While the Operating Budget funds the City's day-to-day services, the Capital Budget invests in the long-term infrastructure that keeps Cambridge running.
These investments support projects that improve roads, bridges, schools, parks, public buildings, water systems, and other community assets that residents rely on every day. Because these projects often take years to complete and provide benefits for decades, they require careful planning and long-term financial management.
The FY27 Capital Budget invests $155.2 million in projects that improve public infrastructure, strengthen climate resilience, and modernize City facilities across Cambridge.
Investing in Essential Infrastructure
Maintaining and improving infrastructure is one of the City's most important long-term responsibilities. The FY27 Capital Budget includes major investments to improve underground utilities, reduce flooding, and protect water quality, including:
- $12.4 million for remedial construction projects
- $9.4 million for sewer and stormwater improvements
- $7.5 million for Combined Sewer Overflow (CSO) projects
- $500,000 for green stormwater infrastructure
- $500,000 for climate resilience initiatives
Together, these projects help modernize aging infrastructure while preparing Cambridge for the impacts of more frequent severe weather.
Investing Across the Community
The City also authorized $90.3 million in bonds to support major capital improvements throughout Cambridge.
These investments will help renovate municipal buildings, improve parks and open spaces, urban forestry, modernize the City's Enterprise Resource Planning (ERP) system, advance Complete Streets projects that improve safety for all users, and maintain and improve school facilities.
The budget includes $11.2 million in Pay-As-You-Go funding, allowing the City to pay directly for certain one-time projects without borrowing. Using cash when appropriate helps reduce future debt costs and provides greater financial flexibility.
Investing in Reliable Water Service
Separate from the City's general capital program, water infrastructure projects are funded through water service charges and water bonds.
FY27 investments include $2 million for water system construction and $310,000 to replace an ozone generator used in the City's water treatment process, helping ensure residents continue to receive safe and reliable drinking water.
Planning for the Long Term
Every capital project is carefully evaluated to balance today's infrastructure needs with tomorrow's financial responsibilities. By planning projects over many years, coordinating investments across departments, and maintaining infrastructure before it fails, Cambridge is able to protect public assets, reduce long-term costs, and continue building a stronger, more resilient community.