Finance director outlines FY2026 closeout changes; council authorizes fourth‑quarter transfers with amendment to require council oversight

Finance Director Hill told the council on June 30 that updated closeout work reduced encumbrances and changed proposed transfer amounts since the finance committee meeting, increasing available transfers (excluding the BOE) to about $813,122 and leaving a small favorable variance at fiscal‑year end.

Hill explained that invoices processed during the closeout lowered encumbrances and updated several departmental figures. He also disclosed a separate BOE shortfall being handled under new business. The director cautioned that audit‑period adjustments are standard accounting practice and observed that final audited statements report any subsequent post‑closeout movements.

Several councilors pressed for transparency. Councilor Dean Brown said she was uneasy with language in the resolution that would authorize the town manager to move unencumbered departmental balances during closeout, arguing council should be informed of such transfers. In response the council adopted a friendly amendment clarifying that audit closeout transfers would be subject to council oversight and reporting.

Following discussion, the council voted to adopt the resolution authorizing the FY2026 fourth‑quarter transfers as amended; the motion passed and staff will proceed with the transfers as described in the packet.

The finance director noted that transferred amounts and any audit adjustments will be visible in the audited financial statements and that the town manager and finance staff will provide the council follow‑up detail on audit closeouts as requested.