Cambridge City Council unanimously voted Monday to increase property taxes on residential properties by 7.3% and commercial properties by 10.1% amid concerns about the sustainability of the city’s growing budget.
The overall tax increase would be 9.21 percent, according to a report prepared by City Manager Ian Huang ahead of the meeting.
Huang said the tax increase is necessary because of Cambridge’s increasing budget and decreasing federal COVID-19 relief funds from the American Rescue Plan Act.
“This is the second year in a row that we have seen an above-average tax increase due to city budget growth,” Huang said at Monday’s meeting.
“In recent years, we have funded significant expansion of the program through both the federal ARPA budget and city budget growth,” he added.
This year’s bloated budget, reaching nearly $1 billion, has been the subject of consternation among city leaders in recent days.
Huang said the current situation is not dire, but the city needs to tighten up to avoid major cuts in the future.
“While we are not in any kind of fiscal crisis, we are reining in budget growth and prioritizing new investment to ensure sustained funding for all programs that are making a difference in our communities.” “It’s going to be very important to be able to do that,” he said.
Huang also noted that real estate prices in Cambridge remain low compared to other nearby cities such as Somerville, Boston and Brookline.
Councilman Paul F. Toner said during the meeting that the city needs to slow its budget growth because rapid tax increases are unsustainable.
“I know we all want to do a lot of great things for all of our residents, but I think we need to be more mindful as we move forward through the financial planning process. ,” Toner said. “The city has a very enviable tax system, but I don’t think people really like it when their taxes go up 7 to 8 percent every year.”
Councilwoman Catherine “Kathy” Zussie expressed particular concern about the city’s debt.
“I can’t sleep at night because 10 percent of my budget goes toward debt servicing,” she said.
“We currently owe $100 million in debt service,” she added, noting that the city currently owes a total of $930 million.
However, councilor Sumbul Siddiqui expressed optimism about the city’s financial situation, saying, “The debt is not enough to keep us up at night.”
“Councilor, Magnesium, that’s good,” she said to Zussie. “Please take that.”
Citing the downturn in regional commercial lab development, Siddiqui said he hoped the situation would improve in the future, saying, “I think the lab market will pick up again in a few years.”
Harvard University professor Suzanne P. Breyer, president of the Cambridge Citizens United, called the proposed tax increase “astonishing” during the public comment section of the meeting.
“This will have a significant impact on low- and moderate-income households in Cambridge, as well as individuals on fixed incomes and seniors,” she said.
Vice Mayor Mark C. McGovern said the City Council needs to prepare for a backlash from residents if it has to cut city programs.
“They’re going to say, ‘Don’t do that.’ These things are really important. And they’re going to put pressure on us,” McGovern said.
“It’s going to take a lot of discipline to deal with this issue, and the talks ahead will be even tougher,” he added.
—Staff writer Benjamin Isaac can be reached at benjamin.isaac@thecrimson.com. X Follow him at @benjaminisaac_1.
