Cambridge Awarded Three AAA Ratings for 23rd Consecutive Year. Nation's three major credit rating agencies affirm City's continued strong fiscal management despite economic challenges from COVID-19 pandemic.

The City of Cambridge has retained its distinction of being one of approximately 26 cities in the United States to earn AAA ratings from each of the nation's three major credit rating agencies. Since 1999, the city has received these noteworthy ratings annually from Moody's Investors Service, S&P Global Ratings, and Fitch Ratings.

"The City's extraordinary fiscal performance and stability should not be taken for granted," said City Manager Louis A. DePasquale, who will be retiring later this year. "It is the result of a collaborative effort between the city's finance team, city departments, and the City Council to maintain and follow strong fiscal policies and practices. Even as the city emerges from the most significant impacts of COVID-19, it will remain very important to maintain the fiscal framework that has served us well and allowed us to accomplish so much together. As reaffirmed from our AAA ratings, I believe our future is bright, and I am optimistic that the city will remain in a strong position to continue to support major new investments and initiatives, while maintaining fiscal stability and predictability for years to come."

Since March 2020, the city's priority has been to mitigate the spread of the virus that causes COVID-19 and provide critically needed services, particularly to the most vulnerable community members, including individuals, families, small businesses, and non-profit organizations. Throughout the COVID-19 pandemic, the city has also taken proactive steps to address fiscal uncertainties and shortfalls in several key revenues that remain below historical levels, including by reducing certain expenditures, carefully reviewing vacancies, and strategically using reserves.

At the same time, the city has maintained a high level of service to the community, created new initiatives, and continued its increased support for important city priorities and initiatives, including affordable housing, school services, library expansion, small business programs, traffic safety, open space, and climate initiatives.

The favorable credit ratings that the city has consistently received play a direct role in limiting the burden placed on taxpayers in the community, even throughout the COVID-19 pandemic. Major projects funded through General Obligation bonds related to our municipal facilities, streets and sidewalks, schools, and infrastructure are essential investments for the future and reflect City Council and community priorities. On March 2, 2022, the city will conduct a competitive sale of $92.3 million in new General Obligation bonds.

Capital projects funded in the upcoming bond issuance include Fire headquarters construction, fire station repairs; street and sidewalk reconstruction; River Street reconstruction; Tobin Montessori and Vassal Lane Upper Schools construction; school improvement projects; municipal facilities projects; sewer reconstruction and repairs; and climate change projects.

Examples of past or ongoing capital projects include an investment of over $500 million for three new schools, two of which are completed – the Martin Luther King Jr. and Putnam Avenue Upper Schools and the King Open and Cambridge Street Upper Schools and Community Complex -- and the final, Tobin Montessori and Vassal Lane Upper Schools Project, is currently underway. The city invested $13 million for improvements at City Hall, which are underway, and include the creation of a legislative floor, elevator replacement, and mechanical and electrical upgrades. The city is also investing $35 million in improvements to sewer, drainage, water, street, sidewalk and open space infrastructure in the Port neighborhood.

The Moody's, S&P's, and Fitch credit reports are available on the City’s website. The rating agencies highlighted the city's strong financial position; a large, stable, and diverse tax base; ample excess levy capacity under Proposition 2½; budgetary flexibility; and a strong and experienced management team.