Cambridge City Manager Yi-An Huang Submits Proposed FY27 Budget to City Council

Cambridge City Manager Yi-An Huang has announced the proposed Operating and Capital budgets for Fiscal Year 2027 (FY27), as well as the FY28-FY31 Operating and Capital Plans, have formally been submitted to the Cambridge City Council.

The submitted FY27 Operating and Capital Budgets reflect the City of Cambridge's commitment to providing exceptional City services, including supporting education, investing in critical infrastructure, and meeting the evolving needs and interests of the community. The submitted budget also reflects both citywide and department efforts to identify strategic and sustainable spending reductions and efficiencies going into fiscal year 2027. The budget process took place within the context of economic shifts and federal policies and actions that have demonstrated the potential to have a significant impact on the City's budget in FY27 and future years as well.

The proposed FY27 Operating Budget of $1,032,959,502 is an increase of $40,778,182 or 4.1% over the FY26 Adopted Budget. This is lower than both the 5-year average Operating Budget increase of 6.7% and the 10-year average increase of 6.1%.

The proposed Capital Budget totals $155,153,083. To support the General Fund Operating and Capital Budgets, the total projected property tax levy is $725.6 million. This is an increase of $46.8 million or 6.9%, from the FY26 property tax levy, and primarily reflects budget increases related to school department funding, salary and benefits increases, and increased debt service costs. The actual tax levy is determined in the fall as part of the property tax and classification process.

The FY27 Budget is highlighted by support for ongoing and expanded initiatives that align with community priorities and City Council goals, including:

• Developing and preserving affordable housing
• Funding educational and early childhood programs
• Investing in climate resilience and improving infrastructure
• Enhancing transportation and mobility
• Advancing economic opportunity and equity

The proposed Capital Budget of $155,153,083 includes major investments, such as:

• $12.4 million for remedial construction of sewer infrastructure
• $9.4 million for sewer and stormwater capital repairs
• $7.5 million for the Combined Sewer Overflow (CSO) Program
• $2 million for water works construction projects
• $500,000 for green stormwater infrastructure
• $500,000 for climate change resilience projects

A total of $90.3 million would be authorized for General Obligation Bond issues to fund significant building improvements as part of the Municipal Facilities Improvement Plan (MFIP), open space projects, Enterprise Resource Planning (ERP) modernization, complete streets projects, and school building repairs. The City's AAA bond rating lowers borrowing costs, saves taxpayer dollars, and is an indicator of the City's ability to maintain long-term financial sustainability and health.

This year's budget development process included significant efforts to make the overall process in the City clearer, more accessible, and more collaborative. In fall 2025, the City held several public meetings with the City Council related to the overall macroeconomic environment and impact on the City's budget; planning for the FY27 Operating Budget; Capital Budget and public investment planning; federal grant and ARPA funding updates; the Police Department budget; and future budget priorities.

In February 2026, the City also held two interactive community Budget Walk Through sessions to help residents understand how the budget is developed; learn how the budget aligns with City priorities and council goals; and provide opportunities for discussion and questions with key City staff from several departments.

Public Hearings Schedule

The City Council's Finance Committee will hold multiple public hearings on the FY27 Budget:

• Tuesday, May 5 at 9 a.m.
• Wednesday, May 6 at 6 p.m. (School Department)
• Tuesday, May 12 at 9 a.m.

The anticipated budget adoption date is Monday, June 1, 2026.

For more information on the FY27 Operating and Capital Budgets, please visit https://www.cambridgema.gov/Departments/Budget.

For more information, visit the Open Meeting Portal or download the FY27 Submitted Budget (PDF).