Tuesday is day for big tax vote

On morning walks around Cliftondale Square, Arthur Gustafson straps on a sandwich board bearing his thought on a proposed $5.2 million tax increase for Saugus.

"Vote No. Save 2 1/2. Taxpayer," the sign says on the back. On the front, his message is more pointed: "No."

Gustafson, 75, a retired lawyer and selectman, thinks Saugus voters must consider the long-term impact of approving a general override of Proposition 2 1/2, the state's property tax cap law. The law limits the amount of revenue a community can raise through property taxes to 2.5 percent, not including new growth.

"That's the maximum we're supposed to be taxed each year," Gustafson said, pausing outside the Cliftondale Post Office. "That's what we should be living with. If we abolish Proposition 2 1/2, we'll be going back to the old blank -check days."

But Ellen Faiella -- vice chairwoman of Saugonians Say Yes, a pro-override committee -- hopes voters carefully read a flier that will be hand-delivered to homes today and tomorrow. Its message: Vote yes to keep the library and senior center open, save youth programs, police, fire, and teaching jobs.

"These aren't scare tactics," said Faiella, who also is vice chairwoman of the Saugus School Committee. "What we're telling people is the absolute truth."

On Tuesday, Saugus voters will decide on the $5.2 million override ballot question. The amount is the largest request among 50 Bay State communities considering overrides this spring, according to a Globe survey. If approved, the average tax bill, based on a home valued at $389,700, is estimated to increase $400. The current average tax bill is $3,227, according to town officials.

The polls will be open from 7 a.m. to 8 p.m. in the town's eight polling places. Although past special elections for overrides have drawn as little as 28 percent of the town's 17,112 registered voters, officials expect a stronger turnout Tuesday. At least 200 absentee ballots have been sent to voters who will either be out of town or unable to get to the polls Tuesday, said Town Clerk Joanne Rappa.

"We've had such a run on absentees in the last two weeks, I think that means we'll get a good turnout," she said.

Saugus is seeking more property tax revenues to avoid laying off dozens of town workers, along with closing the senior center and library permanently and the Town Hall on Fridays. The School Department budget will be cut $1.7 million, officials said.

The town of 26,000 people, which has a strong commercial base on Route 1, has a grim financial outlook. A mounting $2.5 million health insurance deficit prompted the state Department of Revenue to warn Saugus to find new revenue sources or face state intervention.

Moody's Investors Service recently lowered the town's bond rating two steps, making it more expensive for the town to borrow money for construction projects, such as sewer repairs, in the future.

Town Meeting next month will be asked to approve a $130 per house trash fee. The Board of Selectmen also voted to raise sewer rates 30 percent, effective July 1. But those increases will not be enough to provide immediate relief. Revenue from permit fees, excise taxes, and other sources is down, according to town officials.

"Our financial picture has not improved," Town Manager Andrew R. Bisignani said. "If this passes, we will still have to make adjustments, but at least we'll be able to maintain our level of services."

Residential property taxes fund 67 percent of the town's $60 million annual budget. But Saugus voters historically have been cool to tax hikes.

The town -- which passed the Proposition 2 1/2 tax law by a margin of 63 percent when it was approved statewide in 1980 -- has never approved an override.

Temporary tax hikes, called debt exclusions, have fared better. Voters have approved a request to build a new Veterans Memorial Elementary School and refinance debt on capital improvements.

This year's $5.2 million general override election has prompted people on both sides of the issue to court support through public forums, fliers, and old-fashioned shoe leather.

"There's more footwork involved with this one," said Dick Barry, 75, a 40-year veteran of town government who is now chairman of the Council on Aging.

"A lot of groups are supporting the library, the School Department; they've been working at this."

Barry, a former selectman, said he hasn't always backed past overrides. But with little hope of additional state aid or grants to boost spending, he said, he's voting yes. "I don't know any other solution to the problem this time. The thought of closing the library or the senior center, which provide valuable services to residents, I just wouldn't want to see that happen."

He is not alone. "My tax bill is high, about $4,800," said Paula Andrews, 41, a mother of three, ages 8, 11, and 14.

"I don't want to pay any more, but I'm voting 'yes.' You just can't shut down services."

Richard Angelini, 76, also plans to vote yes, if only to keep the library open.

"I love this place," he said, sitting in a reading room last week. "It's my second home. If it means paying a few more dollars to keep it open, then I'll do it."

Some are not convinced, however.

Norman Marshall, 69, a retired oil dealer, thinks the town needs better fiscal management.

"You have to deal with a town like a business," he said during his daily visit to Kane's Donuts for morning coffee.

"If all of a sudden, your business doesn't have enough money, you either lay off or cut back. You can't just keep spending."

Donald Stead, 66, a retired truck driver, also plans to vote no. "Enough is enough," Stead said, seated with Marshall at Kane's. "Every time the town needs money, they try to override Proposition 2 1/2. You have to live with the money you get."

Others say people must vote their wallets. "You have to vote what you can afford," said Jean Lyons, 58, who visits the library several times a week. "It's a big decision for people."

Kathy McCabe can be reached at kmccabe@globe.com.