Wellesley Public Schools: Fiscal Year 2026 Budget
serves as a valuable management tool for evaluating the fiscal performance of a community.
Audit Committee A committee appointed by the select board with specific responsibility to review a community's independent audit of financial statements and address all issues relating to it, as well as those outlined in the accompanying management letter. Available Funds Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other one-time costs. Examples of available funds include free cash, stabilization funds, overlay surplus, water surplus, enterprise net assets, and unrestricted (formerly retained earnings). Balance Sheet A statement that discloses the assets, liabilities, reserves, and equities of a fund or governmental unit at a specified date. Bond A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year. Bond Authorization Action of a town meeting or a city council authorizing the executive branch to raise money through the sale of bonds in a specific amount and for a specific purpose. Once authorized, issuance is by the treasurer upon the signature of the mayor, or selectmen. In Wellesley, the Select Board authorizes the issuance of all bonds. Bond Rating A credit rating assigned to a municipality to help investors assess the future ability, legal obligation, and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps prospective investors determine the level of risk associated with a given fixed-income investment. Rating agencies such as Moody's and Standard and Poor’s use rating systems which designate a letter or a combination of letters and numerals where AAA is the highest rating and C1 is a very low rating. Wellesley maintains a AAA rating. Budget A plan for allocating resources to support services, purposes, and functions over a specified period. Capital Budget An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements. Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy, rates, and identify those items that were not recommended.
Capital Improvement Program
A blueprint, for planning a community's capital expenditures that comprises an annual capital budget and a five-year capital program. It coordinates community planning, fiscal capacity, and physical development. While all of the community’s needs should be identified in the program, there is a set of criteria that prioritizes the expenditures.
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