Healthcare and insurance costs push up Greenwich fixed charges; Nathaniel Witherell support remains under review

Joan presented fixed charges for the proposed FY27 budget, reporting a total fixed‑charges amount near $191 million, an increase of about 5% or roughly $9.18 million year‑over‑year. She said health‑care costs were the largest dollar driver: a roughly $9.6 million increase (about 13%) that also feeds into OPEB and related lines. The town’s contribution to the risk fund was increased $11 million in the submission.

Committee members pressed staff on the timing and assumptions. Agnes Quai, the budget director, confirmed employee contribution calculations are based on the projected October 1 enrollment census and that vacant positions are not counted in the employee census used for benefit calculations. Members asked staff to reconcile why employee contribution growth appears lower than the overall health‑care increase; staff said they will follow up with the calculation details.

On Nathaniel Witherell, Joan said FY26 included a $5 million appropriation to cover prior losses; the FY27 budget as submitted shows a $2 million contribution, a $3 million reduction, but she cautioned that prior losses and a negative fund balance persist. Committee members requested a 5–10 year schedule of Nathaniel Witherell losses by fiscal year prior to the next meeting.

Megan D’Amato, the director of risk management, said insurance premium increases were driven by a large December 2024 lawsuit payout and recent expensive vehicle (fire engine) claims; she described a self‑insured retention of $1 million on the town’s excess workers’ compensation program and said property, marine and liability placements are being refreshed with broker Gallagher. She also said the town carries property coverage for town buildings including Board of Education properties and that the Bruce Museum building is on the town program; museum exhibit riders and special collections are handled case‑by‑case and staff are reviewing agreements.

Staff committed to provide more detailed backup schedules on health care assumptions, Nathaniel Witherell history, and insurance premium drivers ahead of the committee’s next discussion.