City Manager's Message

Following the recent adoption of the budget by the City Council, we wanted to ensure that the community had a better understanding of the budget, the process, the city’s biggest investments, key initiatives, and what should be expected in the future. This issue of CityView is exclusively focused on those areas and more.

After starting the Fiscal Year 2025 (FY25) budget process on December 5, 2023, I proudly submitted my second budget to the City Council on April 29, 2024. Having gone through the process for the first time as City Manager last year, I had a greater appreciation for the process and the dedicated city leaders, teams, and staff members, who work incredibly hard every day to maintain and build a stronger, more equitable, and thriving City.

The FY25 goal was to submit a budget to the City Council that supports Council priorities and programmatic and operational needs. Several processes are used to guide the City’s overall strategic planning efforts, all of which help guide budgetary decision making, and to varying degrees consist of community input, goals, objectives, and implementation strategies. Those processes include City Council goals and policy orders, finance committee hearings, the annual resident survey, and a vast array of city plans (such as the Cambridge Public Schools District Plan, Envision Cambridge, Climate Protection, Departmental Strategic Plans, Vision Zero, and more).

Building off what we started in the FY24 budget process, this year’s budget process included close collaboration with Finance Committee Co-Chairs and more public hearings than prior years which covered the operating budget, capital budget, police budget, and updates on federal ARPA funding. Upon the completion of that process, the budget was formally adopted by the City Council on June 3, 2024.

How we spend our money reflects our priorities and values as a community. The FY25 Operating ($955.6M) and Capital ($74.9M) Budgets include significant investments in many programs and initiatives including:

Affordable housing and supporting our unhoused community

Affordable housing continues to be a top priority for the City. $47 million will be allocated for this purpose in FY25. This amount has tripled over the last five years and represents one of the largest budget priorities in our annual operating budget. The City also allocated significant funds – a total of $16 million in FY25 – to maintain shelter capacity, homeless outreach, social services, and high intensity case management through the City Manager’s Housing Liaison Office.

Cambridge Preschool Program (CPP)

Beginning in Fall 2024, the Cambridge Preschool Program will provide access to free, high-quality programming across Cambridge Public Schools (CPS) preschools, Department of Human Services Program (DHSP) preschools, and community programs. Total FY25 funding for the program is $34 million making this significant investment one of the largest financial investments across the City’s FY25 Budget.

Climate Resilience

The City is funding $21 million towards Climate Resilience and another $17 million to help address its Climate Net Zero goal. In response to the growing importance and multifaceted nature of the City’s climate initiatives, the City is introducing a new Chief Climate Officer role in FY25, who will lead the City’s new Office of Sustainability.  FY25 expenditures include $20 million in funding for open space primarily focused on preserving and revitalizing key public spaces, including the public cemetery, Danehy Park, and local parks needing repairs. Increased funding will also be allocated for Urban Forestry.

Safer Streets and Infrastructure

We continue to invest in our urban infrastructure to repair damaged roads, conduct reconstruction of streets and sidewalks, improve accessibility, address dangerous intersections, and expand protected bike lanes. Of the $33 million in total funding that will be allocated for Vision Zero and traffic safety, $20 million will be directed to total infrastructure projects and $13 million to programs and planning across various City departments.

Anti-Racism, Equity and Inclusion Programs

Funding for anti-racism, equity, and inclusion programs has increased with $7.6 million allocated in FY25. The newly formed Office of Equity and Inclusion – a standalone department – has made significant investments in employee engagement, improved processes for investigating and addressing complaints, developed clearer formal policies, and established more inclusive governance over its work.

In order to meet these and many more important community needs, the FY25 Operating Budget increased 8% over the FY24 Adopted Budget. Our strong financial position, fiscal policies, and management practices have allowed us to continue to make major investments in the community and sustain the ability to meet current and future needs.

While we are optimistic about our financial outlook, we also recognize we have to remain cognizant of outside factors and trends that could impact the City’s finances.

I’m looking forward to working closely with City leadership, staff, and the City Council to ensure that we continue to build a Cambridge that works for all and acts as a leader in effective and innovative city management.