SAUGUS — Town Meeting on Monday authorized, nearly unanimously, more than $9.2 million in borrowing authorizations for, among other things, equipment purchases, capital improvements, and renovations to parks and playgrounds.
Members reviewed all 13 articles on the Special Town Meeting warrant over the course of just under two hours, approving 12 of the 13 by wide margins with favorable recommendations from the Finance Committee in hand. The only article members did not approve was one recommended for indefinite postponement — nothing on the warrant was outright rejected. Of the 50 members elected to Town Meeting, 44 attended Monday.
Article 2 asked Town Meeting to set aside $1 million in free cash to the town’s stabilization fund, bringing the balance of the town’s “rainy day” fund up to $10.85 million. That represents roughly 9.5 percent of the town’s fiscal year 2024 operating budget, excluding enterprise funds. Crabtree emphasized the importance of the stabilization fund in maintaining level services and avoiding layoffs during the COVID-19 pandemic.
Allocating money to stabilization has also served to bolster and maintain the town’s AA+ bond rating, he said. Crabtree received the unanimous backing of Town Meeting for the article.
Article 3 asked Town Meeting to allocate $500,000 of free cash to the town’s Other Post-Employee Benefit Trust as part of an ongoing effort to pay down unfunded liabilities. Crabtree explained that Saugus has roughly $140 million in unfunded liabilities in the form of benefits for town employees. When employees retire, he said, the town is obligated to continue paying their benefits. Town Meeting adopted the trust in 2016 and the town has made an annual contribution each year since then, Crabtree added.
The trust’s balance sits at $1.65 million as of March 31.
With the town’s retirement system set to be fully funded by 2026, Crabtree said some funds intended for pensions could be redirected to the trust.
The article was approved unanimously.
Town Meeting then took Article 7 out of order — and approved it by a margin of 42-1. The article sought a $400,000 borrowing authorization for a feasibility study for the construction of a third fire station on the west side of town.
Members moved on to Article 4, with Crabtree asking Town Meeting to support the allocation of $500,000 in free cash toward a stabilization fund created to help the town pay off its share of construction costs for the Northeast Metropolitan Regional Vocational School.
The school is in the midst of a $317 million construction project, and each community served by the school is responsible for paying into the project. Saugus’ share is projected to be in excess of $33.73 million.
The targeted stabilization fund is intended to blunt the construction’s impact on the town’s operating budget, Crabtree said.
“This is something that’s going to have an impact on this,” he said. “We have significant costs coming our way… we’re looking at $1.5 million to $2 million for the next 30 years.”
“We have to have a plan for this to go out to the public,” Crabtree added.
Town Meeting voted overwhelmingly to approve the allocation, with seemingly just one member in opposition.
Article 5 asked Town Meeting to approve $1.4 million in borrowing to fund equipment purchases for various departments, including police cruisers, five-ton dumps for the highway department and the water department, and vehicles for municipal departments. It garnered minimal debate, though some members balked at the high price tag.
“I personally would rather see that $225,000 [for department vehicles] go to the schools,” said Precinct 6 member Jeannie Bartolo.
But, Crabtree responded, the article asks for a borrowing authorization and the town would not borrow money to fund operations in the schools.
Crabtree said for years, municipal employees in Saugus have had to use their own cars to do work on behalf of the town, a scenario he called “embarrassing.” He indicated that providing vehicles to employees for their work might make working for the town more attractive, as Saugus has struggled to fill vacancies in recent years.
“We probably need 15 vehicles to replace the old ones we have,” he said.
Bartolo ultimately voted for the article, which was approved unanimously.
The remaining articles on the warrant occupied less than half an hour of the total discussion, with members breezing through the remainder of the requests put forward by Crabtree.
Article 6 — which asked for $2 million in borrowing to fund improvements to parks — was approved unanimously after Crabtree explained that while not a priority to some, improving parks and playgrounds would go a long way toward quality of life in town.
Members quickly approved an additional $3.8 million in borrowing for sewer rehabilitation and capital improvements, voting unanimously to approve Article 8.
Unanimous approval was also given to a $700,000 borrowing authorization for repair and 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 its age a particular concern.
Article 10 was the only article to not receive approval, with members instead accepting a recommendation to indefinitely postpone the article.
The final three articles on the Special Town Meeting warrant comprised $950,000 in borrowing for drainage capital improvements, an inventory of the materials used in the town’s service lines, and replacement and repair of water hydrants and valves.
All three articles were unanimously approved by members.
