City Manager Robert W. Healy today submitted the City of Cambridge’s $380.2 million Operating Budget for Fiscal Year 2006. While the proposed budget represents a 4.2% increase ($15.2 million) from the previous year, it actually only reflects a 3.7% increase when the Massachusetts Water Resource Authority and the state’s Cherry Sheet assessments are excluded.

The modest budget increase can be attributed to a 5% cost of salary increase (4.25% plus a .75% carryover from FY05); a 9.7% increase in health insurance costs; a 2.5% increase in pension costs; a debt services increase of 17.4%; and the reduction of 13 full-time positions. The aforementioned reductions were carefully considered and it was determined that their elimination would not compromise delivery of important city services. These positions do not reflect any layoffs, but rather a conscious decision to not replace certain vacancies that occurred.

Click here to link onto FY06 Submitted Budget