Saugus Selectmen to hold public hearing on tax rates

SAUGUS-The Selectmen will hold a public hearing on setting the town’s tax rate Tuesday, but whether that rate will be set by the state remains to be seen.In a letter from Department of Revenue Director of Accounts Gerard Perry to Town Manager Andrew Bisignani, Perry said the town will have to resolve how it intends to fund the teachers contract before a tax rate can be set.The Finance Committee voted last week to refer the $330,000 transfer needed to fund the contract to an unspecified future special Town Meeting. Town Meeting, which meets tonight at 7:30 p.m. will make the ultimate call on whether the contracts are funded or not.”In the event that town meeting does not transfer these funds,” Perry wrote, “I will require Saugus to submit as part of their tax rate package an explanation on how the community will balance their budget. You have indicated to me that the School Superintendent is preparing a plan to reduce their budget accordingly.”That news came as a surprise to Superintendent Keith Manville.”The only thing I told Andy (Bisignani) is the same thing I told everybody else all along – there is not a dime in my budget to pay for this,” he said.Bisignani said he is unsure what will happen if Town Meeting does not approve the transfer to fund the contracts.”The board can still go through the hearing process, but (Perry) won’t sign off on the (rate),” he said.He also said if Town Meeting doesn’t fund the contracts, it is unlikely the tax rate would be set until the end of January, which will cause a major cash flow problem. The cash flow problem will result from the fact that tax bills won’t be due until May 1.”Who will pay their tax bills by the end of January if they’re not due until May,” Bisignani asked.To offset the cash flow issue, Bisignani said the town would have to borrow by way of revenue anticipation notes and that could cost the town thousands in interest rates.”I don’t know what’s going to happen,” he said. “It’s anybody’s guess.”