A communication transmitted from Louis A. DePasquale, City Manager, relative to the City of Cambridge retaining its AAA rating from the nation's three major credit rating agencies

0% 10% 20% 30% 40% 50% 60% 70% 2017 2018 2019 2020 2021 Fund Balance as a % of Revenues Cash Balance as a % of Revenues

0% 50% 100% 150% 200% 250% 300% 350% 2014 2015 2016 2017 2018 2019 2020 Debt Adj. NPL Adj. NOL*

2020 $$$ (000) % of Operating Revenues Discount Rate Operating Revenue 698,158 n/a n/a Reported Unfunded Pension Liability 183,560 26% 7.25% Moody's Adjusted Net Pension Liability 912,206 131% 3.22% Reported Net OPEB Liability 880,394 126% 3.49% Moody's Adjusted Net OPEB Liability 903,985 129% 3.37% Net Direct Debt 482,543 69% n/a Debt & unfunded retirement benefits (Moody's adjusted) 2,298,733 329.26% Pension Contribution 34,956 5.01% n/a OPEB Contribution 22,240 3.19% n/a Debt Service 74,276 10.64% n/a Total Fixed Costs 131,471 18.83% n/a Tread Water Gap (7,435) -1.06% n/a Moody's Adjusted Fixed Costs 124,036 17.77% n/a

Cambridge (City of) MA Scorecard Factors and Subfactors Measure Score Economy/Tax Base (30%) [1] Tax Base Size: Full Value (in 000s) $63,505,736 Aaa Full Value Per Capita $544,497 Aaa Median Family Income (% of US Median) 174.5% Aaa Notching Adjustments:[2] Institutional Presence Up Finances (30%) Fund Balance as a % of Revenues 46.2% Aaa 5-Year Dollar Change in Fund Balance as % of Revenues 5.7% A Cash Balance as a % of Revenues 50.4% Aaa 5-Year Dollar Change in Cash Balance as % of Revenues 5.3% A Management (20%) Institutional Framework Aa Aa Operating History: 5-Year Average of Operating Revenues / Operating Expenditures (x) 1.0x A Notching Adjustments:[2] Unusually Strong or Weak Budgetary Management and Planning Up Debt and Pensions (20%) Net Direct Debt / Full Value (%) 0.8% Aa Net Direct Debt / Operating Revenues (x) 0.7x A 2-Year Average of Moody's Adjusted Net Pension Liability / Full Value (%) 1.3% Aa 2-Year Average of Moody's Adjusted Net Pension Liability / Operating Revenues (x) 1.1x A Scorecard-Indicated Outcome Aaa Assigned Rating Aaa