DOR letter praises Saugus efforts to balance budget

SAUGUS – The town of Saugus finally received some good news from the Department of Revenue.According to a recent letter from Gerard Perry, Director of Accounts for the DOR, Saugus finally has a balanced budget for 2013.?We have reviewed the pro forma submission, and met with you and your staff to resolve various questions we had,” said Perry in the letter to Town Manager Scott Crabtree. “Based upon all information provided, it is my opinion that the town of Saugus currently has a balanced budget for FY?13.”The pro forma submission is a form that takes all the information necessary to develop a tax levy, according to the DOR website. The form is submitted to the Bureau of Accounts by a city or town when property values are not available. Approval of the pro forma recap is required before a municipality can issue preliminary tax bills.Crabtree said balancing the budget was a difficult task in such a short time since he took over as manager and in light of the forensic audit.?The goal was to build confidence with the DOR,” said Crabtree. “Moving forward, it means we?ll have a tax rate set. Right now we?re living within our means.”Despite this, Perry said his opinion could change if the town makes any appropriations that would increase spending, if revenue decreases unexpectedly or if revenue or appropriations deficits for FY?12 are not disclosed.Perry also thanked the town for the “strong working relationship” that has developed with the DOR.?It has been a challenging period for your community,” said Perry. “Your staff and other town officials have provided all information requested from DOR in an open transparent manner. This will ultimately serve the best interests of the Town of Saugus.”Perry said the town still has to submit more information before the FY?13 tax rate can be set. This includes: the FY?12 annual audit, the balance sheet and approved free cash, the Town Clerk?s certification that the Board of Selectmen voted to approve all indirect costs associated with the water and sewer accounts and a budget to actual report for 2012.While the news may be good so far, Crabtree acknowledged the current budget may not be sustainable with the amount of services the town pays for.?We?ll have to look and make reductions and efficiencies so we get more bang for your bucks,” said Crabtree. “The community will have to discuss whether they want to live with the services they have. I?m confident we?ll be able to have an honest conversation with the facts.”Matt Tempesta can be reached at [email protected].