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INTO THE SIX 30 PUBLIC MEETING.SO THIS CAMBRIDGE CITY COUNCIL WILL CONDUCT A PUBLIC MEETING ON MONDAY, SEPTEMBER 28TH.
THE PURPOSE OF THIS MEETING IS TO DISCUSS THE PROPERTY TAX RATE CLASSIFICATION.
THE FIRST ORDER OF BUSINESS IS A ROLL CALL OF MEMBERS PRESENT.
YOU HAVE EIGHT MEMBERS RECORDED AS PRESENT, AND ONE RECORDED IS ABSENT PER CHAPTER TWO
[City Manager's Agenda Items]
OF THE ACTS OF 2025.ADOPTED BY MASSACHUSETTS GENERAL COURT AND APPROVED BY THE GOVERNOR.
THE CITY IS AUTHORIZED TO USE REMOTE PARTICIPATION AT MEETINGS OF THE CAMBRIDGE CITY COUNCIL.
IN ADDITION TO HAVING MEMBERS OF THE COUNCIL PARTICIPATE REMOTELY, WE'VE SET UP ZOOM TELECONFERENCE FOR PUBLIC COMMENT.
YOU CAN ALSO VIEW THE MEETING VIA THE CITY'S OPEN MEETING PORTAL OR ON THE CITY'S CABLE CHANNEL 22.
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.
WE'LL MOVE INTO PUBLIC COMMENT.
PUBLIC COMMENT MAY BE MADE IN ACCORDANCE WITH MASSACHUSETTS GENERAL LAWS CHAPTER 30 A, SEX AND SECTION 20 G.
AND THE CITY COUNCIL RULES 20 3D AND 37.
ONCE YOU'VE FINISH SPEAKING, THE NEXT SPEAKER WILL BE CALLED INDIVIDUALS ARE NOT PERMITTED TO ALLOCATE THE REMAINDER OF THEIR TIME TO OTHER SPEAKERS.
I ASK THAT YOU STATE YOUR NAME AND ADDRESS FOR THE RECORD AND THE ITEM YOUR SPEAKING ON, WHICH IS THE TAX RATE.
WE'LL GO AHEAD AND GO TO PUBLIC COMMENT FOR THE SPEAKERS, AND THEN WE'LL MOVE TO THE AGENDA ITEMS. OUR FIRST SPEAKER IS BRIANNA PEARSON, FOLLOWED BY CAROL ALEXANDRO.
I DON'T THINK WE HAVE BRIANNA.
WE'LL GO TO CAROL ALEXANDRA AND IF SOMEONE COULD CLOSE THE DOORS 'CAUSE IT'S GETTING NOISY.
WELL, IN SPEECH CLASS, THEY ALWAYS TOLD ME TO BE EITHER FIRST OR LAST.
I'M NEW TO THIS TOPIC, BUT I WANNA RAISE A FEW QUESTIONS HERE THAT I HOPE WE GET SOME ANSWERS RELEASE DISCUSSION AROUND.
FIRST OF ALL, I'M BAFFLED WHY THE ANNUAL CITY BUDGET IS OVER $1 BILLION, ESPECIALLY IN RELATION TO BOSTON'S $4 BILLION BUDGET.
GIVEN THAT WE ARE A FRACTION OF BUS OF BOSTON'S, UH, POPULATION IN GEOGRAPHIC SIZE, WHY, WHY DOES SO MUCH NEED TO BE SPENT GIVEN OUR SMALLER, UH, THAN BOSTON SIZE IN TERMS OF SLOPE? I'M BAFFLED WHY THERE IS SO MUCH SPENDING GROWTH IN THE CITY BUDGET.
WHY AREN'T THERE CUTBACKS BACKS INSTEAD GIVEN, UH, CUTBACKS INSTEAD, UH, GIVEN THE CIRCUMSTANCES? WHY DO WE RESIDENTS AND BUSINESSES HAVE TO BEAR THE BRUNT OF THIS PROPERTY TAX RAISE? WE DIDN'T ASK FOR THIS MASSIVE BUDGET.
WE DIDN'T ASK FOR THESE COST OVERRUNS.
WHO IS RESPONSIBLE AND ACCOUNTABLE FOR THIS? MANY OF THESE COSTS SEEM TO BE OVERRUNS LIKE THE FIREHOUSE REHAB, THE TOBIN SCHOOL OVER BUDGET, THE HARVARD SQUARE KIOSK AND PIT OVER BUDGET.
WHY HASN'T ANYONE BEEN FIRED FOR THESE MASSIVE COST OVERRUNS? ARE THESE THE KIND OF COST OVERRUNS AND EXCESS BUDGET SPENDING GOING TO BE THE PRECEDENT FOR FUTURE PROJECTS? AREN'T OUR TAXES GOING TO CONTINUE TO INCREASE EVERY YEAR AT INFINITUM? WHAT IS THE PLAN FOR REIGNING IN COSTS AND SPENDING LESS? AND FINALLY, WE'RE ALL CONCERNED WITH FAIRNESS.
WHY ARE THERE, WHY ARE MIXED USE BUILDINGS, THOSE THAT ARE COMMERCIAL AND RESIDENTIAL, BEING TAXED ENTIRELY AT THE HIGHER COMMERCIAL RATES RATHER THAN TAXING EACH PART OF THE BUILDING FAIRLY AND APPROPRIATELY? AND I'LL LEAVE YOU WITH ONE QUICK ANTIDOTE THAT I JUST FOUND OUT ABOUT TWO DAYS AGO.
KENDALL SQUARE LANDLORDS, A FELLOW ENTREPRENEUR, TRIED TO RENT LAB SPACE FOR HIS SMALL BUT GROWING FAST 35 PERSON COMPANY IN KENDALL SQUARE.
HE TRIED FOR SIX MONTHS BUT COULDN'T GET ANYWHERE EVEN AGREEING TO MARKET RATE PRICES WITH ANY OF THE LOCATIONS IN KENDALL SQUARE.
MR. ALEXANDRA, IF YOUR TIME HAS EXPIRED, PLEASE EMAIL US THE REMAINDER OF YOUR COMMENT.
OUR NEXT SPEAKER IS DAN TOTTEN, FOLLOWED BY JUSTIN SAFE.
OUR ONSCREEN TIMER ISN'T WORKING, BUT
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I WILL BE KEEPING TIME.I'M GONNA PRESENT A LITTLE BIT OF A COUNTERPOINT AS A MARKET RENTER.
UM, I JUST, ONE THING I JUST WANNA SAY IS, YOU KNOW, I DON'T THINK CAMBRIDGE'S BUDGET IS IN A CRISIS.
AND SO I THINK IT'S REALLY IMPORTANT TO DISTINGUISH BETWEEN THE NATIONAL MOMENT WHERE WE ARE ALL IN A CRISIS ECONOMICALLY AND CAMBRIDGE'S BUDGET, WHICH, UH, I BELIEVE REMAINS FISCALLY STRONG WITH AAA BOND RATINGS.
UM, AND THE SAME PEOPLE WHO SAY WE'RE IN A CRISIS, LOVE TO POINT OUT HOW AWESOME THE FINANCIAL CREDITORS ALSO SAY WE ARE.
SO PEOPLE TALK OUTTA BOTH SIDES OF THEIR MOUTH.
UM, AND SPEAKING OF TALKING OUTTA BOTH SIDES OF THEIR MOUTH, THREE COUNSELORS TONIGHT ARE CITING A FINANCIAL CRISIS TO DELAY HALF A MILE BIKE LANE.
BUT WE HAVE AAA BOND RATING, SO WE'LL TALK ABOUT THAT MORE LATER.
THE RESTRAINT HERE IS SAVING INDIVIDUAL HOME HOMEOWNERS, VERY LITTLE, BUT IT'S COSTING THE MOST VULNERABLE PEOPLE IN OUR CITY A LOT.
OKAY, SO IF WE'RE JUST SOME BACK OF THE ENVELOPE MATH, AND FEEL FREE TO CORRECT ME, UM, IF WE'RE EACH, IF, IF EACH HOUSEHOLD IS SAVING SAY A HUNDRED DOLLARS, WE'RE LEAVING $7 MILLION ON THE TABLE.
AND THAT'S THE REASON WE HAD TO CLOSE THE HOMELESS SHELTER.
AND THAT'S THE REASON WE CAN'T GET THE THINGS THAT THE MOST VULNERABLE PEOPLE IN THE CITY NEED.
AND THE WORST PART ABOUT IT IS THAT YOU GUYS COME UP HERE AND TALK ABOUT HOW AWESOME WE, HOW MUCH WE NEED TO UP ZONE EVERY CITY SO WE CAN GET ALL THE AFFORDABLE HOUSING IN THE WORLD.
AND THEN YOU DON'T SUPPORT THE PEOPLE WHO LIVE IN THOSE LOW INCOME UNITS.
YOU DON'T STAND WITH THE PEOPLE WHO LIVE IN THOSE LOW INCOME UNITS.
YOU WANT THEM TO BE A STATISTIC ON YOUR YIMBY CHART, BUT YOU DON'T, YOU DON'T COME BACK AND SAY THEY NEED PRESCHOOL, THEY NEED AFTERSCHOOL 60 FAMILIES SHOULDN'T BE GETTING TURNED AWAY FROM PRESCHOOL IN CAMBRIDGE, OR SORRY FROM AFTERSCHOOL IN CAMBRIDGE.
IT'S SO SHAMEFUL THAT I MIXED UP THE TWO.
UM, AND SO I, IT'S, IT'S REALLY HELPFUL TO HAVE A TIMER, BUT MY POINT IS JUST THAT I WANT ALL OF YOU PEOPLE ELECTED BY THE PEOPLE, THE TIME IS EXPIRED.
PLEASE LIST THE REMAINDER OF YOUR COMMENT WHAT THE PEOPLE ACTUALLY WANT.
OUR NEXT SPEAKER IS JUSTIN SAFE.
OUR TIMER ON SCREEN IS NOT WORKING, BUT I WILL BE KEEPING TIME.
JUSTIN, PLEASE UNMUTE YOURSELF.
AS YOU KNOW, COMMERCIAL PROPERTY VALUATIONS ARE DROPPING PARTICULARLY OFFICE BUILDINGS, BUT ALSO LAB BUILDINGS.
WE'LL SOON BE IN THE SAME POSITION AS BOSTON, UNABLE TO SHIFT TAX BURDEN TO COMMERCIAL PROPERTY AND FACING EVEN MORE SIGNIFICANT THAN RECENT RESIDENTIAL PROPERTY TAX INCREASES.
WHILE THE CITY HAS RELAYED THE LIKELIHOOD OF THIS DYNAMIC COMING TO PASS, UM, IT, I DON'T THINK THE CITY HAS PROVIDED THESE ALERTS WITH A SUFFICIENT LEVEL OF URGENCY TO EITHER RESIDENTIAL PROPERTY TAXPAYERS OR TO RENTERS WHO ALSO FEEL THE CONSEQUENCES OF INCREASED RESIDENTIAL PROPERTY TAXES AS IT'S PASSED THROUGH TO THEM BY THEIR LANDLORDS IN THE FORM OF INCREASED RENTS ABOUT THIS KNOWN AND IMMINENT FUTURE SIGNIFICANT IMPACT.
MOREOVER, THE CITY AND THE COUNCIL ARE TONIGHT CONSIDERING PERMANENTLY DECREASING FUTURE PROPERTY TAX REVENUE BY BLOCKING HOUSING THROUGH A SERIES OF AMENDMENTS TO THE MONTHLY FAMILY HOUSING ORDINANCE.
HOW MUCH FUTURE PROPERTY TAX REVENUE WILL BE LOST DUE TO THESE AMENDMENTS? DOES ANYONE KNOW? HAS ANYONE CALCULATED IT? THAT QUESTION HAS BEEN ON THE TABLE FOR MANY MONTHS NOW, AND THERE DOES NOT APPEAR TO HAVE BEEN ANY EFFORT TO CALCULATE IT.
CAMBRIDGE RESIDENTS DESERVE AN ANSWER TO THIS QUESTION PRIOR TO ANY FURTHER WORK ON THOSE AMENDMENTS.
MOVING FORWARD, I WANNA SEE CAMBRIDGE PUBLIC SCHOOL PARAPROFESSIONALS PAID A LIVING WAGE, NOT A FUTURE OF BUDGET CUTS AND TEACHER LAYOFFS LIKE IN BOSTON.
TO DO THAT, WE NEED TO KNOW WHAT WE'RE DOING TO PROPERTY TAX REVENUE IF WE BLOCK HOUSING TONIGHT.
OUR NEXT SPEAKER IS HEATHER HOFFMAN, FOLLOWED BY JAMES WILLIAMSON, THEN LUISA DEPA SANTOS.
YOU HAVE TWO MINUTES, PLEASE GO AHEAD.
HELLO, HEATHER HOFFMAN, TWO 13 HURLEY STREET.
THE THING THAT I HAVE NOT HEARD ANYONE SAY, ALTHOUGH I KNOW THAT UM, CITY STAFF CERTAINLY KNOW THIS, IS THAT THE TAX RATE ISN'T SOMETHING THAT ACTUALLY GETS SET AS SOME, UM, AMAZING THING.
IT IS IN FACT DETERMINED BY THE BUDGET THAT ALREADY GOT PASSED SOME TIME AGO BECAUSE THE BUDGET SAYS WE'RE GOING TO SPEND THIS MUCH, AND THE TAX
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RATE IS DETERMINED BY TAKING WHAT WE HAVE TO TAX AND FIGURING OUT HOW MUCH THE TAX RATE NEEDS TO BE IN ORDER TO RAISE THAT MUCH MONEY.THIS IS JUST ONE SYMPTOM OF HOW MUCH PEOPLE DON'T KNOW ABOUT HOW ALL OF THIS WORKS.
AND I HAVE SAID MANY THINGS THAT ARE VERY LAUDATORY AND DE DESERVE BELIEF LAUDATORY ABOUT THE SIGNIFICANTLY BETTER COMMUNICATION THAT HAS BEEN HAPPENING RECENTLY OVER HOW ALL OF THIS WORKS.
BUT IT DOESN'T SEEM TO BE GETTING THROUGH.
AND I WISH THAT WE COULD HAVE DISCUSSIONS ABOUT REAL STUFF WHERE PEOPLE ACTUALLY KNOW WHAT'S GOING ON INSTEAD OF PEOPLE COMING AND SAYING, HOW CAN YOU DARE TAX THIS HIGH OR WHATEVER, BECAUSE THIS IS ALREADY BAKED INTO THE CAKE.
UM, SO I WOULD LOVE TO SEE THE CITY FIGURE OUT HOW TO EDUCATE THE CITIZENS BETTER ABOUT WHERE THE MONEY COMES FROM, WHO PAYS IT, AND HOW YOU FIGURE IT OUT BECAUSE IT'S NOT ALL THAT COMPLICATED.
OUR NEXT SPEAKER IS JAMES WILLIAMSON, FOLLOWED BY LUISA DEPA SANTOS, AND THEN SUZANNE BLEA.
I I DO NOT SEE JAMES WILLIAMSON IN THE ZOOM.
ACTUALLY, WE'RE GONNA GO TO JAMES WILLIAMSON.
OH, JAMES, YOU HAVE THE FLOOR.
LUISA, IF YOU COULD GIVE US JUST ONE SECOND.
OH, JAMES, YOU HAVE THE FLOOR.
JAMES SEEMS TO BE HAVING TROUBLE UNMUTING.
WE ARE GONNA GO TO LUISA DEPALO SANTOS.
UM, I'M A SCHOOL COMMITTEE MEMBER, UH, AND ALSO PREVIOUSLY WORKED IN THE CAMBRIDGE PUBLIC SCHOOLS AS AN EDUCATOR.
UM, ONE OF THE WAYS THAT WE AS A CITY CAN PAY FOR THE PROPOSALS EDUCATORS ARE MAKING AT THE BARGAINING TABLE, WHICH INCLUDES LIVING WAGE FOR ALL ESPS, PARAS IN ALL ELEMENTARY CLASSROOMS. 12 WEEKS PAID PARENTAL LEAVE.
THE DISTRICT PAYING 85% OF HEALTHCARE PREMIUMS FOR ALL MEMBERS.
CREATING A STUDENT TO EDUCATOR PIPELINE FOR BIPOC, AMONG OTHERS, IS BY RAISING TAXES AND PROTECTING RENTERS FROM THE OFFSETTING OF THOSE COSTS.
INCREASING PROPERTY TAX BY ONLY $600 PER YEAR FOR $1.5 MILLION.
HOMES WOULD PAY FOR ALL THE PROPOSALS EDUCATORS ARE MAKING THAT WOULD SUPPORT THE EDUCATION OF OUR STUDENTS.
WE'RE GONNA TRY JAMES WILLIAMSON AGAIN.
JAMES, IF YOU CAN UNMUTE YOURSELF.
UM, SO ON THE, UH, TAXES, UM, I LIVE IN NORTH CAMBRIDGE.
I'VE BEEN TRYING, AND I KNOW A LOT OF OTHER PEOPLE HAVE BEEN TRYING TO GET POTHOLES FIXED ALONG NORTH MASS AVE FOR AT LEAST OVER A YEAR.
I'VE EVEN SPOKEN TO THE, PERSONALLY TO THE HEAD OF STREETS AND SEWERS.
I'VE, I I PLAYED THE GAME OF SEE CLICK, DON'T FIX, UM, REPEATEDLY AS HAVE OTHERS.
UH, THERE ARE POTHOLES, UH, ALL THE WAY FROM PORTER SQUARE TO THE ARLINGTON LINE THAT HAVEN'T BEEN TOUCHED.
IF ANYONE CAN IDENTIFY ANY, ANY, ANY POTHOLE THAT HAS BEEN REPAIRED IN THE LAST YEAR ALONG NORTH MAAT, PLEASE DO.
UM, WHERE IS THIS MONEY GOING IF WE CAN'T FIX POTHOLES IN THIS CITY? UH, I'M, I'M MINDFUL OF WHAT MOMANI HAS DONE IN NEW YORK CITY.
HE'S EVEN PUT OUT WONDERFUL, UH, YOU KNOW, INSTAGRAM SHOWING HIM OUT WITH A TEAM OF PEOPLE.
THEY, THEY FIXED A HUNDRED THOUSAND POTHOLES IN NEW YORK CITY.
OKAY? THEY CAN DO IT IN NEW YORK CITY, UH, CAMBRIDGE WITH THE, THE ENORMOUS AMOUNT OF MONEY THAT YOU ALL HAVE SHOULD BE ABLE TO FIX POTHOLES.
PLEASE WOULD YOU FIX POTHOLES FROM PORTER SQUARE TO, TO, UH, THE ARLINGTON LINE? IF YOU WANT TO EXTOL THE VIRTUE OF PUBLIC TRANSPORTATION, TRY RIDING A BUS ACROSS THESE POTS EVERY NIGHT AS I DO
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AND EXPERIENCING WHAT IT'S LIKE TO GO BOOM, BOOM, BOOM.UM, SO THAT'S THE FIRST THING.
AND, AND, AND THE SECOND THING IS WE, YOU KNOW, WHAT DO WE, WE DESERVE TO KNOW AS CITIZENS, WE DESERVE TO KNOW HOW MUCH MONEY HAS BEEN SPENT OVER THE LAST 15, 20 YEARS ON THE BIKE INFRASTRUCTURE, WHICH IS OBVIOUSLY VERY CONTROVERSIAL, AT LEAST CERTAINLY IN ITS IMPLEMENTATION.
AND OF COURSE, A MAJOR PROBLEM WITH THE BICYCLE INFRASTRUCTURE IS THAT NOTHING IS BEING DONE TO ENFORCE RULES FOR BICYCLISTS, WHICH I SUBMIT WOULD LEAD TO A TREMENDOUS ELEVATION IN SAFETY FOR BICYCLISTS IF THEY WOULD START.
PLEASE EMAIL US THE REMAINDER YOUR TIME EXPIRED.
OUR FINAL SPEAKER IS SUZANNE BLEIER.
SUZANNE, YOU HAVE TWO MINUTES, PLEASE GO AHEAD.
SUZANNE BLEIER PLEASE GO AHEAD.
SUZANNE, I SEE YOU IN THE ZOOM, BUT YOU NEED TO UNMUTE ON YOUR END.
YOU HAVE THE FLOOR MADAM MAYOR.
IT SEEMS SUZANNE IS UNABLE TO UNMUTE HERSELF.
AND THERE'S NO ONE ELSE SIGNED UP.
TAL LEVY T YOU HAVE THE FLOOR.
TAL LEVY TAL IS ALSO UNABLE TO UNMUTE THEMSELF FOR FOLKS WHO ARE IN THE ZOOM RAISING YOUR HAND.
IF YOU ARE SIGNED UP FOR THE PREVIOUS PORTION OF THE MEETING, THE REGULAR CITY COUNCIL MEETING, WE'RE GOING TO COMPLETE THIS TAX HEARING AND THEN GO BACK TO THE PUBLIC COMMENT LIST WHERE WE LEFT OFF AT SPEAKER NUMBER 49.
SO YOU DON'T NEED TO RAISE YOUR HAND AFTER THIS PORTION OF THE MEETING CONCLUDES.
WE'LL GO BACK TO OUR REGULARLY SCHEDULED PUBLIC COMMENT.
OKAY, SO PUBLIC COMMENT CLOSED, UH, FOR THE TAX RATING AT SIX 30 ON A MOTION BY COUNCILOR NOLAN TO CLOSE PUBLIC COMMENT.
WE'LL NOW GO TO THE ITEM ON THE AGENDA THAT WE HAVE, WHICH IS A COMMUNICATION TRANSMITTED FROM EON WONG CITY MANAGER RELATIVE TO VOTES NECESSARY TO SEEK APPROVAL FROM THE MASSACHUSETTS DEPARTMENT OF REVENUE OF THE TAX RATE FOR FY 2027.
SO BEFORE WE, WE WILL OPEN IT UP TO QUESTIONS FROM THE BODY.
UM, I ASK THAT YOU ASK YOUR QUESTIONS, WE'LL START WITH TWO AND THEN WE CAN GO AROUND, UH, IF THERE'S MORE, UH, JUST FOR THE ORDER OF OPERATIONS, THERE'S UH, TWO, WE'LL HAVE TO TAKE TWO, UM, ROLL CALL VOTES.
AND SO, UH, BUT BEFORE WE GET TO THAT, WE WILL, UH, HAVE A DISCUSSION.
DOES THE CITY WANNA START WITH SAYING ANYTHING BEFORE WE HEAR FROM COUNSELORS ON OTHER QUESTIONS? OR WILL YOU YIELD CITY MANAGER? UM, HAPPY FOR US TO JUST MOVE INTO QUESTIONS.
I JUST WANTED TO, AS ONE OF THE FINANCE CO-CHAIRS, JUST REMIND US ALL OF WHERE WE'RE AT WITH THIS.
UM, 'CAUSE IT'S REALLY CONFUSING FOR PEOPLE.
HERE WE ARE END OF SEPTEMBER AND WE'RE SETTING A TAX RATE FOR LAST YEAR.
AND THEN NEXT MONTH WE'RE GONNA START THE FINANCE COMMITTEE PROCESS FOR NEXT YEAR'S BUDGET.
SO I JUST WANNA RE REMIND US ALL ABOUT WHY WE ARE HERE AND JUST BRIEFLY ADDRESS A COUPLE OF THE QUESTIONS THAT WE'VE ALL HEARD.
UM, THERE IS A REALLY EXTENSIVE MEMO OF, UH, THAT EXPLAINS THE, THE TAX RATE.
THERE'S ALSO AN ACCOMP POWERPOINT THAT EXPLAINS THE PROCESS BY WHICH WE GOT HERE.
SO I VERY MUCH ENCOURAGE PEOPLE WHO ARE CURIOUS ABOUT THIS.
WE HAVE DONE A STELLAR JOB OF TRYING TO BE MORE TRANSPARENT, OPEN AND USER FRIENDLY.
BUT IT CAN GET VERY CONFUSING 'CAUSE THERE'S THE TAX LEVY AND THEN OUR TAXES ARE GOING UP 4%, BUT THE RATES ARE GOING UP ALSO 4%, BUT THE TAX LEVY'S GOING UP 6.9%.
SO THAT'S BECAUSE IT, MUNICIPAL FINANCE IS A COMPLEX, UM, AREA.
AND I DO ENCOURAGE PEOPLE TO READ THROUGH THIS.
UM, JUST A COUPLE POINTS THAT WE HAVE BEEN AND MAY NEED EVEN MORE BELT TIGHTENING.
SO TO LET PEOPLE KNOW, WE HAVE GONE THROUGH A PROCESS THE LAST TWO YEARS.
THIS IS THE SECOND IN A ROW WHERE IT HAS BEEN A
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FAR LOWER RATE OF INCREASE IN OUR OPERATING BUDGET THAN THE PRIOR YEARS WHEN WE WERE FRANKLY PRETTY FLUSH WITH A LOT OF DEVELOPMENT DOLLARS.SO TO LET PEOPLE KNOW, WE DO HEAR YOU, THAT THIS IS NOT JUST AN OPEN-ENDED, WE'RE FLINGING MONEY AS MUCH AS WE CAN.
WE REALLY HAVE BELT TIGHTENED IN AN ERA OF, OF CHALLENGING TIMES.
AND THE STAFF AND THE COUNCIL WORKED TOGETHER AND REALLY STEPPED UP TO HAVE THIS LOWER RATE.
THAT BEING SAID, WE'VE ACTUALLY CONTINUED AND MANAGED TO BE INCREDIBLY GENEROUS.
WE HAVE FUNDED KEY PRIORITIES OF HOUSING, COMMUNITY SAFETY, ENVIRONMENTAL JUSTICE, UNIVERSAL PRE-K, DESPITE THE FACT THAT SO MANY MUNICIPALITIES AROUND US HAVE NOT BEEN ABLE TO DO THAT.
THEY HAVE BEEN CUTTING POSITIONS, WE HAVEN'T, AND WE HAVE MANAGED TO BRING THAT TOGETHER IN, IN WHAT I THINK IS A THOUGHTFUL WAY.
HAVE THERE BEEN SOME TIMES WHEN WE'VE GONE OVER BUDGET, WHICH WE ARE ALL HOPING TO LEARN FROM? YES, WE, I THINK SHOULD ACKNOWLEDGE THAT.
AND YET WE ARE REIGNING IT IN.
WE ARE LOOKING VERY CAREFULLY AT ALL OF OUR PROJECTS TO MAKE SURE THAT WE ARE DOING THE SAFETY NEEDS AND THE MUST HAVE AS OPPOSED TO THE NICE TO HAVE BECAUSE WE ARE NOT IN AN ERA WHEN WE CAN FRANKLY AFFORD THAT.
SO I JUST WANTED TO MAKE SURE WE ALL KNOW THAT.
JUST FOR THE TIMELINE TO REMIND US ALL, WE START IN THE FISCAL YEAR IN OCTOBER AND NOVEMBER WITH MEETINGS OF, UH, JOINT ROUND TABLES WITH THE SCHOOL COMMITTEE, FINANCE COMMITTEE HEARINGS.
WE START THAT PROCESS, THEN THE CITY REACHES OUT TO ALL DEPARTMENT HEADS.
THAT HAPPENS OVER THE COURSE OF BEGINNING.
IT WILL BEGIN AGAIN IN DECEMBER, JANUARY OF THIS YEAR.
AND THEN WE HAVE COUNCIL, UM, HEARINGS ON THIS.
WE WILL HAVE THEM NEXT SPRING.
AND THEN WHAT'S, AND AGAIN, WHAT'S VERY CONFUSING TO PEOPLE IS, WELL, YOU'VE ALREADY SET THE BUDGET.
SO ISN'T THIS TAX RATE HEARING, HOW COME IT'S COMING AFTER THAT BUDGET? IT HAS TO DO WITH THE, UM, ASSESSMENT BY THE, AT THE STATE LEVEL OF THE PROPERTY VALUES THAT HAVE TO BE SET IN ORDER FOR US TO UNDERSTAND HOW IT IS THAT WE CAN SET THE TAX RATE.
SO I'M SURE CITY STAFF CAN EXPLAIN THAT MAYBE A, A, A LITTLE BIT MORE, UM, CLEARLY.
BUT THAT IS WHY WE ARE HAVING THIS HERE.
THE BUDGET WE PASSED AND WE ALL WE AGREED TO THE EARLIER THIS YEAR IS PREDICATED ON THE IDEA THAT, HEY, WE NEED THE TAX MONEY TO PAY FOR THAT.
WELL, HOW ARE WE GONNA GET THAT? WE NEED THE CERTIFIED, UH, STATEMENT FROM THE STATE ABOUT OUR PROPERTY VALUES.
AND ONLY THEN CAN WE SET THE TAX RATE.
SO I'M, I'M, I'M, I JUST WANT TO REMIND US ALL OF THAT, THAT THAT'S THE, THE TIMEFRAME FOR THIS, AND I DON'T HAVE TO TALK MORE ABOUT THIS.
I'M NOT SURE IF THERE'S OTHER SPECIFIC QUESTIONS ON IT.
BUT WE ALSO RECOGNIZE, I THINK AS A BODY, THE TAX RATES ARE GOING UP.
MOST PEOPLE IN THIS CITY, OTHER THAN CONDO OWNERS, RESIDENTIAL PROPERTY, WILL SEE AN INCREASE IN THE ACTUAL DOLLARS THEY PAY OF, YOU KNOW, FROM EIGHT TO 12%.
MOST SMALL PROPERTY OWNERS WILL SEE A FEW PERCENT INCREASE AND SOME WILL SEE A LARGER PERCENT INCREASE.
THAT BEING SAID, WE ARE DOING EVERYTHING WE CAN TO MAKE SURE WE CONTINUE TO PROVIDE THE SERVICES THAT WE'VE RELIED ON AND TO BE THOUGHTFUL AND RESPONSIBLE TO RESPONSIVE TO THE CHANGE IN ECONOMIC TIMES.
I WILL OF COURSE BE, UM, UH, VOTING FOR THE CITY'S RECOMMENDATIONS.
WE'VE, WE VOTED ON A BUDGET IN JUNE AND WE'VE GOTTA PAY FOR THE BUDGET.
BUT I'LL, BUT I'LL SAY I, I GUESS I HAVE TWO MAJOR POINTS.
ONE, YOU KNOW, I'M, I'M THE CHILD OF OLDER PARENTS.
UM, BOTH OF THEM GREW UP DURING THE DEPRESSION AND THEY TAUGHT ME THAT WHEN THERE'S LESS MONEY, YOU DO WITH LESS.
AND I THINK IT'S VERY IMPORTANT THAT CAMBRIDGE DOES THE SAME THING.
UM, WE'VE GOTTA REDUCE SPENDING, UH, GOING FORWARD.
I'M AWARE THAT IT WILL BE PAINFUL, BUT IT WILL BE MORE UNCOMFORTABLE LATER.
UH, WE CAN'T CONTINUE TO SPEND AS THOUGH WE REMAIN FLUSH WHEN OUR COMMERCIAL REV TAX REVENUES ARE DOWN.
AND IT LOOKS AS THOUGH THEY'RE GONNA STAY DOWN FOR THE NEXT FEW YEARS, UM, UNTIL BIO THE BIOTECH INDUSTRY SORT OF SORTS ITSELF OUT.
AND UNTIL WE HAVE A NEW ADMINISTRATION IN WASHINGTON THAT ISN'T CONTINUALLY PUNISHING US, UM, MY MY OTHER POINT IS, AND SO WE NEED TO BE, UM, UNITED AS A COUNCIL ABOUT THAT WE'RE GONNA BE CONTINUING TO INCREASE TAXES AND RESIDENTIAL TAXES AND COMMERCIAL TAXES IF WE DON'T LOWER OUR BUDGETS.
SO I, I HOPE THE COUNCIL WILL BE REALLY THOUGHTFUL ABOUT THAT AS WE, UH, MOVE INTO FINANCE DISCUSSIONS FOR FISCAL YEAR 28.
UM, I ALSO FEEL AS THOUGH WE CANNOT CONTINUE TO PUNISH THE COMMERCIAL SECTOR WITH HIGHER TAX RATES.
SO LAST YEAR I THINK WE GAVE, WE, THEY HAD A 22% RATE THIS YEAR.
THEY ARE OUR BREAD AND BUTTER, AND IF WE MAKE CAMBRIDGE INHOSPITABLE, THEY'RE GONNA GO ELSEWHERE.
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UM, THEY ARE WHY WE CAN AFFORD TO DELIVER SO MANY AMAZING PROGRAMS, INVESTING OVER ABOUT $40,000 PER PUPIL IN OUR SCHOOLS.UH, SUBSIDIZING HOME OWNERSHIP, INVESTING MORE THAN $48 MILLION INTO AFFORDABLE HOUSING JUST LAST YEAR AND OFFERING UNIVERSAL PRE-K ANOTHER VERY, VERY EXPENSIVE PROGRAM.
SO WE, UM, SO WE, WE SHOULDN'T BE CONTINUING TO INCREASE THE COMMERCIAL TAXES AND WE CAN'T CONTINUE TO INCREASE THE RESIDENTIAL ONES EITHER.
EVERYTHING IS COSTING MORE, SO WE'VE GOTTA BE SPENDING LESS.
AND I'M, I'M VERY AWARE IT'S, IT'S A VERY CHALLENGING PUZZLE AND I REALLY RESPECT OUR FINANCE STAFF.
YOU KNOW, HEALTHCARE COSTS WENT UP 9% THIS LAST YEAR.
THEY'RE GONNA GO UP ANOTHER 9% THIS YEAR.
YOU KNOW, THEY AND STAFF COSTS, UM, EAT UP A LOT OF OUR BUDGET, BUT WE'VE GOTTA CUT BACK.
AND, AND I DON'T KNOW THAT IT NEEDS TO BE ACROSS THE BOARD.
I FEEL AS THOUGH DEPARTMENTS THAT ARE PRODUCING, UM, REVENUE LIKE ISD WITH DEVELOPMENT, LIKE THEY NEED MORE INSPECTORS.
WE HAVE A LOT MORE DEVELOPMENT GOING ON NOW WITH MULTIFAMILY HOUSING PROJECTS.
WE NEED TO MAKE SURE THEY'VE GOT THE INSPECTORS SO THAT PROJECTS AREN'T DELAYED.
UM, AND OTHER DEPARTMENTS THAT ARE MAKING MONEY FOR THE CITY SHOULD HAVE THE RESOURCES.
BUT EVEN THOUGH I, I, I KNOW EVERYONE IN THE COUNCIL HAS A BIG, BIG, BIG HEART, AND, UH, BUT I THINK WHAT WE'VE REALLY GOTTA FOCUS ON IS EVALUATING EXISTING PROGRAMS AND THEN, UM, THROWING MONEY AROUND AND SPENDING MORE DOESN'T ALWAYS GET YOU BETTER RESULTS.
UM, AND, UH, WE'RE, WE'RE LUCKY THAT WE ARE WHERE WE ARE.
UM, AS THE REPORT SHOWS, 57 OF MASSACHUSETTS, MASSACHUSETTS 351 MUNICIPALITIES PLACED PROPOSITION TWO AND A HALF O OVERRIDE ON THEIR LOCAL BALLOTS BECAUSE OF SE SERIOUS BUDGET GAPS AND, UH, COSTS.
AND THEY COULDN'T PAY THEIR OPERATIONAL COSTS.
70 SCHOOL DISTRICTS HAD TO FACE, UH, SEVERE DEFICITS AND HAD TO FIRE TEACHERS.
SO WE ARE IN A LUCKY PLACE, BUT AGAIN, UM, THINGS ARE GONNA BE GETTING, YOU KNOW, I I AM AN OPTIMIST, BUT THINGS ARE GONNA BE TOUGH FOR THE NEXT COUPLE OF YEARS AND WE NEED TO, UM, REFLECT AND RESPOND AND LOWER OUR SPENDING GOING FORWARD AS A RESULT.
I YIELD, WE HAVE A FEW HANDS, AL GO TO COUNCILOR MCGOVERN AND THEN COUNCILOR SABRINA WHEELER.
UH, THANK YOU MADAM MAYOR THROUGH YOU.
JUST REALLY QUICKLY JUST TO FOLLOW UP ON WHAT, UH, COUNCILOR ZUZI JUST SAID.
I MEAN, I THINK THE, WE, I THINK THE THING WE REALLY HAVE TO BE MINDFUL OF, AND I THINK YOU'RE TRYING TO DO THAT IS GETTING CLOSE TO THE PROP TWO AND A HALF, YOU KNOW, THAT WE DON'T WANT TO BE ONE OF THOSE COMMUNITIES THAT, UM, YOU KNOW, YOU HAVE TO GO TO FOR AN OVERRIDE IN A BALLOT QUESTION EVERY TIME YOU WANT TO INVEST IN A LIBRARY OR A SPOOL OR A PARK.
AND SO, UM, THIS IS GOING TO BE VERY, IT IS GOING TO BE VERY TRICKY FOR THE NEXT FEW YEARS.
AND I THINK, UM, I DO AGREE THAT I THINK WE NEED TO LOOK AT, UM, SPENDING, OBVIOUSLY YOU CAN'T KEEP SPENDING AT HIGH LEVELS IF YOU HAVE LESS MONEY.
UM, BUT AT THE SAME TIME, YOU KNOW, I I, I THINK THINGS AREN'T GONNA HAVE TO INCREASE AND, AND BECAUSE WE DO OFFER GREAT SERVICES AND WE DON'T WANT TO CUT BACK ON A LOT OF THOSE THINGS, RIGHT? AND, AND SO, UM, YOU KNOW, HOW WE BALANCE, THAT'S GONNA BE REALLY IMPORTANT.
I, I, I WILL, UM, WILL SUPPORT THIS.
UM, I I TRUST IN OUR BUDGET TEAM, I KNOW IT'S, IT'S, IT'S NOT, UH, IT'S NOT EASY AND NOBODY WOULD WANTS TO BE IN THIS SITUATION AND, AND, UM, BUT, YOU KNOW, THE DAYS OF BUILDING $300 MILLION SCHOOLS ARE NOT GONNA HAPPEN FOR A LONG TIME.
RIGHT? AND, AND WE HAVE TO BE MORE MINDFUL OF THAT.
SO, UM, I APPRECIATE YOUR WORK.
UM, I KNOW IT'S TOUGH, UM, BUT WE HAVE TO FIND A WAY TO GET THROUGH THESE NEXT, YOU KNOW, SEVERAL YEARS.
I'M CONFIDENT THAT WE'LL BOUNCE BACK.
UM, THIS IS A GREAT CITY AND, AND THERE ARE GREAT OPPORTUNITIES HERE AND WE'VE REINVENTED OUR, OUR INDUSTRY SEVERAL TIMES IN OUR LIFETIME.
UM, AND I'M SURE WE'LL DO THAT AGAIN, BUT FOR NOW IT'S, UM, IT'S A LITTLE MORE TRICKY.
SO THANK YOU FOR YOUR, FOR YOUR WORK.
COUNCILLOR, SABRINA WEER THANKS MADAM MAYOR THROUGH YOU TWO, UH, QUICK QUESTIONS.
THE ONE IS SORT OF A PUBLIC EDUCATION QUESTION, BUT WE'RE, WE'RE NOT VOTING ON ANY ACTUAL SPENDING DECISIONS TONIGHT, CORRECT? WHERE THOSE, THAT VOTE HAS BEEN MADE TODAY? WE'RE JUST VOTING ON HOW TO SET THE TAX RATE AND HOW TO SPLIT THAT BETWEEN RESIDENTIAL AND COMMERCIAL AND THE RESIDENTIAL EXEMPT.
WE'RE JUST VOTING ON THE TAX RATE.
I'VE SEEN THE HEADS NODDING, YES.
UM, YOU CAN SPEAK, YOU CAN SAY SOMETHING.
[00:30:01]
IS THERE ANYTHING YOU WANNA ADD? I, YEAH, OR YES, IS ALSO GREAT.SO TONIGHT THE, THE CITY COUNCIL WILL VOTE ON HOW TO DISTRIBUTE THE TAX LEVY BETWEEN COMMERCIAL AND RESIDENTIAL AND ON THE RESIDENTIAL EXEMPTION.
AND THEN THAT WILL ALLOW US TO ACTUALLY DO THAT FINAL CALCULATION THAT THAT ACTUALLY COMES UP WITH THE TAX RATE.
AND THEN THE SECOND QUESTION WAS ON THE TAX RATE.
I THINK IT'S ALWAYS IMPORTANT TO COMPARE US TO OTHER MUNICIPALITIES AND OUR NEIGHBORS IN TERMS OF HOW WE ARE AND IF CAMBRIDGE THIS YEAR WHERE WE'RE HAVING MUCH HIGHER TAX RATES THAN ANY OF OUR NEIGHBORS, THAT WOULD BE IMPORTANT TO RECOGNIZE.
I DON'T THINK THAT'S THE CASE.
I THINK, UH, YOU KNOW, IN PREVIOUS YEARS WE, THE CITY AND MAILER GOES OUT AND IT SAYS WE HAVE THE LOWEST TAX RATE OF ANY, UH, OF OUR NEIGHBORS.
WE HAVE THE LOWEST TAX RATE OF ANY CITY IN MASSACHUSETTS.
HAS THAT CHANGED THIS YEAR? DO WE STILL HAVE THE LOWEST TAX RATE IN OF ANY CITY IN MIDDLESEX COUNTY? LOWEST TAX RATE IN OF CITIES IN MASSACHUSETTS, DIRECTOR ETT.
UM, I WOULD SAY, YOU KNOW, THE POWERPOINT THAT, UH, IS PART OF THE CITY MANAGER'S LETTER DOES HAVE A PAGE THAT LOOKS AT OTHER MUNICIPALITIES.
TYPICALLY, WE'RE ONLY LOOKING AT MUNICIPALITIES THAT ARE NEAR US AND, UH, YOU KNOW, SO YES, WE DO STILL HAVE THE LOWEST TAX RATES.
UM, I THINK THE OTHER THING I WOULD SAY IS THAT WE ARE SETTING FISCAL YEAR 27 RIGHT NOW.
UH, WE'RE COMPARING OURSELVES TO OTHER MUNICIPALITIES FOR FISCAL YEAR 26.
SO WE ARE COMPARING OUR CURRENT TAX RATE TO THEIR LAST YEAR'S TAX RATE.
SO IT'LL BE A FEW MONTHS BEFORE WE'LL BE ABLE TO SEE WHERE THEY ARE COMPARED TO US IN THE SAME FISCAL YEAR.
AND I THINK THAT IS A CREDIT TO THIS CITY, ESPECIALLY TO THE CITY STAFF, UH, AS WELL AS THE COUNCIL THAT WE HAVE THESE ROBUST PROGRAMS. WE HAVE GREAT SCHOOLS, WE HAVE GREAT PARKS, AND WE HAVE THE LOWEST TAX RATE OF ANY CITY IN MASSACHUSETTS.
UM, SO JUST WANTED TO HIGHLIGHT THAT NA YIELD BACK.
WE WILL GO TO COUNCIL FLORIDA AND THEN COUNCILOR ZUBI.
SO THANK YOU, UH, THROUGH YOU, MADAM CHAIR.
AND JUST BRIEFLY, AM I CORRECT THAT IF WE VOTE AND ADOPT THE, UH, RECOMMENDATIONS BY THE CITY, THAT THAT MEANS THAT WE'RE STILL REMAINING, THAT THE RESIDENTIAL, UH, TAX RATE IS STILL AT THE LOWEST ALLOWABLE, UH, PURSUANT TO STATE LAW PLUS THE RESIDENTIAL EXCEPTION? IF WE EXEMPTION, IF WE VOTE FOR THAT, THAT'S ADOPTED AS WELL, CORRECT? TO, WE'RE STILL AT THE SAME PLACE.
UM, I, I THINK I UNDERSTAND WHAT YOU'RE ASKING.
UM, I WOULD SAY, YOU KNOW, WHAT, IF WE VOTE, WE, WE ARE AT THE HISTORICAL MINIMUM FOR THE RESIDENTIAL, UH, TAX RATE.
AND IF WE VOTE FOR THAT, THAT'S ONE OF THE VOTES YOU'RE DOING TONIGHT, THEN WE WOULD BE LOOKING AT A $6 AND 95 CENT RESIDENTIAL TAX RATE.
THE SECOND VOTE THAT YOU'RE TAKING IS TO, UH, VOTE FOR THE RESIDENTIAL EXEMPTION BEING 30% FOR ELIGIBLE PROPERTIES.
AND THEN THE COMMERCIAL TAX RATE, WE'RE ALLOWED TO GO TO 175% OF THE RESIDENTIAL, BUT WE'RE CURRENTLY SOMEWHERE AROUND 165 AND WE MAINTAIN A LITTLE BIT OF WIGGLE ROOM IN OUR TAX LEVY, WHICH ALLOWS US OF OUR AAA BOND RATING.
AND AS WE GO IN THE FUTURE TO 27 AND 28, UH, WITH THE, UM, EXPECTED AND PROJECTED DECLINE IN KENDALL SQUARE, WHICH IS THE ECONOMIC ENGINE, WHICH HAS ALLOWED US TO DO EVERYTHING WE'VE BEEN ABLE TO DO IN THE LAST DECADE OR SO.
WHILE THAT CONTINUES, UNTIL WE CYCLE A OUT OF THAT, THE ONLY WAY THAT THE CITY WILL BE ABLE TO AVOID, UM, ENTERING INTO THAT AREA OF PROP, UH, TWO AND A HALF OVERRIDES IS TO CURTAIL OVERALL BUDGET SPENDING.
IS THAT, IS THAT CORRECT? WELL, I THINK I WOULD SAY THAT THE ONE THING THAT WE CAN CONTROL IS THE BUDGET, RIGHT? WHAT WE DON'T CONTROL IS THE MARKET.
WHAT WE DON'T CONTROL IS THE VACANCY IN THE MARKET.
WHAT WE DON'T CONTROL ARE THE RENTS IN THE MARKET.
AND SO THE ONE THING THAT WE CAN CONTROL IS HOW MUCH WE SPEND IN THE BUDGET.
AND SO THAT'S VERY IMPACTFUL ON THE TAX RATE.
SO THIS YEAR WITH THE LEVY GOING UP 6.9%, THAT'S THE BASE STARTING POINT FOR EVERYONE'S BILLS.
EVERYONE NEEDS TO GO UP 6.9% TO COLLECT THAT ADDITIONAL MONEY.
AND THEN IT JUST DEPENDS ON HOW IT'S DISTRIBUTED BETWEEN AND WITHIN THE CLASSES.
UM, I THINK ONE MORE POINT OF CLARIFICATION IS YES, WE ARE AT 165% FOR THE SHIFT.
NOW WE, AT A MAXIMUM WE COULD SHIFT 175% OF THE COMMERCIAL, BUT IT IS 175% OF WHAT WE COULD SHIFT IF WE ONLY HAD ONE RATE, RIGHT?
SO MY FINAL QUESTION, AND I THINK I KNOW THE ANSWER TO THIS, UH, WE CAN'T SPEND MONEY WE
[00:35:01]
DON'T HAVE, RIGHT? I THINK WE HAVE TO BE CAREFUL.I THINK WE'RE AT A MOMENT OF REFLECTION.
UM, AND I THINK THAT IT'S USEFUL, UH, TO REFLECT AND LOOK AT HOW THE PROGRAMS ARE BEING MANAGED.
WHO ARE THEY SERVING? IF WE SET THEM UP 15 OR 20 YEARS AGO, ARE THEY DOING WHAT WE THOUGHT THAT THEY WOULD? THANK YOU, UM, THROUGH YOU MAYOR SIDIKI, I THINK IN THIS DISCUSSION, UM, WE'RE HOLDING MANY TRUTHS ALL AT THE SAME TIME.
UH, IN CAMBRIDGE, UH, WE REMAIN ONE OF THE LOWEST TAX RATES BOTH ON THE RESIDENTIAL AND COMMERCIAL SIDE COMPARED TO OTHER MUNICIPALITIES.
WE ALSO HAVE SOME OF THE HIGHEST PROPERTY VALUES.
AND SO TAX BILLS ARE PRETTY HIGH.
UH, WE ALSO HAVE SOME OF THE HIGHEST BUDGETS.
AND SO IN TERMS OF THE SIZE OF THE CITY BUDGET, UM, WE ARE PROVIDING BROADER AND DEEPER SERVICES ACROSS BOTH RESIDENTS AND IN SUPPORT OF OUR MOST VULNERABLE COMMUNITY MEMBERS.
UH, AND SO WE'VE BEEN ABLE TO USE THOSE RESOURCES IN WAYS THAT THE COUNCIL AND THE COMMUNITY AND THE CITY STAFF, UM, HAVE SEEN VERY DEEP NEEDS.
AND I THINK THAT'S KIND OF THE ENVIRONMENT THAT WE'RE CONTINUING TO FACE.
UM, WE ARE BALANCING THE FACT THAT WE DO HAVE, AND, AND I THINK COUNCILLOR FLAIR DAY, I WOULDN'T SAY THAT WE, WE DON'T HAVE MONEY.
WE HAVE FLEXIBILITY THAT MANY OTHER MUNICIPALITIES AT THIS POINT DON'T HAVE OUR AMBITIONS ALSO CONTINUE TO EXCEED OUR RESOURCES.
THERE ARE SO MANY THINGS THAT WE WANNA DO, AND WE ARE FACING A REALLY SIGNIFICANT ECONOMIC SLOWDOWN, UM, THAT IF WE DON'T HAVE SOME LEVEL OF MODERATION, UM, I THINK WE'VE LOOKED AT A COUPLE OF DIFFERENT PROJECTIONS WHERE WE COULD RUN INTO THAT TWO AND A HALF PERCENT, UM, UH, STATE, STATE, UM, STATE LIMIT.
AND SO, UH, I THINK ULTIMATELY THIS IS THE CONVERSATION THAT WE HAVE BEEN IN OVER THE LAST TWO YEARS, AND WE'LL CONTINUE TO BE IN FOR VERY SIGNIFICANTLY FY 28, BUT PROBABLY FOR A COUPLE OF CYCLES, UH, WHERE WE NEED TO FIND SOME BALANCE IN MODERATION.
WE'RE GONNA HAVE FLEXIBILITY TO INVEST, BUT WE'LL ALSO NEED TO RECOGNIZE THAT, THAT WE NEED TO ACT WITHIN SOME LEVEL OF CONSTRAINT AND PRIORITIES.
WE'LL GO TO COUNCILMAN ZUBIE AND THEN VICE MAYOR ZI.
UH, SO I WANNA FIRST START OFF WITH A QUESTION FOR THE ASSESSING DEPARTMENT.
I HAD LOOKED AT SOME OF THE NUMBERS FROM THE PACKET THAT YOU GUYS HAD SHARED AND SAW THAT WE'RE SEEING SOME OF THE BILLS GO UP IN LOWER INCOME NEIGHBORHOODS MORE THAN WEALTHIER PARTS OF THE CITY.
SO, FOR EXAMPLE, LAST YEAR'S MEDIAN VALUE OF FISCAL YEAR 26 OF DISTRICT 13, WHICH IS CAMBRIDGEPORT.
AFTER DOING THE MATH WITH THE MEDIAN VALUE, THE EXEMPTION AND THE TAX RATE, AND COMPARING THAT WITH THE FISCAL YEAR 27, IT INCREASED ABOUT 17%.
AND THAT SAME MATH AROUND BRATTLE STREET COMES OUT TO BE ABOUT 5.6%.
AND I KNOW THAT THE FLAT EXEMPTION PERCENTAGE MAKES THAT GAP BIGGER FOR LESS EXPENSIVE HOMES, UM, BECAUSE THAT SAME FIVE 20 K COMES OFF OF A SMALLER NUMBER.
SO I, I COULD BE DOING THE MATH WRONG, I'D JUST BE CURIOUS TO BETTER UNDERSTAND HOW WE GET TO THAT AND YEAH.
HOW IS THAT ASSESSED? SO I, I HAVEN'T LOOKED AT LAST YEAR TO THIS YEAR IN THESE SPECIFIC DISTRICTS.
I THINK WHAT I WOULD SAY IN GENERAL IS THAT WHAT WE'RE DOING IS WE'RE FOLLOWING THE MARKET.
SO WE'RE LOOKING BACK TO CALENDAR YEAR 25.
WE'RE LOOKING AT ARMS LENGTH SALES, AND WE'RE DETERMINING WHAT HAS, UH, OCCURRED IN THE MARKET TO BE ABLE TO DETERMINE HOW VALUE'S GONE UP, HOW VALUE'S GONE DOWN, WHAT IS, WHAT IS HAPPENING IN THESE DIFFERENT DISTRICTS.
AND SO WE'RE NOT, WE'RE NOT DETERMINING THIS, WE'RE JUST FOLLOWING THE MARKET.
AND SO THE MARKET IS TELLING US WHERE THE INCREASES ARE OR WHERE DECREASES ARE, WHERE THINGS ARE MORE FLAT OR WHERE, UH, VALUES HAVE GONE UP.
YEAH, IT'S DEFINITELY HELPFUL TO KNOW, AND I THINK SPEAKS TO JUST LIKE THE BROADER SITUATION OF HAVING A FLAT EXEMPTION FEE.
AND I KNOW PART OF THIS WORK, AS I'VE SPOKEN WITH YOU ALL BEFORE, IS, IS THAT IT'S RESTRICTED BY STATE LAW, WHICH ISN'T THE MOST FUN THING, UM, BECAUSE WE CAN'T SET THINGS BY HOME VALUE OR INCOME.
AND SO IN, IN THAT WAY, WE CAN'T REALLY FOCUS ON WHERE WE SHOULD PUT THE BURDENS OF OUR REVENUE SOURCES.
I KNOW AT THE END OF THE DAY, I'M GONNA SUPPORT BOTH OF THESE VOTES TONIGHT.
I DO ALSO JUST WANNA ACKNOWLEDGE AND HIGHLIGHT THAT I DON'T WANT US TO LOSE SIGHT OF THE FACT THAT WE DO NEED MORE RESOURCES SO THAT WE'RE ABLE TO PROVIDE MORE DIGNIFIED SUPPORT, UH, TO OUR COMMUNITY, ESPECIALLY, YOU KNOW, UM, WHERE IN THE PAST WE'VE BEEN TOLD THAT WE CAN'T FUND CERTAIN THINGS LIKE A HOMELESS SHELTER.
I, I REALLY DO THINK WE HAVE TO BE CREATIVE AND JUST ABOUT HOW WE GET THOSE RESOURCES, AND THAT INCLUDES HOW WE SPEND THEM.
UM, THAT IS PART OF WHY I AM VERY STAUNCHLY, UM, AN ADVOCATE FOR HARVARD AND
[00:40:01]
MIT DOING A BETTER JOB THROUGH THEIR PILOT NEGOTIATIONS AND THAT PROCESS.UM, EXPLORING HOME RULE PETITIONS TO TAX THE RICH AND BACKING EVEN ONE OF OUR OWN STATE REPRESENTATIVES, MIKE CONNOLLY, WHO HAS A LOCAL OPTION TRANSFER FEE BILL ON HIGH END SALES TO FUND AFFORDABLE HOUSING, WHICH IS CURRENTLY SITTING ON A JOINT COMMITTEE.
IDEALLY RAISING TAXES ON WORKING FAMILIES.
AND OUR SMALL BUSINESSES SHOULD BE ONE OF THE LAST THINGS WE'RE TURNING TO, BUT, AND THAT'S BECAUSE WE NEED TO BE MINDFUL OF THE IMPACTS, UM, ESPECIALLY WHEN WE HAVE RESIDENTS WHO MIGHT OWN PROPERTY BUT CAN'T AFFORD TO KEEP UP OTHERWISE, OR SMALL BUSINESSES THAT CAN'T KEEP UP WITH LARGER C CORPORATIONS.
THOSE ARE JUST, UH, SOME FOOD FOR THOUGHT AS WE THINK ABOUT THIS MOVING FORWARD, ALL YIELD YIELD.
UM, I JUST WANTED TO MAKE A A POINT ABOUT SOME INTERESTING FINDINGS I SAW.
UM, AS YOU ALL KNOW, I'M VERY INTERESTED IN HOUSING.
AND SO IN FY 2024, YOU KNOW, WE HAVE TAX LEVIES, UM, AND PROP TWO AND A HALF, WHICH DOESN'T APPLY TO US AS MUCH, BUT LIKE IN GENERAL, MODERATES GROWTH, BUT NEW GROWTH IN GENERAL IS EXEMPT FROM THESE.
AND IN 2024, WE HAD $3 MILLION WORTH OF NEW GROWTH IN HOUSING IN 20 25, 3 $0.7 MILLION.
AND THEN LAST YEAR WAS OUR SMALLEST INCREASE IN HOUSING, UH, IN RECENT TIMES $2 MILLION.
AND THEN THIS YEAR IS EVEN SMALLER THAN THAT.
AND SO I THINK IT JUST GOES TO SHOW THAT SOME PART OF OUR FINANCIAL DIFFICULTY, LIKE THIS POSITION, UH, THIS RATE WOULD BE NORMAL TO OTHER YEARS IF WE HAD AS MUCH GROWTH, NEW GROWTH AS WE DID IN THE PAST.
AND EVEN THOUGH WE'RE SEEING A LOT OF SMALL DEVELOPMENTS BECAUSE OF MULTI-FAMILY HOUSING, WE'RE ACTUALLY NOT SEEING A LOT OF THE LARGER DEVELOPMENTS THAT BRING IN THE TAX REVENUE.
I THINK THAT, YOU KNOW, FOR EXAMPLE, GETTING HEALTH PEAK UNSTUCK WOULD SOLVE A HUGE PART OF THIS, YOU KNOW, UH, DIFFICULTY.
UM, AND YOU KNOW, OF COURSE THAT DOESN'T INCLUDE COMMERCIAL, WHICH ALSO BRINGS IN, UH, TAXED.
UM, I HAD A QUESTION ABOUT, UM, THE LEVY LIMIT.
UM, THERE WAS SOME MENTIONS ABOUT THAT.
UM, AND LAST YEAR YOU GUYS HAD ALSO PROJECTED OUT LIKE A, UH, BETTER, WORSE OR AS EXPECTED TAX INCREASE.
I WAS JUST WONDERING IF THIS MATCHED, YOU KNOW, YOUR EXPECTED TAX INCREASE FROM LAST YEAR OR IF IT WAS LOWER OR, UH, HIGHER, UH, THROUGH YOU MAYOR SIDIKI.
UM, THANK YOU FOR THOSE QUESTIONS.
SO, YOU KNOW, WE HAD SET, UH, TARGETS BOTH FOR OUR BUDGET GROWTH AS WELL AS OUR TAX LEVY GROWTH.
AND, UM, WE, UH, MET AND EXCEEDED BOTH OF THOSE.
SO OUR, OUR, I THINK OUR, OUR TARGET FOR BUDGET GROWTH WAS UNDER 5%, AND OUR BUDGET GREW AT 4.1%, AND OUR, UH, TAX LEVY INCREASED TARGET WAS 7%.
AND, AND WITH THIS, WE ARE PROJECTING THE, YOU KNOW, AN INCREASE OF 6.9% TO OUR TAX LEVY.
SO WE DID, YOU KNOW, THROUGH THAT BUDGET MODERATION, UH, BE ABLE, UH, DID MEET THOSE, UM, REQUIREMENTS.
UM, OUR, WE ARE NOT AT OUR TAX LEVY, UM, LIMIT.
DID YOU SAY OUR GOAL WAS 7% LAST YEAR? UH, WE, WE, 7% OR LESS AS AN INCREASE FOR OUR TAX LEVY, AND WE ARE THIS, WITH THIS VOTE, WE ARE INCREASING OUR TAX LEVY TO 700 TO 6.9%.
SO, UH, FROM, LIKE, I'M GLAD FROM THE CITY'S PERSPECTIVE THAT YOU GUYS MET YOUR GOAL, BUT WHAT I'M HEARING IS ACTUALLY WE SET A GOAL FOR 7% INCREASE, AND THAT WOULD BE PAIRED WITH A 5% BUDGET INCREASE.
BUT WITH THAT SAME 7% TAX INCREASE, WE ACTUALLY WERE ONLY ABLE TO GET TO A 4% BUDGET INCREASE.
SO IT WAS ACTUALLY, YOU KNOW, LIKE 20% WORSE THAN WE IN TERMS OF INCOMING REVENUE GROWTH.
SO, SO THE REASON WHY OUR BUDGET GROWTH WAS LESS, YOU'RE RIGHT, IS BECAUSE WE ALSO HAD, UM, REVENUE, UH, DECLINES THAT IMPACTED OUR ABILITY TO GROW ON THE BUDGET SIDE.
SO AS WE TRIED TO MAINTAIN OUR COMMITMENT TO A LESS THAN 7% LEVY INCREASE, WE HAD TO ACTUALLY USE THE LEVERAGE OF BUD BUDGET MODERATION IN ORDER TO MEET THAT, THAT GOAL.
UM, SO THAT WAS MY, UM, BIGGEST QUESTION AND I JUST WANTED TO, UM, THEN JUST LIKE SAY THAT, UM, YOU KNOW, I HAVE TALKED A LOT ABOUT, UM, YOU KNOW, WE COULD HAVE NEW GROWTH ESPECIALLY IN, UH, YOU KNOW, HOUSING, BUT ALSO THAT, YOU KNOW, IF WE JUST FILLED UP A LOT OF OUR EMPTY VACANT SPACE, UM, THAT WOULD BE A HUGE BOON.
AND I WENT FROM LIKE MAYBE THE CITY STAFF.
I SHOULD BE PUSHING HARDER ON THAT TO STILL THINKING THAT.
BUT ACTUALLY THE MORE THAT I TALK TO PEOPLE IN BIOTECH, THE MORE I'M WORRIED THAT IT WILL NOT COME BACK IN THAT A LOT OF THE NEW BIOTECH COMPANIES, YOU KNOW, WE'VE ALWAYS BEEN THE MOST INNOVATIVE PLACE, BUT BECAUSE WE'VE GONE FROM, YOU KNOW, NEEDING THE BEST RESEARCHERS TO NEEDING THE BEST ROBOTICS, UH, A LOT OF THE BEST COMPANIES IN BIOTECH ARE NOW STARTING IN CALIFORNIA AND NOT HERE.
AND SO I DO THINK THAT THERE IS SOME QUESTION
[00:45:01]
OF, UH, WILL THOSE COMPANIES, LIKE, YOU KNOW, I'M SURE BIOTECH WILL HAVE A COMEBACK, BUT WILL IT HAVE A COMEBACK HERE? AND I THINK PERHAPS LIKE A TOPIC TO EXPLORE, UM, IN ANOTHER COMMITTEE HEARING OR IN DIFFERENT DISCUSSIONS.ANY OTHER QUESTIONS? COMMENTS FROM THE BODY? GO AHEAD, COUNCILOR NOLAN? YES.
THIS WILL BE A VERY SHORT FOLLOWING UP ON COUNCILLOR FLAHERTY'S QUESTION ABOUT THE COMMERCIAL TAX RATE LEVY.
IT WAS JUST, WE'RE NOW AT 165.
THE MAX WE CAN DO IS 175 TO LET PEOPLE KNOW.
THAT'S BASICALLY THE SHIFTING ONTO THE COMMERCIAL, WHICH WE DO FAR GREATER THAN OTHER TOWNS.
WAS IT JUST 140%? UM, A COUPLE YEARS AGO? I, I BELIEVE THAT IT WAS, I KNOW WE SHIFTED 13% THIS YEAR AND WE SHIFTED 12% LAST YEAR.
SO I THINK, I THINK RIGHT ABOUT THERE, YEAH, COUNCILOR NOLAN JUST WANTED TO REMIND US THAT WE'VE ALREADY DONE THAT SHIFTING AND WE WILL THEN BE APPROACHING SOMETHING THAT WILL BE MORE CHALLENGING OR REQUIRE SOME DIFFERENT CHANGES, WHICH IS WHAT WE'RE TRYING TO AVOID OF PUTTING IT ALL ON RESIDENTIAL.
'CAUSE THAT'S OUR ONLY CHOICE.
LOWER THE BUDGET OR PUT IT MORE ON RESIDENTIAL.
THANK, I WANNA JUST, UH, SAY THANK YOU TO MY COLLEAGUES FOR THEIR QUESTIONS.
UH, I THINK MOSTLY, I THINK Y'ALL ASKED, UM, GREAT QUESTIONS.
I, I WANNA JUST SAY I APPRECIATED THERE'S A LOT MORE CONVERSATION THIS YEAR WITH OUR BUSINESSES.
UM, AND SO I WANNA THANK YOU ALL FOR DOING THAT.
I THINK AS THE CITY MANAGER SAID, I THINK WE'RE, YOU KNOW, MOVING THROUGH, UM, VARIOUS CONSTRAINTS AND WE'RE BALANCING A LOT OF THINGS.
I THINK, UM, THERE IS FLEXIBILITY AND I THINK, UM, FROM MANY FOLKS AND FROM MANY OF MY COLLEAGUES HERE, WE DO, UH, TALK ABOUT HOW WE CAN HELP THE MOST VULNERABLE.
AND I THINK, UM, FIGURING OUT HOW WE KEEP DOING THAT, UH, EVEN AS WE HAVE THESE CONSTRAINTS, I THINK FOR ME IS THE MOST IMPORTANT THING WE CAN DO, UM, MOVING FORWARD.
SO, UH, WITH THAT, THE TWO VOTES WE HAVE BEFORE US, I'LL READ THEM.
THE FIRST ONE IS, UM, THE ORDER ONE A, IT'S STATES AS FOLLOWS, THAT THE CITY COUNCIL CLASSIFIES PROPERTY WITHIN THE CITY OF CAMBRIDGE INTO FIVE PROPERTY CLASSES ALLOW ALLOWED FOR THE PURPOSE OF ALLOCATING THE PROPERTY TAX LEVY.
ADDITIONALLY, THAT THE CITY COUNCIL HEREBY ADOPTS A RESIDENTIAL FACTOR OF 0.5 6 4 9 8 8 FOR THE PURPOSE OF DISTRIBUTING THE PROPERTY TAX LEVY.
SO ON THAT WE'LL HAVE TO DO A ROLL CALL.
ABSENT COUNSELOR SABRINA WHEELER.
AND YOU HAVE EIGHT MEMBERS RECORDED IN THE AFFIRMATIVE AND ONE RECORDED IS ABSENT.
THE SECOND ORDER WE HAVE IS ORDER ONE B, THAT THE CITY COUNCIL APPROVES A 30% RESIDENTIAL EXEMPTION FOR OWNER OCCUPIED HOMES.
MY ONLY DISCUSSION IS TO REMIND PEOPLE WHAT THIS MEANS.
'CAUSE IT DOESN'T MEAN THAT WHATEVER YOUR TAX BILL IS, YOU'RE GETTING 30% OFF THE TAX BILL, WHICH COULD BE CONFUSING.
WHAT IT MEANS IS, IS THAT WE DO AN ANALYSIS AND OF THE AVERAGE RESIDENTIAL PROPERTY CITYWIDE IS X AMOUNT.
AND THEN WE TAKE 30% OF THAT AND APPLY IT TO EVERY SINGLE PROPERTY.
SO THAT MEANS THAT'S Y IF YOU'RE A CONDO, YOU A CONDO'S WORTH $600,000, YOU GET A $500,000, UM, RESIDENTIAL EXEMPTION.
SO YOU'RE ONLY PAYING TAX EFFECTIVELY ON A HUNDRED THOUSAND DOLLARS.
WHEREAS IF YOU HAVE A $5 MILLION HOME, YOU STILL ONLY GET THE $500,000 EXEMPTION.
SO YOU'RE PAYING TAXES ON 4.5 MILLION.
I THINK IT'S IMPORTANT FOR PEOPLE TO KNOW, IT, IT, IT DOES END UP HAVING SOME EQUITY IMPLICATIONS FOR PEOPLE WHO HAVE PROPERTY THAT'S LOWER.
THEY GET A MUCH, MUCH HIGHER, IT ENDS UP BEING MUCH MORE VALUABLE TO THEM AS A PERCENT.
SO I JUST WANTED TO MAKE SURE WE UNDERSTOOD THAT.
'CAUSE I THINK IT CAN BE VERY CONFUSING TO PEOPLE.
COUNCILOR NOLAN? I DON'T SEE ANYONE ELSE.
AND YOU HAVE NINE MEMBERS RECORDED IN THE AFFIRMATIVE.
AND DO ALL THOSE IN FAVOR SAY AYE.
THOSE AGAINST SAY NO, THE AYES HAVE IT.
THE CMA HAS BEEN POST, UH, PLACED ON FILE.
[00:50:01]
RECONSIDERATION FOR THE PURPOSES OF SUSPENSION, MAKING SURE THAT THESE VOTES ARE FINAL.SO WE'LL HAVE SUSPENSION FIRST AND THEN WE'LL DO THE YES.
THEN WE'LL DO THE, UH, ROLL CALL.
OH, I DIDN'T KNOW THAT SHE WAS REMOTE.
SO, SO LET'S TAKE ANOTHER POST.
WE'LL DO THE PLACE ON FILE AT THE VOICE VOTE.
WE'RE GONNA DO, UH, REVOTE FOR THE PLACE ON FILE AS COUNCILOR SIMMONS IS REMOTE.
AND YOU HAVE NINE MEMBERS RECORDED IN THE AFFIRMATIVE THAT'S PLACED ON FILE.
WE'LL GO TO THE SUSPENSION AND THEN WE'LL GO TO THE RECONSIDERATION AND THOSE WILL BE ROLL CALLS.
AND YOU HAVE NINE MEMBERS RECORDED IN THE AFFIRMATIVE.
SO WE'RE IN SUSPENSION, SO WE'LL MOVE TO THE RECONSIDERATION.
AND YOU HAVE NINE MEMBERS RECORDED IN THE NEGATIVE RECONSIDERATION FILLS.
WE ARE DONE WITH THE TAX RATE HEARING ON A MOTION BY COUNCILOR NOLAN TO ADJOURN.
AND YOU HAVE NINE MEMBERS RECORDED IN THE AFFIRMATIVE.
WE ADJOURNED FROM THE TAX WR READING.