Saugus tax rate to be set

SAUGUS – After months of uncertainty and one big loan, the town is finally getting around to setting its tax rate.Town Manager Andrew Bisignani said the Selectmen would take up the issue during its next meeting, Tuesday, March 11.”There’s been no rush but that’s the target date,” he said.Bisignani said there has been no rush to set the actual rate since the town was given approval to send out estimated bills last month.The town was precluded from setting its rate at year end when cities and towns typically set the tax rate because the budget was unbalanced.When Town Meeting members ironed out the last of the financial woes, effectively balancing the budget in January, the town was approved to send out the estimated bills.Bisignani said at the time he was in no rush to set the actual rate because estimated bills would be due in 30 days while actual bills wouldn’t be due until May.Because the town had already lost a revenue stream it needed with the delay in sending out third quarter tax bills, Bisignani was forced to take a short-term loan.Some thought the town might be able to sidestep the loan when the estimated bills were approved, but Bisignani said that didn’t happen. Instead he borrowed $7.8 million, which will cost the town roughly $98,000 in interest.Aside from the interest on the loan, the only real hardship in not setting a tax rate is residents cannot file for abatements on estimated tax bills.Frederick Wagner, chairman of the Board of Assessors, said residents will have to wait until the actual rate is set and fourth quarter tax bills go out to seek relief.”It should be settled by the end of the month,” Bisignani said. “The Board should take it up next week.”