THE MALDEN ADVOCATE–Friday, October 23, 2026 Page 7 FINANCES | FROM PAGE 1 ations involving both the solid waste payment and revenue receipts system and the oversight of the municipal reserve (free cash/”rainy day”) funds. Beginning with the next fiscal year F2027-28, under one of the new ordinances, the Solid Waste Enerations with more transparency. Creating the enterprise fund allows the city to transparently separate, track and manage solid waste revenues and expenditures independently from the general fund. A similar Water and Sewer Enterprise Fund has been in effect and used by the city for nearly 40 years, since being adning by ordaining the Reserve and Stabilization Fund, which is designed to modernize a new brand of fiscal reform and framework to help protect against revenue shortfalls and help fund major future infrastructure projects. The new framework formalizes the governance, administration and regular review of two At a previous meeting, where the two new funds were discussed, Finance Committee Chair McDonald said, “One of the things that we heard consistently when we were talking with the public about the budget needs of the city, in many of the forums about the tax override, was ‘What is the use of all of these cash reserves that are called free cash?’” Short-Term Capital Needs Stabilization Fund The second fund is the ShortTerm Capital Needs Special Purpose Stabilization Fund . This fund would be used strictly for physical capital needs, infrastructure repairs or equipment. Creating the fund required a two-thirds vote, but spending money for its preapproved capital purposes only requires a simple majority vote. In voting to ordain, the Council also unanimously adopted amendments proposed by the joint committee that clearly outline the roles of municipal financial officers in these new funds. Other amendments also require annual reporting on what financial needs might require spending liquidity. Also there is language which requires mandatory appearances and presentations to the Council within 60 days of the reserve funds (free cash) having been certified by the state. The Malden City Council at its regular meeting on Tuesday night voted unanimously to ordain two new municipal ordinances governing financial operations. The Councillors are pictured from left to right: Front row: Michelle Luong (at-Large), Chris Simonelli (Ward 7), City Council President Amanda Linehan (Ward 3), Ari Taylor (Ward 5) and Carey McDonald (at-Large); back row: Peg Crowe (Ward 1), Jadeane Sica (Ward 8), Paul Condon (Ward 2), Ryan O’Malley (Ward 4), Karen Colón Hayes (at-Large) and Stephen Winslow (Ward 6). (Courtesy/City of Malden) terprise Fund will be established to handle accounting for trash, recycling, yard waste and hazardous waste payments and receipts. At other previous meetings where this matter was discussed, Malden Councillor-at-Large and Finance Committee Chairperson Carey McDonald and Ward 6 Councillor Stephen Winslow detailed at length the existing costs for those operations. As was explained at previous meetings, Malden’s total cost of handling collection and removal of solid waste annually is approximately $3.8 million. With trash collection revenue from residents and businesses coming in at close to $1.8 million, it was explained that at this time Malden currently operates a trash deficit of roughly $2 million against $3.8 million in total solid waste expenses. This has required subsidies from the general fund to balance those costs. Formal accounting structure for more transparency The newly ordained enterprise fund creates a formal accounting structure to manage these opopted in 1986. This fund separates all water and sewer user fees from general tax revenues to pay for the distribution and collection systems. It was a major portion of the overall FY27 city budget, about $37.1 million, and is used to pay MWRA assessments and to partially fund major infrastructure projects, such as lead service line replacements. At Tuesday night’s meeting, the City Council also finalized many hours of debate and planseparate funds authorized under Massachusetts General Laws. The first one is the General Purpose Stabilization Fund: This functions as the city’s “free cash”/ emergency “rainy day” fund. It serves as a reserve to protect municipal operations against unexpected revenue shortfalls. According to state rules, adding money to this fund requires a simple majority vote from the council, but withdrawing or spending from it demands a two-thirds supermajority vote. You’re invited! Malden Together A Community Planning Workshop Scan for more info: WHEN: Saturday, November 7, 2026, from 10 AM to 1 PM - Drop in Anytime WHERE: Malden Senior & Teen Center, 7 Washington Street, Malden, MA WHAT: Come share your ideas on planning the future of the City, on topics including: • Economic Development • Housing • Natural & Cultural Resources • Community Facilities & Public Services • Transportation & Circulation Online Survey Coming Soon https://shorturl.at/oPxlc Interpretation available upon request
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