The Budget Committee was told that health and liability insurance premium increases were a major driver behind recent upward adjustments to the town'recommended operating budget.

Finance Director Christine Tuxbury said health premiums rose an average of 14.5% and that the impact on the budget was roughly $466,880. "The premium came up an average of 14.5%, but we also had employees change plans. Right? So even though it went up 14.5% on average, the impact on the budget was more than 14.5. It was actually $466,880," she said.

Tuxbury also said dental premiums rose 4.4% but that changes in employee plan choice produced a small net reduction in the dental insurance lines.

On property and liability insurance, Tuxbury said premiums rose 31.8% with an $85,000 budget impact. She told the committee there are three reasons: (1) the town had been in a multi'year CAP (contribution assurance) program that limited increases; (2) the CAP program ended and this year's increase reflects catch'up to market rates; and (3) the town incurred two large claims that affected experience. "We had a private resident total our tanker truck ... it was $750,000 worth of damage to another vehicle," she said, and the town also had a library claim that cost the insurer about $200,000 to fix the roof leak.

The committee discussed whether combining insurance purchasing with the school could reduce premiums; staff explained union contract constraints and the mechanics of HealthTrust (the statewide pool that covers many municipalities). Andre Garen described HealthTrust and noted that Senate Bill 297 had been considered but not advanced; he said the trust maintains a surplus and that the pool covers 191 communities.

Why it matters: Insurance premiums are a significant recurring cost in the operating budget and influence staffing costs, recruitment competitiveness and the property-tax implications of the budget.

Next steps: Committee members asked staff to return with additional detail where available (experience reports, plan-level exposures, and the police warranty/maintenance documentation). Staff said more granular revenue and cost figures—particularly for the transfer station revenue lost or shifted by Saturday closures—would be available in December.

Ending: The committee accepted the council'recommended budget (which reflects these insurance changes) and instructed staff to provide the additional plan/experience information requested.