NAHANT – Nahanters approved a $10.5 million budget Saturday, although Selectman Michael Manning warned residents they’d better change their spending habits or they could face serious consequences down the road.”The budget funds all the operations of the town, but it does so by allocating every cent of free cash that the town has,” he said.Manning said nearly $500,000 worth of expenses, including some salaries, are funded through free cash. Free cash is money left over from the previous year’s budget and it must be certified by the state.”Free cash is not a dependable source of revenue,” he said adding that the town needs to “wean itself off” using free cash to balance the budget.Resident Peter Rogers said Manning’s concerns are not just hyperbole. Chaos erupted years ago when free cash failed to materialize and the town faced an $800,000 deficit, he said.”We should have learned a lesson,” Rogers said. “Please take this seriously.”Manning said he would continue to raise the issue at future budget meetings as well as the next Town Meeting if need be.Breezy Hill Terrace resident Patricia Magner implored residents not to vote to spend $125,000 from the water and sewer enterprise account to study the town’s water and sewer lines. She argued that it was not appropriate to discuss a study because she believes the enterprise account is being misused.”I would ask you to pass on it,” she said to the nearly 100 residents gathered for the meeting. “We really need to see what’s going on with the water and sewer account.”Rogers said he hoped voters weren’t confused by Magner’s concerns and urged them to support that article that he called “one of the more prudent uses of the money.” They approved the project overwhelmingly.Residents also approved establishing a water and sewer stabilization fund and kicking it off with $200,000 from the enterprise account. They then approved the trash enterprise account, revolving accounts for the cemetery and recreation committees, accepting Chapter 90 funding, which is state money for earmarked for roadwork, and to appropriate $100,000 for additional roadwork.Residents also gave the go-ahead for a zoning change to the town’s Floodplain District that would bring it in compliance with the National Flood Insurance Program. One resident voiced concern that state officials still hoped to alter the new floodplain maps being established by the Federal Emergency Management Agency (FEMA), but Planning Board Chairman Richard Snyder said the issue shouldn’t wait.He said if the zoning changes were not adopted, it would make anyone planning to buy a home ineligible for flood insurance. The article was approved.Residents also voted to amend zoning bylaws by adopting an ordinance requiring residents to keep public ways clear of trees and shrubs. Magner called the determination of what constitutes a public way one of the town’s most controversial issues and suggested they wait on voting. Rogers agreed it could lead to “real mischief.” He said if roots of a tree cause the sidewalk to buckle he could see residents being forced to cut down 100-year-old trees. Residents felt otherwise, however, and approved the article.They also approved $57,000 to lay a new fiber optic line that will be compatible with Lynn’s Fire Dispatch, another $80,000 to clean up the town’s compost area and cleared 10 items for funding under an article from the Community Preservation Commission.And to the bafflement of Manning, residents voted not to pay down the principal on money borrowed for the Coast Guard Housing property. Manning said it is the only debt the town does not make a principal payment on.The public library received approval to proceed with a feasibility study to look at renovating the historic stone building and to chase grants to plan a possible project. Lastly, residents agreed to continue a vast array of committees and to accept any gifts anyone gave those committees.Town Moderator Dave Conlin thanked the Finance and Advisory Commi