That the City Manager is requested to double the annual funding (from the FY19 Adopted Budget) over the next 3 to 5 years to reach a combined total minimum of $30 million per year (plus any additional use of “Free Cash”) in the areas of Affordable housing construction, tree canopy, Preschool enrollment scholarships/space, Central Square revitalization and Cultural Arts District and the arts in general

City of Cambridge O-12 ORIGINAL ORDER IN CITY COUNCIL March 25, 2019 COUNCILLOR CARLONE COUNCILLOR ZONDERVAN MAYOR MCGOVERN COUNCILLOR SIDDIQUI WHEREAS: Cambridge has the noteworthy distinction of earning a AAA bond rating from the nation's three major credit rating agencies each year since 1999; and WHEREAS: Cambridge’s “Free Cash” fund amount totals $223.8 million and grew by $63.3 million in the last five years, even as we have continued to use it to offset property tax levy increases and fund the city’s debt stabilization fund to offset the debt increases due to the City’s School Building program; and WHEREAS: Cambridge has a unique ability to increase revenue capacity due to our exceptional commercial tax base; and WHEREAS: The FY19 operating budget is $636 million, and the certified net free at the beginning of FY19 of $223.8 million represents 35% of the operating budget; and WHEREAS: The City Council has adopted goals which include: • Increase access to affordable housing for all income groups • Ensure that Cambridge offers economic and educational opportunity to all • Deepen our commitment to sustainable use of energy and strengthen our capacity for resilience • Expand and deepen community engagement • Develop more proactive, inclusive, and transparent city planning process; and WHEREAS: An infusion of capital spending would increase progress on achieving these goals without significantly altering the city’s operating budget, and may be one of the options to consider in these areas; and WHEREAS: Five specific areas that could benefit from such a capital expenditure infusion are: affordable housing production and protection, reversing tree canopy decline, expanding pre-K and after-school education, revitalizing Central Square, and funding the arts; and WHEREAS: The Affordable Housing Trust Funds can be leveraged through direct capital spending to produce additional income-restricted affordable housing and preserve existing affordable housing in Cambridge; and

WHEREAS: The Urban Forest Master Plan Task Force has identified a need to plant tens of thousands of trees throughout the city over the next number of decades, at a cost of roughly $2,000 per tree, just to maintain our current canopy after an estimated decline of 18% over the past decade; and WHEREAS: Central Square needs significant improvements to the sidewalks, streetscape, municipal buildings, tree plantings and other improvements as identified by this council on numerous occasions and through several policy orders; and WHEREAS: A major constraint on pre-K and afterschool education programs in Cambridge is available physical space; and WHEREAS: As more and more artists are displaced from the city, we must work to keep the arts a prominent part of the city’s culture; now therefore be it ORDERED: That the City Manager be and hereby is requested to double the annual funding (from the FY19 Adopted Budget) over the next 3 to 5 years to reach a combined total minimum of $30 million per year (plus any additional use of “Free Cash”) in the following areas, while being mindful of the practices and policies that have allowed the City to achieve and maintain a Triple A Bond rating from the three major credit rating agencies: • Affordable housing construction • Tree canopy • Preschool enrollment scholarships/space • Central Square revitalization • Cultural Arts District and the arts in general; and be it further ORDERED: That the City Manager be and hereby is requested to report back to the City Council on this matter during the FY20 property classification hearing process and the FY21 Budget Development Process.