SAUGUS — The Board of Selectmen sat down with Town Manager Scott Crabtree and Treasurer/Collector Wendy Hatch to look over the FY27 Operating Budget.
“This is a preliminary operating budget. It’s an estimate for Fiscal Year 2027, I think, as everybody knows this is early in the process. We actually start very early to try to put numbers together. But, as everybody knows, a lot of those numbers don’t come through, or are fixed costs and different increases. We don’t actually get those numbers until later,” Crabtree said.
The total estimated expenditure budget for FY27 is $124 million “and change” for the general fund, and $17 million “and change” for the water and sewer enterprise funds, for a total estimated expenditure amount of $141 million “and change.”
Crabtree noted that they try to be conservative so that, as numbers come in, the Town can increase budgets and ask instead of making cuts.
During the meeting, there was a discussion of bringing new businesses to town, with Selectman Frank Federico asking whether a strategy could be developed to do so. He pointed out that Raising Cane’s knocked down a building and built a whole new one instead of just moving into the old one, which Crabtree stated increased the levy.
“We try to encourage that… Building a brand new building from scratch is better than somebody renovating a building… Because now we’re going to increase the levy, which then increases forever,” Crabtree said.
He continued that the town is pro-development, but it has to be smart development, and rules need to be followed.
“That’s what the viability of the town is, the new growth… Annually, it produces revenue for the town… That’s the survival of the town,” he said.
Selectman Jeff Cicolini pointed out how COVID-19 was a major cause of empty commercial buildings, with so many employees wanting to work from home. He also brought up how the Board faces criticism on the apartments being developed in town, even though the Selectmen do not have a say on who purchases the property.
“The other thing that you get criticized for, too, on social media is ‘How come we have all of those empty spaces on Route 1?’ We’re not the property owners. We’re not the landowners. I don’t know what they’re asking for rates,” Chair Debra Panetta said. “We have no control over what gets built over there on Route 1 in terms of the empty storefronts.”
Moving through the discussion, Crabtree pointed out items that could continue to be a concern and are being monitored, which were: Building maintenance costs, utilities, fuel, motor fuel, waste collection, recycling, vehicle maintenance, and health insurance due to supply chain issues and rising costs of goods and services.
One thing Crabtree highlighted was the cost of snow and ice, and how New England has returned to its typical winter this year.
“The snow and ice costs of five and six years ago… are much different from what the cost is now. So that’s why we have money and free cash to be able to pay for our expenditures within the year that we incur. But I can tell you that we don’t know the numbers. Obviously, we’re processing, but I can tell you it’s pretty significant,” he said.
The estimated school budget was also brought up, with a recommendation of $35,768,535, which is an increase of a million dollars.
“Again, we talked about early, doesn’t include the Schedule 19 increases for the cost, which I think are close to $30 million… which is unheard of in any other community,” he said. That cost is sent directly to the town.
Crabtree said that as a parent, they should be demanding higher standards and expectations for the education system, and he and the Board agreed that the answer to bettering schools, something they all want to do, isn’t always putting in more money.
“I think that’s what the parents are demanding, but I think they’re seeing it as a money issue over anything else, and that’s what I’m trying to figure out. How do we change that perspective and say that we need to start looking within the school?” Federico said.
Cicolini pointed out that from three fiscal years to now, the schools have had $6 million worth of increases, not including Schedule 19.
Selectman Mike Serino said he thinks Schedule 19 should be included in the report, and Cicolini said it should also show a comparison so people can see the investments going into the schools.
Hatch then began her part of the presentation, showing how sources of various types of revenues and expenditures are being kept in balance.
With various projects, the property tax is approximately $95,982,000. The cherry sheet estimates are $22.2 million. Local receipts are estimated at $11.2 million with an approximate 7% increase from FY26.
Hatch said certified free cash is being used for the appropriation of capital improvement for the facilities department at $500,000, and $100,000 for the Department of Public Works.
“The total source of funds for the general fund is $131.5 million,” she said.
Hatch continued, “So, the town’s municipal budget for the municipal departments is $88.5 million. And the schools are $35.7 million. So that’s a total of $124,282,000.”
Cicolini made a motion to approve the fiscal year 2027 budget as presented, which carried 5-0.
