Financial picture in Saugus better than most communuties

SAUGUS – Budget cuts, deficits and free cash have combined to make for a confusing state of affairs for town officials.
Town Manager Andrew Bisignani said a year ago the town had a $1.7 million deficit but this year it has $70,000 in free cash and possible more on the way.
“We will go back for recertification and it could be as high as $260,000,” Bisignani said.
Between the new water meters and the work being done to repair and reline old sewer pipes Bisignani said the town has realized a spectacular savings in both enterprise accounts.
“The sewer account has $1.76 million in free cash and the water has $995,000,” he said. “The only deficit we have is Kasabuski and that will be zeroed out.”
Bisignani, however, doesn’t expect that the ice arena deficit will be paid off quietly. During last week’s Finance Committee meeting, questions were raised about where the $800,000 to pay for the deficit was coming from.
While Bisignani explained funds would come from the medical trust others questioned if that money didn’t belong to employees.
Firefighter and Town Meeting member Jeff Moses said it was his understanding the money in the trust came from employee contributions and was to be used to keep down health costs.
“Sounds like now you’re using it to pay off the deficit,” he said. “The medical trust was over $1 million and our rates went up.”
Bisignani said the money in the trust was not employee contributions.
“There have been claims made by a lot of the unions,” he said. “It came from the tax levy not employee contributions.”
Bisignani said the employee contribution portion of the account was drained last year when the town was still self-insured and claims skyrocketed.
Furthermore, Bisignani said he had a letter from the Department of Revenue stating he could use the money as he sees fit.
Lt. Thomas Coogan, head of the Superior Officers Union said he simply wanted to clarify that the money being used wasn’t employee contribution funds and if that were the case, then on behalf of his union, he was fine with the plan.
Another plan Bisignani will try to sell to Town Meeting members is funding the Senior Center. A warrant article for the special Town Meeting seeks $30,000 to fund the center through the end of the year but that number was determined prior to Gov. Deval Patrick’s budget cuts. The center now needs roughly $130,000 and is on target to run out of funds by January.
“I will present an option to Town Meeting,” Bisignani said. “Probably not on the 27th though because I don’t have a vehicle, the warrant has already been closed.”
Bisignani could call for a special Town Meeting within Town Meeting, which has been done in the past.
While the financial picture is looking better than most cities and towns Bisignani has issued a spending freeze. Although even he admits the call for a freeze is largely symbolic.
“What discretionary spending do we have?” he said. “It’s really peanuts.”