Explore the FY26 Budget
View the FY26 submitted 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.
Tips and FAQs
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 vote to directly decide how to spend part of a public budget.
In the eleventh PB cycle (August 2024 – March 2025), 10,110 Cambridge residents age 12 and older voted to decide how to spend $1,060,000 on capital and operating projects to improve the community.
The following seven projects won $1,060,000 in FY26 funding:
- Improve Parks with Shade Structures and Seating ($250,000)
- Build a Pollinator Garden in a City Park ($75,000)
- Funding for High School Clubs ($150,000)
- Slower Speeds for Safer Streets ($250,000)
- Mobile Center for Hard-to-Recycle Items ($75,000)
- Welcome Baby Boxes for New Parents ($60,000)
- Electric Vehicle Chargers ($200,000)
Visit the Participatory Budgeting website to learn more about the PB process in Cambridge, past PB projects, how to get involved, and more!