$4.2M surplus in Saugus creates ripple effect of benefits

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SAUGUS — There are all types of advantages to having a wholesome provide of free money, City Supervisor Scott Crabtree stated final week.

The city obtained an early Christmas-Eve current Thursday when it came upon that the Division of Income licensed free money for greater than $4.2 million, Crabtree, together with the Board of Selectmen and the Finance Committee stated.

“It has been a long-standing monetary precedence and purpose of this administration to have sufficient annual free-cash reserves,” stated Crabtree. 

The most important profit of getting free money, or a surplus, is that taxpayers can save thousands and thousands of {dollars} in borrowing on capital enchancment initiatives, amongst them the bonds the city obtained for the middle-high college.

“Having a wholesome annual surplus is without doubt one of the foundations for sustaining the City’s S&P AA+/Secure bond score,” Crabtree stated.

The excess can even enable the city to economize on no matter it borrows to satisfy the district-wide Grasp Plan, Crabtree stated.

“As well as, following these finest monetary and administration practices in having a wholesome annual surplus permits flexibility for the city to proceed to fund and construct its stabilization account (wet day fund) and pay for snow and ice prices throughout the yr they have been incurred. 

“These are all sound financial-management practices highlighted within the latest S&P World bond score report,” Crabtree stated. 

Crabtree was first put in as City Supervisor in 2012 and, after a brief stint on the sidelines, was again in workplace in 2015. He stated it has been a gradual climb from fiscal instability. 

“After implementing sound monetary practices and insurance policies, a purpose of getting free money licensed between 3-5 p.c of the city’s annual finances has been constant,” he stated. “It was this formal monetary management-adopted coverage that helped the city attain its free money and monetary objectives.

“The licensed free money has partially been used to assist fund deposits within the city’s stabilization fund and contributed to the city’s bond score will increase, which has boosted the general monetary stability, flexibility, and sustainability of the city.”

Free money consists of unanticipated revenues, account balances and different miscellaneous receipts that have been obtained all through the earlier yr. The licensed free money of $4.2 million was obtained from higher-than-projected revenues within the type of permits, excise taxes, tax title income, Federal Emergency Administration Company (FEMA) reimbursement from earlier years’ storms, and different non-recurring financial system pushed sources, Crabtree’s workplace stated. 

As well as, different strategically-planned contributors to this yr’s licensed free money was the rollover of licensed free money from the earlier yr and a slowdown of discretionary budgetary spending from the working finances because of the anticipated destructive impression of the pandemic on revenues and collections.  

“This licensed free-cash quantity will assist to take care of monetary stability and adaptability throughout the city and maintain efforts towards persevering with to take care of and probably improve the city’s bond score,” stated Crabtree. 

Just lately, the bond score was reaffirmed because the second-highest tier, a AA+/Secure score, with nationwide score company S&P World Scores. This rating, which continues to be the very best in Saugus’ historical past, is saving the taxpayers and city considerably on present and future borrowing prices,” Crabtree stated.

“Our city has obtained and now maintains a wholesome and sound monetary outlook, because of the continued assist of these serving our group and dealing in the direction of a unified imaginative and prescient,” Crabtree stated.

$4.2M surplus in Saugus creates ripple impact of advantages – Itemlive : Itemlive






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Scott Crabtree, left, reviews a $4.2 million surplus. (Bridget Turcotte)