All Board Meeting October 6, 2025

October 6, 2025
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Meeting Minutes: All Board Meeting

Governing Body: Wellesley Select Board Meeting Type: All Board Meeting Meeting Date: October 06, 2025 Attendees: Tom Ulfelder, Colette Aufranc, Beth Sullivan Woods, Marjorie Freiman (Select Board Members); Meghan Jop (Executive Director); Corey Testa (Assistant Executive Director); Rachel DeRoach (Chief Financial Officer); Dolores Hamilton (HR); David Cornwitz (Chair, Retirement Board); Mike O'Neill (Chair, Wellesley Housing Development Corp.); Dave Cohen (DPW Director); Michael McManus (Board of Public Works Member); Jeff Wexler; Jay McHale (Chair, Natural Resources Committee); Arthur Garrity (Chair, Board of Assessors); Ellen Moeller (Director of Assessing); Anne Howley (Vice Chair, Library Trustees); Maria Ashbrook (Library Trustee); Inouye Banerjee (Library Trustee); Eric Arbini (Planning Director); Casey Cato (Town Clerk); Paul Kramer (Chair, Rec Department); Nikki (School Committee Chair); Cindy Marr (School Administration).

Executive Summary: The Wellesley Select Board convened an All Board Meeting on October 6, 2025, to discuss anticipated cost drivers for the FY27 budget. Key discussions centered on union negotiations, health insurance cost increases (projected at 14%), and the impact of the new class and compensation study on personnel costs. Significant updates were provided on the town's well-funded pension and OPEB liabilities, with projected savings. Various departments presented their specific budget challenges, including technology cost increases, capital project funding needs, and the substantial financial impact of PFAS treatment in the Water Enterprise Fund. The Select Board also announced its decision to present town and school budgets separately for greater transparency and detailed review.

1. Call to Order and Attendees

  • The meeting was called to order by Marjorie Freiman.
  • Select Board members in attendance: Tom Ulfelder, Colette Aufranc, Beth Sullivan Woods, and Marjorie Freiman. Kenneth Largess was absent.
  • The meeting was live-streamed at wellesleymedia.org and broadcast on Verizon Channel 40 and Comcast Channel 8.
  • The purpose of the meeting was to discuss major budget drivers for the upcoming fiscal year, with an emphasis on a tight budget year with no new strategic initiatives or FTEs expected.
  • The FY27 budget submission timeline and school budget meeting calendar are available on the 2026 budget book webpage.

2. Discussion on Anticipated Cost Drivers

2.1. Executive Director's Report (Meghan Jop)

  • Union Negotiations: All nine town unions and five school unions will be bargaining. The goal is to secure collective bargaining agreements before the Annual Town Meeting, but some may extend to the Fall Special Town Meeting. All town collective bargaining appropriations require Town Meeting approval.
  • Townwide Financial Plan: Projections for out-years anticipate a 3% growth in both town and school budgets.
  • Class and Compensation Study Modification:
    • A number of exempt employees became non-exempt, placing them on a 12-step panel with 2.75% differential between steps.
    • This will lead to individualized guidelines for small departments, as a blanket 3% increase will not suffice.
    • Example: Building Department inspectors are now non-exempt and on steps, increasing personnel costs.
  • Health Insurance:
    • Anticipated increase of up to 14% for general health insurance, equating to a $3 million cost.
    • Medicare rates for retirees are projected to increase by 11-12%, potentially reduced to 9.9% using West Suburban reserves.
    • This 14% increase is a major driver, contributing to a projected $1.9 million deficit if all other costs remain at 3%.
  • Cash Capital:
    • The capital financing plan aims for the low end of the 6.2% to 6.8% revenue range.
    • Cash capital will be cut by just under $1 million (over $900,000) to meet the 6.2% guideline.
    • Recent borrowings for the Warren HVAC project and $3.6 million for Weston Road will increase the inside-the-levy payment.
  • Economic Uncertainty:
    • FY26 funding is secure, but FY27 faces uncertainty regarding federal cuts, particularly impacting schools.
    • Potential loss of state government funding is also a concern, with an update expected from the legislative delegation.
  • Interest Earnings:
    • Significant interest earnings from past borrowings (e.g., elementary schools) are winding down as interest rates decrease and cash reserves are expended.
  • Personnel Costs (COLA & Merit Pay):
    • Goal is to maintain all personnel positions.
    • Recommendation for a 2% Cost of Living Adjustment (COLA) for non-union employees, deemed affordable.
    • Merit pay plan (2.5-3% additional pay) is hoped to be maintained for exempt employees.
    • Employee benefits cost for a benefits-eligible position has increased from approximately $20,000 to $28,000.
    • TA insurance provision has increased from $7,500 to approximately $12,000.

2.2. Human Resources Update (Dolores Hamilton)

  • Collecting data from other communities on union and non-union COLA projections, seeing a range from 1.5% to 3%.
  • The HR Board will vote on COLA projections on Thursday night.
  • Rewriting pay policies to align with the new MGT system.

2.3. Retirement Board Update (David Cornwitz)

  • Pension Funding:
    • Unfunded liabilities decreased from $50 million (1-1-23) to $22 million (1-1-25).
    • Funded status improved from 84% to 93%.
    • If state assumptions were used, the system would be 105% funded, making it the "best funded retirement system in the Commonwealth."
    • Appropriation level will be maintained at FY26 amounts, resulting in savings of $350,000 in FY27 and $700,000 in FY28.
    • Anticipates full funding by FY30 or earlier, with further reductions in pension appropriations of $0.5 million to $1.5 million annually thereafter.
    • Goal is to reach 110% funded status to withstand market fluctuations.
    • $30 million (10% of portfolio) moved to fixed income to reduce investment risk.
    • COLA base for retirees increased from $21,000, fully funded without increasing appropriations due to conservative interest rate assumptions (6%).
  • OPEB Funding:
    • Unfunded liability decreased from $39 million (1-1-23) to $27 million (1-1-25).
    • Funded position improved from 73% to 83%.
    • If state assumptions were used, OPEB would be 93% funded, significantly better than most municipalities (20-40%).
    • Funding appropriation for OPEB, previously reduced by $100,000 annually to a cap of $3 million, will be further reduced by an additional $250,000 annually starting FY28 until a floor of $2 million is reached.
    • Anticipates an incremental $1 million annual savings once full funding is achieved and assets can be drawn from the trust.
    • Proposed Legislation: A bill in the House Healthcare Finance Committee, sponsored by Alice Pysh, aims to change how healthcare is delivered for Medicare-eligible retirees by utilizing the individual Medicare marketplace.
      • This could result in an immediate $5 million in OPEB savings for Wellesley, making the plan 120% funded.
      • A $30+ million decrease in liability.
      • Retirees could save an average of $4,000 per year due to increased choice and competitive pricing.

2.4. Wellesley Housing Development Corp. / Affordable Housing Trust (Mike O'Neill)

  • The Wellesley Housing Development Corp. is transitioning to the Affordable Housing Trust (AHT).
  • Work Plan Development: Will develop a work plan for the AHT through fall and winter.
  • Available Funds: Approximately $1 million available from CPC funds once the AHT is established.
  • Partnerships:
    • Partnering with the Housing Authority on a study for comprehensive development in the Barton Road and Morton Circle area, potentially requiring additional funds.
    • Revisiting 156 Weston Road for renovation and occupancy.
  • Small Grant Program: Considering a small grant program similar to Needham's for disabled and elderly residents for home repairs, acknowledging potential labor intensity.

2.5. Department of Public Works (Dave Cohen)

  • Personal Services: Last year of collective bargaining; no staff increases planned, but job description review may lead to reclassifications.
  • Expense Side:
    • Trash contract: 6% increase in per-ton cost, approximately $60,000 in FY27.
    • Materials and services: Up to $50,000 increase across all budgets.
    • Baylor Replacement Fund: Placeholder increase of $50,000 to replenish the fund after replacement.
  • Cash Capital:
    • Sidewalk improvements: $200,000 increase for mobility and access.
  • Borrowing:
    • Large road reconstruction projects: Lower half of Great Plain Ave and Wellesley Square improvements.
    • High school turf replacement: Project due for replacement after 10 years.
  • Water Enterprise Fund:
    • Operating budget increases: 3% increase from MWRA for water ($200,000) and sewer ($110,000).
    • PFAS Treatment: Significant costs for DEP and EPA compliance.
      • $10 million for permanent treatment at Morse's Pond Treatment Plant in FY27.
      • $1.7 million each for Wellesley Ave and Rosemary Longfellow for interim design and pilot testing.
      • $800,000 for permanent treatment design at Wellesley Ave.
      • $8 million in FY28 and FY29 for permanent treatment at Wellesley Ave and Longfellow.
    • Water Rates: Estimated 20% increase in water rates starting next year to cover PFAS costs.
    • PFAS Settlements: Approximately $1 million received from PFAS settlements ($300,000 already received, $600,000-$700,000 expected soon) to offset future costs.
  • Retirements: Mike Quinn (Park and Highway Superintendent) and Cricket Vlass (Park and Tree Superintendent) are retiring this year.

2.6. Natural Resources Committee (Jay McHale)

  • Most projects are capital-related, utilizing CPC funding where possible.
  • Upcoming Projects:
    • Morse's Pond rebuild.
    • Working with Select Board on Clock Tower and War Memorial, preferring CPC funds over cash capital.
    • Improvements to Schofield and Ouellette parks (not expected to be significant).
    • White's Pond analysis underway, report expected by year-end; not anticipated to be a capital draw.

2.7. Board of Assessors (Arthur Garrity)

  • Department has not increased personnel in at least 30 years despite increased workload (residential/commercial properties, motor vehicle excise, building permits).
  • Computer Assisted Mass Appraisal System (CAMA):
    • Seeking a capital budget item at the November Special Town Meeting for replacement and upgrade of the 30-year-old CAMA system, as recommended by the Department of Revenue.
  • New Hire: Anticipate hiring a temporary part-time inspector to collect data for commercial and condominium property inspections (approximately 300 commercial properties and 650 condominium units lack inspection data in the database).
  • Fee Appraisals: Anticipate increasing the budget line item for fee appraisals due to fluctuating commercial property valuations and taxpayer disagreements, requiring third-party expert appraisers.

2.8. Library Trustees (Anne Howley)

  • Welcomed new trustees Maria Ashbrook and Inouye Banerjee.
  • Operating and Personal Services:
    • Union negotiations are a major driver.
    • Consolidating two part-time library assistant positions into one full-time position with no change in hours or salary.
  • Expenses:
    • Potential 3% to 5% increase in technological services (licensing, contracts, service providers, cybersecurity).

2.9. Planning Department (Eric Arbini)

  • No staff increases.
  • Master Plan: Seeking an increase in capital budget for the Master Plan from $300,000 to $400,000.
    • The plan will cover town-wide housing, transportation, infrastructure, and open space.
    • Expected to be an 18-24 month process, kicking off once funding is secured.
    • The last Master Plan was approved in 2019 (10-year plan).

2.10. School Committee (Nikki, Chair)

  • Budget Related Initiative: Developing a longitudinal analysis of major budget drivers over the last 10 years.
    • Recent focus on transportation.
    • Upcoming focus on enrollment and personnel (tomorrow night).
    • Future focus on mandated services, general fund expenditures, strategic initiatives, and critical needs.
    • This analysis aims to explain school cost increases despite decreasing enrollment, a trend seen statewide and nationally.
  • Capital Projects:
    • Honeywell Track and Field Team Rooms: Funding request for construction will be brought to the November Special Town Meeting. This project addresses space constraints from the MSBA high school project.
    • Air Conditioning Feasibility Study: Underway, with pilots wrapping up at Bates, Fisk, Schofield, and WMS. Cost estimation phase next. Progress report to School Committee in late fall/early winter. Anticipate design funding request at Fall 2026 Special Town Meeting.
    • Preschool Space: The current six-room preschool (PAUSE) is outgrown, operating with three satellite classrooms. The School Committee will discuss additional space needs later this year.
  • Operating Budget (FY27):
    • All five WEA collective bargaining units will be negotiating, complicating budget development.
    • Anticipating a 6.2% increase in the expense portion due to:
      • Loss of one-time FY26 circuit breaker payment (over $250,000).
      • Out-of-district annual inflation rate increase (over 3%), estimated cost impact of $214,000.
      • Eastern Bus contract annual increase of $121,000.
      • Van transport contract bid expected to spike 10% in the first year (approx. $200,000).
      • Modest increase in the annual lease for the LAUNCH program at Regis College.

2.11. Climate Action Committee (Lisa Olney)

  • Mission: Reduce town-wide greenhouse gas emissions. Achieved a 42% reduction since 2007.
  • Staff Role: Sustainability staff identify and lead efforts to secure grants and pursue projects that lower operating costs.
  • Job Reclassifications: Exploring potential job reclassifications for sustainability staff, which may affect the FY27 operating budget request (only potential operating budget increase).
  • Recent Work & Impact:
    • Secured over $800,000 in state grants for initiatives like Warren Building electrification, LED lighting retrofits, and hybrid police cruisers.
    • Spearheaded policies: Municipal Sustainable Building Guidelines, Zero Emissions Vehicle First Fleet Policy (16 municipal EVs reducing gas/maintenance).
    • Helped pass "Skip the Stuff" bylaw to reduce waste and RDF costs.
    • Achieved Climate Leader Community certification, making Wellesley eligible for up to $1.15 million in state grant funding over two years.
    • Currently managing a grant application for up to $1 million for Hardy and Honeywell solar voltaic projects, seeking 30% federal elective pay funds.
    • Staff expertise allows them to perform functions typically requiring consultants (e.g., emissions inventory, municipal decarbonization roadmap).

2.12. Town Clerk (Casey Cato)

  • Primary Budget Driver: Elections, specifically the number of elections.
    • FY26: One election (annual town election).
    • FY27: Three elections (annual town election, state primary, state election).
    • Costs include staffing (over 100 people for 8 precincts) and vote-by-mail.
    • State reimbursements are often provided after the fact, requiring upfront budgeting.
  • Electronic Voting Devices: Costs associated with on-site vendor support.

2.13. Rec Department (Paul Kramer)

  • No anticipated new hires or reclassifications.
  • Budget expected to align with general guidelines.

2.14. Select Board Department Updates (Meghan Jop)

  • IT:
    • Funds subscriptions impacting multiple departments (e.g., Munis), with 5-10% annual increases.
    • Anticipate an 8% expense guideline for IT.
    • Monitoring costs for archival support for website and social media (split with school department).
    • Working to meet Department of Justice ADA compliance requirements for websites by April 2027, involving new technologies to scan web pages for corrections.
  • Facilities:
    • Annual utility costs (National Grid, gas supply) are a constant focus.
    • Evaluating impacts and negotiating contracts for gas delivery.
    • Monitoring increasing costs of materials and equipment (e.g., cleaning supplies).

3. Select Board Initiatives

3.1. Separate School and Town Budgets (Marjorie Freiman)

  • The Select Board has decided to present town and school budgets separately to allow for a deeper dive into components and rationales, addressing public interest in school cost increases despite declining enrollment.
  • This is not to undermine support for schools but to provide greater transparency.
  • Mechanics of Separation (Meghan Jop):
    • Town budgets will account for costs attributable to schools (e.g., facilities, health insurance, shared services like legal/risk management, DPW).
    • Instructions will be provided to departments for breaking out school-related costs.
    • The budget book will separate the general fund provision for schools.
    • Anticipate four motions at Town Meeting:
      • Motion 1: Pilot payment from MLP.
      • Motion 2: All Town Departments.
      • Motion 3: School.
      • Motion 4: Appropriate free cash to balance the budget.
    • Any amendments would require modifications to balance the overall budget.

3.2. Townwide Capital Planning Committee (Colette Aufranc)

  • Current Process Review:
    • Existing capital process brings forward a five-year capital plan within the town-wide financial plan.
    • Internal meetings and negotiations facilitated by the CFO.
    • Select Board is tasked by town bylaws with coordinating, presenting, recommending financing, and reporting on the long-range capital budget program.
    • Unplanned capital projects undermine the process and disadvantage boards that follow the process.
    • Estimated $400+ million in capital projects over the next 10 years, with rising construction costs and tightening debt affordability.
    • Lack of a structured, transparent process risks isolated project consideration, driving up costs and pressuring taxpayers.
    • Government Financial Officers Association (GFOA) recommends a prudent multi-year capital plan based on strategic goals.
    • Wellesley lacks a public town-wide planning committee, a common and recommended best practice.
  • Proposed Townwide Capital Planning Committee:
    • Draft process largely developed by professional staff with capital planning experience.
    • Reviewed with Town Council and Executive Director for legal and operational implications.
    • High-Level Overview:
      • Public body with agendas, minutes, and recordings.
      • Review and evaluate proposed capital projects exceeding $1 million.
      • Develop and update a 10-year town-wide capital plan.
      • Present to Advisory and provide recommendations to the Select Board.
      • Evaluation Criteria: Benefit to community, alignment with town strategic goals, financial/logistic viability, environmental sustainability, regulatory compliance, long-term operational costs, board/staff capacity.
    • Committee Membership:
      • Representatives from Select Board, School Committee, Board of Public Works, Executive Director.
      • Citizen representative with construction or finance background.
      • Temporary non-voting members for boards with specific capital projects.
    • Next Steps: Revise proposal based on Select Board feedback, circulate to department heads/boards for comment, work with Town Council on bylaw amendments, review existing financial policies.

4. Upcoming Development Project Updates (Meghan Jop)

  • MassBay Community College (45 acres):
    • DECAM will issue an RFP for disposal under the Affordable Homes Act (necessitates as-of-right housing development at minimum 4 units/acre).
    • Minimum of 180 housing units to be constructed.
    • Select Board is exploring a funding mechanism for a visioning study (likely early December) to influence the RFP and potentially a development agreement.
    • Contingent on MassBay's parking study (expected by November 1st).
    • Next public community meeting: Wednesday, 6 p.m.
    • Website available for updates.
  • 49 Walnut Street:
    • Under PSI review with the Planning Board.
    • 28-unit residential development with six affordable units.
  • 888 Worcester Street (Binford):
    • Being sold to Jumbo Capital.
    • Town will relocate Building and Facilities Management after lease ends in two years.
    • Jumbo Capital proposes assisted independent memory care housing, requiring zoning relief.
    • Aiming for Annual Town Meeting, but may extend to Special Town Meeting.
  • Taylor Block (40 Grove Street):
    • Jumbo Capital has closed on the Taylor Block and 40 Grove Street.
    • Anticipate development in about five years; long planning process.
  • 592 Washington Street (Old Waterman Funeral Home):
    • Developing under MBTA communities.
    • 15-19 units (19 with special permit), all housing.
    • Believed to be maintaining the front building and adding to the back to preserve streetscape.
  • Lower Falls (Hayden's Management):
    • 11 acres for sale, encompassing the office building side of the street and some residential property.
    • Down to two bidders; significant housing development expected.
    • Planning staff expressed desire for mixed-use development.
  • Rotunda Building (Anderson Jewelers):
    • Recently put on the market; significant interest expected.

5. Communications Update (Corey Testa)

  • Town-wide Letter & Communication Survey:
    • A town-wide mailing will include a survey to gather resident and business owner feedback on information access, timing, and preferred modes of communication.
  • Social Media Metrics (September 8th - October 5th):
    • Facebook: 23,000 views (78% increase), 8,000 reach (63% increase). Increased visibility driven by non-followers, converting viewers to followers. Majority users: women, 45-54, local residents.
    • Instagram: 20,000 views (80% increase), 2,000 individual users reached (20% increase). Majority views from followers.
    • Overall increased engagement, possibly due to post-summer activity or MassBay news.
  • "The W" Newsletter:
    • New monthly newsletter from the Select Board office.
    • 4,000 subscribers, 73% open rate, growing at 2% per month.
    • Overwhelmingly positive feedback.
    • Encourages board chairs/members to send content to Stephanie Hawkinson.
  • Coordinated Messaging: Highlighted successful coordination between School Department, Police, DPW, and Select Board office for Weston Road reconstruction messaging, resulting in positive resident feedback.

6. Meeting Wrap-up

  • Town Meeting Dates:
    • Special Town Meeting: November 3rd and 4th (confident in two days).
    • Annual Town Meeting: March 30, 31, April 6, 7, 13, 14 (potential for April 27, 28).
  • Financing Considerations:
    • Budget conversation continues tomorrow.
    • Select Board will vote on guidelines on October 16th.
    • Waiting for state updates from legislators tomorrow night and a budget update later in October.
    • Acknowledged challenges: construction costs, volatile markets, state uncertainty, upcoming union negotiations.
    • Capital is at the low end.
    • Continuing with the 3% guideline from the Townwide Financial Plan.
  • The meeting concluded with thanks to all attendees for their participation and insights.

Last updated: Dec 7, 2025

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