Boston’s $3.6-billion five-year capital plan includes $10 million for phase one of the Mary Ellen McCormack housing redevelopment in South Boston/Image courtesy of CBT Architects and The Architectural Team

Boston’s $3.6 billion capital plan for the next five years might need to be adjusted if economic conditions deteriorate, a fiscal watchdog agency said.

The independent Boston Municipal Research Bureau said the current anticipated levels of spending on new municipal facilities, public housing and infrastructure appears to be responsible. The spending plan contributes to 407 projects from fiscal 2023 through 2027.

“The ongoing impacts of COVID-19 and economic uncertainty warrant caution. By keeping debt service at a level below 7 percent of general fund expenditures, the city will have some flexibility in case economic conditions change,” the research bureau wrote in a report released Wednesday, citing potential increases in building supply costs.

Nearly 73 percent of the projects will be funded through general obligation bonds. The city’s debt service, measured as a percentage of general fund expenditures, is expected to increase from 4.8 percent in fiscal 2021 to 7 percent in fiscal 2027.

Over 70 percent of the spending will improve or maintain existing municipal assets including roads, sidewalks, bike lanes, schools, public housing, libraries and public safety facilities. Road, bridges and sidewalk projects comprise 33 percent of plan spending. Housing spending comprises 3.7 percent, a 95 percent increase over the previous plan to $136 million.

The Mayor’s Office of Housing is spending $62 million on redevelopment of the Mildred C. Hailey apartments in Jamaica Plain, and $10 million on the Mary Ellen McCormack housing redevelopment in South Boston, among other projects.