Governor to Decide Water Fund Transfer

It is now up to the governor to decide whether the city can transfer over $1 million from a water account to balance this year's municipal budget.

A bill, allowing the city to move $1.224 million in surplus funds from a water enterprise account to balance its books this year, was passed by the House and Senate and laid before the Gov. Deval Patrick Thursday, according to the legislative docket.

Medford ended up facing a deficit after a difficult winter where the snow removal went $850,000 over budget and several legal settlements, Mayor Michael McGlynn previously said.

The transfer must be approved by the state because the water enterprise account is funded through fees collected for water services, not taxes.

The original bill was brought to the house by Reps. Paul Donato and Carl Sciortino. But after committee review and a joint hearing, an ammended version was submitted by Michael Kane, D-Holyoke on Thursday.

Patrick has not taken any action on the bill, according to the docket.

McGlynn asked the city council to approve the fund transfer in Mid-June. By a 6-1 vote, they called for it to be sent to the legislature for approval.

Several city councilors had reservations over using the funds to cover the deficit, but only Michael Marks voted against it.

The money was collected as a fee for water services, not to pay for other city expenses, he said.

“If there’s a deficit, we have to look at possible cutbacks, whatever it may be," Marks said during a June 14 meeting. "But to use this fund, in my opinion, is inappropriate.”

Councilor Frederick Dello Russo said he didn't like to use the money either, but given the other options, he didn't believe there was another choice.

"I see it as our only course of action,” Dello Russo said during the June 14 meeting.

Councilor Breanna Lungo Koehn said the was a "Band-Aid fix," and the fees in the water account are too high, considering it has a $5 million surplus.

"It's robbing the rate-payers," she said.