SAUGUS — The Department of Revenue has certified the largest amount of free cash the town has ever seen — more than $4 million — which will save taxpayers millions of dollars on borrowing for expenditures like the school building project.
The money came from higher than projected revenues in the form of permits, excise taxes, tax title revenue, Federal Emergency Management Agency (FEMA) reimbursements from storms in previous years, and other sources.
“Saugus has benefited from a modest uptick in economic activity, and we did experience some unexpected, one-time, non-recurring revenues,” said Town Manager Scott Crabtree.
The historic Fiscal Year 2017 free cash amount of $4,124,074 surpasses the town’s previous record amounts of $2,945,413 in Fiscal Year 2016, and $2,101,223, which was certified in Fiscal Year 2015.
“For the past 5 ½ years, it has been a goal of this administration to build up the town’s free cash reserve,” said Crabtree.
The amount of free cash will help maintain financial stability and sustain efforts toward continuing to upgrade the town’s bond rating, said Crabtree. Combined with the towns S&P AA+ bond rating, taxpayers can expect to save about $7.2 million for the new middle-high school.
When Crabtree became the town manager in 2012, Saugus was recovering from long-term fiscal instability, he said. He implemented financial practices and policies with a goal of having free cash certified between 3 and 5 percent of the town’s annual budget.
The free cash has partially been used to help fund deposits in the town’s stabilization fund and contributed to the town’s bond rating increases, which boosted the overall financial stability and sustainability of the town, said Crabtree.
