Saugus lays off 3 more full-time town employees

SAUGUS – Town Manager Scott Crabtree laid off three full-time town employees and two part-time employees at the end of last week to try to eliminate a budget deficit for this fiscal year that?s estimated at more than $1 million.Crabtree said three full-time employees, one each from the Youth and Recreation Department, the Cemetery Department and the Custodial Department, were let go.In addition, Crabtree said the traffic enforcement officer was reduced from a full-time to part-time position and two part-time clerks, one in the Police Department and one in human resources, were also let go.?We?re continuing to try to reduce and minimize the operating deficit here in FY12,” said Crabtree.Department of Public Works Director Joe Attubato announced his retirement last week and Crabtree said Town Accountant Joan Regan no longer worked for town. Crabtree also had to lay off six DPW workers two weeks ago.Selectman Stephen Horlick said Friday he?s “not happy” with the layoffs.?Scott as the Town Manager has to make the town fiscally solvent,” said Horlick. “I?m not happy when anyone gets laid off and has to worry about paying their bills.”Selectmen Vice Chairman Steve Castinetti said Saugus is in a “rotten position,” noting the town can?t spend more than it brings in.?It?s a tough thing to deal with,” said Castinetti. “It?s really sad to see people go. It?s terrible to have to do this to people especially in this economy when jobs are so difficult to obtain. I know it?s hard for people to believe that we feel that way, but we do. I wish there was another way around it.”Castinetti said town employees have been “walking on egg shells” during the last several weeks.?It?s unfortunate to see people going into work with this huge cloud of uncertainty every day,” said Castinetti.Selectman Debra Panetta put the blame on the “former administration,” noting town officials now have to make the cuts to resolve its deficits.?Sadly, our laid off employees are the victims of the illicit financial practices of the former administration,” said Panetta in an email. “I feel for the suffering that these victims and their families are now facing. I also feel for our town, which must take such actions to resolve our deficits and prove to the Department of Revenue that we are serious about putting our financial house in order.”A recent forensic audit of the town?s water and sewer accounts details $1.4 million in general fund-related payroll and expenses being charged to water and sewer, which the audit says is a violation of municipal finance laws. Some of these expenses include employees of the highway, forestry and cemetery department being paid out of the water and sewer accounts, hundreds of thousands of dollars in vendor expenses not properly bid and payroll stipends improperly paid to employees.Former Town Manager Andrew Bisignani said to blame him for the deficit is “unfair” and pointed to increases in fixed costs as the main reason for the current financial issues.?The selectmen were a part of the past administration,” said Bisignani. “To say the deficit that?s created now is from the reclassifcation of several employees is misleading. Increases in appropriations are from non discretionary spending like group health, pension, other contractual obligations. All of those increases are not sustainable.”Bisignani noted there has been a deficit at this time “every year for the last nine years,” but said the town was always able to bring it back into balance.Bisignani said there was a $2.8 million deficit last year that was paid down thanks to free cash and the one-time snow and ice assessment.?When you add the two together ? that brought us in balance,” said Bisignani. “So the budget was balanced by the time the tax rate was set. That budget was debated. There were no secrets in it. I met with (the selectmen) on many different occasions. It had always been said by the Finance Committee that we did not have the long-term revenues to maintain the level of se