MALDEN — The city will borrow $5.2 million to spend on long-awaited street repairs.
There are 22 streets in Malden that still to be fixed as part of the citywide water main replacement project. The $5.2 million expenditure was approved by the City Council after a contentious debate.
Finance Committee chairman Paul Condon supported the approval of a bond proposed by Mayor Gary Christenson.
“The residents who live on these streets have been waiting patiently to have their streets restored,” Condon said. “This is the right thing to do for our citizens.”
John Matheson of Ward 3, the lone councilor who opposed the bond borrowing measure, said the city would be better off tapping federal funds, or revenue from mitigation payments from the Wynn Casino in Everett.
Malden received a $1 million payment, according to a Surrounding Community Agreement Christenson signed in 2014. When the casino opens next year, Malden will receive $1 million annually, with incremental increases to $1.2 million by year six, and a 2½ percent annual increase from 2026 and beyond.
“Our residents do not need to pay more taxes or fees,” Matheson said. “We shouldn’t be increasing our taxpayers’ bills to pay for this project. We should look at other options.”
The borrowing will add $24 annually to the average water bill in Malden because the water and sewer surplus fund is being used to back the bond application. “This bond issue is the best option,” Condon said. “We need Chapter 90 money to pay for DPW equipment.”
Christenson said the bond is the also the best option, because it is also the fastest way to get the road project going. He said the city’s engineering staff is ready to go as soon as the funds are in place and are targeting early spring to begin.
The mayor echoed Condon’s remarks on using other funds. He noted the city intends to apply mitigation funds from the Wynn Casino to future budget balancing goals.
“We can use those funds to reduce reliance of reserves to build and balance our budget,” Christenson said.
