Wayland officials are weighing an unusual maneuver to reclassify $5.2 million in debt and its associated $700,000 in annual debt service on the River Road Department of Public Works facility as “excluded debt.” The shift would move payments out of the operating budget and onto a temporary line on tax bills, outside the cap of Proposition 2½. If placed on the November ballot and approved, the measure could relieve immediate budget pressure but would raise property taxes until the bond is retired.
For residents, the first thing to understand is that this will cost more money up front. Converting levy-funded debt to excluded debt creates a metaphoric new line on the tax bill, which means households will see an increase until the debt is fully retired once the town decides to spend that money next Town Meeting. Unlike an operating override, this increase eventually disappears — but in the short term, it raises the burden on taxpayers.
As Town Manager Michael McCall explained at the August 18 Select Board meeting,, “This is a mechanism to keep the rates from going up really high by putting a portion of it on the taxes, but as a debt exclusion, once that debt service is paid off, the extra tax goes away.”
Why now?
The DPW facility, authorized in 2012–2013, was originally financed inside the levy limit. More than a decade later, $5.2 million in debt and its associated $700,000 in annual debt service remains outstanding. Town officials argue that shifting the debt now could free space inside the levy to absorb fast-rising costs in health insurance, pensions and special education. Without relief, the fiscal 2027 budget is projected to face a $1.9 million deficit.
“If numbers don’t break our way, this exclusion could be a relief valve. Otherwise, we’ll have no choice but to ask for an override,” McCall warned.
According to one public official speaking off the record, the decision to reclassify the River Road DPW debt as excluded could be premature. While it would add a metaphoric temporary line to tax bills, anticipated state or federal reimbursements — still unknown — could significantly reduce the town’s funding gap, perhaps even making debt exclusion unnecessary. Other towns, like Concord, have leveraged a combination of stabilization funds and MSBA grants to offset excluded debt costs, delaying or reducing local tax increases. Given the uncertainty about funding levels, town leaders may want to pause and await more clarity before moving ahead with the ballot question, the official said.
The Select Board must also weigh when to bring the question to voters. Placing it on a November 2025 ballot ensures the widest participation but carries an estimated $10,000 in additional election costs. If the board waits until the spring Annual Town Election, those costs could be avoided. The downside is that delaying a vote also delays the fiscal relief, leaving the FY27 budget tighter in the short term.
Support and opposition
Supporters argue the exclusion is transparent, temporary and legally recognized by the state Division of Local Services. They emphasize that without it, the town may be forced into an override that permanently raises taxes. At the Select Board’s August 18 meeting, Chair Carol Martin called the idea “creative — there’s no two ways about it — but it will require a lot of explanation for residents to fully understand.”
Critics warn that mid-stream exclusions risk becoming a crutch, normalizing the practice of shifting costs outside the levy. “Are we swapping a capital debt exclusion for an operating override? And if so, is this just a band-aid approach to a much bigger problem?” Select Board member Bill Whitney said.
During public comment at the meeting, resident Gretchen Dresens urged clearer communication. Speaking about PFAS but echoing debt reclassification concerns, she told the board, “the public really doesn’t have an opportunity to ask questions or get further clarification of the consequences of these findings.”
Resident Cliff Lewis also stressed the importance of openness when handling multimillion-dollar obligations. While discussing the Massachusetts Water Resources Authority and PFAS treatment project, he cautioned that voters need confidence that the town has vetted alternatives thoroughly. “The town would be better served by strong project management and not a peer review,” he said, adding that transparency and fiscal discipline must go hand in hand.
Comparison to other towns
Wayland’s debate is not happening in isolation. Neighboring towns regularly use debt exclusions to manage large projects:
- Hudson approved a debt exclusion in 2023 for its new DPW operations facility, treating it as a standard practice rather than absorbing it into the levy.
- Weston relies heavily on exclusions; its budget documents show excluded debt accounts for a large share of its tax rate year to year.
- Reading often places multiple exclusions on the ballot simultaneously, publishing FAQs to help residents understand the impacts.
- Hingham and Amherst provide guides that emphasize exclusions as the preferred mechanism for capital, reserving overrides for operating budgets
What makes Wayland’s situation unusual is the timing: most towns decide at the start of a project whether to exclude debt. Wayland is proposing to reclassify the debt more than a decade later. State law permits this, but it is rarely done.
