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Clerk Treasurer: DLGF issued corrective notice; council must plan FY2026 cuts by Dec. 31
Summary
Clerk Treasurer Stonecipher said the Department of Local Government Finance issued a 1782 notice requiring corrective action; the town must develop a plan by December 31 to reduce FY2026 appropriations, though departments appear on or under budget for 2025.
Clerk Treasurer Stonecipher gave a year‑end financial update and warned the council that the Department of Local Government Finance (DLGF) issued a corrective notice requiring the town to prepare budget cuts for FY2026.
"The Department of Local Government Finance... rejected it. We will have to come up with a game plan by December 31, to cut back the 2026 budgets that you all ratified back in October," Stonecipher said. Staff explained the DLGF process (a 1782 notice) compares forecasted revenues to proposed appropriations and typically assumes 100% expenditure of approved appropriations; because many departments come in under budget, the town later files an additional appropriation ordinance to reconcile carryover appropriations in February or March.
Stonecipher also reported positive cash‑position news: with two weeks remaining in the fiscal/calendar year, departments look to finish on or under budget and the town may reach a three‑month emergency reserve target (estimated at $10,000,000, pending investment results). Council directed staff to prepare options to adjust FY2026 appropriations by December 31 for DLGF compliance.
