Tension over tax rate in Saugus

SAUGUS – The tension of not yet setting a tax rate is beginning to wear on town officials.Town Hall is arguing that the lack of a balanced budget is the only thing standing between the town and a tax rate. Its detractors are convinced that the Department of Revenue has in essence rejected the valuations set by the Town Assessor, which is why the town can’t set the tax rate.DOR’s Communications Director Robert Bliss said truth be told the problem is a little of both. However, he admitted it is the lack of a balanced budget that is driving the issue.Bliss said the town cannot send out even estimated tax bills without balancing the budget.Bliss said if Saugus’ budget were balanced but there were questions about the valuations, or they were still working on valuations what is typically done is that estimated bills would be sent out.In this case, Saugus has neither a balanced budget or its valuations set.Valuations for fiscal year 2008 are based on home sales from 2006 for residential property and based on income and expenses for commercial. Assessor Ron Keohan said that information is analyzed to determine the fair market value of property, which is then sent into the state. From that information the tax rate can be set.Bliss pointed out that the town is also in a revaluation year, which is more complicated and requires work and more back and forth between the state and the town.Town Moderator Robert Long has argued that because the valuations have not been accepted they have in essence been rejected and that has delayed the town in setting a tax rate.”That’s preposterous,” said Town Manager Andrew Bisignani. “Whether the valuations have been approved is a moot point because the first thing the state wants to see is a balanced budget. If the budget’s not balanced we can’t move to the next step.”Selectmen were forced to postpone setting the tax rate last month after Town Meeting, acting on a recommendation from the Finance Committee, declined to fund the teachers’ contract through potential health care savings. That vote put the budget out of whack by about $30,000 according to the DOR.Because there is no money coming in through a tax rate, Bisignani was forced to borrow nearly $10 million to keep the town afloat. He believes now that Long is making his argument on rejected valuations solely to deflect any criticism of Town Meeting members or the Finance Committee in regards to the loan.Keohan said over the last week he’s been in aggressive talks with the state regarding valuations. He said the questions coming from the DOR are not of the ordinary and would have been asked earlier if the valuations had not been put off.Bisignani said the main reason the valuations have not been set is because the state set them aside due to the budget issue.”We essentially went to the bottom of the pile because we weren’t eligible to set a tax rate,” he said. “They haven’t been rejected, they just haven’t been approved.”Bliss said he could understand how that might be the perception but it wasn’t necessarily true. The valuations, he said, are dealt with as they are received.Bliss also said of the 350 communities in the commonwealth, 313 have set their tax rate. He said he could not confirm that Saugus had been set aside but did say, “Saugus is not alone. There is some context there. Not everyone has set their tax rate.”