Boston City officials reported a robust financial outlook during the recent government meeting on March 20, 2025, highlighting a significant budget surplus and healthy cash reserves. As of June 30, 2024, the city boasts a cash and investment balance exceeding $3.1 billion, bolstered by strong investment income amid a high interest rate environment.

The city’s capital asset balance stands at $3.33 billion, with capital project expenditures reaching $575 million—an increase from the previous year. However, the city also faces challenges, including approximately $2 billion in bonds payable and a rising legal liability of $80 million due to updates on outstanding cases.

A notable highlight is the city’s net pension liability, which decreased to $1.5 billion thanks to strong investment performance from the retirement system. Conversely, the Other Post-Employment Benefits (OPEB) liability increased by $250 million, now totaling $2.6 billion, attributed to changes in assumptions and rising costs.

The general fund remains strong, with an unassigned fund balance of $1.4 billion, representing 30.5% of general fund expenditures—well above the city’s reserve policy. This healthy fund balance is crucial for managing unexpected revenue shortfalls or expenditure overruns.

The meeting also revealed a budgetary surplus of $88 million for fiscal year 2024, driven by a revenue surplus of $177 million, primarily from exceptional performance in investment income and excise tax revenue. However, expenditures in public safety and court execution exceeded budget by $89 million, impacting the overall financial picture.

As Boston navigates these financial waters, officials emphasized the importance of maintaining transparency and accountability, ensuring that the city remains prepared for future fiscal challenges. The meeting concluded with an invitation for questions, signaling ongoing engagement with city council members and the public on these critical financial matters.