Cambridge Sets 9 Percent Debt Target as Capital Spending Tops $1.1 Billion

CAMBRIDGE — December 11, 2024 — Cambridge Finance Committee sets 9 percent debt target as five-year capital plan tops $1.1 billion. At a December 11 budget preview meeting, City Manager Yi-An Huang, Deputy City Manager Owen O'Riordan, and CFO Clare Spinner told the Finance Committee that Cambridge has already reduced planned FY2025-29 borrowing by approximately $55 million — through deferring the Lafayette Square Firehouse reconstruction to FY2030, cutting the complete streets program by roughly $40 million, and trimming open space projects by about $1 million — but that the city will still borrow in excess of $1.1 billion over the five-year window, driven largely by fire headquarters completion, the cycling safety ordinance's approximately $110 million Massachusetts Avenue program, and roughly $130 million in school-related spending. The city is proposing to hold net debt service below 9 percent of the operating budget, one percentage point below its formal 10 percent policy ceiling, to preserve a buffer for unexpected needs and moderate tax levy pressure. Mayor E. Denise Simmons pressed for a breakdown of the city's $24 to $27 million in annual federal grant exposure, noting that current projections do not account for potential Trump administration funding cuts. Finance Committee Co-Chair Councilor Patricia Nolan, summarizing the session, said projects may need to be built to "gold or silver" rather than "platinum and titanium" standards to keep capital spending manageable.