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ADOPTED[ROLL CALL]
BY MASSACHUSETTS GENERAL COURT AND APPROVED BY THE GOVERNOR.THE CITY IS AUTHORIZED TO USE REMOTE PARTICIPATION AT MEETINGS OF THE CAMBRIDGE CITY COUNCIL AND ITS COMMITTEES.
PLEASE NOTE THAT THE CITY OF CAMBRIDGE AUDIO AND VIDEO RECORDS THIS MEETING AND MAKES IT AVAILABLE TO THE PUBLIC FOR FUTURE VIEWING.
IN ADDITION, THIRD PARTIES MAY ALSO BE AUDIO AND VIDEO RECORDING THIS MEETING.
IN ADDITION TO HAVING MEMBERS OF THE COUNCIL PARTICIPATE REMOTELY, WE HAVE ALSO SET UP ZOOM TELECONFERENCE FOR PUBLIC COMMENT.
EACH SPEAKER WILL HAVE THREE MINUTES.
IF YOU WOULD LIKE TO PROVIDE PUBLIC COMMENT, PLEASE VISIT THE CITY COUNCIL SECTION OF THE CITY'S WEBPAGE.
INSTRUCTIONS FOR HOW TO SIGN UP TO SPEAK ARE POSTED THERE.
ONCE YOU HAVE COMPLETED SIGNUP PROCEDURE, YOU'LL RECEIVE A LINK TO THE ZOOM MEETING.
TO WATCH THE MEETING, PLEASE TUNE INTO CHANNEL 22 OR VISIT THE OPEN MEETING PORTAL ON THE CITY'S WEBSITE.
WITH THAT, ALL OF TODAY'S VOTES, IF ANY, WILL BE BY ROLL CALL.
THE ORDER OF TODAY'S MEETING WILL BE QUICK OPENING REMARKS FROM MYSELF AND CO-CHAIR COUNCILLOR NOLAN IF SHE WISHES A PRESENTATION FROM OUR FINANCE TEAM AND CITY MANAGER IF HE'LL BE JOINING US.
PUBLIC COMMENT AND THEN COUNCIL DISCUSSION.
SO WE'LL, WE'LL DIVE RIGHT IN AS WE JUMP INTO TODAY'S MEETING.
I WANNA REMIND US THAT TODAY'S MEETING IS A PART OF A SERIES OF MEETINGS THAT WILL HELP COUNCIL INFORM LONG-TERM PLANNING OF OUR CITY.
THE MATERIAL YOU HAVE ON THE PRESENTATION SHARES MORE ABOUT THE CAPITAL BUDGET CONVERSATION, BOTH IN WHAT IS GOING ON RIGHT NOW, WHAT IS HAPPENING, AND THEN ALSO IN THE LONG TERM, IT'S IMPORTANT FOR US TO HOLD THIS WITH OUR OPERATING BUDGET.
SEE, FOR ME, I'LL BE FOCUSED ON HOW WE CAN NAVIGATE OUR CAPITAL BUDGET SO THAT IT'S SO THAT WE ENSURE IT'S REFLECTIVE OF HOW WE CAN INVEST IN PUBLIC GOOD, ESPECIALLY WHEN IT COMES TO TOPICS LIKE HOW WE CAN DO MORE TO TREAT THINGS SUCH AS HOUSING AS A HUMAN RIGHT AND PARTNERSHIP WITH ORGANIZATIONS, STATE LEVEL WORK AND BEYOND.
I WILL TURN THE FLOOR NOW OVER TO CO-CHAIR COUNSELOR NOLAN, IF YOU HAVE ANY OPEN OPENING REMARKS YOU WANNA SHARE.
UH, THANK YOU CO-CHAIR ZUBE, EXCITING THAT YOU ARE LEADING THIS EFFORT.
I'M VERY HAPPY TO BE WORKING WITH YOU AS CO-CHAIR OF THE FINANCE COMMITTEE.
UM, AS YOU NOTED, THIS IS IN LINE WITH LONG-TERM COUNCIL GOALS TO HAVE CONVERSATIONS ABOUT THE BUDGET EARLIER THAN, UM, IN THE PAST.
AND WE ARE MOVING FORWARD IN LINE WITH THE CHARTER CHANGES THAT ALSO HAVE SOME VERY SPECIFIC RECOMMENDATIONS ABOUT HOW IT IS THAT THE BUDGET, BOTH THE CAPITAL AND THE OPERATING BUDGET, ARE A COLLABORATION WITH THE CITY ADMINISTRATION AND ONLY CITY COUNCIL.
THE ONLY THING I WOULD, UH, ALSO ADD IS GREAT GRATEFUL APPRECIATION FOR THE CITY WHO HAS TAKEN THE STANCE THAT THE CAPITAL PROJECTS IN TERMS OF SCOPING AND SEQUENCING, ARE NOW BEING VIEWED WITH A LENS THAT IS DIFFERENT THAN MIGHT HAVE BEEN IN A, IN A TIME WHEN THE CITY DID NOT HAVE THE FINANCIAL CONSTRAINTS WE'RE SEEN.
SOME OF THE PROJECTS ARE BEING REVIEWED TO MAKE SURE THAT THEY ARE IN LINE WITH OUR NEEDS AS A CITY, BOTH FINANCIALLY WITHOUT COMPROMISING WHAT NEEDS TO ACTUALLY HAPPEN, BUT RECOGNIZING THAT THERE ARE CONSTRAINTS THAT ARE IMPORTANT TO BEAR IN MIND.
SO I REMIND OUR COLLEAGUES ABOUT THAT AND IT'S OUR JOB TO, AFTER THIS PRESENTATION, THINK ABOUT HOW IT IS THAT WE WILL SEQUENCE AND PRIORITIZE PROJECTS AS, UH, CHAIR ZUBI NOTED, THERE ARE A NUMBER OF INITIATIVES WE WANNA DO AND WE WILL HAVE TO FIGURE OUT HOW WE CAN FIT IN THE CAPITAL BUDGET, UH, BOTH FROM A STRICT FINANCIAL PERSPECTIVE AND ALSO SEQUENCING IN TERMS OF TIMING, WHICH WE'LL HEAR ABOUT DURING THE PRESENTATION.
THANK YOU CO-CHAIR, NOLAN, IT'S ALSO GREAT TO WORK WITH YOU AS WELL, AND ALSO GREAT TO HAVE YOU HERE AS WELL, SUPPORTING THE WORK AND, AND, AND BRINGING US TOGETHER ON THIS PRESENTATION.
I WILL TURN OVER THE FLOOR TO YOU ALL TO LEAD US IN THE PRESENTATION.
I'M JUST GONNA CALL COUNCILOR SIMMONS.
NAOMI, WE CAN START WITH THE PRESENTATION WHEN YOU'RE READY.
JUST BEFORE WE DO, I'D LIKE TO ACKNOWLEDGE THAT IVY WASHINGTON, WHO'S THE C-O-C-F-O FOR SCHOOLS, IS ALSO ON THE ZOOM.
[COMMUNICATIONS FROM OTHER CITY OFFICERS]
SO AS, UM, WE'RE PULLING UP THE PRESENTATION, WE CAN GO AHEAD TO THE EXECUTIVE SUMMARY, AND I WON'T READ THROUGH THIS, BUT JUST WANNA REALLY ACKNOWLEDGE THE, THE SIGNIFICANT AMOUNT OF WORK.AND I THINK, YOU KNOW, COUNCILLOR NOLAN TALKED ABOUT, YOU KNOW, SOME OF THE CHANGES AS WE'VE BEEN APPROACHING THE CAPITAL PLAN.
AND SO WE REALLY WANNA SPEND SOME TIME ON THAT.
AND THEN, YOU KNOW, REALLY LOOKING FOR FEEDBACK FROM THE COUNCIL ABOUT, YOU KNOW, HOW WE CONTINUE THIS CONVERSATION.
SO REALLY RECOGNIZE THAT THERE'S BEEN A LOT OF WORK DONE, UM, TO GET US TO THIS POINT, GET US INTO THE SUBSTANCE OF THIS PRESENTATION, BUT ALSO REALLY APPRECIATE THAT, YOU KNOW, THIS IS A CONVERSATION THAT IS GONNA CONTINUE.
AND SO, UM, AND I'D ALSO SAY THAT, YOU KNOW, WE HAVE A LOT OF INFORMATION IN HERE.
IT'S REALLY TRYING TO GIVE SOME BROAD BUCKETS OF INFORMATION, NOT NECESSARILY, UM, A LOT OF SPECIFICS ABOUT INDIVIDUAL PROJECTS.
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HIGHLIGHT SOME PROJECTS TO SORT OF, YOU KNOW, GO THROUGH THESE ARE THE TYPES OF THINGS THAT WE'RE TALKING ABOUT WHEN WE'RE TALKING ABOUT CAPITAL, WHEN WE'RE TALKING ABOUT THE DIFFERENT TYPES OF SPENDING THAT WE'RE DOING.UM, BUT AGAIN, JUST SORT OF HIGHLIGHTING SOME OF THOSE PROJECTS FOR CONTEXT.
AND THEN AGAIN, REALLY FOCUS ON SOME OF THE CHANGES THAT WE'VE TAKEN, UM, WITH THE PROGRAM.
AND THEN THE OTHER THING I WANNA JUST HIGHLIGHT IS, UM, WE DO HAVE LOIS WU WHO'S IN THE BACKGROUND BACK BEHIND US, AND, UM, SHE'S A NEW PERSON IN, UM, ASSISTANT MINI ASSISTANT CITY MANAGER SPINNERS TEAM THAT'S REALLY MANAGING PUBLIC INVESTMENT.
AND SO AS WE'VE BEEN GETTING INTO THIS WORK, REALLY UNDERSTANDING THAT THE CAPITAL BUDGET HAS BECOME MUCH MORE COMPLEX, MUCH LARGER, AND THAT WE NEEDED TO MANAGE IT DIFFERENTLY AND THINK ABOUT WHAT ARE THE RESOURCES THAT WE'RE BRINGING TO THIS TEAM.
AND SO IT'S BEEN REALLY EXCITING TO HAVE LOIS BE ABLE TO REALLY COMPLIMENT THE WORK OF THE BUDGET TEAM AND THE FINANCE TEAM AND SORT OF HAVE MORE RESOURCES AND MORE TECHNICAL ABILITIES TO REALLY DIG INTO SOME OF THIS INFORMATION.
UM, SO WE CAN GO AHEAD TO THE NEXT SLIDE.
AND AGAIN, THIS IS REALLY FOLLOWING UP ON THE CONVERSATION WE HAD LAST WEEK ABOUT THE OPERATING BUDGET.
WE JUST WANNA TAKE A LITTLE BIT, UH, YOU KNOW, A QUICK SECOND TO TALK ABOUT THE DIFFERENCE BETWEEN THE OPERATING BUDGET AND THE CAPITAL BUDGET.
SO, YOU KNOW, THE OPERATING BUDGET IS SORT OF FUNCTIONING ON YOUR DAY-TO-DAY EXPENSES.
THEY'RE GENERALLY LIKE WITHIN THE EXISTING FISCAL YEAR, SO IT'S LIKE MONEY THAT YOU'RE EXPECTING TO SPEND THAT FISCAL YEAR AND, YOU KNOW, COVER THINGS LIKE SALARIES, BENEFITS, SUPPLIES AND TRAINING.
SO THOSE SORT OF ANNUAL EXPENSES.
UM, THE CAPITAL SIDE, WHICH AGAIN IS THE FOCUS FOR TODAY, IS REALLY LOOKING AT LONGER TERM INVESTMENTS.
SO WE'RE THINKING ABOUT, YOU KNOW, CONSTRUCTION OF BUILDINGS, PARKS, STREETS, SEWERS, UM, LARGE EQUIPMENT PURCHASES, THOSE KIND OF LONGER TERM INVESTMENTS.
UM, AND THOSE FUNDS CARRY OVER UNTIL THE PROJECT IS COMPLETED.
SO WE APPROPRIATE IT ONE YEAR AND WE CAN CONTINUE TO SPEND ON IT UNTIL THE PROJECT IS COMPLETED, KNOWING THAT THESE ARE LONGER TERM TYPE PROJECTS AND INVESTMENTS.
UM, AND TYPICALLY THE BULK OF THOSE ARE FUNDED THROUGH BOND PROCEEDS.
AND WE'RE GONNA TALK A LITTLE BIT ABOUT TODAY ABOUT, WE HAVE TWO DIFFERENT TYPES OF BOND PROCEEDS.
SO THERE'S THE TAX SUPPORTED BOND PROCEEDS, AND THEN THERE'S ALSO THINGS THAT COME FROM CHARGES LIKE THE WATER AND SEWER RATE.
AND SO WE ALSO HAVE BONDING THAT, UM, SUPPORTS THOSE PROJECTS AS WELL.
AND THEN COMES OFF OF THE SEWER AND WATER RATE.
GO TO THE NEXT SLIDE AND THEN JUST WANNA SORT OF TALK ABOUT LIKE WHAT'S THE LIFECYCLE AND, YOU KNOW, WHAT DO YOU SEE AS PART OF THE BUDGETING PROCESS WHEN WE TALK ABOUT THESE PROJECTS? SO EVERY YEAR WE HAVE THE BUDGET THAT IS APPROVED.
IT HAS SPECIFIC PROJECTS IN THERE.
SO THERE IS A LOAN AUTHORIZATION THAT GOES WITH THOSE.
AND SO IT SAYS, YOU KNOW, WE HAVE A $90 MILLION CAPITAL PROJECT, WE HAVE A LOAN AUTHORIZATION, AND THEN WE DO THE ACTUAL BOND SALES.
SO THE BOND SALES ARE REALLY TIED TO THE CASH FLOW OF THE PROJECTS, HOW QUICKLY WE'RE GONNA SPEND THAT MONEY.
SO WE SELL THE BONDS AS THE CONSTRUCTION IS PROCEEDING, AND THEN THE DEBT SERVICE AND PAYMENTS.
AND THAT'S WHERE AGAIN, THERE'S THIS DIRECT CONNECTION BETWEEN THE CAPITAL BUDGET AND THE OPERATING BUDGET THEN HITS ON THE OPERATING AS WE HAVE TO PAY BACK THOSE LOANS.
SO AGAIN, THIS IS VERY SIMILAR TO WHAT WE TALKED ABOUT LAST WEEK IN THAT WE HAVE TO HAVE A BALANCED BUDGET.
SO WE LOOK AT OUR TOTAL REVENUE, WE LOOK AT OUR TOTAL EXPENDITURES, YOU CAN SEE THAT ORANGE PIE IS ABOUT 11%, IS THERE A TOTAL DEBT SERVICE? UM, AND THAT'S REALLY BROKEN UP INTO THOSE TWO DIFFERENT BUCKETS.
SO 8.4% IS REALLY COMING FROM TAX SUPPORTED TAX BONDS.
AND THEN THE OTHER IS COMING FROM, UM, WATER AND SEWER RATE.
AND SO THERE'S AGAIN, THAT BALANCE BETWEEN THOSE TWO DIFFERENT TYPES OF BONDS THAT WE'RE SELLING.
AND THIS IS REALLY A DETAILED SORT OF PROJECTION OF WHAT DOES THAT, HOW DOES THAT SORT OF TIMELINE LAY OUT? SO IN THIS SCENARIO, WE HAVE A $90 MILLION PROJECT THAT COUNCIL APPROVES AN FY 27 BUDGET.
SO THEY ISSUE A LOAN AUTHORIZATION AND THEN AS WE TALKED ABOUT, WE'RE GONNA SELL THE BONDS AS WE NEED THEM FOR THE PROJECT.
SO IN FY 27, WE'RE GONNA SELL $30 MILLION BONDS.
WE HAVE TO START PAYING THOSE IN F FY 28.
AND THEN THE NEXT YEAR IN FY 28, WE'RE GONNA SELL ANOTHER, UM, SERIES OF BONDS, START PAYING THOSE IN FY 29.
AND THEN THE THIRD SERIES WOULD BE AN FY 29 THAT HITS AN FY 30.
AND THIS IS REALLY JUST TO HIGHLIGHT THE FACT THAT, YOU KNOW, FROM A BUDGET PERSPECTIVE, YOU'LL SEE THE BUDGET A PROJECT IN THE CAPITAL BUDGET IN THE FY 27 BUDGET, BUT IT CONTINUES TO BE ON THE OPERATING BUDGET THROUGH FY 39 WHEN WE COMPLETE THE PAYOFF OF ALL OF THOSE BONDS.
AND THEN VERY SIMILAR TO, YOU KNOW, WHEN WE BORROW MONEY FOR A MORTGAGE, IT INCLUDES INTEREST.
AND SO, YOU KNOW, THE $90 MILLION THAT WE AUTHORIZED, YOU KNOW, ENDS UP BEING ABOUT $109 MILLION THAT WE'VE REPAY JUST LIKE YOUR HOUSE MORTGAGE.
BUT AGAIN, THIS IS REALLY JUST TRYING TO GIVE THE SENSE OF WHAT IS THE TIMELINE
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AND HOW ARE WE STILL SEEING, YOU KNOW, IMPACT OF PROJECTS THAT WE, YOU KNOW, APPROPRIATED AND TALKED ABOUT FIVE YEARS AGO.SO WE JUST WANNA BE REALLY CLEAR THAT THESE PROJECTS CONTINUE TO BE ON THE OPERATING BUDGET.
SO YOU CAN GO ON THE NEXT SLIDE.
UM, SO THIS IS REALLY FOCUSED ON THE WATER AND SEWER RATE.
SO THE BULK OF THE PRESENTATION AFTER THIS IS FOCUSED ON THE TAX SUPPORTED DEBT.
UM, BUT WE DO WANNA REALLY GO THROUGH A LITTLE BIT ABOUT PROJECTS THAT ARE FUNDED FROM WATER AND SEWER.
AND SO THOSE TEND TO BE LARGE CAPITAL PROJECTS LIKE, UM, PARKING LOT SIX STORMWATER TANK IN THE PORT THAT WE COMPLETED, YOU KNOW, A COUPLE YEARS AGO THAT'S REALLY DIRECTLY RELATED TO REDUCING FLOODING IN THE PORT.
WE HAVE ADDITIONAL WORK THAT'S, UH, SCHEDULED TO START IN THE NEXT COUPLE MONTHS IN THE PORT CONTINUING THAT WORK.
AND THAT IS ALL BEING FUNDED THROUGH BONDS THAT ARE SUPPORTED BY THE SEWER RATE.
AND SO WE THINK ABOUT, YOU KNOW, HOW DO WE BALANCE THAT GROWTH, THOSE DEBT VERSUS HOW DO WE SEE THOSE INCREASES ON THE SEWER SIDE? IT ALSO PAID FOR WEST CAMBRIDGE SEWER SEPARATION.
THIS IS AN EXAMPLE OF THE 66 INCH TRANSMISSION MADE ON HURON AVENUE THAT WAS UPGRADED AS PART OF THAT.
AND WHEN WE'VE LOOKED AT THIS SORT OF LIKE FIVE YEARS PREVIOUS, LIKE THE LAST FIVE YEAR BUCKETS, WE'VE SEEN ABOUT A 4.3% GROWTH RATE.
AND SO THAT IS ACTUALLY A LITTLE UNDER SOME OF THE CONSTRUCTION INFLATION RATES.
AND SO THE GROWTH WE'VE SEEN THERE PRETTY MUCH ALIGNS WITH, UM, INFLATION.
AND THIS IS AN AREA WHEN PEOPLE TALK ABOUT, UM, THE OTHER CSO, THE COMBINED SEWER OVERFLOW PROGRAM, UM, THAT IS WHERE THAT THOSE IMPROVEMENTS ARE FUNDED.
AND SO AS WE LOOK AT THE PROJECTIONS FOR THE SEWER BONDING, WE'RE LOOKING AT, YOU KNOW, A MINIMUM OF ABOUT $30 MILLION A YEAR TO CONTINUE THE WORK THAT WE'VE BEEN DOING ON SEWER SEPARATION, REDUCING COMBINED SEWER OVERFLOWS TO THE EL WIFE AND AND THE CHARLES.
AND SO THAT IS WHERE THAT THOSE FUNDS ARE MANAGED FROM.
UM, AND YOU KNOW, WE WORK HARD TO HAVE A CONSISTENT, PREDICTABLE RATE INCREASE, YOU KNOW, AND I THINK IN THE LAST COUPLE YEARS AND AS WE PROJECT OUT, WE'RE SORT OF IN THAT 7% INCREASE.
AND SO WE'RE ALWAYS LOOKING TO HAVE PREDICTABILITY THERE.
I KNOW OTHER COMMUNITIES HAVE HAD VERY LOW RATES, BUT THEN YOU MIGHT HAVE A 45% RATE INCREASE ONE YEAR.
AND SO WE'RE MUCH MORE COMMITTED TO LIKE HAVING LONG-TERM THINKING AND MAKING SURE THAT PEOPLE HAVE, YOU KNOW, RELIABLE AND PREDICTABLE SEWER AND WATER RATE INCREASES.
SO NOW THIS IS ON FOCUSED ON THE TAX SUPPORTED DEBT.
AND SO THERE'S LIKE DIFFERENT CATEGORIES OF THINGS THAT WE'RE FUNDING THROUGH THAT WE SORT OF START AT THE BOTTOM.
WE HAVE THE LARGE SCHOOL PROJECTS.
UM, AND SO WE'VE SPENT A LOT OF TIME TALKING ABOUT THOSE WITH THE RECENT BEING THE TOBIN.
UM, WE HAVE MUNICIPAL BUILDINGS, UM, WE HAVE STREETS AND STREETS COVERS A COUPLE DIFFERENT THINGS.
SO SOME OF IT IS ABOUT SOME OF THE RECENT, UM, IMPLEMENTATION OF THE CYCLING SAFETY ORDINANCE AS WELL AS GENERAL COMPLETE STREETS, NEIGHBORHOOD RECONSTRUCTION, SIDEWALK CONSTRUCTION, UM, AND THEN OPEN SPACE AND PARKS IS A MUCH SMALLER SLIVER.
AND THEN GENERAL SCHOOL IMPROVEMENTS, WHICH TEND TO BE SMALLER PROJECTS, NOT THE BIG CAPITAL, BUT THE WORK REQUIRED TO KEEP INVESTING IN THE BUILDINGS AND CONTINUE TO HAVE THEM OPERATE.
SO SOME OF THESE ARE NOT AS SEXY AS THE ONES WE SPEND A LOT OF TIME ON, AND SO WE REALLY JUST WANNA SPEND A LITTLE BIT OF TIME GOING THROUGH THOSE AS WELL.
UM, AND THIS IS REALLY THINKING ABOUT, YOU KNOW, OUR OPEN SPACE AND PATH PROJECT.
SO WE CONTINUE TO INVEST IN THOSE PEOPLE.
HAVE, YOU KNOW, A RECENT, UM, SURVEY, I THINK THERE WERE 75% OF RESIDENTS WERE POSITIVE ABOUT OUR OPEN SPACE IN THE CITY.
WE KNOW IT'S A BIG PART OF WHAT MAKES THE COMMUNITY, UM, REALLY FEEL LIKE A COMMUNITY AND HAVE SPACES WHERE PEOPLE CAN GATHER.
AND SO WE CONTINUE TO INVEST IN THOSE PROJECTS.
UM, AND I THINK, YOU KNOW, COUNCILOR NOLAN TALKED ABOUT THIS, THIS IS ONE OF THE AREAS WHERE WE'RE REALLY THINKING CAREFULLY ABOUT WHAT ARE THE SCOPE OF THOSE PROJECTS, WHEN DO WE NEED TO DO THEM? WHEN CAN WE DO MORE MAINTENANCE SCALE PROJECTS VERSUS THE FULL RECONSTRUCTION PROJECTS? SO THOSE ARE THINGS THAT WE'RE CONTINUING TO LOOK AT AS WE'RE GOING THROUGH THESE PROJECTS.
THE EXAMPLE HERE, THE PHOTOS ARE FROM THE PEABODY SCHOOL PLAYGROUND, YOU KNOW, WHICH WAS ABOUT A MILLION DOLLAR PROJECT THAT WAS RECENTLY REDONE, UM, AND INVESTED IN FOR THE SCHOOL BENEFIT AS WELL.
UM, THE MUNICIPAL FACILITIES IMPROVEMENT PLAN, I WOULD SAY IS ONE OF THE AREAS WHERE WE HAVE REALLY SEEN GROWTH AND INVESTMENT OVER THE LAST NUMBER OF YEARS.
I THINK IT IS DEFINITELY ONE OF THE BIGGEST AREAS WHERE WE HAVE UNDERFUNDED IN PREVIOUS YEARS.
AND SO IT IS AN AREA THAT IS GONNA CONTINUE TO BE A PRIORITY.
AND AGAIN, WE TALK ABOUT SOME OF THE LARGER ONES LIKE THE MAIN FIRE HEADQUARTERS, BUT WE'VE ALSO BEEN INVESTING IN, UM, PROJECTS TO HELP DEPOPULATE PARTICULAR CITY BUILDINGS THAT ARE, UM, YOU KNOW, REALLY DON'T HAVE GOOD SPACES FOR PEOPLE TO WORK.
UM, AND THEN ALSO RENOVATING EXISTING SPACES.
SO THE EXAMPLE HERE WE SEE IS THE ARD BUILDING AT DPW.
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THAT.IT WAS ABOUT AN $8 MILLION CONSTRUCTION PROJECT.
UM, IT ALSO INCLUDED, YOU KNOW, NEW WORK SPACES FOR FOLKS, UM, ROOFTOP SOLAR AND GEOTHERMAL WELLS.
UM, AND THEN JUST AS A VERY SMALL SIDE NOTE, BUT YOU KNOW, WE'VE ALSO BEEN REALLY ACTIVE IN THE IRS DIRECT PAY AND I KNOW WE'VE HAD A NUMBER OF CONVERSATIONS, UM, AT COUNCIL WITH THAT.
UM, WE ARE ANTICIPATING BETWEEN, YOU KNOW, LAST YEAR IN THE UPCOMING TWO YEARS, ABOUT A $6.2 MILLION OF GETTING REIMBURSED FOR PROJECTS THROUGH THAT PROGRAM.
UM, THE FIRST PIECE WE GOT WAS $412,000 THAT WAS ASSOCIATED WITH THE SAMAR BUILDING.
SO AS WE'RE DOING THESE CAPITAL PROJECTS, WE'RE ALSO REALLY CONTINUING TO LOOK AT, UM, OTHER WAYS TO FUND THESE PROJECTS.
AND AGAIN, JUST ON THE CAPITAL BUILDING SIDE, THIS IS, UM, IMAGES OF THE FACADE RESTORATION PROJECT, WHICH MANY OF US LIVED THROUGH AT CITY HALL.
UM, I WOULD SAY THAT THIS WAS ONE THAT HAD NOT BEEN IN THE PLAN AND SORT OF CAME UP.
AND I THINK AS WE'RE GOING THROUGH, YOU KNOW, SOME OF THE CAPITAL, UM, PRIORITIZATIONS, WE ALSO WANNA MAKE SURE THAT WE'RE NOT SORT OF MAXIMIZING EVERY YEAR BECAUSE WE NEED TO LEAVE SPACE FOR SOME OF THESE UNEXPECTED THINGS THAT COME UP.
SO THE CITY HALL RESTORATION PROJECT WAS ABOUT A $6 MILLION PROJECT THAT REALLY ADDRESSED THE EXTERIOR OF THE BUILDING AND AS AGAIN, THOSE KINDS OF CRITICAL PROJECTS, UM, IN TERMS OF KEEPING OUR FACILITIES.
SO ONE OF THE THINGS, AND WE WILL WALK THROUGH THIS A LITTLE BIT SLOWLY 'CAUSE IT ALWAYS TAKES MY HEAD A LITTLE BIT TO GET AROUND THIS ONE, BUT, UM, YOU KNOW, AT THE BOTTOM YOU'LL SEE OUR OVERALL OPERATING BUDGET GROWTH SINCE FY 17 TO FY 26.
AND AS WE'VE TALKED ABOUT WITH THE COUNCIL A NUMBER OF TIMES, YOU KNOW, GOING FORWARD WE'RE REALLY LOOKING TO STAY AT, YOU KNOW, BELOW A 5% OPERATING GROWTH RATE, UM, AS WE LOOK AT THE SORT OF ECONOMIC TIMES.
UM, AND THEN WHAT YOU SEE BELOW THAT IS THE TAX SUPPORTED DEBT AND HOW THAT HAS GROWN OVER TIME.
AND WHAT WE'VE SEEN IS THAT IT HAS GROWN SIGNIFICANTLY MORE THAN THE OPERATING BUDGET.
SO ONE OF THE THINGS WE'VE REALLY BEEN WORKING ON IS HOW DO WE GET THE OPERATING BUDGET GROWTH MORE IN LINE WITH THE OVERALL OPERA, GET THE CAPITAL TAX SUPPORTED DEBT IN LINE WITH THE OVERALL OPERATING SO THAT WE'RE CONTINUE TO INVEST IN OUR CRITICAL INFRASTRUCTURE, BUT PRIORITIZING AND SCOPING PROJECTS AND THEN THINKING ABOUT REALLY MORE DIRECTLY TYING THAT INCREASE TO THE OVERALL OPERATING BUDGET.
SO I'LL TALK A LOT ABOUT THIS.
THIS IS, UH, VERY, UH, SIMILAR TO THE CONVERSATION WE HAD LAST WEEK, WHICH IS, YOU KNOW, WE ARE IN A DIFFERENT ECONOMIC MOMENT.
WE DON'T HAVE THE GROWTH THAT WE'VE HAD IN THE PAST THAT HAS ALLOWED US TO SORT OF TAKE ON SOME OF THESE LARGER PROJECTS WITHOUT HAVING SOME OF THESE CONVERSATIONS ABOUT WHAT THE TRADE OFFS ARE, UM, AND HOW DO WE PRIORITIZE AMONGST PROJECTS.
SO WITH THE NEXT SLIDE, AND I THINK WE'VE SEEN THIS A COUPLE OF TIMES WITH COUNCIL AS WELL, BUT YOU KNOW, ONE OF THE THINGS I WOULD SAY HISTORICALLY IS THAT WE'VE HAD REALLY STRONG PLANS, YOU KNOW, FOR EACH OF THESE DIFFERENT GROUPINGS OF CAPITAL INVESTMENT.
UM, AND WE'VE HAD THE ABILITY TO REALLY WORK THOSE PRIORITIES INTO THE OVERALL CAPITAL PLAN.
SO WE'VE HAD, YOU KNOW, FINANCIAL FLEXIBILITY AND THE ABILITY WITH THE SIGNIFICANT GROWTH IN THE BUDGET, UM, TO SUPPORT THOSE KINDS OF PRIORITIES.
AND WHAT WE'RE SEEING NOW IS THAT WE REALLY NEED TO MAKE SURE THAT WE'RE LOOKING AT ALL OF THESE AREAS ACROSS, YOU KNOW, AND PRIORITIZING ACROSS THE DIFFERENT PLANS AND ACROSS THE DIFFERENT NEEDS WHILE AGAIN, CONTINUING TO INVEST IN THESE PROJECTS.
AND SO THE COMMITMENT IS TO REALLY, YOU KNOW, REDUCE THE CAPITAL BUDGET, UM, AND THEN OVER TIME GET TO THE SORT OF 5%, UM, GROWTH TO MATCH THE OVERALL OPERATING BUDGET.
UM, SO THIS HAS A LOT OF COLORS AND A LOT OF NUMBERS, BUT IT'S THOSE SAME SIMILAR BUCKETS OF FUNDING THAT WE'VE TALKED ABOUT IN TERMS OF HOW, WHAT, WHAT ARE WE INVESTING IN? AND WHAT WE'VE DONE OVER THE LAST YEAR IS REALLY LOOK AT A NUMBER OF DIFFERENT PROJECTS, LOOK AT, YOU KNOW, CAN WE SPACE SOME PROJECTS OUT? CAN WE RE-SCOPE SOME PROJECTS AND HOW DO WE GET THE CAPITAL BUDGET DECREASED? AND SO, YOU KNOW, I KNOW WE'RE SORT OF AIMING FOR THIS 5%, I'D SAY IT'S THREE OR FOUR YEARS BEFORE WE GET DOWN TO THAT 5% JUST BECAUSE A LOT OF THESE ARE FUNDING PROJECTS THAT ARE ALREADY UNDERWAY.
AND WE'LL TALK A LITTLE BIT ABOUT SOME OF THOSE PROJECTS, BUT YOU CAN SEE THAT FOR THIS 26, THE BOND SALE THAT WE ARE ABOUT TO DO, OR IN THE PROCESS OF DOING, WE SIGNIFICANTLY REDUCED THE NUMBER OF BONDS THAT WE'RE SELLING FROM 107 MILLION DOWN TO 87 MILLION.
AND SIMILARLY FOR 27, 28 AND 29, WE'RE CONTINUE TO SHIFT DOWN THAT THE AMOUNT OF BONDS THAT WE'RE LOOKING TO SELL.
AND SO THAT IS A THEME THAT YOU'LL SORT OF SEE THROUGHOUT THIS NEXT SLIDE.
SO ON THE SCHOOL SIDE, WHAT YOU'LL SEE IS THAT, YOU KNOW, THERE IS NOT A NEXT LARGE SCHOOL PROJECT IN THE CAPITAL PLAN.
SO WHAT WE HAVE IS THAT WE'VE WORKED REALLY CAREFULLY WITH
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THE SCHOOL TO SAY, LET'S CONTINUE.WE NEED TO CONTINUE INVEST IN OUR BUILDINGS, WHAT DOES THAT TAKE? UM, AND WE HAVE $50 MILLION OVER THE NEXT FIVE YEARS.
UM, SO THAT CAN CONTINUE THOSE INVESTMENTS.
UM, AND THEY HAVE A NUMBER OF PRIORITY AREAS.
AND THERE'S THINGS LIKE, YOU KNOW, THE, THE ROOF AT THE FLETCHER MAYNARD AT THE PLAYGROUND, YOU KNOW, WHICH IS ABOUT A $2 MILLION PROJECT.
AND AGAIN, THESE AREN'T NECESSARILY PROJECTS THAT PEOPLE ARE GONNA SEE AND SORT OF SAY LIKE, OH, WE HAVE THIS, YOU KNOW, NEW THING.
BUT IT IS CRITICAL IN TERMS OF CONTINUE TO HAVE THESE BUILDINGS FUNCTION, UM, AND SUPPORT THE STUDENTS.
UM, THE LARGER PROJECT THAT THEY'RE LOOKING AT IS 1 58 SPRING STREET SCHOOL.
AND AGAIN, THIS IS REALLY RENOVATIONS, IT'S NOT A BIG GUT REHAB.
YOU KNOW, WE'RE SORT OF IN THE 15 TO $20 MILLION KIND OF RANGE.
IT IS NOT LOOKING AT A FULL RENOVATION OF THE BUILDING, BUT HOW DO WE BRING IT UP TO STANDARD ADDRESS? SOME OF YOU KNOW, THE REALLY, UM, POOR CONDITION INFRASTRUCTURE IN THE BUILDING.
AND AGAIN, SIMILARLY, WE TALKED, I THINK TWO WEEKS AGO, HAD A-M-S-B-A, UH, GRANT AT THE COUNCIL.
AND SO THE SCHOOL DEPARTMENT AND THE FINANCE TEAM CONTINUES TO REALLY AGGRESSIVE GO GO FOR THOSE KINDS OF FUNDS AS WELL.
UM, THE OTHER PIECE OF, YOU KNOW, THE, THE PIE THAT WE'VE BEEN LOOKING AT IS ON OPEN SPACE AND PATH PROJECTS.
AND SO WHEN WE'RE LOOKING FORWARD, UM, YOU KNOW, WE'RE REALLY THINKING ABOUT WHAT ARE THE PRIORITY PROJECTS AND HOW DO WE SCOPE THEM PROPERLY.
SO ONE OF THE THINGS THAT CAME UP SORT OF UNEXPECTEDLY WAS GOLD STAR MOTHERS PARK.
UM, AND THIS IS ANOTHER EXAMPLE OF WHY WE WANNA MAKE SURE WE'RE LEAVING SOME FLEXIBILITY IN OUR CAPITAL PLAN SO THAT AS UNEXPECTED CONDITIONS COME UP, WE CAN ADDRESS THOSE.
SO, UM, WE ARE JUST NOW DIGGING INTO THE, UM, GOLD STAR MOTHERS PARK.
UM, COUNCIL APPROPRIATED $1 MILLION OF FREE CASH FOR, UM, THE DESIGN EFFORT AND REALLY THE PERMITTING PROCESS.
AND THEN WE HAVE MONEY SCHEDULED IN THE BOND SCHEDULED TO DO THE CONSTRUCTION THERE.
SO TO MAKE SURE WE CAN REOPEN THAT PARK.
UM, ONE OF THE OTHER BIG CHANGES IS THAT I WOULD SAY HISTORICALLY DHE PARK HAS BEEN LOOKED AT A LITTLE SEPARATELY FROM OUR CAPITAL BUDGET.
AND WHEN THINGS CAME UP AT DHE PARK, WE REALLY CAME TO THE COUNCIL WITH FREE CASH REQUEST.
AND THAT'S HOW VARIOUS FIELDS AND PROJECTS HAVE BEEN DONE AT DHE PARK.
WHAT WE'VE DONE IS, EVEN AS WE ARE REDUCING THE OVERALL AMOUNT OF CAPITAL SPENDING, WE'VE BEEN ABLE TO WORK IN, UM, IMPROVEMENTS AT DHE PARK.
SO I THINK PEOPLE KNOW THAT, YOU KNOW, DHE PARK WAS OPENED ABOUT 30 YEARS AGO AND THERE HAS NOT BEEN SIGNIFICANT INVESTMENT IN THE OVERALL INFRASTRUCTURE.
THERE'S BEEN, YOU KNOW, A NUMBER OF TURF FIELDS DONE AND YOU KNOW, SOME IMPROVEMENTS THAT HAVE COME THROUGH THE FREE CASH, BUT WE HAVEN'T LOOKED AT IT COMPREHENSIVELY.
AND I THINK THE DHE PARK IS ALSO A GOOD EXAMPLE OF, UM, YOU KNOW, COMMUNITY DEVELOPMENT PUBLIC WORKS AND CDD HAVE BEEN WORKING WITH A COMMUNITY TO REALLY DEVELOP A LONG-TERM PLAN FOR DANNY HE PARK.
UM, WE ANTICIPATE THAT PLAN COMING OUT PROBABLY IN APRIL.
UM, AND, YOU KNOW, THE EARLY DRAFTS OF IT REALLY REFLECT THE MOMENT THAT WE'RE IN, WHICH IS WE WANNA CONTINUE TO INVEST AND PROVIDE HIGH QUALITY OPEN SPACE AND WE NEED TO BE MINDFUL OF WHAT ARE THE COSTS AND WHAT ARE THE PRIORITIES SO THAT THE PLAN REALLY DOES COME THROUGH ABOUT, YOU KNOW, WHAT ARE THE PRIORITY AREAS THAT WE WOULD NEED TO ADDRESS FIRST.
THIS ISN'T A SORT OF, WE'RE GONNA COME IN AND REDO ALL OF DANA HEAT PARK, BUT THERE ARE SIGNIFICANT NEEDS IN THE PARK IN TERMS OF ACCESSIBILITY, UM, DRAINAGE, UM, SOME OF THE PLAYGROUNDS AND AGAIN, THE TURF FIELDS, KEEPING UP WITH THOSE.
SO THAT IS, AGAIN, WE'VE WORKED THAT INTO THE BUDGET EVEN AS WE'VE BEEN REDUCING THE OVERALL CAPITAL SPENDING.
UM, AND THEN WE ALSO TALK ABOUT THE SORT OF THE STREETS, UM, THE OVERALL STREETS PROGRAM.
AND SO THAT INCLUDES, YOU KNOW, SOME PROJECTS THAT ARE ASSOCIATED WITH THE CYCLING SAFETY ORDINANCE, INCLUDING, UM, THE PAR PARTIAL CONSTRUCTION ON MASS AV REALLY FROM HARVARD SQUARE OUT TO ALEWIFE BROOK.
SO PEOPLE MAY REMEMBER A NUMBER OF YEARS AGO WE APPROPRIATED $50 MILLION FOR THAT PROJECT.
UM, AND THAT'S A CHALLENGING ONE AND I WOULD SAY THIS IS WHERE SOME OF THESE CONVERSATIONS ABOUT THESE TRADE OFFS ARE DEFINITELY GONNA COME UP BECAUSE WHILE $50 MILLION SOUNDS LIKE A LOT OF MONEY, UM, KEEP IN MIND THAT THAT'S A TWO MILE LENGTH OF MASS AVE WITH FOUR LANES.
SO IT'S A VERY WIDE, UM, ROAD AND SO IT'S ALMOST LIKE EIGHT NOR EIGHT MILES OF A NORMAL ROAD.
UM, AND THERE'S A LOT OF GREAT IDEAS THAT COME UP AND WE'RE SAYING THAT WE NEED TO KEEP THIS PROJECT WITHIN THE $50 MILLION BUCKET AND THAT WE'RE NOT COMING BACK TO CITY COUNCIL ASKING FOR MORE MONEY FOR THAT PROJECT.
UM, BUT THAT DOES MEAN THAT THERE'RE GONNA BE SOME GOOD IDEAS THAT WOULD BE GOOD IMPROVEMENTS THAT WE'RE NOT GONNA BE ABLE TO INCORPORATE.
AND SO AGAIN, I THINK THAT'S THE KIND OF, YOU KNOW, MAKING SURE THAT WE ARE VERY CLOSELY TYING THE SCOPE OF PROJECTS TO THE BUDGET OF PROJECTS.
AND SO HAVING THAT CONVERSATION MORE DIRECTLY AND MORE UPFRONT WITH THE COMMUNITY, UM, IS GONNA BE REALLY IMPORTANT AS WE'RE MOVING FORWARD SO THAT IT DOES, YOU KNOW, WE'RE ALL HAVING CLEAR
[00:25:01]
EXP EXPECTATION AS WE'RE GOING INTO THESE PROJECTS.AND AGAIN, CONTINUING TO INVEST IN OUR MUNICIPAL FACILITIES.
UM, THIS IS AN AREA, UM, WHERE I THINK, YOU KNOW, WE DO HAVE A SIGNIFICANT AMOUNT OF NEED.
IT IS ALSO AN AREA I'D SAY IS WEST LESS WELL DEVELOPED.
AND SO WE'RE CONTINUING TO PRIORITIZE, CONTINUE TO REALLY GRAPPLE WITH WHAT ARE THE NEEDS OF THE BUILDINGS.
UM, THESE ARE TWO EXAMPLES THAT REALLY HIGHLIGHT SOME OF THE, YOU KNOW, VERY BASIC NEEDS.
SO THE TWO PICTURES ON THE BOTTOM LEFT ARE FROM THE FIRST STREET GARAGE, UM, WHICH WE'RE LOOKING TO MOVE INTO CONSTRUCTION THIS FALL.
AND I WOULD SAY THAT, YOU KNOW, WHILE WE'RE SPENDING A SIGNIFICANT AMOUNT OF MONEY, AND I THINK IT'S SORT OF IN THE EIGHT TO $9 MILLION RANGE, THERE ARE GONNA CONTINUE TO BE NEEDS AT THAT FACILITY.
THAT IS NOT A, WE'RE TAKING CARE OF EVERYTHING IN THE BUILDING.
THAT'S REALLY, WE'RE TAKING CARE OF THE LIFE SAFETY ISSUES IN THE BUILDING, WE'RE TAKING CARE OF THE STAIRS, WE'RE TAKING CARE OF THE ELEVATORS.
AND SO THOSE KINDS OF IMPROVEMENTS AND ON THE RIGHT IS, YOU KNOW, THIS IS A PARTICULARLY GOOD TIME OF YEAR TO TALK ABOUT THE NEED AND THE CRITICALITY OF THE SALT SHED, UM, FOR DPW.
AND IT IS ONE OF THOSE BUILDINGS THAT IS CAN BE OUTTA SIGHT OUT OF MIND, BUT IT IS CRITICAL FOR THE OPERATIONS OF THE CITY.
UM, AND I WOULD SAY IT'S ALSO CRITICAL IN TERMS OF HOW WE APPROACHED IT.
SO I'D SAY, YOU KNOW, WE STARTED THAT PROCESS THINKING ABOUT WHAT ARE ALL THE THINGS WE'D LIKE TO HAVE AT THE SALT SHED? AND THEN THE BUDGET WAS REALLY GROWING AND SO WE TOOK A STEP BACK AND SAID, WHAT DO WE REALLY NEED TO HAVE AT THE SALT SHED AND WHAT DOES THAT LOOK LIKE? UM, AND SO WE HAVE, THAT IS A PROJECT EXAMPLE OF ONE THAT WE'VE REALLY RE-SCOPE TO MAKE SURE THAT WE'RE BEING MINDFUL OF THE OVERALL COST WHILE AGAIN, CONTINUE TO INVEST AND MAKE SURE THAT, THAT WE CAN CONTINUE TO OPERATE IN THE CITY.
THESE ARE, AGAIN, JUST A COUPLE OTHER EXAMPLES, UM, OF THINGS THAT, YOU KNOW, ARE SHOWING UP IN THE NEXT FIVE YEARS.
SO THE ONE ON THE LEFT IS THE LAFAYETTE SQUARE FIREHOUSE.
UM, SO RIGHT IN CENTRAL SQUARE YOU WILL SEE THAT THERE ARE A NUMBER OF, YOU KNOW, LOLLIPOP COLUMNS IN THE BASEMENT AND THOSE ARE HOLDING UP THIS SLAB WHERE THE FIRE ENGINES ARE, UM, STORED.
AND SO IT IS THIS BUILDING THAT WE HAVE SIGNIFICANT CONCERNS ABOUT FROM A STRUCTURE PERSPECTIVE AS WELL AS, YOU KNOW, THE LIVING CONDITIONS FOR PEOPLE THAT ARE IN THOSE BUILDINGS 24 HOURS A DAY.
SO WE'RE CONTINUING TO LOOK AT, UM, THE FIRE STATIONS CONTINUE TO LOOK AT THE MOSES YOUTH CENTER IS ANOTHER ONE THAT WE HAVE A SIGNIFICANT PROJECT AT, AND AGAIN, CONTINUING TO INVEST IN THESE PROJECTS.
UM, AND ONE OF THE THINGS THAT JUST I WANNA ALSO JUST TOUCH BASE ON IS, YOU KNOW, WHEN WE TALK ABOUT THE VARIOUS BUILDING PROJECTS, YOU KNOW, THE BUTO COMES UP, UM, THE BUTO REGULATIONS COME UP AND BECAUSE OF THE WORK THAT WE'VE DONE, YOU KNOW, OVER THE LAST 20 YEARS IN OUR BUILDINGS, WE'VE MADE SIGNIFICANT IMPROVEMENTS IN OUR OVERALL, UM, UM, YOU KNOW, THE AMOUNT OF ENERGY THAT WE'RE USING IN THESE BUILDINGS HAS DROPPED.
AND SO WE'VE MADE GOOD PROGRESS THERE.
AND THEN WE'VE ALSO MADE SIGNIFICANT PROGRESS WITH, UM, THE VIRTUAL POWER AGREEMENT WHERE WE'RE BUYING, YOU KNOW, CLEAN ELECTRICITY.
UM, AND SO THAT PUTS US IN REALLY GOOD SHAPE FOR BUTO THROUGH ABOUT 2035.
AND THEN BETWEEN NOW AND 2035, WE NEED TO MAKE CONTINUED INVESTMENT AND SIGNIFICANT INVESTMENT IN ORDER TO MEET THAT DEADLINE.
AND SO THAT IS ALSO ONE OF THE OTHER THINGS THAT WE'RE REALLY CONTINUING TO LOOK CLOSELY AT.
UM, SO AGAIN, I WANT TO, YOU KNOW, GIVE CREDIT TO THE TEAM IN TERMS OF, YOU KNOW, THE PROJECTS WE'VE DONE HAVE PUT US IN A GOOD POSITION FOR THESE FIRST COUPLE REPORTING PERIODS, BUT BETWEEN NOW AND 2035, THERE IS ALSO A SIGNIFICANT INVESTMENT CONTINUED TO BE NEEDED, UM, AS WE LOOK AT OUR BUILDING STOCK PORTFOLIO.
UM, SO THIS IS REALLY LOOKING AT THE OUTER YEARS.
SO AS WE THINK ABOUT, YOU KNOW, THE IMMEDIATE YEARS, THE NEXT FOUR TO FIVE YEARS, THEY'RE REALLY FOCUSED ON, AGAIN, REDUCING THE SPENDING TO GET DOWN TO THAT 5% COMPLETE.
THE PROJECTS THAT HAVE ALREADY BEEN COMMITTED TO, AS WE LOOK AT THE FY 30 AND BEYOND, THESE ARE SORT OF, IF WE THINK ABOUT THESE ARE ALL AREAS THAT WE'RE GONNA NEED TO CONTINUE SPENDING IN.
AND SO WE WANNA SAY THAT, YOU KNOW, WE NEED TO CONTINUE INVESTING IN ALL OF THESE AREAS.
THESE ARE WHAT WE THINK ARE SORT OF, I DON'T WANNA SAY MINIMAL, BUT LIKE SORT OF BASELINE PROGRAM AREAS.
SO, YOU KNOW, LOOKING AT MUNICIPAL FACILITIES AND ABOUT THE $30 MILLION A YEAR RANGE, OPEN SPACE AND PATHS AND ABOUT THE $10 MILLION RANGE, AND AGAIN, THESE ARE FIVE YEARS OUT, SO NOT TODAY.
SO EVEN LESS THAN THAT FROM TODAY'S DOLLARS.
UM, AND THEN LOOKING AT STREETS AND SCHOOL PROJECTS AND AGAIN, THESE SMALLER THINGS.
AND SO WHEN WE LOOK AT IT IN THAT WAY, WE SEE THAT, YOU KNOW, IN THE OUTER YEARS WE COULD BOND UP TO ABOUT A HUNDRED MILLION DOLLARS A YEAR, UM, AND STILL STAY WITHIN THAT 5% TARGET.
SO I THINK THAT IS ALSO SORT OF TEEING UP THE CONVERSATION WITH COUNCIL.
UM, YOU KNOW, PROBABLY NOT IN THIS BUDGET CYCLE, BUT YOU KNOW, MOVING FORWARD, HOW DO WE PRIORITIZE THOSE LARGER CAPITAL PROJECTS, THINKING ABOUT LARGER SCHOOL INVESTMENTS, THINKING
[00:30:01]
ABOUT, UM, OTHER CAPITAL PROJECTS THAT ARE, THAT WE WANT TO CONTINUE TO PRIORITIZE.UM, AND SO WE STILL HAVE SPACE SORT OF AS WE'RE GOING OUT INTO THAT FY 30 AND BEYOND TIMEFRAME.
AND THIS SORT OF GETS INTO THAT SORT OF, YOU KNOW, AND WE'VE HAD THIS A VERSION OF THIS SLIDE PREVIOUSLY, WHICH IS, YOU KNOW, WHAT ARE THE THINGS THAT WE'RE CURRENTLY FUNDING THAT WE HAVE BEEN PRIORITIZED THAT HAVE BEEN, UM, THAT WE'RE CONTINUE TO WORK ON? AND AGAIN, THOSE ARE THE PROJECTS ON THE LEFT.
SO AGAIN, THE CYCLING SAFETY ORDINANCE, WE CONTINUE TO FOCUS ON, YOU KNOW, THE MASS AVE PROJECT, UM, CENTRAL SQUARE PROJECT.
AND I WOULD SAY THE CENTRAL SQUARE PROJECT IS ONE THAT WE'RE REALLY THINKING ABOUT WHAT IS THE RIGHT SCOPE OF THAT PROJECT? HOW DO WE GET THE SAFE CYCLING INFRASTRUCTURE AND HOW DO WE DO THAT, BEING MINDFUL OF WHAT THE OVERALL BUDGET IS.
AND SO THOSE ARE THE KINDS OF CONVERSATIONS.
UM, AND THEN THE PROJECTS ON THE RIGHT ARE THE PROJECTS THAT, AND AGAIN, THIS DOESN'T INCLUDE EVERYTHING WE'VE EVER TALKED ABOUT, BUT DOES INCLUDE A NUMBER OF THESE DIFFERENT AREAS WHERE PEOPLE HAVE IDENTIFIED, YOU KNOW, THE NEED, UM, AND THEY'RE NOT IN, AND WE WANNA BE REALLY CLEAR THAT THOSE ARE NOT WITHIN THIS EXISTING CAPITAL PLAN.
SO AS WE THINK ABOUT THINGS WE WANNA PRIORITIZE AND ADD INTO THE PLAN, UM, I WANNA CONTINUE TO KEEP THIS LIST IN MIND.
AND THEN AGAIN, JUST WANNA REALLY REITERATE THE NEED TO MAKE SURE THAT WE CONTINUE TO MAINTAIN FLEXIBILITY IN OUR BOND SCHEDULE FOR PROJECTS, YOU KNOW, THAT SORT OF COME UP UNEXPECTEDLY, LIKE GOLD STAR MOTHERS PARK, LIKE THE EXTERIOR OF CITY HALL, THOSE KINDS OF PROJECTS.
UM, AND THEN CLAIRE, I DON'T KNOW IF YOU WANNA SORT OF TALK ABOUT THESE UPCOMING MEETINGS AND JUST SORT OF SUMMARIZE.
UM, THROUGH YOU, UH, CO-CHAIR ZUBIE, UM, JUST I THINK WE'RE JUST, UH, YOU KNOW, SORT OF PRESENTING SORT OF THE, UM, THE OVERALL, UM, CALENDAR OF FINANCE COMMITTEE MEETINGS THAT, UM, WE HAVE PLANNED LEADING UP, UH, TO THE, UM, SUBMITTED OPERATING BUDGET AND CAPITAL BUDGET.
THAT'LL HAPPEN, UH, IN LATE APRIL, EARLY MAY.
UM, AS WELL AS, UM, OUR NUMBER TWO HERE, WHICH IS OUR BUDGET COMMUNITY ENGAGEMENT MEETINGS, UM, WHICH I MAY PASS OVER TO, UH, BUDGET DIRECTOR JENNINGS TO TALK ABOUT.
BUT AFTER TODAY'S MEETING, UM, WE PLANNED, UH, AT THE, THE LAST WEEK OF FEBRUARY TO HAVE A MEETING THE CO-CHAIRS, UH, AND WE HAVE PLANNED FOR A BUDGET PRIORITIES AND FEDERAL STABILIZATION UPDATE AND THEN, UM, AS REQUIRED, UM, BY, IS IT A CITY ORDINANCE THAT WE HAVE A HEARING ON THE POLICE BUDGET PRIOR TO THE SUBMITTED BUDGET? AND THAT'LL BE HAPPENING DURING THE WEEK OF MARCH 9TH.
BUT TAHA, DO YOU WANNA SAY SOMETHING ABOUT OUR COMMUNITY MEETINGS? SURE.
UM, SO TONIGHT ACTUALLY IS THE SECOND OF OUR, UH, SERIES OF TWO COMMUNITY ENGAGEMENT MEETINGS ON THE BUDGET.
AND THEY'RE REALLY INTENDED TO PROVIDE INFORMATION ON THE OVERALL BUDGET PROCESS IN THE CITY, HOW, UM, DIFFERENT, UH, ITEMS, UH, END UP IN THE BUDGET, HOW, YOU KNOW, THE DIFFERENT INPUTS THAT LEAD TO HOW THE BUDGET IS FORMED AND DEVELOPED, AND HELP, UM, PARTICIPANTS GET AN UNDERSTANDING OF HOW THEY CAN BE ENGAGED IN THAT PROCESS.
UM, NOT JUST FOR FY 27, BUT MOVING FORWARD.
SO LOOKING FORWARD TO CONTINUING THOSE DISCUSSIONS TONIGHT.
AND AS A REMINDER, THAT'S TONIGHT AT SIX, I BELIEVE SIX TO 8:00 PM AT THE CITYWIDE SENIOR CENTER, WHICH IS CLOSE BY.
THANK YOU FOR THE PRESENTATION ON WHERE WE'RE AT AND LOOKING FORWARD.
I WANNA TAKE A MOMENT TO DO PUBLIC COMMENT, SO I'LL TURN THE FLOOR OVER TO YOU.
WE HAVE TWO SPEAKERS THAT HAVE SIGNED UP.
OUR FIRST SPEAKER IS YOUNG KIM YOUNG, YOU HAVE THREE MINUTES.
I MAY SOUND LIKE A BROKEN RECORD BY THIS TIME, UM, BUT I TRIED TO MAKE A NEW POINT.
I SENT THE COMMITTEE A DETAILED EMAIL YESTERDAY WITH SUPPORTING DOCUMENTATION, SO I'LL NOT REPEAT THOSE DETAILS TODAY.
I HOPE YOU YOU WILL HAVE YOU ALL HAD THE CHANCE TO READ IT.
THANK YOU CO-CHAIRS FROM OUTLINING THE COMMITTEE'S UPDATED BUDGETING PROCESS.
I WAS NOT PREVIOUSLY AWARE OF THAT FRAMEWORK, BUT I VIEW IT AS A POSITIVE NEWS AND I HOPE MY COMMENTS
[00:35:01]
TODAY WILL DOVETAIL CONSTRUCTIVELY WITH THE DIRECTION THE UNFULFILLED PUBLIC RECORD REQUEST I SUBMITTED LAST YEAR LIMITS MY ABILITY TO COMMENT TO YOU ON TOTAL CAPITAL EXPOSURE AS YOU'LL PREPARED TO ADVANCE THE NEXT CAPITAL CYCLE IN A CONSTRAINED FISCAL ENVIRONMENT WITH GROWING TAX SUPPORTED DEBT SERVICE AS REFLECTED IN AGENDA PACK AND MATERIALS.BECAUSE THE COMMITTEE'S NOT REVIEWING A DRAFT FISCAL YEAR 27 CAPITAL BUDGET TODAY, THIS IS THE APPROPRIATE MOMENT TO REQUEST A CONSOLIDATE ACCOUNTING OF EXISTING ORGANIZATIONS BOND EXPENDITURES AND, UH, BONDS, UH, EXPENDITURES AND REMAINING OBLIGATION BEFORE ADDITIONAL COMMITMENTS ARE ADVANCED IN A YEAR WHEN DEPARTMENTS ARE BEING ASKED TO LOCATE SAVINGS AND LIMIT GROWTH.
LIFECYCLE TRANSPARENCY IS NOT AN OPTIONAL REFINEMENT, IT IS PREREQUISITE TO INFORM FISCAL STEWARDSHIP.
LET ME FURTHER EXPAND ON THE CYCLING SAFETY ORDINANCE THAT WAS MENTIONED EARLIER IN THE BRIEFING IMPLEMENTATION EXAMPLE.
AS I DESCRIBED IN THE LETTER I SENT YOU, AS YOU MAY RECALL, THE ORDINANCE WAS ADAPTED WITHOUT DEFINED BUDGET OR SCHEDULE.
AND THIS IS NO WAY TO INITIATE THE, UH, PROGRAM.
AND IT WAS ONLY THROUGH LATER AMENDMENT THAT STRICT TIMELINE WAS INTRODUCED.
BUT NO BUDGET WAS STILL, UH, UH, SAID THE ENGINEERING DESIGN CONTRACT FOR THE FOUR MASS AVENUE SEGMENT, OFTEN REFERRED TO AS MASS F FOUR PLUS ELLIOT STREET, WAS ORIGINALLY 1.1 MILLION.
IT WAS SUBSEQUENTLY AMENDED TO 5.8 MILLION INCLUSIVE OF THE ORIGINAL CONTRACT VALUE.
IF ENGINEERING COSTS ALONE INCREASE NEARLY FIVEFOLD, INCLUDING NETWORK, QUICKLY, QUICK BUILD SEGMENT ONE MUST ASK WHAT THE FINANCE IMPACT WOULD BE.
UH, BECAUSE FINDING IS, UH, UH, FUNDING IS DISPERSED ACROSS MULTIPLE PROGRAM NAMES AND FISCAL YEARS, THE TOTAL AUTHORIZED COST OF MAJOR INITIATIVE IS NOT VISIBLE IN ANY SINGLE ADAPTED BUDGET DOCUMENT.
IT ONLY BECOMES VISIBLE WHEN YOU, WHEN BUDGETS ARE EXAMINED LONGITUDINALLY ACROSS TIME, CONS, UH, RECONCILE PROGRAM.
SO I ASK YOU TO RE MAKE A RE UH, LOOK AT REVIEW LIKE A FISCAL 23 TO FISCAL 26 AND CONSOLIDATE ALL THE DATA IN ONE PLACE SO THAT WE CAN SEE HOW MUCH WAS YOUR TIME HAS EXPIRED, ALLOCATED, HOW MUCH WAS ACTUALLY BONDED, AND HOW MUCH WAS IS THE COST TO THE PRO.
UH, UH, THANK YEAH, YOUR TIME HAS EXPIRED.
OUR NEXT SPEAKER IS HEATHER HOFFMAN.
HEATHER, YOU HAVE THREE MINUTES, PLEASE GO AHEAD.
HELLO, HEATHER HOFFMAN, TWO 13 HURLEY STREET.
I CANNOT CLAIM TO HAVE THE, UM, EXPERTISE IN LOOKING AT BUDGETS, UH, NOR TO HAVE SPENT THE TIME THAT YOUNG KIM HAS.
UM, SO THAT'S NOT WHAT I'M GONNA TALK ABOUT.
I'M GONNA TALK ABOUT THE FASCINATING, UH, UM, I I GUESS STICKING TOGETHER OF OPEN SPACE AND PATHS.
IT'S REALLY, IT'S, IT'S, IT'S KIND OF, UM, IT LEAVES ME SPEECHLESS BECAUSE PATHS TO CAMBRIDGE ARE THE OBLITERATION OF OPEN SPACE.
IF YOU THINK OF OPEN SPACE AS LIKE GREEN SPACE AND PLACES WHERE PLANTS CAN GROW, WHEN CAMBRIDGE TALKS ABOUT PATHS, THEY TALK ABOUT BULLDOZING EVERYTHING.
TAKE A LOOK AT WHAT'S HAPPENED IN LINEAR PARK.
ALL THE LIES THAT WERE TOLD TO US ABOUT WE AREN'T TOUCHING TREES, AND THEN TREES WERE REDEFINED TO BE OVER SIX INCHES, CBH.
SO ANYTHING UNDER THAT CAN BE AND PROBABLY HAS BEEN BULLDOZED.
THE WAY THAT PATHS HAVE BEEN TREATED, DEPENDING ON WHAT ANSWER THE CITY WANTS TO GET, IS SOMEHOW IN EAST CAMBRIDGE.
AND THIS IS NOT RE-LITIGATING, THIS IS TALKING ABOUT HOW YOU LIE AND DON'T HAVE A CONSISTENT POSITION IN EAST CAMBRIDGE.
FRESH STONE IS NEVER, EVER, EVER A DA COMPLIANT.
BUT IN LINEAR PARK IT IS ABSOLUTELY A DA COMPLIANT AND IT'S PUT IN, IT'S SLATED TO BE PUT IN PLACES
[00:40:01]
WHERE PROFESSIONALS SAY YOU CAN'T PUT IT LIKE SLOPES AND YOU CLAIM, OH, IT'S PERMEABLE.WELL IT'S PERMEABLE FOR A FEW MONTHS AND THEN IT ISN'T ANYMORE.
BUT YOU DON'T CARE AND YOU JUST WANT TO CREATE PATHWAYS.
AND TO HECK WITH THE FACT THAT THIS IS CALLED THE PARK, PEOPLE HAVE BEEN ENJOYING IT AS A PARK FOR YEARS.
YOU NEED ABSOLUTELY NEED IN A TIME OF FISCAL PROBLEMS TO SPEND AN EXTRA $7 MILLION KILLING A TON OF TREES FOR WHAT I THINK THAT CAMBRIDGE GOT FAT AND HAPPY WHEN IT HAD TONS OF MONEY AND HAS NOT REALLY GRAPPLED WITH WHAT IT MEANS FOR THE GOOD TIMES TO STOP ROLLING.
AND SO YOU KEEP DOING YOUR VANITY PROJECTS.
HOW ABOUT MAKING SURE THAT PEOPLE HAVE OPEN SPACE IN TREES? THANK YOU.
THAT IS ALL THAT WE'RE SIGNED UP TO SPEAK.
THANK YOU FOR YOUR PUBLIC COMMENTS.
JUST BEFORE WE SHIFT INTO DISCUSSION WITH THE COUNCIL AND ANY QUESTIONS THAT COUNSELORS MIGHT HAVE, PART OF THE WORK THAT CO-CHAIR NOLAN AND I WILL BE DOING IS TO HELP COUNSEL ALSO ARTICULATE PRIORITIES AND BEING MINDFUL OF THE TRADE-OFFS THAT WE ARE GOING TO HAVE BRINGING IN RESIDENTS THOUGHTFULLY IN THAT PROCESS.
THIS IS ALSO PART OF THE CONVERSATION AROUND A NEED FOR REVENUE RESOURCES.
SO I, I ALSO WANNA PUT THAT OUT THERE IF ANYONE HAS STARTING QUESTIONS THAT THEY WANNA DIVE INTO.
UM, OTHERWISE HAPPY TO, YEAH, WE'LL GO TO COUNSELOR SABRINA WHEELER.
AND, UM, THANKS FOR, UH, CITY STAFF FOR THE, THE PRESENTATION AND THE CO-CHAIRS FOR SETTING THIS UP.
I HAD, UM, ONE QUESTION AND THEN, UM, A COUPLE COMMENTS I CAN MAYBE GET INTO LATER.
THE ONE WAS, UM, JUST TRYING TO GET A LITTLE MORE DETAIL ABOUT, UH, THE STREETS, UH, LABEL FOR CAPITAL EXPENDITURES, UH, UM, WHICH WE'LL TALK THROUGH IN A COUPLE SLIDES.
WE HAD A HAD A BUNCH OF CONVERSATIONS LAST TERM ABOUT CAPITAL EXPENDITURES FOR STREETS AND SORT OF WHAT THAT ENCOMPASSED.
THERE WERE A BUNCH OF QUESTIONS FROM, FROM SOME COUNSELORS ABOUT LIKE, HOW MUCH ARE WE SPENDING ON BIKE LANES SPECIFICALLY? AND I THINK SOME OF THE COMPLICATION THERE WAS THAT IT'S HARD TO TEASE OUT BIKE LANES SPECIFICALLY VERSUS LARGER STREET CON CONSTRUCTION PROJECTS.
AND I THINK PART OF THE REASON WE, WE DON'T HAVE BIKE LANES ON, ON SOME STREETS YET IS BECAUSE WE'VE, WE'VE WAITED UNTIL THE STREET CONSTRUCTION WAS GONNA HAPPEN.
AND SO THESE STREET CONSTRUCTION PROJECTS ARE HAPPENING NOT JUST TO ADD BIKE LANES, IT'S TO IMPROVE THE STREETS.
AND WE HAVE A REGULAR PLAN FOR THAT AND THAT'S GONNA HAPPEN ANYWAY UNLESS YOU WANT POTHOLES AND IN YOUR STREETS.
SO JUST TRYING TO UNPACK THAT A LITTLE BIT AND, AND SEE IF YOU CAN TALK A LITTLE BIT MORE ABOUT WHAT, WHAT THE COST OF US IN STREETS AND HOW MUCH OF THAT IS PEDESTRIAN AND BRAKE INFRASTRUCTURE VERSUS LARGER STREET CONSTRUCTION.
I IMAGINE THE ACTUAL FLEX POSTS PIECES OF PLASTIC ARE NOT COSTING HUNDREDS OF MILLIONS OF DOLLARS.
IT'S MORE FOR THE BROADER STREET CONSTRUCTION PLAN, BUT JUST TRYING TO GET A LITTLE, A LITTLE MORE DETAIL ON THAT.
'CAUSE SOMETIMES I THINK PEOPLE SEE HOW BIG THE STREETS FUNCTION IS HERE AND THINK LIKE CITY'S SPENDING ALL OF THIS ON BIKE LANES AND I DON'T THINK THAT'S THE CASE, BUT MAYBE YOU CAN PROVIDE A LITTLE MORE, MORE INFO SURE.
UM, YEAH, ONE OF THE THINGS, AND I, AND I JUST WANNA BE REALLY CLEAR, I I THINK ONE OF THE THINGS THAT HAS COME UP OVER THE YEARS IS, UM, YOU KNOW, SOME OF THE TRACKING AND BEING ABLE TO SAY LIKE, OH, HERE'S A PROJECT.
WHAT IS THE LIFE CYCLE OF THAT PROJECT? AND SO I THINK AS WE ARE WORKING ON IMPROVING OUR OVERALL APPROACH TO CAPITAL BUDGETING, IT IS ONE OF THE THINGS THAT WE ARE WORK THINKING ABOUT, LIKE HOW CAN WE BETTER MANAGE THESE PROJECTS, MANAGE THE, THE FUNDING SO THAT IT IS MORE TRANSPARENT? 'CAUSE THEY DO OFTEN SHOW UP IN VERY DIFFERENT WAYS IN THE BUDGET AND IN DIFFERENT PLACES AND IN DIFFERENT TIMES.
AND SO I CERTAINLY HEAR THAT FRUSTRATION AND IT IS SOMETHING THAT WE DON'T HAVE A PERFECT ANSWER FOR, BUT WE DEFINITELY WANNA CONTINUE TO WORKING ON.
UM, SO I JUST, I DO WANNA REALLY ACKNOWLEDGE THAT, YOU KNOW, THAT IS SOMETHING THAT IN TERMS OF OUR TRANSPARENCY IS SOMETHING THAT, YOU KNOW, IN THE COMING YEARS WE WANNA CONTINUE TO IMPROVE.
UM, THE, THE QUESTION ABOUT SORT OF, YOU KNOW, WHAT IS THE CYCLING SAFETY ORDINANCE COST AND HOW MUCH OF THIS IS BIKE LANES VERSUS HOW MUCH OF THIS IS SIDEWALKS? IT IS A REALLY TRICKY QUESTION.
UM, AND I, YOU KNOW, I CAN SORT OF START SMALL TO LARGE, RIGHT? SO IF YOU THINK ABOUT A NUMBER OF THE QUICK BUILD PROJECTS THAT ARE REALLY, YOU KNOW, STANCHIONS AND PAVEMENT MARKINGS, YOU KNOW, THOSE HAVE PRETTY LOW COST, RIGHT? YOU MIGHT BE IN THE COUPLE HUNDRED THOUSAND DOLLARS COST, UM, MAYBE EVEN LESS THAN THAT DEPENDING ON THE LENGTH OF THE STREET.
UM, WITH SOME OF THE MORE RECENT ONES, WE'VE REALLY REALIZED THAT, YOU KNOW, MOST OF THE STREETS WOULD BENEFIT FROM PAVING IN ADVANCE OF THEM BOTH IN TERMS OF THE CONDITION OF THE STREET,
[00:45:01]
THE SORT OF LONG-TERM STRUCTURE OF THE STREET, UM, AND THEN ALSO GETTING A CLEAN SLATE TO DO THE BIKE LANE MARKINGS AND THE STANCHIONS IN.NOW DOES THAT, SHOULD THAT PAVING COST GET A COST, GET A PORTION TO THE CYCLING SAFETY ORDINANCE? OR IS THAT REALLY SORT OF THE COST OF MAINTAINING A STREET? AND SO I THINK THAT IS WHERE IT CAN BE REALLY TRICKY TO SAY, WHERE DOES THAT COST LIE? LIKE, BECAUSE IT'S REALLY JUST PART OF OUR MAINTAINING STREETS NOW WE'RE THINKING ABOUT THE TIMING OF THAT WITH THE OTHER IMPROVEMENTS SO THAT YOU SORT OF GET, AND AGAIN, THIS IS WHAT WE'VE ALWAYS DONE IS TRY TO DO AS MANY THINGS TOGETHER AT THE SAME TIME BECAUSE THERE IS AN EFFICIENCY OF DOING THAT.
UM, BUT REALLY THAT PAVING IS ASSOCIATED WITH MAINTAINING THE STREET AND I WOULD SAY VERY LITTLE OF THAT SHOULD BE SORT OF ACCOUNTED FOR VERSUS THE CYCLING SAFETY ORDINANCE.
UM, AND PARTICULARLY ON THOSE QUICK BUILD SIDES.
UM, AND THEN WE GO ALL THE WAY UP TO SAY, RIVER STREET, WHICH AGAIN, IN TERMS OF THE CYCLING SAFETY ORDINANCE, THERE'S A LOT OF ATTENTION PAID TO THE QUICK BUILD SECTION.
UM, THE CYCLING SAFETY ORDINANCE ALSO REQUIRES IF WE'RE RECONSTRUCTING A STREET, THAT IT INCLUDES THOSE PERMANENT SEPARATED BIKE LANES.
SO ON RIVER STREET IT IS ALSO INCLUDING SEPARATED BIKE LANES.
UM, AND SO IT COUNTS TOWARDS THAT MILEAGE.
IT'S PART OF THE CYCLING SAFETY ORDINANCE.
UM, BUT RIVER STREET IS SORT OF A CURB TO CURB RECONSTRUCTION.
UM, YOU KNOW, IT WAS REALLY DRIVEN BY THE OVERALL CONDITION OF THE STREET, THE SIDEWALKS AND THE, YOU KNOW, UNDERLYING INFRASTRUCTURE.
SO THE BULK OF THAT IS BEING PAID FOR OUT OF THE SEWER REVENUE.
AND I WOULD SAY THE INCREMENTAL COST OF ADDING THAT SEPARATED BIKE LANE IS PRETTY MINIMAL BECAUSE IT'S NOT LIKE WE HAD A STREET THAT WAS FULLY FUNCTIONING IN A GOOD SHAPE AND WE DID ALL THIS RECONSTRUCTION TO THEN PUT IN THE BIKE LANE.
SO AGAIN, I KNOW IT'S NOT AN EXACT ANSWER TO YOUR QUESTION, BUT I THINK IT IS IMPORTANT TO THINK ABOUT THESE DIFFERENT TYPES OF PROJECTS AND HOW YOU APPORTION THOSE COSTS.
UM, AND AGAIN, TO SORT OF GO BACK TO WHERE WE STARTED, I THINK OVER TIME WE WANNA DO A BETTER JOB BEING MORE TRANSPARENT ABOUT THAT.
BUT IT IS REALLY CHALLENGING TO SAY THIS ELEMENT OF THE CYCLING SAFETY ORDINANCE COSTS THAT MUCH MONEY.
THE OTHER, AND I'LL END ON THIS IS THAT, YOU KNOW, I THINK THERE WAS A REAL CONVERSATION ABOUT, YOU KNOW, THE MASS AVE PARTIAL BUILD FROM HARVARD SQUARE TO ALEWIFE, UM, THE ALEWIFE BROKE ARLINGTON TOWN LINE.
YOU KNOW, WE APPROPRIATED $50 MILLION FOR THAT PROJECT.
A LOT OF THAT IS GOING TO PAVING.
SO AGAIN, IT'S ABOUT MAINTAINING THE STRUCTURE OF MASS AV.
UM, AND I THINK A NUMBER OF FOLKS WOULD SAY THAT A LOT OF THAT MONEY IS REALLY BEING SPENT TO CONTINUE TO BE ABLE TO MAINTAIN ON-STREET PARKING.
AND SO WHILE WE'RE SPENDING $50 MILLION AND ONE COULD SAY, OH, THAT SHOULD ALL BE COUNTED AS A CYCLING SAFETY ORDINANCE COST IT, A BULK OF THAT IS ABOUT THE OVERALL PAVING OF THE STREET AND ABOUT BEING ABLE TO MAINTAIN SOME OF THAT ON-STREET PARKING TO SUPPORT THE LOCAL BUSINESSES.
UM, THERE WAS CERTAINLY A MUCH CHEAPER WAY TO DO JUST THE SEPARATED BIKE LANES.
THAT, UM, THROUGH YOU COUNCIL
I WAS JUST TRYING TO, UH, HAVE A LITTLE BIT MORE OF THAT DETAIL IN THERE AND UNDERSTAND SORT OF THE COMPLEXITIES IN, UH, BUDGETING WHAT'S GOING TO WHAT.
UM, AND THEN JUST A COUPLE, UH, GENERAL COMMENTS ON THE BUDGET, UH, IF I MAY.
UM, IT WAS ONE THING THAT THAT MIGHT BE HELPFUL IN SORT OF LOOKING AT, AT THIS AND AS WE TALK ABOUT CONTROLLING, UH, CAPITAL COSTS AND, AND THINKING ABOUT BUDGET GROWTH IS JUST HAVING SOME OF THE DISCREET CAPITAL PROJECTS AND, AND COSTS BETWEEN THEM.
HOW MUCH WAS THE FIRE STATION, HOW MUCH WAS THE TOBIN? AND THINKING ABOUT THOSE PIECES AND BEING ABLE TO COMPARE.
UM, I WILL SAY BROADLY, I THINK ONE OF THE THINGS SOMETIMES THERE ARE CRITIQUES ON OF, YOU KNOW, CAMBRIDGE SPENT MORE FOR THIS SCHOOL BUILDING THAN THIS OTHER PLACE DID.
WE SPENT MORE FOR THE FIRE STATION THAN THAN WELLESLEY DID.
AND, AND YOU KNOW, I'M NOT A A CAPITAL BUDGET EXPERT, CONSTRUCTION EXPERT, YOU KNOW, I'M, I'M NOT GONNA, YOU KNOW, BE ABLE TO, TO UH, RESPOND TO ALL OF THOSE CRITIQUES.
BUT I THINK THE THING THAT THAT DOES COME UP THAT I THINK IS IMPORTANT TO NAME IS JUST THE COMPLEXITY OF THESE PROJECTS IN CAMBRIDGE.
YOU THINK OF THE FIRE DEPARTMENT, WHICH SHOULD HAVE A, A LARGE PRICE TAG ON IT.
THAT SPACE IS JUST SO COMPLICATED.
IT IS A LITTLE POSTAGE STAMP IN THERE IN HARVARD SQUARE RIGHT NEXT TO STREETS.
LIKE THAT IS JUST VERY DIFFERENT THAN RENOVATING A FIRE STATION IN WELLESLEY WHERE YOU CAN EASILY BRING IN CONSTRUCTION EQUIPMENT AND HAVE A LOT OF SPACE THERE.
THERE'S JUST A LOT MORE COMPLEXITY IN CAMBRIDGE BECAUSE WE ARE SUCH A TIGHTLY, UH, PACKED SPACE AND WE'RE, WE'RE VERY BUILT OUT, UH, BECAUSE A LOT OF THE SPACES WHERE WE'RE BUILDING ON OUR BROWNFIELD SITES, THEY'RE NOT GREENFIELD SITES.
YOU HAVE CONTAMINATION ON THOSE SITES THAT ADDS TO THE COST OF IT.
UH, THERE'S NO, UH, YOU KNOW, I THINK SOMETIMES FOLKS THINK THERE'S ONE WEIRD TRICK LIKE YOU SEE ON THE INTERNET TO REDUCING CAMBRIDGE CAPITAL PROJECTS BY $20 MILLION AND WE JUST NEED TO DO X AND GET A BETTER DEAL FROM THESE CONTRACTORS.
AND, YOU KNOW, I'M, I'M NOT AN EXPERT, BUT I THINK THAT A LOT OF TIMES THAT THAT IS NOT THE CASE.
THERE, THERE ARE A LOT OF THESE CHALLENGES WITHIN A DENSE ENVI ENVIRONMENT LIKE CAMBRIDGE.
UM, THE ONE THING I WOULD SAY AS WE'RE THINKING ABOUT CAPITAL PROJECTS PLANNING IS I THINK CAMBRIDGE IS, IS UH, SORT OF KNOWN FOR DOING THE GOLD STANDARD ON THESE PROJECTS.
AND THERE'S A LOT OF BENEFIT TO TO THAT.
I WAS AT THE TOBIN SCHOOL OPENING, I THINK AS A LOT OF COUNSELORS WERE.
AND, AND EVERYONE VERY IMPRESSED BY THAT PROJECT.
I REMEMBER THINKING LIKE, THIS LOOKS LIKE A, A COLLEGE CAMPUS
[00:50:01]
AND NOT LIKE A ELEMENTARY SCHOOL THAT I WENT TO.AND THAT'S GREAT THAT THAT ALSO HAS COSTS, RIGHT? AND, AND SO AS WE THINK ABOUT THE FUTURE, IT'S MAYBE OKAY TO DO THE SILVER STANDARD FOR PROJECTS AND SILVER IS STILL VERY NICE.
UH, WE CAN FIGURE, FIGURE THAT OUT.
UM, THE OTHER THING I WOULD THINK ABOUT IS JUST ALL OF THESE FINANCIAL DECISIONS ARE TRADE-OFFS WHEN WE'RE TALKING ABOUT CAPITAL PROJECTS VERSUS OPERATING EXPENDITURES.
AND IF WE'RE CHOOSING BETWEEN SPENDING ANOTHER $5 MILLION ON A PROJECT AND DOING THAT GOLD STANDARD VERSUS SILVER STANDARD, I THINK A NUMBER OF US WOULD, WOULD RATHER SPEND THAT $5 MILLION TOWARDS HOMELESSNESS PROGRAMS, TOWARDS EXPANDING AFTER SCHOOL TOWARDS THOSE OPERATING THINGS RATHER THAN THAN CAPITAL.
AND THAT'S THE, THE MOMENT WE'RE THINKING ABOUT RIGHT NOW.
AND THEN AS WE ARE, THERE WAS A SLIDE ABOUT PRIORITIZING DIFFERENT CAPITAL EXPENDITURE PROJECTS AS THE ONES WE'RE THINKING ABOUT TWO DEPRIORITIZE.
THERE ARE SOME ON THERE LIKE GOLF CLUB, GOLF CLUB, UH, CLUBHOUSE RENOVATIONS THAT I'M, I'M PRETTY HAPPY TO DEPRIORITIZE, ESPECIALLY IF WE'RE TALKING ABOUT AND HOW ARE WE GONNA, UH, FUND AFTERSCHOOL PROGRAMS. UM, THERE ARE SOME THAT WOULD BE FINE DEPRIORITIZING.
AND SO THAT IS THE OTHER PIECE OF THIS CONVERSATION AS WELL.
UM, WITH WITHOUT I'LL, I'LL GO BACK, UM, THROUGH CHAIR.
UM, I THINK YOUR COMMENTS ABOUT THE COST ARE ABSOLUTELY ON AND WE CAN HOLD BOTH OF THOSE TO BE TRUE, RIGHT? IT'S NOT AN EITHER OR, LIKE THERE ARE COMPLEXITIES OF WORKING IN CAMBRIDGE THAT DO NOT COMPARE TO SOME OF OUR SUBURBAN NEIGHBORHOODS.
UM, WE HAVE A NUMBER OF CONTRACTORS THAT AREN'T REALLY INTERESTED IN WORKING IN CAMBRIDGE 'CAUSE IT IS A CHALLENGING ENVIRONMENT.
SO, YOU KNOW, WE GET FEWER BIDS.
UM, IT IS, YOU KNOW, MORE CONTAMINATED SOIL.
THERE IS, YOU KNOW, MORE CONGESTED AREAS DON'T HAVE THE LAY DOWN SPACE.
SO THERE ARE A LOT OF THINGS THAT MAKE IT MORE CHALLENGING AND COSTLY TO WORK IN THE CITY.
AND WE CAN ALSO BE MUCH MORE DELIBERATIVE ABOUT THE CHOICES THAT WE'RE MAKING.
AND SO I THINK I DO WANNA JUST REALLY REITERATE THAT BOTH OF THOSE THINGS ARE TRUE.
THAT IT IS A VERY COMPLEX PLACE TO WORK THAT IS NOT APPEALING TO A NUMBER OF PEOPLE, A NUMBER OF CONTRACTORS AND LIKE WE TALKED ABOUT THE SALT SHED EXAMPLE AND WE TALK ABOUT DANNY HEAP PARK EXAMPLE.
WE CAN BE VERY CONSCIOUS ABOUT WHAT ARE THOSE DESIGN CHOICES THAT WE'RE MAKING AND WHAT THOSE COST IMPLICATIONS ARE.
UM, YOU KNOW, THE ONE THING I WOULD JUST BE, YOU KNOW, THE SORT OF THE, WE DON'T SPEND $5 MILLION HERE, WE CAN SPEND IT SOMEWHERE ELSE JUST TO SORT OF MAKE SURE THAT WE'RE BEING COGNIZANT OF, YOU KNOW, THE CAPITAL IS A ONE TIME EXPENSE.
UM, AND SO AGAIN, WE CAN IMPACT A NUMBER OF PROJECTS OVER A NUMBER OF YEARS, BUT YOU KNOW, IF WE SAVE, UM, YOU KNOW, X NUMBER OF DOLLARS HERE, THAT'S NOT SORT OF 5 MILLION EVERY YEAR IN THE BUDGET.
SO WE JUST HAVE TO THINK ABOUT THOSE THINGS TOGETHER.
AND SO AGAIN, IT, IT IS COMING BACK TO THE OPERATING BUDGET, SO IT IS ABSOLUTELY RELEVANT, BUT IT JUST IS A, YOU KNOW, ONE TIME EXPENSE, YOU KNOW, IF WE SAVE $5 MILLION ON A SPECIFIC PROJECT.
SO IF I COULD JUST FOLLOW UP JUST TO, TO MAKE SURE I'M UNDERSTANDING THAT LAST PIECE.
I, I HEAR YOU ON THE, THE ONE TIME VERSUS ONGOING, UH, EXPENSE.
UM, BUT MY UNDERSTANDING WAS A LOT, MOST OF THESE PROJECTS WERE, WERE PAYING THROUGH THROUGH, UH, BONDING AND THAT, SO THAT IN THAT WAY IT DOES BECOME AN ONGOING EXPENSE.
IT'S NOT $5 MILLION EVERY YEAR, BUT IT MIGHT BE.
AND THAT, AND THAT IS THE NUANCE, RIGHT, IS THAT IT'S NOT FIVE, IT'S LIKE, SO IT'S BEING PAID FOR OVER A 10 YEAR PROJECT, SO IT'S NOT $5 MILLION OF SAVINGS EVERY YEAR.
SO IT IS A MUCH SMALLER AMOUNT WHEN YOU LOOK AT IT IN ANY, IN ANY GIVEN OPERATING YEAR.
SO THAT IS THE GOOD, GOOD CORRECTION.
WE'LL GO TO COUNCILOR MCGOVERN.
UH, THANK YOU MADAM CHAIR THROUGH YOU.
UM, I DON'T KNOW, WE, I DON'T KNOW IF WE SAW EACH OTHER'S NOTES FROM ACROSS THE ROOM, BUT I I, I HAD SOME SIMILAR, SOME SIMILAR THINGS THAT I WANTED TO SAY, SAY, UM, YOU KNOW, IN TERMS OF, UH, I JUST WANTED TO BRING UP THE, THE, THE CSO CYCLING SAFETY ORDINANCE AND THE MASS AVE, UM, SPECIFICALLY AND BRING UP THE SAME, UM, YOU KNOW, SORT OF THE SAME ISSUE.
IT WAS A BIG ISSUE DURING THE LAST ELECTION AND PEOPLE SORT OF KEEP PUTTING IT OUT THERE THAT WE'RE SPENDING $50 MILLION TO PUT IN BIKE LANES ON NORTHERN MASS AVE.
IT, I DON'T THINK IT'S SO COMPLICATED TO FIGURE OUT HOW MUCH IT, HOW MUCH IT IS.
I MEAN, REPAVING IS PART OF THE NORMAL MAINTENANCE TO THE CYCLING SAFETY ORDINANCE FOR NORTHERN MASS AVE CALLS FOR BASICALLY CALLS FOR BOLLARDS AND PAINT.
AND THE RESULT OF THAT WOULD'VE BEEN REMOVING ALL THE PARKING ON BOTH SIDES OF THE STREET.
THE COST OF THAT WAS ESTIMATED AT AROUND A MILLION DOLLARS, LET'S SAY 2 MILLION JUST FOR KICKS.
RIGHT? BUT IT WAS ABOUT A MILLION DOLLARS.
IT'S $50 MILLION BECAUSE WE VOTED TO RETAIN 50% OF THE PARKING BY ELIMINATING THE MEDIAN AND THEN DOING OTHER SIDEWALK INSTRUCTION TO DO A COMPLETE STREETS PROJECT.
IT IS NOT $50 MILLION ON BIKE LANES, IT'S ABOUT 2 MILLION, DO A MILLION ON BIKE LANES, AND THE REST IS OTHER STUFF.
AND SO ONE WAY TO SORT OF BE TRANSPARENT AND SAY, LET'S STOP TALKING ABOUT IT AS A CSO PROJECT.
IT'S NOT A CSO PROJECT, IT'S A COMPLETE STREETS PROJECT OF WHICH BIKE LANES ARE APART.
SO IN ALL OF OUR DOCUMENTS, I MEAN, WE, YOU KNOW, IT JUST, EVEN IN THIS, IT TALKS ABOUT THE CSO PROJECT, THEN IT SAYS, COMPLETE STREETS, THAT $50 MILLION SHOULD BE IN COMPLETE STREETS,
[00:55:02]
YOU KNOW? UM, SO I THINK THE WAY WE TALK ABOUT IT AND THE WAY WE PRESENT IT TO THE, TO THE COMMUNITY IS, IS REALLY IMPORTANT.UM, THE OTHER THING I WOULD SAY IS, UM, AND I AGREE WITH, WITH WITH, I THINK WE ALL SAID THIS ABOUT TRYING TO SCALE DOWN, YOU KNOW, SOME OF THE PROJECTS WE DON'T ALWAYS NEED, YOU KNOW, THE ULTRA GOLD, PLATINUM STANDARD ON EVERYTHING.
I, THE, YOU KNOW, THE FIREHOUSE, WE, YOU KNOW, PART OF THE COST OF THAT, OF IT BEING SO EXPENSIVE IS WE, WE'VE PUSHED TO HAVE IT ALL ELECTRIFIED FOR ELECTRIC FIRE TRUCKS THAT DON'T EVEN REALLY EXIST YET.
BUT THEY WILL AT SOME POINT, WE HOPE.
AND WE WANT THE, THE FIREHOUSE TO BE READY.
THAT'S, THAT RESULTED IN A WHOLE NEW TRANSFORMER THAT HAD TO BE PUT THERE.
A LOT OF THINGS THAT DROVE UP THAT COST.
SO AS A COUNCIL, WE CAN ON ONE HAND SAY, GEE, WE'RE REALLY UPSET THAT YOU'RE SPENDING ALL THIS MONEY, AND THEN AT THE SAME TIME GIVE YOU A LAUNDRY LIST OF 47 THINGS WE WANT INCLUDED IN EVERY PROJECT THAT ALL COST MONEY.
SO WE ARE RESPONSIBLE FOR PART OF THIS, YOU KNOW, AS WELL.
UM, AND THEN I DO WANT TO ASK ABOUT DANAH.
HE, UM, DOES, DAN DOES THE SCOPE OF DANAH, HE INCLUDE DEEP PASQUALE PARK.
I MEAN, IT'S ON THE, IT'S ON THE STREET SIDE OF DHE, BUT IT IT'S THE, THE RENOVATIONS THAT ARE HAPPENING THERE, UM, THROUGH YOUR CHAIR.
SO WE'RE NOT PROPOSING ANY RENOVATIONS TO THE NEWLY CONSTRUCTED PASQUALE PARK.
IT IS PART OF THE DHE PARK FOOTPRINT.
'CAUSE I'M GONNA, I'M GONNA PROPOSE ONE
UM, 'CAUSE I WAS INVOLVED IN, IN GETTING THAT PARK OFF THE GROUND, AND ONE OF THE THINGS THAT WE TALKED ABOUT AND WE FELT WAS REALLY, REALLY IMPORTANT WAS HAVING ONSITE BATHROOMS. OH, HANDICAP ACCESSIBLE BATHROOMS, ESPECIALLY, WHICH WE DID NOT INCLUDE IN THE FINAL VERSION.
AND SO I HAVE HEARD FROM MANY PA AS OUR ONLY ALL INCLUSIVE PARK, UM, I HAVE HEARD FROM MANY PARENTS WHOSE CHILDREN ARE IN WHEELCHAIRS WHO CAN'T USE THE PORTA POTTY THAT'S THERE BECAUSE IT'S NOT ACCESSIBLE AND YOU NEED MORE SPACE AND IT'S HARDER TO MANEUVER YOUR CHILD, GETTING THEM IN AND OUT OF A WHEELCHAIR.
SO IT WAS ORIGINALLY SUPPOSED TO BE PART OF THAT.
I JUST WANNA MAKE THAT PLUG FOR WHEN YOU WERE LOOKING AT DANNY, HE, THAT WE ACTUALLY LOOK TO SEE THE POSSIBILITY OF PUTTING THAT BATHROOM IN, I THINK TO HAVE AN ALL-INCLUSIVE PARK, UM, AND SAY, EVERYONE IS WELCOME HERE.
AND THEN SAY, BUT IF YOU'RE IN A WHEELCHAIR, YOU CAN'T USE THE BATHROOM IF YOU HAVE A FIVE YEAR-OLD KID OR A 6-YEAR-OLD KID IS NOT REALLY ALL INCLUSIVE.
SO I JUST WANNA MAKE THAT PLUG AS WE THINK ABOUT PRIORITIES AND, AND WE THINK ABOUT DANNY, UM, IS IT THAT BATHROOM? GET ON THE, GET ON THE TABLE.
I JUST, UM, THERE ARE, WE HAVE, UM, SEVERAL, UM, PORTLAND LS PROPOSED IN THE CITY.
WE'VE HAD A LITTLE BIT OF A DELAY BECAUSE THEY WERE HAVING SOME BUILDING, UM, COMPLIANCE ISSUES THAT HAVE BEEN RESOLVED.
UM, AND SO THERE IS ONE PROPOSED THAT HAS ALREADY BEEN FUNDED TO GO INTO THAT PARKING LOT NEXT TO, SO MY FACE WAS ABOUT, LIKE, WE'RE NOT, I DON'T WANNA GO BACK INTO THE PARK, BUT, UM, THE, THE PORTLAND LU, WHICH ARE FULLY ACCESSIBLE, THEY'RE QUITE GENEROUS SIZE.
UM, THERE IS ONE PROPOSED TO GO IN THERE AND THAT WOULD GO INTO THE PARKING LOT IMMEDIATELY ADJACENT TO THE PARK, SORT OF IN THAT SAME VICINITY.
SO THAT ONE'S ALREADY TAKEN CARE OF, HAS ALREADY BEEN FUNDED.
AND, UH, THROUGH YOU MADAM CHAIR, DO WE HAVE A TIME, I MEAN, OBVIOUSLY IT'S NOT QUICK, BUT IS IT FIFTH ON THE PORTLAND LEW LIST? IS IT FIRST, IS IT A YEAR FROM NOW? FIVE YEARS FROM NOW? SO, UM, I THINK THE BID WILL GO OUT IN THE NEXT COUPLE MONTHS.
AND SO YOU WOULD START TO SEE CONSTRUCTION HOPEFULLY LATER THIS FALL.
AGAIN, DANNY, HE IS A SPECIAL, UM, PLACE IN THAT EVERYTHING WE DO THERE HAS TO GO THROUGH PRETTY SIGNIFICANT DEP FUNDING.
AND AS PEOPLE KNOW, WE'VE HAD ISSUES THERE IN THE PAST WITH METHANE.
SO THERE IS A PRETTY, UM, GONNA BE A PRETTY HIGH BAR IN TERMS OF THAT PROCESS, BUT IT IS BEING ACTIVELY WORKED ON WITH THE GOAL OF BIDDING IT AND STARTING CONSTRUCTION THIS YEAR.
IF WE HAVE NO OTHER QUESTIONS RIGHT NOW, I'LL JUMP IN.
YEAH, LET'S TURN THE FLOOR TO COUNSELORS.
UM, AND I DIDN'T, AND I, YOU CAN CONTINUE, BUT I, I, I THANK THE CITY STAFF SO MUCH FOR THEIR PRESENTATION AND ALL THE WORK THAT THEY HAVE DONE TO, UM, TO PREPARE THIS FOR US.
UM, I WOULD SAY I ACTUALLY BELIEVE IN INFRASTRUCTURE SPENDING BECAUSE I THINK IT'S LIKE INVESTING IN YOUR HEALTH IF, UH, IT'S, IT'S A LOT LESS EXPENSIVE TO TAKE CARE OF THINGS WHEN YOU FIRST HAVE ISSUES.
LIKE YOU WANNA REPLACE A ROOF BEFORE YOU'RE BUILDING ROTS AND MOLD APPEARS.
SO I ALWAYS FEEL AS THOUGH IT'S A GOOD INVESTMENT TO INVEST IN
[01:00:01]
INFRASTRUCTURE AND MY WORRY, UM, COUNTER TO, UH, COUNSELOR SABRINA, WE ALWAYS WORRY IS THAT I, I FEEL AS THOUGH, UM, I THINK IT'S REALLY IMPORTANT THAT WE'RE NOT DEFERRING INFRASTRUCTURE INVESTMENT.IF IT'S GOING TO MEAN THAT PROJECTS WILL COST FIVE TIMES AS MUCH DOWN THE ROAD.
I, I, I THINK WE'VE GOT A PLAN AHEAD.
SO AGAIN, I THANK YOU FOR ALL YOUR ATTENTION TO THIS.
UM, I WANTED TO ASK YOU, I, I FELT LIKE WE, UM, YOUNG KIM MADE A GOOD POINT IN PUBLIC COMMENT ABOUT HOW WE REALLY NEED TO HAVE A BETTER SENSE FOR WHAT THE TOTAL COSTS OF PROJECTS ARE OVER TIME.
SO I ASK YOU, PLEASE PROVIDE US WITH THAT INFORMATION.
AND ON SLIDE 22, AGAIN, I KNOW THIS IS THE, UM, CULMINATION OF A LOT OF WORK TO FIGURE OUT WHAT THE PRIORITIES SHOULD BE GOING FORWARD, BUT I'D REALLY LOVE TO HAVE A SENSE FOR WHAT WE, EACH ITEM IS ESTIMATED TO COST.
UM, I, ANOTHER JUST COMMENT, I JUST WANTED TO COMMENT ON WHAT ISN'T ON THIS LIST, AND I JUST WANT TO MAKE SURE EVERYBODY IS AWARE OF IT.
I THINK THEY ARE, BUT YOU KNOW, SOCIAL HOUSING AND HOUSING HAS BEEN A PRIORITY FOR THE CITY.
AND IT SEEMS TO ME THAT THE ONLY WAY THAT WE'RE GONNA BE ABLE TO ADVANCE SOCIAL HOUSING IS THROUGH PUBLIC PRIVATE PARTNERSHIPS ON CITY LAND.
SO I HOPE WE'LL PURSUE THAT IN A A DIFFERENT WAY.
UM, MUNI BROAD MUNICIPAL BROADBAND ISN'T ON THE LIST BECAUSE WE HAVE LESS MONEY AND THERE'S SO MANY OTHER COMPETING PRIORITIES.
THE WARMING SHELTER THAT COUNSELOR MCGOVERN HAS BEEN ADVOCATING FOR FOR SO MANY YEARS AND IMPROVEMENTS TO THE ALBANY STREET SHELTER AREN'T ON THE LIST.
SO, AND, AND SO ALL OF THESE THINGS ARE IMPORTANT TO FUND, AND WHAT I'M HOPING FOR IS THAT WE CAN MAKE CAMBRIDGE A BETTER PLACE TO DO MUNICIPAL PROJECTS SO WE CAN GET MANY MORE BIDS AND MORE COMPETITIVE BIDS.
UM, I FEEL AS THOUGH IT WOULD BE WORTHWHILE TO REALLY THINK ABOUT WHERE CAN WE HAVE CONTRACTORS PARK FOR MUNICIPAL PROJECTS? HOW CAN WE HELP THEM TO MAKE STAGING PROJECTS EASIER AND HOW WE CAN EASE PERMITTING SO IT'S NOT SUCH A BEAR TO DO A PROJECT IN THE CITY.
I THINK IF WE MAKE THAT INVESTMENT IN, IN PERHAPS, UM, UH, THE MAIN MUNICIPAL FACILITIES, UM, IMPROVEMENT DEPARTMENT IS ALREADY THINKING ABOUT THESE THINGS, BUT I THINK WE WOULD GET INCREDIBLE RETURNS AND WE WOULD SAVE SO MUCH MONEY IF WE JUST MADE IT EASIER TO DO WORK WITHIN THE CITY.
UM, I WANTED TO ASK, I HAD TWO QUESTIONS.
THOSE WERE, THOSE WERE MY COMMENTS.
ONE WAS, AGAIN, IT LOOKS LIKE WE'RE GONNA DO QUITE A BIT OF STREET, UH, WORK OVER THE NEXT FIVE YEARS, AND I KNOW RIVER STREET WILL BE, UM, THOSE IMPROVEMENTS ARE PART OF WHAT WILL BE PAID FOR, BUT I WONDERED WHAT OTHER STREET PLANS ARE YOU THINKING ABOUT FOR BETWEEN 26 AND 30 AND YEAH, AND THEN I, YEAH, I GUESS THAT'S, THAT'S MY ONLY QUESTION.
THE OTHER THING IS THAT I, OH, I GUESS ANOTHER QUESTION IS, IT LOOKS LIKE I WAS LOOKING AT THE 25 MUNICIPAL FACILITIES IMPROVEMENT PLAN AND WE WERE GONNA BE SPENDING ABOUT 35 MILLION OVER FIVE YEARS FOR BUTO.
SO I JUST WANTED TO MAKE SURE THAT WAS STILL THE NUMBER THOUGHT OF FOR BUTO IMPROVEMENTS.
UM, YEAH, SO THOSE ARE MY, THOSE ARE, SO MY, MY QUESTIONS ARE WHERE ELSE ARE WE GONNA BE IMPROVING, PAYING BETWEEN 26 AND 30 WHAT STREET IMPROVEMENTS OUTSIDE OF RIVER STREET? UM, YEAH, THAT'S, THAT'S MY, MY QUESTION AND IS, IS 35 MILLION FOR BUTO BETWEEN 26 AND 30, THE CURRENT THOUGHT, AND, AND AGAIN, MY FINAL PLAY IS PLEASE GIVE US COMPLETE COSTS.
WE WANNA KNOW HOW MUCH THINGS COST OVER TIME SO WE REALLY UNDERSTAND WHAT WE'RE PAYING FOR AND, AND SO WE CAN BETTER UNDERSTAND YEAH, HOW, HOW MUCH THINGS COST AND HOW WE CAN BEST USE OUR RESOURCES, UM, THROUGH YOUR CO-CHAIR.
UM, THE STREETS THERE, THERE'S A COUPLE DIFFERENT PIECES TO THAT.
SO ONE IS THAT A NUMBER OF STREET IMPROVEMENTS ARE PAID THROUGH FROM THE SEWER FUND, THE SEWER REVENUE.
SO FOR EXAMPLE, WE HAVE SIGNIFICANT, UM, INVESTMENT THAT IS BEGINNING IN THE PORT.
SO A NUMBER OF STREETS IN THE PORT WILL BE FULLY RECONSTRUCTED, AND THEN THAT'S BEING FUNDED OUT OF THE SEWER FUND, SEWER REVENUES.
UM, WHEN WE LOOK AT WHAT'S ACTUALLY SHOWING UP BETWEEN 26 AND 29 ON THE STREET SIDE,
[01:05:01]
YOU KNOW, A BIG CHUNK OF THAT IS, UM, THE MASS AVE WORK THAT WE'VE TALKED ABOUT.AND AGAIN, PEOPLE CAN SORT OF THINK ABOUT HOW YOU APPORTION THAT WORK, BUT THAT IS WHAT'S SHOWING UP IN THAT STREETS NUMBER.
UM, AND THEN ALSO CONTINUED WORK ON RESIDENTIAL STREETS.
SO, UM, YOU KNOW, EVERY YEAR WE TRY TO PICK OFF A FEW RESIDENTIAL STREETS SO THAT WE'RE NOT ONLY FOCUSING ON THE MAIN CORRIDORS, BUT ALSO DOING, UM, SOME SMALLER RESIDENTIAL STREETS.
SO THOSE ARE ALSO CONTINUING TO BE FUNDED.
UM, AND SO THAT'S WHAT YOU'RE REALLY SEEING IN THAT STREETS NUMBER.
I KNOW DPW IS WORKING ON UPDATING THE FIVE YEAR PLAN.
I THINK WITH A NUMBER OF THESE CHANGES THAT WE'VE BEEN MAKING TO THE OVERALL FUNDING AND APPROACH, THEY'VE REALLY NEEDED TO TAKE A CLOSER LOOK AT WHERE ARE STREETS WHERE WE CAN REALLY FOCUS ON, YOU KNOW, PAVING AND RAMPS.
BECAUSE YOUR EXAMPLE ABOUT, UM, YOU KNOW, HEALTH AND IF YOU CATCH SOMETHING SOONER, IT HAS LESS COST IS, UM, ENTIRELY TRUE WITH PAVING.
SO IF YOU CAN REPAVE A STREET BEFORE YOU REALLY START TO LOSE ITS STRUCTURE, YOU CAN DO A PRETTY INEXPENSIVE, YOU KNOW, LESS EXPENSIVE GRIND AND OVERLAY AS OPPOSED TO IF YOU WAIT AND HAVE TO DO FULL RECONSTRUCTION AND HAVE TO RECONSTRUCT, YOU KNOW, THE SORT OF THE FULL TWO FOOT OF THE PAVING, UM, CROSS SECTION.
AND SO, YOU KNOW, I KNOW D PW IS REALLY LOOKING AT IDENTIFYING STREETS THAT WE CAN LOOK AT.
IT NEEDS TO BE DONE PAVING AND THEN THE PEDESTRIAN RAMPS TO MAKE SURE THEY'RE MEETING ACCESSIBILITY REQUIREMENTS AND THEN ALSO CONTINUING TO DO, YOU KNOW, SOME SIDEWALK WORK.
SO AGAIN, BALANCING THAT WITH, AGAIN, SORT OF A, AN ONGOING, YOU KNOW, $10 MILLION A YEAR SORT OF TARGET TO LOOK AT.
BUT THE BIGGER NUMBERS, PARTICULARLY FOR, YOU KNOW, THROUGH FY 28, UM, UM, A LOT OF THAT IS AROUND THE MASS AVE WORK.
AND I'M, I'M HAPPY THAT YOU'RE GONNA CONTINUE THROUGH WATER SEWER FEES TO DO THE $30 MILLION A YEAR INVESTMENT IN CSOS.
UM, I'M LOOKING FORWARD TO, TO CARRYING THE PLAN FOR, UM, THE CS A CSOS GOING FORWARD, BUT I, I JUST THINK THAT WORK IS ABSOLUTELY CRITICAL AND I KNOW IT'S INCREMENTAL AND I REALLY APPRECIATE THE CITY'S, UM, LONG TIME, LONG-TERM INVESTMENT IN, IN BETTER MANAGING OUR SEWER AND WATER.
WE WILL NOW GO, WE'LL NOW GO TO CO-CHAIR NOLAN.
UM, JUST WANNA FOLLOW UP ON A COUPLE THINGS AND I WANNA, UM, HIGHLIGHT AS, UM, CO-CHAIR ZUBI, YOU KNOW, WE'VE TALKED ABOUT THIS A LOT IN THE PREP MEETINGS AS, UM, DCM WATKINS NOTED, WE CAN HOLD BOTH IN HER, IN OUR MINDS THAT YES, CAMBRIDGE IS CHALLENGING.
WE HAVE LABOR STANDARDS, WE HAVE ENVIRONMENTAL STANDARDS, AND YET THERE'S ALSO A WAY IN WHICH WE WERE NOT NEEDING TO PAY ATTENTION TO COSTS.
SO, UM, AND AGAIN, WITH THE, WITH THE CYCLING SAFETY ORDINANCE, WE, WE PASSED IT AND YET THE COUNCIL NEVER HAD A CLEAR SENSE OF WHAT THE COST WOULD BE AND MAY HAVE CHOSEN TO MODERATE SOME OF IT, NOT ON THE BIKING, BUT, BUT KNOWING WHAT THE TRADE-OFFS WERE, MAY HAVE SAID, IS THERE ANY WAY TO DO THIS A LITTLE BIT DIFFERENTLY? UM, INSTEAD OF SPENDING $50 MILLION ON IT, AND AGAIN, IF WE HADN'T DONE THE CYCLING SAFETY ORDINANCE, YOU COULD SAY, WELL, IT'S ALL RELATED TO THAT.
'CAUSE IF, IF WE DIDN'T HAVE IT, WE WOULDN'T HAVE SPENT ANY OF THAT MONEY.
AND YET MUCH OF IT WENT NOT JUST TO THE SAVING PARKING SPACES AND CARS, BUT ALSO TO SOME OTHER INFRASTRUCTURE IMPROVEMENTS WHILE THE STREETS WERE THERE.
SO I, I THINK IT'S REALLY IMPORTANT WE HOLD ALL THAT, UM, IN OUR, IN OUR MINDS AS WE MOVE FORWARD.
BUT I I, I DO THINK UNDERSTANDING THE COSTS GOING FORWARD WOULD BE REALLY HELPFUL.
UM, ONE QUESTION I HAVE IS, HAVE WE EVER TAKEN ON PROJECTS TO SAY NOT, WELL, HERE'S THE, HERE'S THE PROJECT, WHAT'S YOUR BID? BUT TO SAY, HERE'S THE PROJECT, HERE'S OUR TOP COSTS.
OH, WHAT CAN YOU DO FOR THAT? AND I'M THINKING OF, I KNOW AT THE TIME, AS MUCH AS WE ALL LOVE THE DEPASQUALE PLAYGROUND, THE REALITY IS AT THE SAME TIME I LOOKED UP SOME COMPS FROM OTHER CITIES, INCLUDING URBAN ENVIRONMENTS IN A VERY FLUD ENVIRONMENT.
AND THE COSTS WERE, WERE HALF OF WHAT WE SPENT ON THAT, ON THAT PARK.
YES, IT WAS A CHALLENGING SITE, BUT WATERTOWN BUILT SCHOOLS FOR $130 MILLION LESS FOR NET ZERO.
SO I THINK MY QUESTION IS, CAN THE CITY GO FORWARD AND SET A BUDGET FOR A PROJECT AND THEN SAY, WELL, IF WE CAN'T MEET EVERYTHING WE WANNA DO IN THE PROJECT, WE'RE GONNA STICK TO THE BUDGET AND THEN ENGINEER OUR WAY INTO A FE ECONOMICALLY AND FINANCIALLY FEASIBLE PROJECT.
AS A QUESTION, UM, THREE CO-CHAIR, IT, IT DOES.
COUNCILOR NOLAN AND I WOULD SAY THAT, UM, YOU KNOW, THAT WAS ONE OF THE CONVERSATIONS WE STARTED TALKING A LITTLE BIT ABOUT WITH THE MASS SVE PROJECT.
SO I THINK THAT IS A GOOD EXAMPLE OF WHERE, YOU KNOW, AS PEOPLE LOOKED AT THE DESIGN, THERE ARE A LOT OF GREAT IMPROVEMENTS
[01:10:01]
THAT ONE COULD MAKE TO MASS SVE.UM, AND THEN WHEN YOU START LOOKING AT WHAT IS THE COST OF THAT, AND AGAIN, IT SEEMS LIKE A SMALL IMPROVEMENT, BUT THEN WHEN YOU MULTIPLY AT TIMES FOUR LANES AND TWO MILES, IT QUICKLY ADDS 5 MILLION OR $10 MILLION TO THE PROJECT COST.
SO THAT IS A GOOD EXAMPLE OF WHERE WE'RE REALLY CLEAR THAT THAT IS THE BUDGET AND WE WANNA SAY, YOU KNOW, WHAT ARE THE TYPES OF IMPROVEMENTS WE CAN MAKE? AND THEN REALLY DO, YOU KNOW, VALUE ENGINEERING AND, YOU KNOW, COST EVALUATION OF WHAT CAN WE ACTUALLY DO WITHIN THAT BUDGET? AND I WOULD SAY, YOU KNOW, DAN, HE, THE SORT OF, THE PLAN THAT'S COMING OUT FROM THAT IS SORT OF SIMILAR IN TERMS OF REALLY LAYING OUT LIKE, OKAY, HERE'S A LONG-TERM VISION AND WE WANNA HOLD THOSE, YOU KNOW, HOLD THE VALUES OF CREATING REALLY GREAT OPEN SPACE AND PRIORITIZING AND THINKING ABOUT HOW WE'RE IMPLEMENTING THOSE.
SO, UM, I THINK THAT IS WHAT YOU ARE SEEING MORE IN THESE PROJECTS AS WE'RE MOVING FORWARD, UM, IS REALLY, YOU KNOW, THINKING ABOUT WHAT THE TRUE SCOPE OF THE PROJECT IS, SETTING A BUDGET AND THEN HAVING THOSE HARD CONVERSATIONS DURING THE DESIGN PROCESS WITH THE COMMUNITY AND YOU KNOW, WITH OUR INTERNAL STAFF AS WELL AS CONSULTANTS AND, YOU KNOW, THE ENTIRE PROJECT TEAM REALLY HOLDING, YOU KNOW, FIRM TO THOSE COST ESTIMATES.
AND ALSO UNDERSTANDING THAT THERE ARE TIMES WHEN THAT'S NOT POSSIBLE AND THERE WILL BE, LIKE, THERE IS AN UNEXPECTED INCREASE AND WE NEED TO ALSO HAVE THAT CONVERSATION.
SO I ALSO WANNA BE REALLY, YOU KNOW, JUST, YOU KNOW, HONEST ABOUT THAT PROCESS AS WELL.
LIKE, I'M NOT NOT ABLE TO SIT HERE AND SAY, WE WILL NEVER COME BACK TO THE COUNCIL OR NEVER NEED TO LOOK FOR ADDITIONAL FUNDING FOR A SPECIFIC PROJECT, BUT KNOW THAT WE ARE REALLY HOLDING TRUE TO THOSE VALUES OF SETTING A BUDGET, WORKING WITHIN THAT, AND THAT IF WE'RE COMING BACK FOR ADDITIONAL FUNDS, IT'S BECAUSE, YOU KNOW, THERE'S UNEXPECTED COSTS, YOU KNOW, COST OF, YOU KNOW, THAT IT'S A REALLY, IT'S A VERY CLEAR CONSCIOUS DECISION.
UM, UM, YEAH, THANK YOU FOR THAT.
IT'S IMPORTANT WE RECOGNIZE THAT.
AND JUST LIKE, YOU KNOW, THE TOBIN DARBY VASSEL WAS, WAS MENTIONED AS I'VE SAID ABOUT A, I DON'T KNOW, A HUNDRED TIMES COMPARED TO SOME OTHER SCHOOLS, WHICH WERE EXACTLY VERY, VERY SIMILAR.
WE PAID ATTENTION TO LOTS OF NICE TO HAVE, AND IT IS NICE TO HAVE, IT'S PHENOMENAL.
AND YET, DID WE REALLY NEED TITANIUM OR PLATINUM LEVEL ON EVERYTHING OR COULD WE HAVE BEEN SETTLED NOT JUST FOR GOLD OR SILVER, BUT MAYBE BRONZE.
AND I THINK, UH, THAT THEN FREES UP, AS WE'VE BEEN SAID, SOME, UH, MOVEMENT IN OUR, IN OUR, EVEN IN OUR CAPITAL BUDGET.
THERE'S OTHER SCHOOLS IN OUR DISTRICT THAT COULD REALLY USE SOME HELP.
THE UPTON STREET BUILDING IS, UM, IS ONE THAT, THAT NEEDS SOME UPDATING THE KLO BUILDING.
AND YET WE HAVING SPENT HALF A BILLION DOLLARS ON OUR SCHOOLS, IT'S VERY HARD TO SEE HOW WE, UH, COULD MOVE FORWARD ON THAT.
UM, ON THE, UM, CAPITAL PROJECTS MOVING FORWARD, JUST TO REMIND US ALL, AND I'M SURE CHAIR ZUBIE WILL, UM, REMIND US ALL OF THAT.
WE DO NEED INPUT FROM THE CITY COUNCIL ON HOW IT IS THAT WE'RE GONNA MOVE FORWARD WITH SOME OF THE PRIORITIZATION.
'CAUSE IT'S IMPORTANT THAT WE LOOK AT, AT PROJECTS AND UNDERSTAND WHERE THEY CAN FIT IN.
UM, AND ON, YOU KNOW, PARKS ARE AN EXAMPLE AS DCM WATKINS NOTED DANA, HE, BUT ALSO RAYMOND IS AN EXAMPLE WHERE THE BUDGET WAS CUT IN HALF DUE TO SOME PLANNING AND SOME CONCERNS FROM THE NEIGHBOR.
AND ALSO THEN THE FINANCE, UH, CHAIR PICKET AND I TALKED WITH THE STAFF ABOUT IS THERE ANY WAY WE CAN VALUE ENGINEER THIS AND DEFINITELY ADDRESS THE SAFETY ISSUES AND WE DON'T NEED MORE THAN THAT.
I THINK THAT'S ANOTHER GOOD EXAMPLE TO REMIND US OF.
LINEAR PARK IS SOMETHING THAT SOME OF THE PEOPLE IN THE COMMUNITY FELT WAS CHALLENGING, AND YET IT WASN'T JUST ABOUT WIDENING THE PATH.
THERE WAS ALSO SOME REALLY SERIOUS INFRASTRUCTURE NEEDS FOR THAT PATH IN TERMS OF IRRIGATION AND LIGHTING THAT NEED TO HAPPEN, UM, AS WE MOVE FORWARD.
SO MY QUESTION RELATED TO THAT IS IT SEEMED LIKE A TINY, TINY BIT OF THE CHART WAS ABOUT OPEN SPACE AND PARKS, AND YET WHEN I THINK OF LINEAR PARK AND RAYMOND PARK, THERE'S AT LEAST SOME SPENDING ON THAT.
IS THAT SOMETHING THAT WAS COVERED ELSEWHERE OR IT'S JUST SUCH A TINY SLICE THAT DIDN'T SHOW UP? IF THAT MAKES SENSE.
IF THE QUESTION, AND THEN I'M, I YIELD, UH, THROUGH YOU CO-CHAIR.
UM, SO COUNCIL NOLL, IT IS INCLUDED IN THE BOND SCHEDULE, IT, THOUGH IT IS SPLIT OVER A COUPLE YEARS, SO YOU DON'T NECESSARILY SEE AS BIG A NUMBER.
AND THEN AGAIN, I THINK, UM, WHILE WE FOCUS ON SOME OF THE BIGGER OPEN SPACE PROJECTS, UM, YOU KNOW, WHEN YOU'RE LOOKING AT THE OVERALL CAPITAL PROGRAM, THEY'RE NOT AS LARGE.
AND THEN A NUMBER OF THESE PROJECTS, NOT, I DON'T BELIEVE RAYMOND, BUT UM, A NUMBER OF O OTHER OPEN SPACE PROJECTS ALSO USE CPA FUNDS.
SO CPA IS A BIG CHUNK THAT GOES TOWARDS OPEN SPACE PROJECTS, AND THEN ANYTHING IN THE BOND SCHEDULE IS SHOWING UP IN THOSE GREEN BUCKETS.
AND JUST REMIND US ALL, WE DO NEED TO DECARBONIZE, AND THAT DOESN'T ADD TENS OF MILLIONS OF DOLLARS TO PROJECTS.
IT CAN ADD SOME MONEY, AND YET IT PAYS FOR ITSELF OFTEN OVER REDUCED OPERATING EXPENSES.
YOU ASK ANY POLICE DEPARTMENT HAVE AN ELECTRIC VEHICLE AND IT MAY BE A HIGHER UPFRONT COST, AND YET THE OPERATING COST LONG TERM, UH, MAKE IT MUCH EASIER
[01:15:01]
TO HANDLE.AND I THINK WITH THE FIRE STATION, WE WOULD'VE WANTED SOME DECARBONIZATION ANYWAY.
THAT DOESN'T MEAN WE SHOULDN'T HAVE APPROACHED IT SOMEWHAT DIFFERENTLY, BUT JUST ON THE, ON THE ELEMENT OF, OF EMISSION POLLUTION IN THE CITY, I REALLY HOPE THAT WE DON'T BACKTRACK ON THAT.
UM, AND CHAIR, IF I CAN JUST ONE QUICK FOLLOW UP.
SO, UM, AND THEN, AND AGAIN, THIS ISN'T, UM, SORT OF VALUES OR, BUT JUST, UM, YOU KNOW, THROUGH THE IRS DIRECT PAY, THE FIRE HEADQUARTERS IS ONE OF THOSE PROJECTS WHERE WE ARE GETTING, WE'RE ANTICIPATING IN 2027 TO GET $2 MILLION BACK FROM THAT, UM, PROGRAM.
SO FOR, YOU KNOW, THE IRS DIRECT PAY THAT WE TALKED A LITTLE BIT ABOUT, UM, HAS BEEN A REALLY SUCCESSFUL PROGRAM IN TERMS OF SUPPORTING, UM, SOME OF THESE IMPROVEMENTS.
AND, YOU KNOW, ALSO TO COUNCIL NOLAN'S PRO, YOU KNOW, COMMENTS, WE NEED TO CONTINUE TO THINK ABOUT HOW WE DO THESE PROJECTS AND HOW WE IMPLEMENT THEM.
BUT WE ARE ALSO CONTINUING TO LOOK FOR, YOU KNOW, ANY GRANT FUNDING OR THIS TYPE OF FUNDING THAT IS AVAILABLE TO HELP OFFSET, UM, THOSE UPFRONT COSTS.
AND DICK DIRECTPAY IS NOT GOING AWAY FOR, UM, DISTRICT ENERGY OR GROUND SOURCE SEED EXCHANGE, EVEN IF IT'S GOING AWAY FOR SOLAR.
AND THEN IT'S ALSO GOING AWAY FOR EVS.
SO MY UNDERSTANDING IS THAT, YOU KNOW, WE GOT 2025, WE GOT $140,000 FOR EVS 26, WE'RE GETTING ABOUT $80,000 FOR ELECTRIC VEHICLES.
AND THEN I THINK IN THE FUTURE THAT PHASES OUT, BUT WE'LL CONTINUE TO LOOK FOR ANY OTHER OPPORTUNITIES.
UH, I AGREE WITH A LOT OF WHAT'S BEEN SAID, UM, YOU KNOW, AS, UH, ON THE SCHOOL COMMITTEE SIDE AS I, YOU KNOW, AS, AS WE DO THESE CAPITAL PROJECTS, YOU KNOW, ONE OF THE BIG THINGS IS WITH A SCHOOL LIKE TOBIN, THERE WILL BE A LOT OF ONGOING EXPENSES TOO.
UM, AND YOU KNOW, IT'S, WE'RE REALLY LUCKY TO BE IN THIS PLACE THAT WE GET TO DO, UH, SO MUCH OF THIS.
UM, BUT I DO THINK AS THE PRESENTATION ALLUDES TO, AS WE GO INTO SOME UNCERTAINTY, UM, I GUESS I HAD TWO QUESTIONS AROUND THE PROJECTS IN THE FY 26 30 BOND SCHEDULE.
HAVE THOSE, THOSE, HAVE THOSE BEEN KIND OF SEQUENCED? DOES DOES THE COUNCIL NEED TO DO ANYTHING AROUND THAT WORK? UM, IS THERE ANYTHING THAT'S KIND OF COMING UP? I KNOW THE 1 58 SPRING STREET WHEN THE SCHOOLS DID THE STUDY THAT WAS ON THERE, BUT IT WAS ALL ACTUALLY, THERE WAS NO INSIGHT INTO WHETHER THAT SCHOOL WAS GONNA CLOSE, RIGHT? AND SO THERE'S ALWAYS SOME SEQUENCING THINGS COME UP, UH, THAT THE CITY DOESN'T KNOW ABOUT NECESSARILY, BUT THAT'S JUST A GENERAL QUESTION, UM, AROUND THESE PROJECTS THAT ARE COMING UP, UM, THROUGH YOUR CHAIR.
UM, THE 26 TO 29 PROJECTS ARE PRETTY WELL BAKED.
UM, SOME OF THEM WILL CONTINUE TO SHOW UP IN THE CAPITAL BUDGET.
SO WE TALKED A LITTLE BIT ABOUT CENTRAL SQUARE PROJECT.
SO CENTRAL SQUARE PROJECT WAS IDENTIFIED, UM, AS A CS, LIKE THERE'S THE TWO CSOS, BUT, UM, THE CYCLING SAFETY CSO AS A PROJECT AND IDENTIFIED FOR CONSTRUCTION, UM, ONE OF THE THINGS WE'VE BEEN REALLY WORKING ON IS WHAT IS THE RIGHT SCOPE OF THAT PROJECT? AND SO, UM, LAST YEAR WE HAD APPROPRIATED FUNDING ON THE SEWER SIDE THIS COMING YEAR, WE'LL APPROPRIATE MONEY ON THE OPERATINGS, ON THE, UM, ON THE TAX SIDE.
UM, AND SO THAT WILL BE THERE, IT WILL BE, WE ARE ANTICIPATING IT TO BE SUBSTANTIALLY LESS THAN WHAT WE HAD ANTICIPATED LAST YEAR BECAUSE AGAIN, REALLY THINKING ABOUT WHAT IS THE PROJECT SCOPE, WHAT MAKES SENSE? UM, AND SO THAT WILL BE AN APPROPRIATION THAT YOU WOULD ANTICIPATE TO SEE THIS YEAR, YOU KNOW, CONSISTENT WITH PREVIOUS YEARS IN TERMS OF EXPECTING THE PROJECT REDUCED SCOPE IN TERMS OF REALLY BEING MINDFUL OF THE MOMENT AND WHAT'S NECESSARY ON THE SCHOOL SIDE.
YOU KNOW, WE HAD TALKED, WE HAD COMMITTED TO THE SCHOOL, UM, AND IT'S 10 MILLION FOR FIVE 50 MILLION OVER FIVE YEARS, SO 50 MILLION OVER FIVE YEARS THAT THEY'RE, WE'RE WORKING WITH THEM ON.
UM, NOW THEY'RE GONNA MOVE SOME OF THAT AROUND IN TERMS OF TIMING SO THAT THEY'RE TAKING A LITTLE MORE OF THAT $50 MILLION PUTTING IT TO SPRING STREET SO THAT, YOU KNOW, INCREASES THEIR APPROPRIATION THAT THEY'RE LOOKING AT ON THE SHORT TERM.
BUT OVER THE FIVE YEAR PERIOD, THEY'RE WORKING WITHIN THAT 50 MILLION.
AND SO AGAIN, SOME OF THESE YOU'LL SEE APPROPRIATIONS FOR SOME OF THEM ARE ALREADY UNDERWAY, BUT, UM, WHAT YOU'RE SEEING IN THIS LIST OF PROJECTS AND THE BOND SCHEDULE IS REALLY CONSISTENT WITH THE TYPES OF PROGRAMS AND PROJECTS THAT WE'VE BEEN TALKING ABOUT.
YEAH, I THINK IT JUST GOES TO A GENERAL, UM, THROUGH YOU CHAIR THE, THIS QUESTION AROUND WHAT COUNCILLOR NOLAN SAID AROUND THIS.
THERE'S SO MANY PROJECTS THAT NEED TO BE PRIORITIZED AND SEQUENCED AND LIKE, HOW DO WE DO THAT? HOW DO WE BRING ALONG THE CITY COUNCIL KIND OF EARLIER, UM, UH, IN ANY WAY THAT WE CAN JUST FOR TRANSPARENCY.
I THINK THERE'S A LOT OF INTEREST IN
[01:20:01]
SPECIFIC PROJECTS IN THIS LIST, WHETHER THAT'S 1 0 5 WINDSOR, UM, YOU KNOW, I, I THINK THERE'S A LOT OF JUST INTEREST.AND SO THE CENTRAL SQUARE LIBRARY, I THINK THAT TIES INTO THE MUNICIPAL LOT STUDY AND ALL THAT.
UH, AND SO JUST CLARITY AROUND, OKAY, WHAT IS REALLY A REALISTIC TIMING FOR SOME OF THIS WORK IS IMPORTANT.
AND THROUGH YOUR CHAIR, I THINK THAT'S, YOU KNOW, ON SLIDE 22 WHERE WE STARTED LOOKING AT THOSE OUTER YEARS, YOU KNOW, IT IS SORT OF IN THE, YOU KNOW, 29, 30 AND OUTER YEARS WHERE YOU REALLY START TO SEE SPACE BECAUSE AGAIN, I WANNA EMPHASIZE WHAT WE'VE BEEN DOING FOR THE NEXT FIVE YEARS IS REALLY PUSHING DOWN THE BOND SCHEDULE AND PUSHING DOWN PROJECTS, RETHINKING SCOPE, UM, IN ORDER TO MAINTAIN THAT, SORT OF TRY TO HIT THAT 5% INCREASE.
AND SO THERE'S NOT A LOT OF SPACE IN THIS IMMEDIATE TERM, BUT WHEN WE START THINKING ABOUT, YOU KNOW, FY 30 AND BEYOND, THAT'S WHERE I THINK THERE IS REALLY A CONVERSATION IN AN OPPORTUNITY TO SORT OF SAYING, WHAT ARE THE THINGS WE SHOULD TEE UP, IF THAT'S HELPFUL.
UM, AND THROUGH YOU CHAIR, UM, I THINK I WOULD SAY VERY HAPPY TO CONTINUE TO HAVE CLOSER CONVERSATIONS WITH THE CITY COUNCIL.
UM, I THINK THIS, YOU KNOW, I THINK EVERY BUDGET CYCLE WHERE PROVIDING, UH, A CLEAR VIEW OF WHAT'S IN THE LONG-TERM CAPITAL PLAN AND ALSO HOW WE'RE MAKING ADJUSTMENTS.
AND SO, UM, I ACTUALLY WOULD SAY, YOU KNOW, THE, THE KIND OF FIVE YEAR CAPITAL FLOW ON SLIDE 15 IS PROBABLY THE CLEAREST PICTURE WE'VE BEEN ABLE TO PROVIDE THE COUNCIL IN TERMS OF NOT JUST, UM, NOT JUST THE AREAS THAT WE'RE, UH, PUTTING IN THAT LONG-TERM PLAN.
UM, YOU KNOW, EACH YEAR IN THE BUDGET CYCLE, WHAT WE'RE REALLY DOING IS APPROVING AN ANNUAL PICTURE, UH, BUT WE'RE SHOWING YOU, YOU KNOW, WHAT IS LINING UP.
UM, AND THEN PART OF THE BROADER CONVERSATION ON THE BUDGET THAT WE'RE HAVING IS THAT MULTI-YEAR PLANNING EXERCISE, BUT THEN ALSO THE MODERATION THAT WE'RE TRYING TO BUILD IN AS WE RECOGNIZE THAT THE YEARS OF ECONOMIC GROWTH THAT WE'VE BEEN UNDERGOING WHERE WE DIDN'T REALLY HAVE TO AS INTENTIONALLY LOOK AT WHAT WAS IN THE QUEUE, YOU KNOW, NOW WE REALLY DO.
AND I THINK BETWEEN THE AGING FACILITIES THAT WE SEE AND A SENSE OF LIKE, WE ACTUALLY HAVE ADDED A LOT OF DEBT, IT'S GROWN TREMENDOUSLY OVER THE YEARS, NOW WE ACTUALLY NEED TO FIGURE OUT HOW TO MAKE IT ALL FIT.
AND, AND THAT GETS INTO THE LOOK, THIS IS HOW MUCH WE ACTUALLY HAVE, UH, TOTAL THAT WE CAN PUT INTO THE CAPITAL PLAN OVER TIME.
HOW DO WE FIT THAT TARGET AND, AND WHICH PROJECTS ARE GONNA MAKE IT IN AND WHICH PROJECTS HAVE TO GET PUSHED OUT.
UM, I, I THINK THE REAL QUESTION A LOT OF, YOU KNOW, WE'VE, THE CONVERSATIONS I'VE HAD WITH WITH MANY OF YOU IS, WELL, HOW DOES THE COUNCIL, IF IT WANTS TO GET SOMETHING INTO THE CAPITAL PLAN, HOW DO WE DO THAT? UM, AND I THINK I WOULD SAY IT'S SIMILAR TO THE BROADER CONVERSATION ABOUT BUDGET PRIORITIES.
UM, WE DO NEED TO BE MORE CLEAR ABOUT ULTIMATELY SCOPING OUT, YOU KNOW, WHAT IS THE IDEA WE'RE TALKING ABOUT AND HOW DOES THAT FIT INTO, UH, THE BROADER CONVERSATIONS WE'RE HAVING, AND THEN HOW DOES IT FIT INTO THE BUDGET? UM, YOU KNOW, I THINK SOME OF WHAT, SOME OF WHAT I THINK THE TAKEAWAY IS IN TERMS OF, AS YOU SEE THE MAJOR PROGRAMS THAT WE'RE SETTING UP, A LOT OF THIS IS THE DAY-TO-DAY OPERATIONS OF THE CITY.
UM, AND CERTAINLY WHEN I LOOK AT PROJECTS LIKE THE LAFAYETTE SQUARE FIREHOUSE OR THE SALT SHED, UM, OR, YOU KNOW, THE GENERAL HVAC UPGRADE AND ACCESSIBILITY IMPROVEMENTS WE NEED TO DO AT THE MOSES YOUTH CENTER, UM, THAT IS SOME OF THE, JUST THE DAY-TO-DAY CHALLENGES WHERE WE'RE NOT GOING TO, THAT, THAT ISN'T GOING TO BE A NEW PROGRAM.
AND YET AT THE SAME TIME THAT LAFAYETTE SQUARE FIREHOUSE DOES NEED TO ULTIMATELY GET ADDRESSED AND WE DON'T WANT THAT APPARATUS BAY FLOOR TO ULTIMATELY COLLAPSE.
UM, AND THEN I THINK SOME OF IT IS, IS GOING TO BE OVER TIME, ESPECIALLY AS WE WORK OUR WAY THROUGH THIS, I THINK THERE IS MORE SPACE IN THE FY 30 TO 35 TIMEFRAME.
SO THERE IS SOME, THERE IS SOME, SOME SENSE OF, YOU KNOW, HOW DO WE ACTUALLY HAVE THESE CONVERSATIONS AS A COMMUNITY AND SAY, WHAT ARE THE MAJOR PROGRAMS OR CAPITAL NEEDS THAT WE WANT TO ADDRESS? UM, AND I'M LOOKING FORWARD TO THAT CONVERSATION.
THROUGH JUST ONE LAST COMMENT.
AND YOU KNOW, I THINK FOR ME ON A REALLY GRANULAR LEVEL, IT'S KIND OF LIKE WE'RE SAYING FY 30 35 BOND SCHEDULE, BUT REALLY REALISTICALLY, LIKE WHAT YEAR IS THAT? THAT'S LIKE 10, 15 YEAR, YOU KNOW, IT JUST TAKE, SOME OF THESE PROJECTS TAKE A LONG TIME.
AND SO I KNOW SOME OF IT'S NOT CLEAR, BUT LIKE THE TOBIN TOOK, YOU KNOW, FIVE YEARS, UM, IT'S MORE LIKE UNDERSTANDING KIND OF THE, IT'S SOMETIMES IT'S, YOU JUST DON'T KNOW WHEN SOMETHING'S ACTUALLY GONNA HAPPEN.
YOU CAN, CONSTRUCTION DELAYS OTHER THINGS.
YOU KNOW, PEOPLE HAVE ASKED ABOUT CARL BROWN
[01:25:01]
PLAZA, THEY'VE ASKED ABOUT HARVARD SQUARE.UH, AND SO ANY CLARITY AROUND THAT HELPS US ANSWER QUESTIONS IS GREAT.
ONE ADDITIONAL THING I MIGHT ADD TO THAT IS SORT OF, YOU KNOW, WHEN WE'RE SAYING THERE'S SPACE LIKE IN 29 30, THAT'S WHEN YOU COULD START TO SAY LIKE, OH, WE'RE ACTIVELY SPENDING IN CONSTRUCTION, SO YOU COULD START DESIGN BEFORE THAT.
THAT IS A SMALLER AMOUNT OF MONEY.
SO, YOU KNOW, WE COULD START DESIGNING.
AND SO AGAIN, IT'S NOT, WE CAN'T TALK ABOUT IT UNTIL 30, IT'S 30 IS WHEN YOU COULD START TO SAY WE'RE SPENDING MONEY ON SOMETHING IN ACTIVE CONSTRUCTION.
AND SO IF YOU THINK ABOUT WHAT THAT MEANS IN TERMS OF SCHEDULE, YOU COULD START REALLY TALKING ABOUT THAT SOONER AND THEN STARTING IN THE DESIGN, YOU KNOW, A YEAR OR TWO BEFORE THAT SO THAT YOU'RE SORT OF TEED UP AND READY FOR CONSTRUCTION IN 30, IF THAT'S HELPFUL.
AND IT'S MORE LIKE FOR THE PUBLIC TOO, OF LIKE THAT'S WHAT THAT ACTUALLY MEANS AND WHEN, HOW IT IS A LOT OF NUANCE.
AND, AND THROUGH YOU, UM, COCHAIR ZUBIE, IF I COULD JUST ADD ONE, ONE THING, I MEAN, AND I THINK THAT IS, YOU KNOW, TO THE CITY MANAGER AND OTHERS THE PRIORITIZATION BECAUSE ALL OF THESE THINGS WON'T FIT IN BECAUSE WHEN WE SAY WE HAVE STREETS, WE STILL HAVE TO, YOU KNOW, I MEAN WE HAVE ROOM, WE STILL HAVE ALL THESE OTHER PROGRAMS THAT WE NEED TO CONTINUE TO INVEST IN THE MUNICIPAL BUILDINGS, THE STREETS, THE PARKS, THE SCHOOL BUILDINGS.
AND SO THE SPACE IS INCREMENTAL AND SO STILL REQUIRES, UM, YOU KNOW, THE PRIORITIZATION TO DECIDE WHAT WE WANNA PUT INTO DESIGN AND BUILD INTO THE BONDING SCHEDULE.
UM, GENERALLY, CAN YOU WALK US THROUGH THE TIMELINE LAG THAT YOU HAD TALKED ABOUT A LITTLE BIT ON PAGE SIX WHEN A PROJECT IS COMPLETE, AND THEN WHEN WE START PAYING IT OFF, DEPENDING ON THE BOND SCHEDULE.
AND JUST A QUICK FOLLOW UP TO THAT, HOW OFTEN IS IT THAT WE WOULD POTENTIALLY NEED ANOTHER BOND DEPENDING ON, YOU KNOW, SOMETHING THAT MIGHT COME UP IS, IS THAT USUALLY BAKED IN WITHIN THE BOND SCHEDULE ITSELF OR IS IT SOMETHING THAT MIGHT COME ALONG THE, THE WAY UNEXPECTED? UM, SO THROUGH CHAIR, SO I WOULD SAY, AND AGAIN, THIS IS A BIT OF AN IDEALIZED VERSION, WHICH IS THAT WE APPROPRIATE ONE YEAR AND THEN WE START CONSTRUCTION THE NEXT YEAR.
UM, IN THIS EXAMPLE IN FY 27, CITY COUNCIL WOULD SAY, OKAY, WE'RE MOVING FORWARD WITH A $90 MILLION PROJECT AND THERE'S A LOAN AUTHORIZATION FOR 90 MILLION, AND THEN WE WOULD SELL THE BONDS AS WE NEED THE SPENDING.
SO IN THIS EXAMPLE, WE'RE THINKING IT'S A THREE YEAR CONSTRUCTION PROJECT.
AND SO YOU BREAK THIS, THE BONDS UP INTO THREE DIFFERENT YEARS SO THAT YOU'RE GETTING THE BOND MONEY A LITTLE BIT AHEAD OF THE CONSTRUCTION, BUT NOT TOO FAR AHEAD OF THE CONSTRUCTION.
ONCE WE SELL A BOND, UM, YOU KNOW, WE NEED TO HAVE SPENT 95% WITHIN TWO YEARS.
AND SO IT IS CRITICAL THAT WE DON'T BOND TOO EARLY.
AND THEN WE ALSO NEED THE REVENUE IN TERMS OF PAYING THE BILLS.
SO WE NEED TO BE TYING THOSE SCHEDULES PRETTY CLOSELY.
SO IN THIS EXAMPLE IN 27, WE SORT OF SAY, WE'RE MOVING FORWARD WITH THIS PROJECT.
WE START BORROWING IN FY 27, WE ISSUE THE BOND.
THAT FIRST PAYMENT ISN'T UNTIL FY 28.
AND THEN WHAT YOU SEE IS THAT THERE IS PAYMENTS BEING MADE ON THAT PROJECT BETWEEN FY 28 ALL THE WAY TO FY 39.
AND AT THE BOTTOM YOU SEE IT SORT OF RAMPS UP AND THEN RAMPS BACK DOWN, RIGHT? SO WHEN YOU SEE THE TOTALS AS IT HITS THE OPERATING BUDGET, IT'S NOT THE SAME AMOUNT EACH YEAR FOR THOSE 14, 13 YEARS.
UM, IT SORT OF RAMPS UP AND RAMPS DOWN AS THE FIRST BONDS COME ON, AND THEN THE FIRST BONDS GO OFF.
AND SO YOU'RE SEEING THAT, UM, THE DIFFERENCE IN THE PAYMENTS AT THE BOTTOM, AND THAT'S WHAT THE IMPACT IS ON THE OPERATING BUDGET FOR THAT $90 MILLION PROJECT.
YEAH, AND, AND IF I MIGHT ADD A LITTLE BIT OF THE CONTEXT TO THAT, THAT, YOU KNOW, TYPICALLY THE CITY ISSUES BONDS ON AN ANNUAL BASIS, UM, BASED ON ALL OF THESE PLANS THAT WE HAVE, AND I THINK IN GOING BACK TO, YOU KNOW, SLIDE FOUR THAT TALKS ABOUT OUR CAPITAL BUDGET, THE LOAN AUTHORIZATION, WHICH IS THE ACTUAL LEGISLATIVE ACTION THAT HAPPENS WITH THE CITY COUNCIL, UM, THAT THE CITY COUNCIL APPROVES.
AND TYPICALLY AS PART OF THE ANNUAL BUDGET PROCESS, WE WILL COME FORWARD WITH, UM, ANY ADDITIONAL NEW LOAN AUTHORIZATIONS THAT ARE GONNA BE REQUIRED THAT WE THINK WE MAY BE, YOU KNOW, BONDING IN THE NEAR FUTURE.
TYPICALLY, IF THERE'S A BIG PROJECT, WE, WE WOULD, YOU KNOW, UPFRONT TRY TO GET THE LOAN AUTHORIZATION FOR THE ENTIRE PROJECT, YOU KNOW, TO, YOU KNOW, COUNCILOR SUSIE'S POINT OF TRYING TO UNDERSTAND A FULL COST OF SOMETHING.
SO WHEN WE UNDERSTAND THE FULL COST, WE WILL, YOU KNOW, PUT A LOAN AUTHORIZATION FOR THE FULL COST, OCCASIONALLY COST CHANGE, AND WE COME FORWARD WITH AN ADDITIONAL LOAN AUTHORIZATION.
[01:30:01]
YOU KNOW, NEVER SAY NEVER, BUT WE'RE ABLE TO USE THAT ANNUAL PROCESS TO PREDICT THE AMOUNT OF LOAN AUTHORIZATIONS, YOU KNOW, THAT WE WILL BE NEEDING.UM, AND, UM, AND SO THEN OUR BONDING SCHEDULE IS REALLY FOLLOWS THE CASH FLOW OF THE PROJECTS FOR WHICH THE CITY COUNCIL HAS ALREADY AUTHORIZED US TO BORROW.
BUT TO YOUR POINT, WHAT HAPPENS IF WE SUDDENLY NEED A BOND, RIGHT? SO WHAT IF SOMETHING COMES UP IN THE MIDDLE OF THE YEAR WHERE IT'S A BIG PROJECT, UM, SOME A VERY UNEXPECTED AND WE'RE GONNA NEED TO BORROW FOR IT.
UM, WE, YOU KNOW, MIGHT, YOU KNOW, COME FORWARD OUTSIDE OF THAT ANNUAL PROCESS FOR AN ADDITIONAL LOAN AUTHORIZATION, UM, FROM THE COUNCIL IN ORDER TO SET UP THE, TO GET AUTHORIZATION TO, TO, UM, HAVE FUNDING FOR THAT PROJECT.
UM, BUT TYPICALLY WE'RE IN THIS NICE CADENCE OF ANNUAL, UM, LOAN AUTHORIZATIONS FROM THE CITY COUNCIL AND OUR BORROWING FOLLOWS THAT EACH YEAR.
AND ON PAGE 15, JUST SO THAT I BETTER UNDERSTAND THE CONTEXT, IS, IS PART OF DECREASING THE BONDING HERE TO MAINTAIN THE 11% THAT WE HAVE IN DEBT SERVICE IN OUR OPERATING BUDGET? OR, OR, AND IS IT MORE THE LARGER BUDGET TRYING TO HIT THE LARGER BUDGET GROWTH OF, OF 5% TO LEAVE FLEXIBILITY FOR, FOR OTHER PIECES OF THE OPERATING BUDGET? UM, THREE CHAIR, IT'S A LITTLE OF BOTH.
SO WHAT WE'RE SAYING IS THAT THAT'S SORT OF WHERE WE ARE NOW.
OH, THAT'S THE 11.4% IS HOW MUCH IT'S INCREASED.
SO IF YOU GO BACK, I DON'T, UM, EARLIER SLIDE IT'S ABOUT 11% IS OUR CURRENT OVERALL DEBT AND AGAIN, DEBT PAYMENT AND THAT INCLUDES BOTH THE SUICIDE AND, UM, THE TAX SUPPORTED DEBT.
THE TAX SUPPORTED DEBT RIGHT NOW IS AT ABOUT 8.4% OF OUR OPERATING BUDGET.
UM, AND WHAT WE'RE SAYING IS THAT WE REALLY WANNA SEE GROWTH TIED TO THE OPERATING BUDGET.
SO THE SORT OF THE DRIVER THAT WE'RE LOOKING AT IS CONTINUING TO INVEST IN OUR INFRASTRUCTURE, BUT HAVING IT GROW MUCH MORE SIMILARLY TO OUR OPERATING BUDGET AS OPPOSED TO THEY'VE BEEN A LITTLE MORE DISCONNECTED IN THE PAST.
SO WE REALLY WANTED TO TIE THOSE MORE DIRECTLY TOGETHER.
ALSO ON THAT, UH, JUST GENERALLY, I WAS ALSO THINKING ABOUT, YOU KNOW, THERE THERE ARE TOPICS LIKE COMMUNITY LAND TRUSTS OR MAYBE EVEN NONPROFITS THAT ARE DOING CAPITAL PROJECTS.
DO WE AT ANY POINT KIND OF DISTILL THAT EVEN IN OUR OPERATING BUDGET TO SAY LIKE THAT, THAT THEY MIGHT HAVE USED THAT FOR, YOU KNOW, CAPITAL REASON AND, AND IS TECHNICALLY UNDER MAYBE AN OPERATING, THE OPERATING SIDE OF THE BUDGET, NOT NECESSARILY CAPITAL PROJECTS? I DON'T KNOW IF MY QUESTION MAKES SENSE THERE.
UM, CAN YOU SAY A LITTLE BIT MORE, UM, IN TERMS OF THE COMMUNITY LAND TRUST ISSUE OR, UM, OR, OR SORT OF CAPITAL FUNDING FOR NONPROFITS? YEAH, SO IN TERMS OF HOW WE PLAN OUT OR JUST ORGANIZE WHAT WE'RE DOING FINANCIALLY, IF A NONPROFIT IS TRYING TO DO A CAPITAL EXPENSE THAT WOULDN'T NECESSARILY EXPLICITLY GO WITHIN THE CAPITAL BUDGET, SO HOW DO WE HOLD THOSE PIECES WHERE IT ISN'T NECESSARILY THROUGH US AS A CITY, BUT IT IS TECHNICALLY STILL WITHIN LIKE A CAPITAL EXPENSE.
DO WE AT ALL DISTILL THAT OR TRY TO ARTICULATE THAT ANYWHERE IN THE BUDGET, UM, THROUGH YOUR CHAIR? I WOULD SAY, UM, I THINK THE DISTINCTION IS PROBABLY MORE THAT, UH, WE HAVE A CAPITAL BUDGET BECAUSE WE HAVE A GOOD CREDIT RATING AND WE CAN GO OUT ON THE MARKET AND BORROW MONEY AT PRETTY LOW RATES.
UM, MOST NONPROFITS DON'T HAVE A TON OF THAT ABILITY.
SO ESPECIALLY IF YOU'RE A FAIRLY SMALL NONPROFIT AND YOUR CASHFLOW IS MOSTLY ANNUAL DONATIONS, UM, IT'S A LOT HARDER TO GO TO A BANK AND SAY, WE'D LIKE TO TAKE OUT A $4 MILLION LOAN AND WE'LL PAY YOU BACK.
UM, IT IS MORE LIKELY THE CASE THAT NONPROFITS ARE GOING TO UNDERGO A CAPITAL CAMPAIGN AND RAISE THE TOTAL AMOUNT THEY NEED IN CASH, AND THEN THAT MONEY GOES INTO, UH, WHATEVER BUILDING OR RENOVATION NEEDS THAT THEY HAVE.
UM, SO IN TERMS OF HOW THE CITY INTERACTS WITH, UM, NONPROFITS, YOU KNOW, THE HISTORICAL COMMISSION GIVES OUT HISTORICAL PRESERVATION GRANTS, UH, UP TO $50,000, UM, THE CAMBRIDGE REDEVELOPMENT AUTHORITY, SO NOT, UH, NOT THE CITY, BUT UM, BUT QUASI PUBLIC, UH, THEY HAVE A FORWARD FUND AND THEY GIVE OUT GRANTS, I THINK UP TO A HUNDRED THOUSAND DOLLARS.
UM, THESE ALL ESSENTIALLY FUNCTION AS CASH GRANTS AND SO THEY DON'T REALLY INTERACT WITH THE CAPITAL BUDGET.
UM, AND, AND YOU KNOW, I THINK AT THOSE LEVELS OF FUNDING, IT PROBABLY DOES MAKE MORE SENSE TO BE THINKING ABOUT IT IN TERMS OF, YOU KNOW, THE OPERATING BUDGET OR, UM, OR
[01:35:01]
OR GENERAL, YOU KNOW, GENERAL CASH, UM, AS OPPOSED TO SOMETHING WHERE LIKE THE CITY WOULD BOND SOMETHING AND THEN, AND THEN MOVE MONEY OUT.YEAH, THANK YOU FOR CLARIFYING THAT.
NECESS, I WASN'T NECESSARILY COMING AT IT FROM A PLACE OF IT NEEDING TO BE IN THE CAPITAL BUDGET, BUT TO UNDERSTAND THAT THERE ARE, THERE ARE OPPORTUNITIES EVEN OUTSIDE OF HOW WE VIEW CAPITAL BUDGET THAT COULD ACTUALLY AFFECT THE ORGANIZATIONS THAT ARE ON THE GROUND WANTING TO DO THAT KIND OF WORK.
SO THANK YOU FOR HELPING ME BETTER UNDERSTAND THAT.
UM, JUST ALSO WANNA COMMENT ON, YOU KNOW, WHILE OTHER OF MY COLLEAGUES HAVE SAID, WHETHER IT'S ON UNDERSTANDING THE COSTS BETTER, HOW TO SCOPE OUT PROJECTS AND HOW THAT CHANGES FOR YOU ALL AS TIME GOES ON, AND ALSO JUST GENERALLY MAYBE HOW WE CAN BREAK DOWN PROJECTS THAT ARE LARGER IN COSTS.
HAVING, LIKE COUNSELOR SABRINA WHEELER SAID, HAVING CONVERSATIONS ON DEPRIORITIZATION IF, IF WE NEED TO.
AND, UM, AS, AS MAYOR SIDIKI SAID, UM, BRINGING US ALONG IN THE SEQUENCING ON ON THOSE PROJECTS WOULD BE HELPFUL.
AND I KNOW CO-CHAIR NOLAN AND I ARE GONNA BE DOING MORE OF THAT WORK IN THE NEXT FEW WEEKS TO HELP COUNCIL REALLY, UH, BRING ABOUT THEIR PRIORITIES IN, IN, YOU KNOW, THE SHORT AND NEAR TERM, UH, SHORT AND LONG TERM.
SO IF THERE ARE NO OTHER QUESTIONS, YEAH, WE'VE GOT COUNCILOR ZUI, THANK YOU SO MUCH.
I HAVE A QUESTION THAT ACTUALLY BUILDS ON ONE OF YOUR QUESTIONS.
SO I, SO I, MUNICIPAL FINANCE IS NOT MY THING.
I'VE BEEN TRYING TO LEARN AS MUCH AS I CAN AND YOU ALL ARE GREAT TEACHERS.
UM, BUT I, MY FATHER GREW UP DURING THE DEPRESSION, SO I GREW UP WITH THESE DEPRESSION STORIES AND I GET NERVOUS ABOUT DEBT.
I APPRECIATE THAT YOU'RE TRYING TO REDUCE OUR DEBT FROM, OR OUR DEBT PAYMENT FROM 11% ANNUALLY TO 5%.
BUT MY QUESTION IS, THIS IS ALL A LITTLE COUNTERINTUITIVE, BUT I REALIZE FINANCE DEPARTMENT, THIS IS YOUR THING.
SO WE CURRENTLY HAVE $694 MILLION, UM, OF DEBT THAT WE ARE PAYING OFF, BUT WE'RE PROJECTING PAYING EVEN BY BEING MORE FRUGAL, ANOTHER 328 MILLION, UH, BETWEEN FISCAL 26 AND FISCAL 30, FISCAL YEAR 30.
UM, SO WE'RE, WE'RE SPENDING ABOUT, WE'RE BORROWING ABOUT 80 MILLION PER YEAR.
AND THEN ON, UM, AND THEN WE'RE ALSO BETWEEN FISCAL YEAR 30 AND 35, ON PAGE 21, WE'RE GONNA BE BORROWING ANOTHER 361 MILLION.
SO WE'LL BE BORROWING ABOUT 30 MILLION PER YEAR.
SO ARE YOU TELLING US THAT WE CAN CONTINUE, LIKE WE ALREADY HAVE A LOT OF DEBT, WE'RE GONNA HAVE LESS GROWTH, LESS REVENUE, BUT YOU'RE TELLING US THAT WE CAN GET DOWN TO 5% DEBT SERVICE PAYMENTS EVEN WHEN WE CONTINUE TO BORROW 80 MILLION A YEAR AND FOR THE NEXT FIVE YEARS AND THEN 60 MILLION? THAT'S A QUESTION.
UH, THANK YOU, UH, THROUGH YOU CO CO-CHAIR ZUBI, UH, TO, UM, COUNSELOR ZUI.
I THINK, UM, YOU KNOW, WE'RE THROWING AROUND LOTS OF, OF, OF PERCENTAGES AND NUMBERS.
UM, YOU'RE RIGHT, YOU KNOW THAT, THAT WE CURRENTLY HAVE A AROUND, UM, $700 MILLION IN, UM, IN OUTSTANDING DEBT, WHICH, WHICH WE ARE PAYING OFF EACH YEAR.
SO, UM, EACH YEAR WE ARE RETIRING A CERTAIN AMOUNT OF DEBT AND THEN WE ARE ADDING ADDITIONAL DEBT.
UM, WHAT WE'RE SAYING HERE THAT OUR PLAN IS, IS THAT WE WANT TO, UM, TRY TO, UM, BEGIN TO HAVE OUR DEBT SERVICE COSTS NOT INCREASE MORE THAN 5% EACH YEAR.
SO THAT IS, YOU KNOW, STILL GROWING ACTUALLY OUR DEBT SERVICE COSTS BECAUSE WHAT WE'RE TRYING TO DO IS REALLY STABILIZE THE PROPORTION OF DEBT SERVICE TO OUR OVERALL OPERATING BUDGET.
SO CURRENTLY, I THINK IT'S LIKE AT EIGHT 8.4% IS OUR TAX SUPPORTED, UM, DEBT AS A PERCENTAGE OF OUR OPERATING BUDGET.
AND IF WE WERE TO CONTINUE, I THINK AS WE DID MAYBE WAS OUR, HAS OUR AVERAGE IN THE LAST FIVE YEARS BEEN ABOUT AN 11% ANNUAL GROWTH? WELL, THAT IS ESSENTIALLY PUSHING UP THE PROPORTION, UM, OF OUR OPERATING BUDGET THAT HAS TO BE DEDICATED TO DEBT SERVICE.
AND THAT'S BEGINNING TO SQUEEZE OUR OVERALL OPERATING BUDGET BECAUSE ONCE WE BORROW THE MONEY, WE CAN'T CUT BACK ON WHAT WE OWE BECAUSE, YOU KNOW, THAT'S OUR LEGAL OBLIGATION.
SO I THINK THE 5% GROWTH, GROWTH THAT WE'RE TALKING ABOUT REALLY IS SHOWS DEBT SERVICE CONTINUING TO GROW, BUT TRYING TO SLOW THAT GROWTH RATE SO IT GROWS ONLY AT THE SAME PACE THAT OUR OVERALL OPERATING BUDGET IS GROWING.
[01:40:02]
SO MY QUESTION IS, SO IF WE BORROW THE AMOUNT OF MONEY THAT YOU'RE PROJECTING ON SLIDE 15 AND 22, WILL WE MOVE, WILL OUR DEBT SERVICE PAYMENTS, UM, LOWER TO 5% OF OUR OVERALL BUDGET? IS, IS THAT HOW YOU CAME UP WITH THAT, THAT NUMBER? IS THAT THE CALCULATION, UH, THROUGH YOU CO-CHAIR? NOT EXACTLY, BECAUSE WE'RE SAYING THAT THE ACTUAL DEBT SERVICE ITSELF WILL INCREASE BY 5%.AND SO IF OUR OPERATING BUDGET GROWS BY 5% AND OUR DEBT SERVICE GREW BY 5%, THE ACTUAL PROPORTION OF DEBT SERVICE TO OUR OPERATING BUDGET WOULD STAY SORT OF THE SAME.
SO RIGHT NOW IT'S, IT'S, IT MAKES UP ABOUT 8.4% OF OUR OPERATING BUDGET AND I AM JUST TALKING ABOUT THE TAX SUPPORTED.
AND SO IF WE WERE ABLE TO KEEP OUR DEBT SERVICE GROWTH IN LINE WITH OUR OPERATING BUDGET GROWTH, WE COULD MAINTAIN THAT 8.4% OF OUR BUDGET BEING DEDICATED TO DEBT SERVICE.
AND WHAT WE ARE TRYING TO AVOID IS FOR DEBT SERVICE TO BECOME A BIGGER AND BIGGER PORTION OF OUR OPERATING BUDGET, UM, NOT TO DRIVE DOWN THE PERCENT OF OUR OPERATING BUDGET DEDICATED TO, UM, DEBT SERVICE ALL THE WAY DOWN TO 5% BECAUSE THAT WOULD, WHAT WE'D HAVE TO DO IS STOP BORROWING FOR A NUMBER OF YEARS FOR THAT TO HAPPEN AND JUST PAY OFF OUR DEBT AND MAKE NO INVESTMENT IN INFRASTRUCTURE UNTIL WE HIT THAT NUMBER.
UM, IF I COULD ADD, I THINK IT'S REALLY LOOKING AT SLIDE 12 AND I THINK ONE OF THE, ONE OF THE DYNAMICS WE'RE TRYING TO PULL OUT IS, UM, YOU KNOW, I THINK AS WE'RE, AS WE'RE HITTING THIS INFLECTION POINT, UM, THE CHOICE, YOU KNOW, THE SORT OF IMPLICIT CHOICE WE'VE BEEN MAKING IS WE HAVE ACTUALLY BEEN GROWING THE CAPITAL BUDGET, UM, FASTER THAN THE OPERATING BUDGET, WHICH IS, YOU KNOW, A LITTLE SURPRISING 'CAUSE OUR OPERATING BUDGET'S ACTUALLY BEEN GROWING REALLY FAST AS WELL.
UM, AND I THINK PART OF WHAT WE'RE ALSO WALKING THROUGH IS HOW THAT ACTUALLY WORKS.
'CAUSE YOU KNOW, AS THE COUNCIL AUTHORIZES ADDITIONAL BOND ISSUANCES, YOU DON'T SORT OF SEE IT RIGHT AWAY.
'CAUSE IT'S REALLY, AS THOSE PROJECTS GO INTO THE GROUND AND WE START ISSUING BONDS THAT THE DEBT SERVICE ACTUALLY HITS THE BUDGET.
UM, I I THINK COUNCILLOR ZUI, YOU'RE A, YOU'RE ASKING THE EXACT RIGHT QUESTION.
UM, WHERE WE'RE LANDING AT THIS POINT IN TIME IS TO TRY TO LARGELY HOLD THAT 8.4% TAX SUPPORTED DEBT SERVICE AS A PERCENT OF THE OPERATING BUDGET FAIRLY CONSTANT.
UM, AND, AND THAT'S SORT OF WHERE WE'RE THEN SAYING, OKAY, THE CAPITAL BUDGET WILL BE SET BASED ON HOW QUICKLY THE OVERALL BUDGET IS GROWING.
SO WE WILL THEREFORE TAKE ON AS MUCH DEBT AS WE CAN SUPPORT IN THE OPERATIONAL BUDGET.
UM, I THINK AS WE MOVE FORWARD, AND I THINK THIS IS ACTUALLY WHERE THE CONVERSATION WITH THE CITY COUNCIL INTERSECTS WITH THIS, UM, IF ULTIMATELY WE COLLECTIVELY DECIDE THAT THERE ARE REALLY DEEP OPERATIONAL NEEDS AND THAT'S THE MOST IMPORTANT THING FOR US TO FOCUS ON OVER THE COMING FIVE TO 10 YEARS, THEN I THINK THE IDEA THAT WE WOULD NEED TO POTENTIALLY FIND MORE SPACE, UM, IN THE OPERATIONAL BUDGET MIGHT MEAN THAT OVER TIME WE END UP HAVING THE CAPITAL BUDGET DROP AND WE GO FROM 8.4% TO 7%.
UM, IF ON THE OTHER HAND, AS WE'RE COLLECTIVELY HAVING THESE CONVERSATIONS AND EMERGES THAT ACTUALLY IT'S THE CAPITAL SIDE THAT'S REALLY IMPORTANT AND WE HAVE BOTH A LOT OF AGING BUILDINGS OR THERE ARE INFRASTRUCTURE NEEDS THAT END UP BECOMING MUCH HIGHER PRIORITIES, THEN I THINK WE DO ACTUALLY HAVE THE FLEXIBILITY TO SAY, OKAY, WE SHOULD BORROW MORE.
UM, I THINK WHAT SLIDE 12 SHOWS IS, UH, WE WANNA MAKE SURE THAT WE'RE PLANNING FOR THAT INTENTIONALLY OVER A MULTI-YEAR PERIOD AND RECOGNIZE THAT THERE'S A TRADE OFF THERE.
AND SO IF WE WANNA BORROW A LOT MORE MONEY, THEN WE WILL HAVE TO THEN OVER THE, OVER TIME, OVER THAT MULTI-YEAR PERIOD, UNDERSTAND THAT IT WILL SQUEEZE THE OPERATING BUDGET BECAUSE DEBT SERVICE WILL GO UP.
UM, AND IF WE WANT TO FOCUS ON THE OPERATIONAL SIDE, THEN WE WILL HAVE TO UNDERSTAND THAT IT WILL SQUEEZE THE CAPITAL BUDGET.
UM, AND ALL OF THAT IS IN THE CONTEXT OF ULTIMATELY HOW WE SET THOSE BUDGET GROWTH TARGETS AND HOW ULTIMATELY WE THINK, YOU KNOW, HOW QUICKLY WE THINK THE TAX LEVY CAN GROW.
SO I, I THINK SOME OF THIS IS ALSO BEING SURE THAT WE'RE SEEING ALL THE DIFFERENT PIECES AND HOW THEY FIT TOGETHER AND THAT WE'RE COMPREHENSIVELY PLANNING, UM, ACROSS THESE DIFFERENT FINANCIAL TARGETS AND METRICS, UM, SO THAT WE ENSURE THAT WE'RE, YOU KNOW, WE'RE PLANNING REASONABLY AND UH, AND THAT THE WORK WE DO TOGETHER, UH, FITS INTO THE OVERALL, YOU KNOW, FISCAL REALITIES THAT WE'RE FACING.
[01:45:01]
SO MUCH.AND I THINK, YOU KNOW, 'CAUSE I'VE SH I'VE SHARED LIKE MY CONCERN IS THAT MAYBE WE NEED TO LOWER OUR OPERATING BUDGET.
I, I THINK WE NEED TO KEEP BOTH OUR OPERATING AND OUR CAPITAL BUDGETS IN CHECK, ESPECIALLY, UM, DURING THE NEXT SEVERAL YEARS WHEN WE'LL HAVE LESS REVENUE.
WE'LL JUST HAVE TO DO MORE WITH MORE WITH LESS.
AND I FEEL CONFIDENT WE CAN DO THAT.
AND I YIELD, DO WE HAVE ANY OTHER QUESTIONS? JUST ALSO WANNA TAKE ANOTHER MOMENT TO SAY THANK YOU FOR, FOR SHARING THIS PRESENTATION WITH US AND THIS INFORMATION WITH US AND WE'RE LOOKING FORWARD TO HAVING MORE CONVERSATIONS, UM, IN THE FUTURE ABOUT THIS.
AND ON A MOTION BY COUNCILOR SABRINA WHEELER TO ADJOURN.
COUNSELOR ZUBIE PRESENT, I MEAN YES.