By Joseph A. Curtatone

(The opinions and views expressed in the commentaries of The Somerville Times belong solely to the authors of those commentaries and do not reflect the views or opinions of The Somerville Times, its staff or publishers)

As I mentioned in my State of the city address earlier this month, like most cities, we must address water, sewer and building infrastructure that was built for the 20th century—and is aging rapidly. We have a 143-year-old high school that has not been updated in almost three decades and a public safety building that began as an MBTA car barn almost a century ago. We have a sewer system that’s mostly just as old and an estimated sidewalk and pavement backlog that could cost upwards of $83 million. We have planned streetscape projects in Davis Square and Winter Hill that are needed for both public safety and for our economic health. In short: We have immediate and long-term capital projects that must be planned for. But if we are going to pay for these critical infrastructure investments in the least burdensome way, we must adhere to our principles of strategic planning and prudent fiscal management.

We see this approach in our tight budgetary controls, data-driven management and efficient delivery of services, which have earned us the enviable moniker of “The Best Run City in Massachusetts.” Prior to 2006, we had no reserves for capital planning projects. That’s essentially the equivalent of having no savings for unexpected repairs—or planned ones. We also had no financial policies for managing debt. But we turned this around. We established new stabilization funds for aging infrastructure and repairs. These are funded with one-time building permit fees such as the $2 million we received last week from Partners HealthCare. We now have stabilization fund balances that total more than $21 million, and we expect to add significantly to those savings over the next 10 years as strategic development in Somerville continues. The hard decisions of the past are paying off, with our 10-year operating forecast showing our revenues outpacing our expenditures.

We also see this prudent approach in our community-driven development. Last year we had the most new growth in a decade, reflecting our expanding commercial tax base that allows continued investment, shifting the tax burden away from residents and spreading it out more fairly among small businesses and larger enterprises. Those new commercial taxes help pay for the services residents expect and deserve: quality education, effective public safety and sound infrastructure. And our 10-year growth projections are promising.

In earning the highest bond ratings in the city’s history, both rating agencies specifically cited our “conservative budgeting approach” and our “ambitious economic development plan” in bestowing those ratings. Those phenomenal ratings save you money. Investors are willing to loan us money at almost no cost because of our reputation for smart fiscal management, which make it that much more affordable for us to invest in the infrastructure we need.

And we need that infrastructure. The 2014-2018 Capital Investment Plan identifies $183 million in projects needed just in that five-year period, including upgrades to city buildings, libraries, parks and aging infrastructure, while our long-term capital needs are even greater. In particular our infrastructure liability is enormous. My administration will be working with the Board of Aldermen and you, the public, to prioritize it all—and decide how to pay for these critical needs.

But to be clear, we will not over-leverage the city. We have been and remain committed to keeping our debt service between 5 and 7 percent of the operating budget. Some of the ways we will keep our debt service low while still addressing these needs, will include leveraging Community Preservation Act revenues and using the stabilization funds I mentioned above.

But CPA revenues and stabilization funds will not be enough, so we have to remain diligent in planning for and recruiting commercial development to strengthen the tax base. We can consider other financing tools, such as the District Improvement Financing (DIF) and I-Cubed programs that have been successful in Assembly Square. We must keep up our successful track record in getting state and federal grants, including $80 million for transportation since 2007—which excludes the recent $2.3 billion for the Green Line Extension—and $2 million in public funds for parks since 2011 (excluding additional millions in private park funding including at Assembly Row). We should research other state programs like Business Improvement Districts, local options like sales of assets and public-private partnerships. And for the projects the community feels we cannot and should not put off for the next generation, the option to put financing up for a referendum through a petition for a debt exclusion could be considered.

As we have this community discussion to prioritize our infrastructure needs, we will stay true to those principles of investing only after careful research and long-range planning. But whatever we do or do not do, these investments are not just financial numbers. We must also consider the social costs. Whether our children go to school in a sound building, whether our police officers and firefighters have the resources to keep us safe, and whether our below-ground infrastructure does not threaten our property and our homes will depend on the decisions we make together. Our infrastructure is the literal foundation of our community, and we will make the investments to keep that foundation strong.

We must not forget that our successes have not happened by accident. Strategic planning has been at the core of everything we do. We invest with patience and mindfulness. We do not rely on short-term gimmicks for revenues or investments that become a burden later, kicking the can down the road and leaving structural deficiencies in our finances. Every investment we make is carefully born of a fastidious process that starts where it always does—with our core shared beliefs and values that are codified in SomerVision. As we move forward, I look forward to continuing to work with the community to set the path that helps us reach those goals.