PHOTO BY PAULA MULLER
Finance committee member Kenneth L. DePatto discusses the Fiscal Year 2017 budget at Saugus Town Hall Monday.
BY BRIDGET TURCOTTE
SAUGUS — Town Meeting unanimously approved a $77.1 million town budget recommended by the finance committee on Monday.
The budget includes a $28.1 million for the school department and $49 million for the municipal departments.
The school’s fiscal year 2017 operating budget is about $503,000 short of the school committee’s request, but $500,000 more than last year’s allocation.
Acting Superintendent of Schools Michael Hashem said the department has tried just about every cost containment possible since he stepped into the position, but it is still going to be short.
“I wanted to thank you for the additional funding,” Hashem said. “Do realize we’re going to have to make some efficiencies and cuts moving forward.”
The budget includes $6.4 million for the police, $4.7 million for the fire department and $4.3 million for the Department of Public Works. A $215,675 budget was approved for the Department of Planning and Economic Development.
Town Manager Scott Crabtree said he is hopeful they will hire a new economic development planner and coordinator soon to replace Robert Luongo, who resigned to work in another community.
“Robert did a fabulous job,” Crabtree said. “I did everything I could with offering him anything I could to keep him here.”
Luongo left the position for another closer to his home that pays more money and allows him to work with a staff of eight people, Crabtree said. Crabtree is hopeful the town will hire “an individual like Robert” but is also considering splitting the job into two different positions, at a lower rate for each.
“It’s been a challenge to bring someone in at his caliber, even at the amount that we budgeted,” he said. “It’s needed for Saugus and for our community.”
Town Meeting also approved an increase in water rates for next year. All money will go directly into a Water Enterprise Fund to be used exclusively for water expenses, maintenance, debt and interest and improvement programs.
“We’re talking about raising water rates 9.5 percent,” said William Brown, Town Meeting member. “Last year, we had a 3 percent sewer increase. I’m not going to support it. This is too high. I don’t see the need for it.”
Crabtree said the rate was determined through a five-year analysis conducted by an outside party.
“The goal was to identify what rate needed to be charged to be able to generate enough revenue to pay for the operations of that enterprise,” Crabtree said.
A tiered system is used to determine a resident’s rate, Crabtree said. About 70 percent of residents fall in the first category, and will see an $8 increase on their bill twice a year. Second tier residents will see a $12 increase and commercial users will pay the bulk, he said.
Reluctant to raise the rate, Eugene Decareau, Town Meeting member, proposed an amendment for a 7.5 percent increase. But Steve DiVirgilio, a Town Meeting member, said approving the lower rate would be a mistake.
“The debt on these funds are enormous and continue to grow,” DiVirgilio said. “We need to invest in the capital and infrastructure. One of the reasons I keep on Town Meeting is I got the sense that financial decisions are being made with their hearts instead of their minds.”
Crabtree agreed, and urged Town Meeting to follow the recommendation of the finance committee.
“I want to make it clear, these are financial decisions, not emotional decisions,” Crabtree said. “If we vote a less rate than is required, you’re kicking it down the can. You will have to have a larger increase next year.”
Bridget Turcotte can be reached at [email protected]. Follow her on Twitter @BridgetTurcotte.
