Saugus selectman outraged over colleague’s claim

SAUGUS – Selectman Michael Kelleher is outraged over what he sees as a colleague’s misconception of a warrant article slated for the special Town Meeting.Article 4 seeks an $800,000 reduction in the Group Health Insurance line item, which is aimed at paying off the Kasabuski Arena deficit. Selectman Stephen Horlick, however, argued that the debt is merely on paper and, since the town won’t be mailing out $800,000 worth of bills if the article passes, then the money is still in play.”That is municipal malpractice,” Kelleher said Tuesday, angrily.Kasabuski Arena was run through the town with an enterprise account, which amassed a $950,000 deficit over several years. Town Manager Andrew Bisignani explained that the bills were paid, but he equated it from an overdrawn checking account. The town covered the overdraft like a bank would and it is now time for the bank to be paid back.In fact, Bisignani said he has a written notice from the Department of Revenue preventing the town from setting its tax rate if the deficit is not paid.”To say the money is available shows a complete lack of understanding of municipal finance,” Bisignani said. “He shouldn’t be involved in the process, the critical comments are unfair.”Kelleher said it is not only unfair, but he also believes Horlick has a vendetta against Bisignani.”Part of the problem is Steve’s political vendetta,” he said. “He doesn’t speak with Andy. He can’t continue to get away with these political games that come at the expense of the community.”Horlick called that statement ridiculous.”How do I have a vendetta when all I’m asking is where the money’s going?” he said. “It’s not my money, it’s not his money – it’s out of the medical trust.”Horlick said he also rejects the argument that there is no money. He argues that, “if there is not $800,000 worth of paper to move it out of town, it will just sit in a closed account.”He said the money should be put in the stabilization fund but Kelleher insists there is no excess money.”In the nine years I’ve been doing this I’ve never been more shocked,” he said, referring to Horlick’s claims.Kelleher said he was afraid that Horlick’s interpretation of the article would put its passage in jeopardy.”Everyone has known the plan for Kasabuski for a year but the plan hit a curveball when we couldn’t close the $1 million deal,” he said.The initial plan to sublease Kasabuski included a $725,000 payout for the town but it fell through. The second deal was signed last month and included a $150,000 up front payment along with $40,000 per year for the next 19 years.”The DOR and outside auditors are fully aware of the whole process and approve of it,” Bisignani said. “This is not just the best deal, but it’s the only deal and if we don’t pay off the deficit we won’t be allowed to set our tax rate.”The issue will hit the floor of Town Meeting during the special meeting on Oct. 27 at 7:30 p.m. in Town Hall auditorium.