Explore the FY25 Budget
view the FY25 budget book
The primary responsibility of the Budget Department is to prepare the annual operating and capital budgets for submission by the City Manager to the City Council as required by Chapter 44 of the Massachusetts General Laws. In order to produce a fiscally sound budget for an upcoming fiscal year, it is necessary to consistently monitor and analyze the activities of the current fiscal year as well as those of prior fiscal years to detect trends in both revenue and expenditure categories which may have an impact on future budgets.
The Budget Department is also involved in the preparation of official statements and other related documents for bond sales, calculation of the tax rate, grant reconciliations, CPA analyses, maintaining the computerized benchmark system, preparation of financial statements, which are the basis for the Comprehensive Annual Financial Report (CAFR), and the preparation of appropriation and transfer recommendations. The above-mentioned documents have a direct impact on the City's budget and it is essential that they be prepared in a timely and efficient manner. Office staff continually work with each department and members of the public providing financial information and advice.
City's Bond Rating
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 the Finance Department. In their latest rating, Standard and Poor’s affirmed its Financial Management Assessment (FMA) of the City as “strong.” An FMA of “strong” indicates that practices are strong, well embedded, and likely sustainable.
Participatory Budgeting
Participatory Budgeting (PB) is a democratic process through with community members directly decide how to spend part of a public budget.
In the tenth PB cycle (September 2023 – March 2024), 10,522 Cambridge residents age 12 and older voted to decide how to spend $2,065,000 on capital and operating projects to improve the community – the most votes yet in a PB process in Cambridge.
The following 8 projects won $2,065,000 in FY25 Funding:
- Free Menstrual Care and Infant Hygiene Products ($85,000)
- Additional Supplies for Unhoused Residents ($50,000)
- Expanding Space for Street Trees ($100,000)
- Improve Safety for Pedestrians ($400,000)
- Smart Traps for Rat Reduction ($360,000)
- Smart Recycling and Trash Compactors ($120,000)
- Shaded Seats on Hot Streets ($450,000)
- Public Toilet for Park Upgrade ($500,000)
The City of Cambridge has launched the eleventh cycle of Participatory Budgeting in fall of 2024 and is currently in the Proposal Development stage! Visit the Participatory Budgeting website to learn more about the current cycle, past PB projects, how to get involved, and more!