Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Preston finance director: reimbursements and state aid should sustain cash flow while referendum is pending
Summary
Finance Director Cindy Varricchio told the Board that property tax collections and expected reimbursements—about $1.1M from the Preston Redevelopment Agency and $1.9M in state aid—should sustain town liquidity if tax billing is delayed by the July referendum; audit findings cited were being addressed.
At the June 18, 2026 meeting of the Preston Board of Finance, Finance Director Cindy Varricchio reported the town and Board of Education remain generally within budget and outlined revenue and cash‑flow expectations should issuance of tax bills be delayed by the upcoming referendum.
Varricchio said the Board of Education was projected to finish the fiscal year roughly $117,000 under budget, subject to remaining encumbrances and final invoices. She noted the district budgeted $150,000 for excess cost reimbursement and has received $141,395 so far, with an additional payment still anticipated from the state.
On town finances, Varricchio reported property tax collections at 99.94% of budget and interest and lien fee revenue at 128% of budget. She said the $350,000 in cell tower rental revenue approved by referendum would be transferred to the capital account for public works. Investment income is projected to finish about $17,000 below budget, she added, but receipts expected in coming months—about $1.1 million in Preston Redevelopment Agency reimbursement funds and about $1.9 million in state aid—should improve liquidity.
Varricchio cautioned that issuing supplemental tax bills is administratively difficult and costly; instead she said the town expects to meet obligations using existing liquidity and the anticipated reimbursements and aid. She also noted the recently negotiated teacher contract spreads compensation over 26 pay periods, which has eased cash pressures during budget-approval delays.
On audit matters, Varricchio reviewed findings in the management letter and State and Federal Single Audits, including line‑item budget overages (despite overall budgetary compliance), reconciliation of long‑outstanding checks, a grant accounting timing issue and a performance bond account discrepancy; she said corrective actions have been completed or are underway and that federal vendor verification procedures using the SAM database have been formalized.
The Board voted unanimously on several procedural motions at the meeting, including approval of amended minutes, waiving a draft annual report for further review and cancelling the July 16 regular meeting in favor of a Special Meeting on July 9, 2026 at 7:45 p.m. to consider referendum results.
