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Middlebury CFO flags likely FY25-26 shortfall, cites tax appeal refund and legal overruns
Summary
CFO Seth Bernstein told the Board of Finance that investment income will probably fall short and a tax-appeal refund plus legal and departmental overages could leave a $160,000'180,000 gap; he said roughly $2 million in unencumbered spending and reserves remain available.
CFO Seth Bernstein told the Middlebury Board of Finance on June 10 that the town is likely to end fiscal 2025-26 with a budget shortfall of about $160,000 to $180,000. Bernstein reported that investment income totaled $25,000 in May, with another $20,000 to $25,000 expected in June, but that figure likely will not meet the budgeted amount. He said the town's overall tax collection rate stands at 98.99 percent, but an upcoming tax-appeal refund will reduce collections.
Bernstein identified several over-budget accounts, including the Clerk's Office, Building Department, Police Special Duty and Building and Grounds. He said Legal expenses are now about $62,000 over budget and that the Probate Court allocation rose because the court moved from town hall to leased private space, with participating towns sharing relocation costs and rent. Bernstein also warned the Middlebury Volunteer Fire Department (MVFD) may face a $30,000—0,000 shortfall for vehicle maintenance.
"There is approximately $2 million in unencumbered expenses," Bernstein said, adding that reserves exist for some items and that he did not expect additional surprise charges at this time. Board members asked follow-up questions about the sufficiency of budgeted legal funding for FY 2026-27 and whether specific overages could be covered by reserves.
The Board reviewed related appendices for CNRF and capital projects and heard from First Selectwoman Jennifer Mahr about ongoing projects: the MVFD wet-sprinkler installation is complete and operational, the town awaits a state grant decision to extend sprinklers, and the Rochambeau statue dedication is planned for June 27 at Meadowview Park.
The Board did not take formal action on appropriation changes during the meeting; members discussed options for addressing overages during the budget process and through reserve usage.
