More desperate measures as the City Council tries to keep up with Mayor McGlynn's spending

Medford Mayor Michael J. McGlynn said an increase in the distant future is worth the savings in the short term, especially considering Medford’s need to weather the tough economic climate.

“By 2013, the economic base in the city should have expanded to the point where anything extra will get eaten up,” McGlynn said. “It’s a good move for the city.”

Didn't the citizens of Medford learn our lesson following the bad economic predictions of Mike McGlynn and Deval Patrick in 2009, with the state Sales Tax and the Medford Meals Tax hikes both creating revenue shortfalls, not the promised surplusses? Apparently, our City Council did not learn that lesson. Tax and spend has become tax and borrow. Enjoy the spending, Medford, and thank your kids for paying for it.
-Nick McNulty

Medford City Council OKs bond rating adjustment

By Matthew Reid/mreid@cnc.com

Medford Transcript

It was a “save now, pay later” approach as officials last week voted to allow the city to use a bond rating one level below that of the state to secure loans. The move would save the city nearly a quarter of a million dollars over the next few years.

The Medford City Council voted 5-2 on Jan. 5 to allow the move. City Councilors Breanna Lungo-Koehn and Robert Penta dissented, agreeing that saving money in the short term is not acceptable if it adds to the debt down the road.

“We’ll pay less on bonds over the next several years, then we’ll end up paying more down the road, which isn’t the best option we have,” Lungo-Koehn said. “As a city, I think we can come up with a better solution than that.”

Lungo-Koehn said similar moves are shortsighted, and will make it difficult for future councils to work within the budget.

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Under the higher rating, the city will spend $674,425 on debt service in fiscal 2011, saving approximately $137,000 had the council not passed the measure. The savings dip to roughly $110,000 the following fiscal year.

But then the city will see a sharp increase in debt services, first in 2013 and then annually from 2018 to 2027.

Medford Mayor Michael J. McGlynn said an increase in the distant future is worth the savings in the short term, especially considering Medford’s need to weather the tough economic climate.

“By 2013, the economic base in the city should have expanded to the point where anything extra will get eaten up,” McGlynn said. “It’s a good move for the city.”