FAQs

Preparation of the City of Cambridge Annual Budget is governed by Massachusetts General Law, Chapter 44. The Fiscal Year 2013 (FY13) budget cycle commenced in
November, 2011. At that time Budget staff met with the City Manager and Finance Director to update the City's 5-year financial projections and establish general budgetary guidelines and limitations for the upcoming year. On December 7, 2011 the City Manager convened the annual budget meeting attended by all department heads and finance personnel. At this meeting the City Manager gave a general overview of the state of the economy, discussed the budget format and outlined specific guidelines for the preparation of departmental budgets.

The following guidelines for budget preparation were issued: Cost of Living Adjustments (COLA), pensions and health insurance can increase as required; the citywide goal is to submit a budget that supports City Council Priorities without increasing the number of city employees; all non-personnel operating items known to be increasing due to contractual terms, must be absorbed within the budget and not knowingly under-budgeted; budgets are to be level funded with no increases in other ordinary maintenance or travel accounts; major contracts for services must be reviewed to ensure that departments have sufficient funds to meet contractual needs; and extraordinary expenditures must be revised and
one-time items from the current fiscal year eliminated. 

Departments should expect that reductions can be made during the review process, either at the administrative or Council levels. Requests for new or expanded services should be submitted separately, outside the base budget, through a supplemental request memorandum. The Budget and City Manager's staff subsequently met with each department head to review the budget format and assist with the development and refinement of goals and performance measures. The current budget format contains narratives, goals and performance measures for each city department enabling the City Manager, city council, and citizens to better understand city services. Goals and performance measures are
quantifiable and concise with calculations of selected unit costs of services where applicable. During the budget process goals and measures may be eliminated, changed, or expanded as necessary making them more comprehensive, significant or illustrative of the services and programs provided by city departments.

By January 09, 2012 operating budgets, expenditure and revenue estimates, significant departmental accomplishments, and projections for the current fiscal year were submitted to the City Manager. From late-January to late March, each department made a presentation to the City Manager justifying proposed budget increases, decreases and program changes. The City Manager also reviewed goals and performance measures. Specific requests were negotiated during these sessions and appropriate revisions were made to the submitted budgets. It is important to note that at this stage of the process, the City Manager may increase or decrease budgets based on the priorities of the city council and the
administration.

During March and early April, Budget and City Manager staff finalized the annual budget document for submission to the city council. State law mandates Budget submission to the city council within 170 days of the council convening in early January. The City Manager submitted the FY13 budget to the city council on April 23, 2012. From May 1 – May 17, the city council held a series of public hearings to solicit citizen participation regarding departmental budget requests. The council has the jurisdiction to make reductions, but cannot increase the proposed budget without the consent of the City Manager. Following submission of the Budget, the city council has 45 days in which to act (June 7). The adoption
date for the FY13 budget was May 21, 2012. The FY13 Annual  Budget for the City of Cambridge becomes effective July 1, 2012.

The major financial rating agencies in the country (Moody's, Standard and Poor's and Fitch Ratings) have concluded that the city's finances are in the top tier of communities throughout the United States. This AAA rating from all three agencies is a significant accomplishment for the City and it reflects a great deal of hard work and discipline on the part of the Administration, the City Council and our Finance Department. In their latest rating, Standard and Poor’s affirmed its Financial management Assessment (FMA) of the City of “strong.” An FMA of “strong” indicates that practices are strong, well embedded and likely sustainable. 

The fiscal year runs from July 1, 2012 - June 30, 2013.

The total City Budget for FY13: $488,228,565.

 

Total number of full-time employees (excludes school department): 1,434

Department	Budgeted Amount
Animal Commission	$298,585
Cable TV	$1,436,360
Cambridge Health Alliance	$6,500,000
Cherry Sheet Assessments	$19,700,025
City Clerk	$1,067,130
City Council	$1,642,165
Community Development	$5,482,210
Conservation	$101,925
Debt Service	$47,526,975
Election	$1,004,285
Electrical	$2,792,005
Emergency Communications	$4,242,970
Employee Benefits	$31,796,130
Executive	$2,068,675
Finance Department
Administration	$570,550
Budget	$438,965
Personnel	$1,830,995
Assessors	$2,209,170
Purchasing	$740,340
Auditing	$875,340
Revenue	$1,068,820
Treasury	$666,380
Information Technology	$3,950,015
Total:	$12,350,575
Fire Department	$40,111,145
General Services
Telephone	$301,820
Mailing	$250,670
Printing	$173,985
Total:	$726,475
Historical	$587,025
Human Rights Commission	$220,160
Human Services	$22,480,760
Inspectional Services	$3,115,045
Law Department	$2,061,495
Library	$8,710,520
License	$986,140
Massachusetts Water Resources Authority	$21,006,055
Office of the Mayor	$554,040
Peace Commission	$139,595
Police Department	$45,643,095
Police Review & Advisory Board	$70,730
Public Celebrations
Cambridge Arts Council	$493,620
Holiday Celebrations	$45,750
Multicultural Arts Center	$200,000
Community Events	$60,000
Total:	$799,370
Public Works	$31,945,265
Reserve	$37,500
Schools	$144,987,705
Traffic,Parking & Transportation	$10,551,435
Veterans' Affairs	$981,165
Water Department	$14,144,080
Weights & Measures	$134,325
Women's Commission	$225,425

Taxes  $352,409,135

Licenses & Permits  $7,515,500

Fines & Forfeits $9,422,205

Charges for Services $69,593,055

Intergovernmental $38,147,710

Miscellaneous  $11,140,960

 

The total City Public Investment budget for FY13: $38,719,735

      Appropriations/Projects  Budgeted Amount 

      Acquisition of Personal Computers  $70,000

      Technology Upgrades/Enhancements   $145,000

      Fire Vehicles/Equipment   $1,245,000

      Fire Station Renovations     $25,000

      Police Station Building Systems $75,000

      Replacement of Street Lights/Poles $35,000

      Public Building Renovations  $2,278,000

      Energy/Transportation Improvements $425,000

      Street/Sidewalk Reconstruction $4,214,730

      Parking Improvements        $500,000

      Water System Improvements   $3,400,000

      Sewer Reconstruction         $17,037,645

      Traffic Calming   $300,000

      Waverly St Path Construction $332,000

      Design/North Massachusetts Avenue $250,000

      Facade improvement Program $100,000

      Employment Program Fund $355,000

      Housing Rehab & Development $807,030

      Neighborhood Business Development    $81,000

      Parks and Recreation    $1,673,000

      Accessibility Improvements $50,000

      Park and Cemetery Tree Pruning $100,000

      Public Art Conservation $30,000

     Bike Rack Program $50,000

     Kendall Square Surface Improvements $5,000,000

     Cable Equipment $141,330

 

Property  Taxes                          $1,225,000    

Parking Fund                               $850,000

Parking Fund Balance              $1,000,000              

Sewer Service Charge             $750,000

Water Service Charge             $3,400,000

 Block Grant                                $1,243,030

Chapter 90                                  $2,571,730

MWRA Grant                             $8,100,000

Resident Stickers                    $425,000

Roadway Reimbursement      $475,000

Street Preservation Offset Fund     $418,000

Bond Proceeds                        $17,442,670

War Memorial Recreation Center Fees      $28,000

Golf Course Fees                    $20,000

Sewer Reimbursement       $629,975

Cable License Fees                $141,330