SAUGUS – As the fourth month of the new year rolls in, town officials are finally ready to do what most communities did last December: set the tax rate.Ratepayers shouldn’t expect any big breaks, however. Town Manager Andrew Bisignani said there is no question he will be raising taxes to the maximum limit, which is 2 1/2 percent over last year.”But that just doesn’t even begin to cover our increases,” Bisignani said.Proposition 2 1/2 prevents cities and towns from raising taxes more than 2 1/2 percent. Bisignani said unfortunately for communities, costs are creeping up at a much faster rate than 2 1/2percent. Along with the obvious gas and oil price hikes, Bisignani said electricity and pretty much everything else has gone up.While residents have already started the rally cry to increase taxes on the businesses along Route 1, Bisignani said that is simply not possible because it is not legal.It is a long held belief among many residents that Route 1 businesses should provide enough tax money to keep the town sitting pretty for the foreseeable future. But Bisignani cannot by law arbitrarily tax businesses, which already pay a higher rate than residents.Bisignani explained that the state allows communities to split the tax rate between residents and businesses and charge businesses a higher tax. Commercial and industrial property in Saugus is taxed at 175 percent more than the residential rate.”For every tax dollar we pay they pay $1.75 and they don’t get the services residents do,” Bisignani said. “They have their own security and fire suppression, they plow and pick up their own rubbish.”Bisignani also pointed out that commercial and industrial property only makes up roughly 17 percent of the town’s tax revenue.”That’s in the whole town,” he added. “It’s not a lot, Peabody and Danvers have much more.”The public hearing on the tax rate will be held April 8 during the Board of Selectmen’s regular meeting starting at 7:30 p.m. in the Town Hall auditorium.