They have moved the flagpole many, many times over the years.
It's designed to move easily out of the center of Town Square and over to in front of City Hall.
They do it when they need to erect something in the center of Town Square.
(They used to do this every year for the taping of the Christmas Parade.)
As to what's happening that they have moved it now...
I haven't heard.
But, they can move it back very easily at any time.