Governor Eliminates $1.2 Million Debt
Governor Deval Patrick today signed Senate Bill 2474 into law. The bill was sponsored by Senator Pat Jehlen, Representative Paul Donato, Representative Carl Sciortino and Representative Sean Garballey on behalf of a home rule petition offered by Mayor Michael J. McGlynn and members of the Medford City Council.
“The bill relieves Medford of repaying $1.2 million of debt taken from the Water and Sewer $6.5 million surplus in 2011. This was in order to save approximately 20 jobs and secure city services in the FY 12 budget,” stated McGlynn. “Our legislative delegation, the Governor, Speaker of the House and Senate President supported Medford’s effort to save 20 jobs during the worst economic recession since the great depression by originally passing a Home Rule Petition. Borrowing from the surplus is allowed by state law. However, an amendment to Medford’s original home rule petition required the city to repay the enterprise account, and therefore negating the intent of the petition."
"To raise rates in order to replenish the account doesn’t make any sense,” continued McGlynn. “This legislative action relieves $1.2 million from our debt side of our financial ledger. Moody’s Bond Rating Services have urged us to eliminate excess debt and continue to rebuild our reserves. Medford presently maintains an A1 bond rating with a recently upgraded positive outlook."