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Finance staff reports healthy FY26 fund balance; $12M transfer noted in statements
Summary
The finance update showed an unaudited FY26 position with an estimated unassigned fund balance around 30–32% (above the town policy minimum of 25% but below a 35% target), and staff highlighted a $12,000,000 transfer from the capital reserve fund included in combined statement presentation; staff said they do not expect to place additional funds into the capital investment fund this year.
Finance staff provided a high‑level, unaudited overview of fiscal year 2026 financials to the board on Aug. 5 and said the town’s unassigned fund balance is likely in the 30–32% range — above the town policy minimum of 25% but below the 35% threshold used to move funds into the capital investment fund.
“...there was a 3 percent increase from the fiscal year 25 unassigned fund balance,” finance staff said, noting that a $12,000,000 transfer from the capital reserve fund affects how combined funds appear on the front of the statements and will be accounted for as staff close the books for FY26.
Staff highlighted revenue variances including approximately $500,000 in additional ad valorem revenue (after revaluation and strong collection) and interest income over budget by about $150,000; they also noted sales and occupancy tax variances and timing of grant reimbursements. Staff said an October budget amendment will address open purchase orders carried forward that affect the fund balance calculation.
Why it matters: Fund‑balance health affects the town’s ability to fund capital projects and identify amounts available for transfer to capital reserves; the finance presentation informed the board’s upcoming CIP and budget planning discussions.
