Saugus Town Manager sets out new financial guidelines

SAUGUS – Saugus Town Manager Scott Crabtree presented selectmen with a four-page outline of new financial management policies for the town Tuesday night.?The town hasn?t had any formal financial policies but I think it will promote a higher level of discussion with stabilization and non-recurring funds,” said Crabtree. “We?re not reinventing the wheel here.”Some of the goals include avoiding budget practices that “balance current expenditures at the expense of meeting future years? expenses,” maintaining a stabilization fund as the “main financial reserve in the event of an emergency,” preparing a five-year capital plan with the Town Manager and selectmen and conservatively estimating revenue.Crabtree also called for a monthly review of budget reports with department heads and maintaining free cash at 3 to 5 percent of the operating budget.?We?ve been on a shoestring and trying to make it here and make it there, but we need longer term plans and to stick to those guidelines,” said Crabtree. “Every community has been dealing with this diminishing ability to provide services. Little by little communities have been using free cash, but we?ve been using the whole thing. We need to wean off of that and have a conversation about how to do it.”Selectman Debra Panetta called the guidelines “well-needed” as the board voted unanimously to accept the new policies.?It?s a perfect time to be bringing this before us,” said Panetta. “In the almost 10 months since you?ve been Town Manager you have the experience to put this together and we all see this is a well-needed document.”Crabtree said he?ll send the guidelines to the Finance Committee next.Selectmen then adjourned into executive session to discuss “goals and objectives” and “personnel issues,” however, selectmen Vice Chairman Steve Castinetti asked why they were going into executive session.?What are we doing, a job performance review?” asked Castinetti. “Maybe we should go into executive session to discuss what we talked about last week and discuss whether or not what we talked about last week is appropriate for executive session.”To which Crabtree replied, “You wouldn?t do a review in public.”The board re-convened and Castinetti told selectmen he wants them to watch video from the Dec. 12 Saugus Community Television Station meeting to discuss at the next meeting.Matt Tempesta can be reached at [email protected].