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Finance staff warns Torrington will dip into fund balance; projects about $2.4 million pressure
Summary
City finance staff told the Board of Finance that FY26 closeout will likely require dipping into the city's fund balance (projected about $2.4 million) and that at least $2 million may be used; the conversation included the effect of an untransferred $1.5 million expense linked to BOE accounting.
Erica, representing city finance staff, told the Board of Finance that preliminary projections show pressure on the city's fund balance as fiscal year 2026 closes. "I would anticipate using at least 2,000,000 of the fund balance this fiscal year, fiscal year 26," Erica said as staff reviewed year-end projections and open purchase orders.
Staff explained that part of the appearance of a larger city expense was tied to the timing and treatment of a $1,500,000 BOE-related expense that had not been transferred in the prior year, which affected last year's fund balance and required accounting adjustments this year. Members noted an unexpected one-time motor-vehicle-related revenue boost of roughly $3,000,000 that helped the current position but emphasized that FY27 will be tight and that no fund balance has been allocated to offset the coming year's budget.
Board members pressed for clearer numbers and for continuing efforts from departments to stay on track with budgets; staff said they are monitoring open purchase orders and closing the books prior to audit. The board voted to accept the city's budget performance reports through 06/30/2026 after the discussion.
