SAUGUS — The Finance Committee on Wednesday evening reviewed and recommended 10 of the 11 articles on the Special Town Meeting warrant deemed to have financial implications, urging Town Meeting to approve millions of dollars in borrowing authorizations, including for a feasibility study on the construction of a third fire station.
The Special Town Meeting warrant features a total of 13 articles, and the sole article the committee did not support was recommended for indefinite postponement by Town Manager Scott Crabtree. Crabtree submitted each article on the warrant, and the Special Town Meeting is set to begin before Town Meeting members start reviewing the articles for the annual warrant on May 1.
The article likely to generate the most discussion and debate on May 1 is Article 7, which asks for a $400,000 allocation for that feasibility study. Discussion of a third fire station in Saugus dates back decades, and should the study win approval, the town may finally make headway after years of inaction.
Much of the business before members during the Special Town Meeting represents annual financial measures taken by the town to boost their fiscal position. Article 2, for example, asks Town Meeting to allocate $1 million worth of certified free cash to the town’s stabilization fund, which would bring the fund’s balance to $10.85 million. That figure comprises roughly 9.5 percent of the town’s fiscal year 2024 operating budget, excluding enterprise funds.
Crabtree explained that the town makes an annual contribution to the fund with an eye toward having readily accessible “rainy day” funds. Under previous town managers, the town’s stabilization fund dwindled to well below $1 million, and Crabtree said one of his priorities in filling the seat was bolstering the town’s financial position, pointing to stabilization as a way he has successfully done so.
During the COVID-19 pandemic, the town was able to use one-time monies like free cash and stabilization funds to continue offering services and avoid layoffs, Crabtree said, which only underlined the importance of the funds.
Article 3, which asks Town Meeting to appropriate $500,000 of free cash to the town’s other post-employment benefits trust, was put forward with a similar goal as the stabilization fund. Crabtree explained that the town faces $147 million in unfunded liability costs for employees, and making an annual contribution to the trust allows the town to continue to pay retiree benefits. Town Meeting adopted the trust in 2016, and the town has made an annual contribution each year since, Crabtree said.
The trust’s balance sits at $1.65 million as of March 31.
“We still have a long way to go, but this helps Town Meeting and the public understand that there is some unfunded liability, it’s pretty significant, and that we need to continue to [plan for it],” Crabtree said.
Ultimately, the trust could serve as a way for the town to pay retirement benefits without having to draw from its operating budget, Crabtree said.
Article 4 asks Town Meeting to place $500,000 in free cash in a targeted stabilization fund for the Northeast Metropolitan Regional Vocational School project, which is set to require millions in contributions from Saugus and other communities for the construction of a $317.4 million school building. Much like the trust, the targeted stabilization is aimed to help soften the blow of the project on the town’s operating budget.
But, Crabtree and Town Treasurer/Collector Wendy Hatch cautioned, the project has only borrowed $30.95 million of the total costs thus far, meaning the impact on Saugus would likely grow in the ensuing years as more capital is raised.
Article 5 seeks Town Meeting approval for a variety of departmental equipment purchases totaling $1.44 million, including police cruisers, five-ton dumps for the highway department and water department, and vehicles for municipal departments. Crabtree said Saugus is one of the few municipalities in the state that doesn’t provide vehicles for municipal department employees, instead asking many to use their own.
Finance Committee members expressed skepticism about the projected cost of the vehicle purchases — $225,000 for three — but ultimately voted to recommend the article after Crabtree said that was just a projection. The equipment purchases would be funded via a borrowing authorization.
Article 6 seeks a borrowing authorization in the amount of $2 million to fund “design, construction, repair, or replacement” of various parks and playgrounds. Crabtree explained that the borrowing authorization would serve as seed money and would only be spent once specific plans were put together for the town’s parks and playgrounds, which he acknowledged have deteriorated over the years as finances have been directed to other needs.
One member, Theresa Katsos, expressed skepticism about the need to secure specifications for the redevelopment of the parks, saying she wanted the funds to go directly toward construction costs. But, Crabtree explained, the town had to allocate funds to specs so a specific plan could be developed before it could move forward.
Member Steve DiVirgilio said he would not support the article, indicating he believed the funds would be better served elsewhere, and he suggested that the town instead spend the $2 million on the purchase of a new fire truck. But, Crabtree said he had already purchased a pair of new trucks for the fire department.
Article 7 — funds for the fire station feasibility study — drew the same criticism from Katsos, who also pointed to the many stops and starts of the project over the years. Crabtree said he would like to see the station constructed in North Saugus on the southbound side of Route 1, thereby serving both northern and western areas of town. Committee members urged him to ensure the feasibility study assessed the potential manpower needs of the new station, but Crabtree did not commit to doing so.
The feasibility study represents a key tangible step forward for the project, though Crabtree has said it will likely require both a debt exclusion and an override.
The remaining articles — 8, 9, 10, 11, 12, and 13 — generated relatively minimal discussion from the committee. Members voted to recommend all but Article 10, an allocation for capital improvements to town-owned bridges, which was instead recommended for indefinite postponement at Crabtree’s suggestion.
Article 8 seeks a borrowing authorization in the amount of $3.8 million for sewer rehabilitation capital improvements, with the money used in part to reduce inflow and infiltration in the sewer system in several areas of town.
Article 9 seeks a $700,000 borrowing authorization for the repair/replacement of the Lynnhurst sewer lift station, which Crabtree said is 25 years old. The station is in close proximity to “sensitive environmental receptors” including Lynn’s water supply, making the age of the station a particular concern. Should the authorization be approved at Town Meeting, construction would begin in 2025, with town officials seeking additional funding once design is completed.
Article 11 asks for a $500,000 borrowing authorization to fund the design and permitting for swale repairs and drainage projects in drainage systems in approximately 19 areas of town.
Article 12 asks for $250,000 in a borrowing authorization to implement the second phase of the Lead and Copper Rule Revision Inventory Project. The rule was established by the Environmental Protection Agency in 1991, and requires all water distribution systems to minimize lead and copper levels in drinking water by fending off corrosion of lead and copper-containing plumbing materials. As part of the second phase, the town will develop an inventory of all service lines and verify the material they are made of.
The final article, Article 13, seeks a $250,000 borrowing authorization to fund ongoing improvements of water hydrants and valves across town as part of the Department of Public Works’ ongoing replacement and repair of failed hydrants and valves.
