Cortland finance consultant flags $824,000 General Fund shortfall; recommends $1 million transfer from capital reserves

Julie Thomsen of Lauterbach & Amen told the Town of Cortland Board of Trustees during its March 23 meeting that the draft FY2027 budget shows a General Fund deficit of $824,000 that would leave the General Fund balance negative by roughly $479,800 at year end. "FY2027 Budget has a deficit of $824K in the General Fund which brings the end of the year fund balance to ($479,800)," Thomsen said as she reviewed the budget.

Thomsen presented options to stabilize finances, including using $629,315 of fund balance and transferring $1 million from the Capital Improvement Fund to the General Fund; that transfer would leave approximately $400,000 in General Fund reserves at the end of FY2027, according to her presentation. She also recommended moving non‑home rule sales tax receipts (about $230,000 for FY2027) from the Capital Fund to the General Fund and proposed specific salary allocation changes for staff between departments and enterprise funds.

The budget presentation prompted follow‑up discussion of where cuts have already been applied and whether additional structural changes are required to avoid repeated draws on reserves. Trustees added the budget review to the agenda earlier in the meeting and heard Thomsen’s recommendations as part of the regular New Business presentation. The board did not take a final adoption vote on the FY2027 budget at this meeting; the session served as the informational presentation and staff guidance ahead of future formal action.