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Finance director reports FY26 year‑end forecast; encumbrances and return-to-town noted
Summary
Director of finance Joe Spagna told the committee the preliminary FY26 snapshot shows a projected operational balance of $338,713.85 but a required return to the town of $447,873 creating a current apparent deficit of roughly $109,000; Spagna said department reviews of encumbrances (over $3.1M) will address the discrepancy.
At the July 16 meeting Director of Finance Joe Spagna presented the district’s FY26 monthly forecast (data pulled as of July 11) and walked the committee through surpluses, deficit lines and year‑end projections.
Spagna said the projected year‑end operational balance is $338,713.85, but the district must return $447,873 to the town under current reporting, which produces an apparent deficit of about $109,000 in the snapshot. He told the committee that is a timing and encumbrance issue and said department heads are reviewing encumbrances — which total over $3,100,000 — to determine which purchase orders should be liquidated or carried forward.
"That projected deficit you're seeing right here will not be the case," Spagna said, explaining that planned budget journal entries and encumbrance adjustments will correct the year‑end position. He added that the personnel supplement variance was within $400,000 and that he expects more accurate figures for the coming fiscal year once historical information is rolled forward.
Spagna said he expects to bring necessary budget journal entries to the committee at the next meeting and that he does not foresee disruptions to district operations.
What happens next: Spagna will prepare budget journal entries and return to the committee with proposed adjustments to close the fiscal year.
