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The Winchester Select Board revisited a steep health insurance cost increase that threatens to deepen the town’s budget deficit while unanimously approving $61 million in bonds and notes at its March 10 meeting.
“The town has received a proposed increase of 18.92% for [fiscal year 2026] on our health insurance for active employees,” Town Manager Beth Rudolph stated in her report.
According to documents provided to the board, the Massachusetts Interlocal Insurance Association (MIIA) initially advised Winchester officials to plan for a 10% increase. However, the actual proposal came in nearly twice that amount, blindsiding town officials.
A town health insurance executive summary showed the increase would add approximately $2,083,654 to town expenses in premium costs alone. The document outlined possible mitigation strategies, including plan changes that could reduce the impact to about $1.8 million through increased deductibles and co-pays.
Health insurance expenditures have already jumped nearly 8% from fiscal year 2024 to fiscal year 2025, growing from $12.9 million to $13.9 million. At the halfway point of the current fiscal year, Winchester has already spent $6.6 million on employee health insurance, up from $5.7 million at the same time last year.
The town is considering options under state law that would allow modification of health insurance benefits. One option involves moving to a “commission plan” under MGL 32B Section 29, which could result in an estimated savings of $595,994 with 25% mitigation. This would reduce the town’s premium increase to approximately $1,787,612.
Proposed plan changes would increase deductibles from $300/$900 to $500/$1,000, add separate prescription drug deductibles of $100/$200, increase specialist co-pays from $30 to $60, and raise hospital co-pays from $1,000 to $1,500.
Bond sale success
The board also authorized $25,835,000 in General Obligation Municipal Purpose Loan bonds with Fidelity Capital Markets and nearly $35 million in short-term bond anticipation notes with two other financial institutions.
“The town had a successful bond sale on March 6,” Rudolph reported to the board. “Fidelity Capital Markets was the winning bidder on the bonds with an average interest rate of 3.671%.”
The bonds will fund several capital projects, with the largest portion — $23,865,000 — dedicated to Lynch Elementary School construction. Other funded projects include $1,200,000 for the Arbor/Wendell Pump Station, $600,000 for a Lake Street Bridge replacement project, and $600,500 for a vactor truck.
The bond anticipation notes include $4,050,000 in Series A Notes to Oppenheimer & Co. at 5% interest and $30,334,517 in Series B Notes to J.P. Morgan Securities at 4% interest, both due in March 2026.
Grants and donations accepted
The board accepted several grants and donations during the meeting, including a state grant for a new “digester” at the Winchester transfer station. The Massachusetts Department of Environmental Protection awarded the funds to help reduce food waste, which accounts for more than 25% of trash after recycling.
Additional donations were accepted for various town departments and community programs, continuing Winchester’s efforts to supplement taxpayer funding with grants and private contributions.
Town Day wine garden proposed
The board also discussed preparations for Winchester Town Day, scheduled for June 6-7, 2025.
“Subject to Select Board approval, Winchester Town Day will be scheduled for Friday, June 6 and Saturday, June 7, with a rain date of Sunday, June 8,” Rudolph reported. “In addition to the typical activities, the Town Day Committee has indicated that they would like to add a wine garden this year on Main Street over Mill Pond.”
The committee will submit a formal one-day license application if the board supports the wine garden addition.
Construction projects update
In construction updates, Rudolph reported that several projects are moving forward, including playground improvements at Leonard Field and McDonald Field, where “equipment has been ordered” and “weather pending, site work will start in the next few weeks.”
The South Reservoir Dam Restoration project will continue with “in-water work all winter and site work will start in the spring,” while the Lynch School Traffic Calming project has been awarded with “construction expected to start this spring.”
Design projects in progress include Town Hall and library parking lot ADA improvements, with construction expected to start in spring 2025, and Ginn Field lighting, with the contract expected to be awarded this month.
Community notices
Community updates included information about residential Transfer Station permits now being available for purchase at the Town Clerk’s office or online, with a reminder that “residents must have a valid permit by March 1 to enter the Transfer Station.”
The Town Clerk’s Office is also currently licensing dogs for the 2025 calendar year, with renewal letters sent to existing dog owners.
The Select Board will reconvene on March 24 following the town election on March 22, when it will vote on Spring Town Meeting warrant articles and reorganize the board.
