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Westford Health Insurance Trust reports $5.73M cash balance and debates reserve policy, use of excess funds
Summary
Finance Director Dan O'Donnell told trustees the Trust had $5.731 million on hand as of May 31, 2026 and that the FY2027 budget reflects a 2.9% increase; trustees discussed developing reserve guidelines and the potential, but not the approval, of applying excess funds to offset future costs.
At the June 11, 2026 virtual meeting, Dan O'Donnell, Finance Director (alternate), reported that the Town of Westford Health Insurance Trust held a cash balance of $5.731 million as of May 31, 2026, roughly $1 million higher than the balance reported for May 2025.
Trust members reviewed FY2026 revenues, expenditures and projected year‑end balances and were told the FY2027 health insurance budget includes a 2.9% increase over the prior year. Trustees discussed enrollment trends, employer contributions and the need to maintain adequate reserves to protect against future claims volatility.
The Trust also discussed requests made by the Select Board at its June 9 meeting. Select Board representative Sean Kelly summarized the board’s interest in additional analysis of appropriate reserve levels, whether reserves might be used to offset future employee and retiree health costs, the long‑term sustainability of the current insurance model, and possible plan design and cost‑containment measures. The Select Board asked the Trust to evaluate alternatives, including information related to the Group Insurance Commission; Sean emphasized the Select Board had not made any decisions.
Members debated creating a formal reserve policy and reviewed actuarial and industry standards; they agreed that reserve guidelines would aid decision‑making and transparency but did not adopt a policy at this meeting. Dan O'Donnell outlined financial and audit considerations for transferring funds from the Trust and noted timing issues related to fiscal year‑end and statutory contribution requirements (the transcript did not name a specific statute). No transfers or policy adoptions occurred; trustees asked staff for additional analysis and scheduled further review in late June.
A motion to adjourn was made, seconded and passed; the meeting ended at about 5:00 PM.
