Subject:
Title
Fiscal Year 2026 Mid-Year Financial Review
Body
EXPLANATION AND SUMMARY:
Staff will present the Fiscal Year 2026 Mid-Year Financial Review, providing Town Council with a snapshot of the Town’s financial position at the halfway point of the fiscal year. The presentation will cover revenues and expenditures for the General Fund, Debt Service Fund, and Water and Sewer Fund, along with projected results through June 30, 2026.
Agenda Item Explanation
The mid-year financial review is intended to inform Town Council of current financial performance, identify emerging trends, and highlight potential year-end outcomes. Revenues across all major funds are tracking in line with the adopted budget; however, the General Fund is currently projecting an approximate $450,000 year-end deficit driven by higher-than-anticipated personnel-related expenditures. These pressures are primarily attributable to a significant number of long-tenured retirements resulting in under-budgeted leave payouts, continued overtime and on-call demands related to special events and emergency operations, and record low vacancy rates that have reduced typical salary savings.
The presentation will also outline actions already taken at mid-year to mitigate financial impacts, including deferral of the Vehicle Replacement Program and elimination of the use of prior year surplus, as well as potential additional options for consideration should further action be necessary. No formal action is requested of Council at this time.