Wellesley Public Schools: Fiscal Year 2026 Budget
Other Postemployment Benefits (OPEB)
Wellesley Public School retirees are eligible for other postemployment health care and life insurance benefits. These benefits are referred to as OPEB, or other postemployment benefits, and are carried by the Town of Wellesley and not included in the school’s budget. As a municipal department, our retirees’ costs are managed by the Town. According to the Town’s Comprehensive Annual Financial Report for June 30, 2023, the following description was available on OPEB: “As of June 30, 2023, the Town has recognized a net other postemployment benefits (OPEB) liability in the amount of $34.7 million in accordance with the provisions of GASB Statement No.75. During 2023, the Town transferred $3.6 million of pre-funding contributions to the OPEB Trust Fund. The assets set aside in trust for future benefits amounted to $110.4 million at year end. As of June 30, 2023, the ratio of the Plan’s Fiduciary Net Position to the Total OPEB Liability (funded ratio) is 76.08% (determined under GASB Statement No. 74).”
The Town estimates 59.51% of the OPEB liability is attributed to the schools.
Capital Budget
As a municipal school district, Wellesley Public Schools does not have the authority to issue debt. Instead, we work collaboratively with the various Town Departments to prioritize the needs of the schools. For instance, all building maintenance and custodial services for the schools are under the umbrella of the Facilities Management Department (FMD) on the Town side. The Facilities Director works collaboratively with the Town’s Executive Director and the Superintendent to determine the prioritization of projects across all departments. Once determined, the Facilities Director and Superintendent collectively advocate for the appropriate funding level. The Select Board, working with the Town Finance Director, determines how the projects will be funded. The Town’s Capital Budget is divided into four sections: cash capital, other funding sources, debt capital inside levy and debt capital exclusions. Other funding sources include donations, state funds for highways and community preservation committee (CPC) funds. “Inside the Levy” Inside the levy debt is defined as items financed with cash and projects that are borrowed but paid for inside the Town’s levy. Debt Limit Total debt is limited by Massachusetts General Law (MGL) to 5% of the equalized valuation. Debt Capital Exclusions Proposition 2 ½ allows a community to raise funds for certain purposes above the amount of the levy or levy ceiling. A community can assess taxes more than its levy limit or levy ceiling for the payment of specified debt service costs. An exclusion for the purpose of raising funds for debt service costs is referred to as a debt exclusion. Debt exclusions require voter approval. Cash capital is the only portion of the capital budget that is under the control of the schools. More detailed information on the school’s cash capital budget is found in this section.
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