Cambridge borrowing on pace to exceed debt limits by fiscal year 2028, staff warns

CAMBRIDGE -- March 19, 2024, Cambridge Finance Committee warned the city's debt is on track to breach its own policy limits by 2028 even before accounting for a list of major unfunded projects. City Manager Ian Lang and Deputy City Manager Owen presented a 14-slide capital budget overview to the eight-member committee chaired by Councillor Pickett, showing gross debt service rising to or past the city's 12.5 percent policy ceiling in FY2028 and FY2029. The five-year bond schedule already carries $299 million for the Tobin School rebuild and $63 million for a new fire headquarters, with $72 million in new borrowing proposed for FY25 alone. An unfunded project list on the right side of the committee's slide 13 includes a major schools renovation, a potential Central Square Library rebuild, First Street Garage structural repairs, a new combined sewer overflow program that could exceed the city's prior $200-plus million CSO effort, and municipal broadband estimated at $150 million to $200 million. Vice Mayor McGovern warned the spending climate represents "a belt-tightening like we haven't seen in a while" and called on staff to take the message to residents.