where the total cost was estimated at $317 Million. Saugus’s portion of these building costs cannot be absorbed within our budget. In addition, with the increase of enrollment of this school, from 1,200 to 1,600, Saugus’ percentage of students will undoubtedly increase, so our operational costs will also increase.

Selectman Jeffrey Cicolini

  Obviously, it is very early in the budget cycle to make any final decisions as there are so many items that are unknown, most notably the local aid funding from the state budget. That being said I feel the Manager continues to be fiscally responsible in his budgeting and doesn’t overestimate our various revenue streams. I was pleased to see several positions have been filled or are close to being filled but there are still several that are proving difficult to find the right candidate. The projected $500k increase to the school department’s direct cost budget makes up more than 25% of the total increase in our annual tax revenue. Keep in mind that in addition to the almost $31 million in direct school allocations there is another approximately $15 million in indirect costs in the form of pension and health and dental insurance costs for teachers and employees of the school department and retirees. In total, the school department accounts for almost 50% of our town’s budget, not including the water and sewer enterprise funds. This significant investment in our schools should go a long way to improve the quality of the education our children receive.

  Also, I was pleased to have my fellow selectmen and the town manager support my request for a social media content manager being added to the budget. This person will be responsible for making sure the residents receive ongoing communications about happenings within all areas of the town via the many different platforms of social media and on cable tv etc. This will also have someone responsible to make certain the town’s departments, commissions and boards maintain their individual websites so our residents have access to the most current information. We made it clear during the evaluation of the manager that communication was a key area we wanted to see improve. This position will be a catalyst in improving the communication to our residents.

  I remain cautiously optimistic that the town’s fiscal strength and stability will continue. The Manager and his team are fiscally conservative, and our systems and controls remain strong. These factors allow us to believe that our future is bright and while other communities are struggling, Saugus is well positioned to weather these trying economic times.

Selectman Corrine Riley

  I believe the Manager has done a good job on creating a balanced budget for 2024. The two top issues for me were first, nothing specific to address the concern of better communication which the full board made a point of addressing during the Town Manager’s evaluation. We discussed the importance of it, and look forward to the manager addressing this as soon as possible.

  Second, the increase in the cost of insurance has gone up 4.9% or $785,000 over last year, and with proposition 2.5% increase each year, it is not clear where the money will come from. The Manager, along with the Finance Director, have been exploring other avenues to reduce the cost to the Town which I was glad to hear, even explaining the ones that have already been implemented and seeing the savings. Keeping vigilant in reducing the cost is important, I want to be clear that my concern is in the cost to the provider, not confusing this with taking away benefits from our employees.

  Also, continually seeing the cost of so many items such as fuel, electricity, services, etc. alarmingly increasing, we need to do as much as we can to conserve usage, just as we do in our own homes.

Selectman Michael Serino

  The budget was basically straight forward, level funded with no surprises. Our non-exempt debt service remains low at around 2% of the total budget. Currently, health insurance and pension costs represent around 23% of the total budget. However, according to our pension schedule, our pension fund will be fully funded by 2029, thereby, freeing up significant revenue. My only concern is the future cost to the town in regards to the new construction of the N.E. Vocational school which would expand total student enrollment from 1,200 students to 1,600 students. Between Saugus’s shared cost of a new building, in addition to increased Saugus student enrollment, Saugus’s total yearly projected bill could run in the range of four (4) to five (5) million dollars a year.