CAMBRIDGE — A few sentences into introducing Cambridge's proposed fiscal year 2026 budget, City Manager Glenn Steckman told those at a Cambridge City Council meeting April 28 that the city is financially stable.
"And I think that's very important," he said. "That does not mean that challenging times may not be in the city's future. However, we should look at the glass as half full."
During the meeting, Steckman detailed the city's proposed balanced $18 million general fund budget and discussed the city's four enterprise funds, which include sewer, marina, water and special projects funds.
Steckman called the fiscal year 2026 budget a "transitional budget" as COVID-19 relief funding through the American Rescue Plan Act comes to an end.
"This year's budget preparation included transitioning away from the ARPA funds," Steckman said. "These are once-in-a-generation funds that allow the city to pay salaries, support capital projects and fund nonprofit donations."
GENERAL FUND
According to the draft general fund budget, the city expects to bring in $9.84 million in taxes at the same tax rate it did last year, 80 cents per $100 of assessed value. With no plans to raise taxes, the city's budget stands in contrast with the county's.
In mid-April, the Dorchester County Council introduced a $91.96 million proposed operating budget for fiscal year 2026 with proposals to increase property taxes, remove the municipal tax differential, increase local income tax and eliminate tax rebates offered to municipalities.
In Cambridge, the proposed general fund budget includes a 3% raise for all city employees except Steckman and additional $3,000 raises for those in the police department so the positions stay competitive in the marketplace.
Steckman said the budget includes four new positions: a public information officer, code officer, housing adviser and GIS technician.
Steckman said the housing adviser will act as an advocate for renters in Cambridge.
CAPITAL PROJECTS
Although the city is not facing the same kinds of budget concerns the county is facing, Steckman said the city has $23 million in capital needs. He said the city will seek grants to help address this but that probably won't be enough.
Currently, the city has budgeted $2.1 million for capital projects in fiscal year 2026.
Steckman said the mayor and commissioners will "seriously" have to look into borrowing or obtaining a bond of $1.5 million to replace the HVAC system at the city's public safety complex on Washington Street and at least $8 million to renovate the historic city hall on Gay Street.
"We cannot get grants or anywhere enough grants to offset these costs," Steckman said. "And these costs are only rising each year that we don't address them."
Steckman said the city will begin setting times to meet with City Council about the budget.
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