The Wellesley Select Board this past week voted on fiscal year 2026 (starting July 1, 2025) operational and capital budget guidelines for departments as it readies for Annual Town Meeting in the spring. The vote followed previous discussions on this topic at Select Board meetings. (Wellesley Media recorded the Oct. 8 meeting, and supporting documents from the town on this issue can be found in the online agenda.)

Executive Director Meghan Jop, accompanied by newish Finance Director Michael DiPietro, shared their recommendation for a town budget with a lower-than-usual percentage (6.2%) of capital spending from recurring revenue given “the pressure of operating budgets this year.” That would be about $700K less than for the current fiscal year, though Jop noted that town has lots of free cash that could be used for one-time expenses (board members expressed caution about using free cash too freely).

Jop’s office recommended 3% increases on the operational side for personal services and expenses, with adjustments made for numerous departments, many of which expressed needs at the recent All Board Meeting. Select Board Chair Colette Aufranc noted that at that meeting “There were more asks than the resources we have, so it’s our job to take that input and make the difficult choices” about where resources should be allocated as the Board aims to bring a balanced budget to Town Meeting.

The Executive Director’s Office itself is aiming for a 3.75% increase for personal services in part due to the hiring of a mobility manager and new communications staffer. Police and Fire recommendations are at 4% recommended guidelines, largely due to new hires and contract requirements.

Schools represent by far the largest part of the nearly $200M preliminary operating budget, and that department has requested more than a 4% increase. The guideline is at 3.25%, meaning much more work needs to be done on settling that. School budgets are always a moving target, as state and other funds reveal themselves during the process.

Board Member Beth Sullivan Woods inquired about whether the 3.25% increase for schools is realistic, and how the town got to that guideline. DiPietro cited falling enrollment and consolidation of elementary schools as a couple of factors in that figure.

While empathizing with school department needs, Board Member Lise Olney emphasized a need to bring other town staff up to competitive salaries with peer communities, as Wellesley has been attempting to do through cost of living adjustments.

The town will soon have results of a human resources study on classification and compensation study, though obvious shortcomings are already evident in the Health Department, where Wellesley has had hiring and retention challenges. Meanwhile, school employee compensation in Wellesley is on the higher end in the state, Jop said.

Individual town departments from here will work with their boards and the town to try to hit the guidelines voted on by the Board.