Crabtree: Saugus bond status remains at risk

SAUGUS – Town Manager Scott Crabtree said a recent conference call with Moody?s rating agency was “positive,” but acknowledged that the town?s recent financial woes may have an effect on Saugus? bond rating.?The surveillance call is done periodically and part of that call included the financial issues that are pretty public and well-known,” said Crabtree in his update to the Saugus Finance Committee Wednesday night. “I think it was a positive call. They?re going to take the information back to committee to make a recommendation.”Crabtree said he told Moody?s the town has its “arms around the issues” and is looking to reduce expenses and operating costs moving forward.Despite this, Crabtree said he wasn?t confident about the potential outcome of the call.?Besides the fact that we?re being regulated on a weekly basis by the Department of Revenue, we told them everything is on the table in terms of layoffs and reductions, and exploring other revenue,” said Crabtree. “Unfortunately the budgeting practices of the past administration may have an adverse effect on that decision.”Treasurer/Collector Wendy Hatch said Moody?s was interested to know how much debt the town has and for what purpose.Crabtree updated the Finance Committee on the status of the two other forensic audits currently under way as well. He said the audit dealing with personnel and operations should be done by the end of this week while the audit looking into procurement issues should be finished by the end of the month.Crabtree also said he met recently with Saugus Schools Superintendent Richard Langlois and School Committee Chairman Wendy Reed to make sure there?s no “miscommunication” with the school budget.?I think we have to be realistic about all departments,” said Crabtree. “To find $3 million in cuts, and that?s a conservative estimate, is going to be quite challenging. We have been discussing with department heads and are looking where we?re going to make reductions town-wide.”Crabtree said he?s looking into implementing a new management system for the town?s vehicle fleet that will better monitor gas use along with future systems upgrades to town buildings to allow more detailed record keeping and accounting information.Crabtree estimated it would be about a year-and-a-half to upgrade systems in Town Hall and other administrative buildings.Matt Tempesta can be reached at [email protected].