Saugus board weighs in on possible uses for $2M in free cash

SAUGUS – Saugus was certified for more than $2 million in free cash from 2013, the highest ever for the town.The Department of Revenue certified the town for $2,063,605 in free cash, or unanticipated revenues, account balances and other miscellaneous receipts obtained throughout the previous year.According to a release from the office of Town Manager Scott Crabtree, half of the amount was from “higher than projected revenues in the form of permits, excise taxes and other non-recurring economy driven sources. Our residents appear to be purchasing more new cars, our restaurant sales have increased and more hotel/motel rooms have been occupied than was anticipated,” wrote Crabtree.Crabtree also credited the amount with spending reversions from various town accounts, which he said reflected conservative town spending in municipal departments, and a decrease in hiring outside contractors.Selectmen weighed in before their meeting Tuesday on what should become of the funds.Selectman Paul Allen said it would be wise to choose capital expenditures over recurring operational expenses. He gave the example of putting money aside for snow and ice removal rather than fund salaries.Even better, Allen said, was to put it away in a “rainy day fund” to improve the town?s bond rating, which reflected Crabtree?s goal, which, according to the release, “cannot happen unless sustained levels of yearly free cash become the rule, rather than the exception, for Saugus.”Selectman Maureen Dever said ideally, the funds could be used to bring the Department of Public Works back to its regular level of staffing, but she agreed with Allen that putting the money in the stabilization fund “would be wise.”Selectman Steve Castinetti said he intended to ask Crabtree where exactly the free cash came from at the meeting Tuesday, but the issue was never addressed during the meeting.