THE SAUGUS ADVOCATE – FRIDAY, MARCH 4, 2022 Page 11 A two and a half hour take Town Manager and selectmen kick off the FY 2023 budget season with a marathon session By Mark E. Vogler T own Manager Scott C. Crabtree unveiled his proposed preliminary operating budget on Monday morning (Feb. 28) in a work session with selectmen which took nearly two and a half hours. The fi ve selectmen sat around the fi rst fl oor conference room table focused on their bulky budget books as Crabtree briefed them on the important details of his $120.4 million spending plan for the 2023 fi scal year that begins on July 1. In a four-page letter that accompanied a draft copy of the budget, the town manager detailed major concerns he has in the early stages of a budget which has been aff ected adversely by two plus years of battling COVID-19. “As we prepared the Fiscal Year 2022 estimated revenue and expenditure budgets, many of the same concerns exist as when the Fiscal Year 2022 budget was approved,” Crabtree said. “The estimated revenues have not returned to levels prior to the pandemic as economic recovery continues, and the fi xed cost increases and contractual obligations continue to absorb the Proposition 2 ? and new growth GAP | FROM PAGE 1 perintendent, we look forward to presenting to the Finance Committee and detailing the important improvements we have made to the district and our commitment to progress and change,” School Committee Member Ryan Fisher wrote in a text to the newspaper on Wednesday. Fisher declined to elaborate when asked whether he was surprised by the town manager’s budget recommendation and if he is optimistic about receiving Town Meeting support for the superintendent’s full request. “I’m going to stick with that statement for now since it’s so early,” he answered, referring to the current schedule of the town’s budget process. The Finance Committee begins its review of the town manager’s proposed budget Wednesday night (March 9), but it could be several weeks before the School Superintendent and the School Committee are scheduled to brief the projections,” the town manager continued. “In this budget, Town Departmental estimates are recommended at levels equal to or less than Fiscal Year 2022 appropriations amounts with fewer exceptions including fi xed costs and contractual obligations.” In order to balance the 2023 Fiscal Year budget, maintain current services to the residents and prevent reductions to staffi ng through layoff s, Crabtree recommended using about $1.2 million from the American Rescue Plan Act (ARPA) federal grant the town received. The grant was intended to help cities and towns aff ected by COVID-19. It was approved for revenue replacement which had not been available prior to the 2023 Fiscal Year. “As a reminder, this is the use of one-time funds for ongoing operational appropriations which is not a sound fi - nancial practice that Saugus should be continuing with,” Crabtree said. The town manager cited these “challenges” in preparing estimates of expenditures in the budget, such as townwide fi xed cost increases: * Health insurance – the rates have not been fi nalized FinCom about their Fiscal Year 2023 budget requests and answer questions The Saugus Advocate had reached out to each of the fi ve School Committee members and the school superintendent for comment. But Fisher was the only one responding back, and he stressed, “that’s from all of us including Erin,” referring to the superintendent. Meanwhile, at the town manager’s budget presentation on Monday (Feb. 28), Crabtree and the selectmen expressed concerns that the School Department budget doesn’t actually reflect the true amount of town funds that are spent on the School Department. “Sixty-percent of the budget is school-related,” Crabtree told selectmen. More than $20 million in teacher salaries and benefi ts and costs related to running the school buildings are currently within the town budget, according to the town manager. And the cost of the town’s public education could inby the provider, but the town can expect that the rate will be set within the next few months. Crabtree said the Town of Saugus made a conservative estimate based on the current enrollment, but will have to revisit its estimate later in the budget cycle. * Trash hauling and incineration has been increasing at a concerting rate over the last couple of fi scal years. In addition, the cost of disposal of recyclable materials continues to increase and has been impacted with increased tonnage and contamination charges. * Pension contributions – the pension appropriation increase of $400,703 for a total payment in Fiscal Year 2023 of $8.1 million is based on the funding schedule prepared by the Public Employee Retirement Administration Commission (PERAC). This schedule refl ects a cost increase of 5.2 percent per year until Fiscal Year 2026 with fi nal payments in Fiscal Years 2027–2029 decreasing to fully fund the pension obligation. * Regional school assessments – vocational education, inclusive of Northeast Metro Tech, Essex North Shore Tech and Medford Public Schools, crease substantially next year when a current grant funding free all-day kindergarten expires, Crabtree said. “In the next year, somebody has to pay for that. Where is the money coming from?” Crabtree asked. Selectman Jeffrey Cicolini said he is concerned about BUDGET TIME: Town Manager Scott C. Crabtree briefed selectmen on his preliminary 2023 operating budget estimate on Monday (Feb. 28) in the fi rst fl oor conference room at Saugus Town Hall. (Saugus Advocate photo by Mark E. Vogler) is budgeted for about $3.8 million, based on estimated numbers provided by the state Department of Elementary and Secondary Education. The DESE enrollment estimates have decreased in FY 2023 compared to FY 2022. DESE estimates153 students next year. * The approval of construction of a new Northeast Metropolitan Regional Vocational School for $318 million could have fiscal implications for Saugus in the 2023 Fiscal Year. The estimated debt service for Saugus is reported at $40.6 million in Fiscal 2023. The fi rst debt payment on this project could be about $250,000. This amount has been included in the Vocational Education Assessment budget. * Other insurance – The various property, liability and workers’ compensation insurance premium estimates shortcomings in the overall cooperation between Town Hall and the School Department. “There’s a discussion we need to have now,” Cicolini said. Instead of having an “us vs. them” situation, he stressed that there needs to be “more collaboration” between the Town Hall side of have been budgeted based on an increase of 8 percent over actual fi scal year 2022 premiums recommended by the provider. This includes an increase on the premiums for the Saugus Middle-High School Complex, Belmonte STEAM Academy and Veterans Memorial School all coming back on the town’s policy post construction/renovation at full replacement cost. * Capital improvement – there are significant capital needs that the town will need to plan and identify funding sources for. Those include, but are not limited to, such things as local capital facility needs, public safety equipment, such as fi re apparatus that is nearing the end of life and requiring expensive repairs, and funding the Northeast Regional Vocational School capital assessment. government and the School Department. Cicolini questioned why the town budget continues to include signifi cant school-related costs. “Why can’t we have them responsible?” Cicolini asked. It might create “a more feasible budget,” he said. Saugus Knights of Columbus 57 Appleton Street, Saugus Indoor Flea Market Saturday, April 2 and April 9 8:00 - 4:00 Great deals will be available on collectibles, gifts, Sip & Shop
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