By Debra Messick

CAMBRIDGE - In his last official meeting, outgoing City Manager Tom Carroll presented an upbeat final budget during a special Council work session Monday, April 29.

The FY ’24-25 draft budget maintains the real property tax rate in place for the previous two fiscal years, at $0.8096/$100 of assessed value. But due to increased revenues, the budget contains provisions for additional city staff and additional benefits, infrastructure equipment, capital improvements, flood mitigation efforts, nonprofit funding, and public art.

“Overall, the City of Cambridge has a much stronger financial position as we begin the next fiscal year and look ahead to fiscal year 2025-26,” Carroll wrote in the 114-page document’s introductory memorandum.

Calling the City’s General Fund revenue picture “outstanding,” Carroll credited two improving sources for driving the favorable balance.

First, property assessed valuation projected “to crest at $1 billion in FY ’25, a major threshold,” driven by increased housing construction and existing property appreciation, “adds well over $1 million to the City’s General Fund annually, even as the tax rate remains flat,” Carroll wrote.

Treasury interest earnings increased in FY ’24 “by about $565,000 through improved yield on investments,” he wrote. Together, the revenue sources have “provided the structural surplus the City has long needed to provide better pay and benefits for our employees, add staff, invest in equipment, and start to catch up on long-deferred basic infrastructure maintenance,” Carroll wrote.

Throughout the meeting Mayor Stephen Rideout and the five Commissioners at times asked questions, voiced support for, registered disagreement with, and even went “to bat” for a variety of budget related issues.

Acknowledging that he didn't have a vote, Rideout nevertheless expressed his position as “very much in favor” of two proposed expenditures, a Leonard's Lane sidewalk and $100,000 life insurance policies for all city employees.

Following a request to Council for such a policy for the Cambridge Police Department from FOP President Tom Hurley several weeks ago, Administrative Services Director Ina Bolden suggested implementing the policy across the board, budgeted at $34,000.

After Police Chief Justin Todd mentioned not seeing his requested drone funding in the budget, Fourth Ward Commissioner Sputty Cephas seemed intent on mounting a spontaneous grassroots campaign to redress that mission, drawing support for Todd and interest from other departments.

Within the document, budget highlights are organized according to the city’s five fund categories, General (largely operating), Special Projects (largely capital), plus the Sewer, Water, and Marina Enterprise funds.

The budget continues the FY ‘24 practice of creating financial reserve funds, including Rainy Day (two months of operating revenue), Debt, Shoreline Resiliency, Economic Development, Art in Public Places, and CWDI litigation.

“It is my full expectation and sincere hope that this reserve will not be spent on litigation,” Carroll wrote. But, citing “blustery letters threatening legal action against the City of Cambridge” by CWDI attorneys, he expressed the belief that having such a reserve was a prudent necessity.

Ward Five Commissioner Brian Roche questioned the need for the proposed $500,000 CWDI Litigation Reserve, suggesting the money could be used for many other needs, including the requested police drone. He also questioned the need to pay for additional counsel.

Chuck McFadden, Cambridge Association of Neighborhoods President, speaking during the public comment segment, admitted to being a “budget nerd.” But Carroll seemed to recognize that most people don't fall into that category.

“Like most municipal budgets, this document is full of tables, charts, spreadsheets, and jargon,” Carroll wrote. Most also are “not drafted for the average taxpayer to easily read and understand.”

Though laden with the requisite facts, figures, and expenditures organized into “hundreds of line items to account for expenditures properly,” Carroll and his team took pains to carefully guide the reader with explanations of budgetary lingo, and provide clear,‘user friendly’ numerical roadmaps.

Carroll thanked the team who had helped put the budget together. Along with senior staffers, they include new Finance Director Perry Peregoy and the City’s first full-time Stafford Fellow, Cameron Waters, a college student majoring in business and accounting, who was among the city's first Portia Johnson-Ennels Interns last year. He is also the grandson of School Board member and New Beginnings Director Dr. Theresa Stafford, who passed away in December 2023 and for whom the fellowship is named.

Carroll also paid tribute to former Finance Director Deborah Cooper, who also passed away as last year ended.

“Ms. Cooper led her team to receive an unqualified audit for FY ‘23, the highest level possible,” Carroll wrote. “She always urged me to do more for our front line employees; this draft budget incorporates her insights.”

A hard copy of the Budget and Capital Improvement Program compendium was available at the work session, which was open to the public. It can also be viewed online at https://www.choosecambridge.com under the menu item government-agendas and minutes.

The deadline for council to adopt the budget is July 1, 2024.