The other funds
The General Fund is the City's largest account, but it is not the only one. Keene operates seven other funds with a combined FY27 budget of $28,215,816 — roughly half the size of the General Fund. These funds are financially separate: each must balance on its own revenue, and most are prohibited from drawing on property taxes.
The seven funds fall into three categories. Enterprise funds operate like businesses: they charge fees for a specific service and are expected to cover their own costs. Water, Sewer, Solid Waste, and Parking are enterprise funds. Internal service funds charge other City departments for shared services — Equipment/Fleet maintains the City's vehicles, and PC Replacement cycles out computers on schedule. The Compensated Absences Fund is a special revenue fund that sets aside money for employee leave payouts upon departure.
Because these funds don't draw on property taxes, they don't appear on your tax bill — but they show up in your water bill, sewer bill, and trash disposal fees. Understanding them matters because they represent real costs of city services and real infrastructure that has to be maintained.
Source: Fund-specific budget sections, pages 171–245 of the FY27 budget.
All funds at a glance
| Fund | Type | FY26 Budget | FY27 Recommended | Change |
|---|---|---|---|---|
| Water Fund | Enterprise | $6,428,989 | $7,140,527 | +11.1% |
| Sewer Fund | Enterprise | $8,590,185 | $8,290,343 | -3.5% |
| Solid Waste Fund | Enterprise | $6,198,221 | $6,789,039 | +9.5% |
| Parking Fund | Enterprise | $1,616,048 | $1,397,657 | -13.5% |
| PC Replacement Fund | Internal Service | $151,387 | $72,020 | -52.4% |
| Equipment (Fleet) Fund | Internal Service | $4,245,448 | $4,426,230 | +4.3% |
| Compensated Absences Fund | Special Revenue | $100,000 | $100,000 | 0.0% |
| Total | $27,330,278 | $28,215,816 | +3.2% |
FY27 budget by fund
Enterprise funds
Enterprise funds are self-supporting: the people who use the service pay for it through fees and charges. Property taxpayers do not subsidize these operations. Together, the four enterprise funds total $23,617,566 in FY27.
Sewer Fund
The Sewer Fund is the City's largest non-General-Fund operation at $8,290,343 in FY27. It maintains the sewer collection system, operates the wastewater treatment plant (WWTP), and runs the laboratory that tests effluent. The WWTP alone accounts for $3,220,420 — 39% of the fund. Revenue comes almost entirely from sewer user fees ($7,135,375), with a small intergovernmental contribution of $212,642.
The fund is drawing down surplus by $279,960 in FY27, meaning revenue from fees slightly exceeds planned spending on operations. Capital needs are substantial: $1.34M transfers to capital projects in FY27, and the seven-year capital plan totals $34.6M — the largest of any fund, driven by sewer infrastructure replacement and WWTP upgrades.
| Sewer Fund — FY27 Budget | |
|---|---|
| Revenue | |
| Intergovernmental | $212,642 |
| Charges for Services | $7,135,375 |
| Miscellaneous | $220,286 |
| Use of Surplus | -$279,960 |
| Capital Reserve | $1,002,000 |
| Total Revenue | $8,290,343 |
| Expenditure | |
| Sewer Administration | $774,439 |
| Manholes and Services | $442,731 |
| Sewer System Maintenance | $307,824 |
| Martell Court Pump Station | $189,745 |
| WWTP | $3,220,420 |
| Laboratory | $322,390 |
| Depreciation Expense | $1,323,094 |
| Debt Service | $367,700 |
| Capital Project Transfer | $1,342,000 |
| Total Expenditure | $8,290,343 |
Source: Sewer Fund, pages 207–221.
Water Fund
The Water Fund operates the water supply, treatment, and distribution system at $7,140,527 in FY27. The fund maintains infrastructure from the source (wells and treatment) through distribution mains and meters to customers. Like the Sewer Fund, it is almost entirely fee-supported: $5,908,350 from charges for services.
Debt service is growing — from $252,481 in FY26 to $352,155 in FY27 — reflecting recent borrowing for infrastructure projects. The seven-year capital plan totals $24.5M, the second largest after the Sewer Fund, driven by the Water Distribution Improvements Program and Well Field Upgrades.
| Water Fund — FY27 Budget | |
|---|---|
| Revenue | |
| Charges for Services | $5,908,350 |
| Miscellaneous | $168,278 |
| Use of Surplus | $354,599 |
| Capital Reserve | $709,300 |
| Total Revenue | $7,140,527 |
| Expenditure | |
| Water Administration | $970,009 |
| Water Distribution Services | $646,464 |
| Water System Maintenance | $146,231 |
| Water Supply | $289,349 |
| Meters | $516,968 |
| Water Treatment Facility | $1,121,186 |
| Laboratory | $321,042 |
| Depreciation Expense | $946,823 |
| Debt Service | $352,155 |
| Capital Reserve Appropriations | $750,000 |
| Capital Project Transfer | $1,080,300 |
| Total Expenditure | $7,140,527 |
Source: Water Fund, pages 222–236.
Solid Waste Fund
The Solid Waste Fund manages refuse collection and disposal, recycling, household hazardous waste, and the closed landfill at $6,789,039 in FY27. Keene is one of the only municipalities in New Hampshire that funds solid waste entirely through user fees rather than property taxes.
Landfill/Operations is the largest expenditure category at $3,597,154, covering the contract with Waste Management of New Hampshire for transport and disposal at $102.96 per ton. The fund also carries three small bonds totaling $155,000 in remaining principal for transfer station improvements.
The fund is drawing $519,026 from surplus in FY27, meaning expenditures are budgeted to exceed fee revenue. Capital needs include $350,000 in reserve contributions and $350,000 in project transfers.
| Solid Waste Fund — FY27 Budget | |
|---|---|
| Revenue | |
| Charges for Services | $5,730,013 |
| Use of Surplus | $519,026 |
| Capital Reserve | $350,000 |
| Miscellaneous | $190,000 |
| Total Revenue | $6,789,039 |
| Expenditure | |
| Management/Admin | $855,797 |
| Transfer/Recycling Facility | $177,938 |
| Landfill/Operations | $3,597,154 |
| Recycling | $767,039 |
| Household Hazardous Waste | $99,569 |
| Demolition Transfer/Disposal | $200,912 |
| Landfill Monitoring | $87,000 |
| Landfill Gas System | $148,904 |
| Debt Service | $154,726 |
| Capital Reserve Appropriations | $350,000 |
| Capital Project Transfer | $350,000 |
| Total Expenditure | $6,789,039 |
Source: Solid Waste Fund, pages 194–206.
Parking Fund
The Parking Fund manages downtown parking infrastructure — meters, lots, and two parking structures — at $1,397,657 in FY27, down from $1,616,048 in FY26. Unlike the other enterprise funds, Parking receives some tax revenue ($182,322 from tax-increment financing), but the majority comes from meter fees ($537,500), miscellaneous rent and lease income ($365,906), and fines ($259,627).
FY27 revenue is projected lower in part because of the Downtown Infrastructure project, which will temporarily remove or encumber on-street parking. The fund anticipates a 15% reduction in Central Square meter revenue during construction. The fund carries $451,570 in outstanding bond principal for Wells Street TIFD projects.
| Parking Fund — FY27 Budget | |
|---|---|
| Revenue | |
| Taxes | $182,322 |
| Parking Meter Fees/Space Rentals | $537,500 |
| Fines & Forfeits | $259,627 |
| Miscellaneous | $365,906 |
| County Courthouse Payment | $16,122 |
| Capital Reserve/Project Balances | $96,000 |
| Use of Surplus | -$59,820 |
| Total Revenue | $1,397,657 |
| Expenditure | |
| Lots & Meters | $826,675 |
| Outside Services | $234,488 |
| City Hall Parking Facility | $23,955 |
| Wells Street Parking Facility | $34,217 |
| Debt Service-TIFD | $97,322 |
| Capital Reserve/Project Balances | $181,000 |
| Total Expenditure | $1,397,657 |
Source: Parking Fund, pages 175–187.
Internal service funds
Internal service funds charge other City departments for shared services. The charges appear as line items in departmental operating budgets — when the Police Department pays a fleet charge or PC replacement fee, that money flows to these funds. The combined FY27 budget for internal service funds is $4,498,250.
Equipment (Fleet) Fund
The Equipment (Fleet) Fund maintains the City's 266 vehicles and pieces of equipment at $4,426,230 in FY27. The Fleet Division provides maintenance, fuel, insurance, and eventual replacement. Revenue comes from rental charges to user departments ($3,096,316 in fleet charges, plus $55,000 for direct reimbursement and equipment charges).
Operating costs of $1,730,192 include $427,079 in fuel, $412,973 in repair parts, and $96,613 in building rental. The fund budgets fuel at $4.00 per gallon (up from $3.47 in FY26). Capital spending is significant: $950,000 in reserve contributions and $943,233 in project transfers, supporting a seven-year capital plan of $16.4M.
| Equipment (Fleet) Fund — FY27 Budget | |
|---|---|
| Revenue | |
| Charges for Services | $3,208,316 |
| Miscellaneous | $6,500 |
| Use of Surplus | $268,181 |
| Capital Reserve | $943,233 |
| Total Revenue | $4,426,230 |
| Expenditure | |
| Personnel & Benefits | $804,784 |
| Operating Costs | $1,730,192 |
| Machinery, Equipment and Vehicles | $498,021 |
| Capitalized Assets | -$500,000 |
| Capital Reserve Appropriations | $950,000 |
| Capital Project Transfer | $943,233 |
| Total Expenditure | $4,426,230 |
Source: Equipment (Fleet) Fund, pages 237–245.
PC Replacement Fund
The PC Replacement Fund covers the scheduled replacement of the City's computers, laptops, tablets, and printers at $72,020 in FY27 — a sharp decrease from $151,387 in FY26. The fund is adding $59,574 back to surplus, meaning it is spending down accumulated reserves rather than continuing to grow them.
IT plans to replace 66 computers in FY27. The fund manages 354 devices across the organization, funded by annual charges to each department. Hardware costs are rising due to AI-driven demand for computing power — the budget notes this is driving prices up and making market forecasting more difficult.
| PC Replacement Fund — FY27 Budget | |
|---|---|
| Revenue | |
| Charges for Service | $130,594 |
| Use of Surplus | -$59,574 |
| Miscellaneous | $1,000 |
| Total Revenue | $72,020 |
| Expenditure | |
| PC Replacement | $72,020 |
| Total Expenditure | $72,020 |
Source: PC Replacement Fund, pages 188–193.
Special revenue fund
Compensated Absences Fund
The Compensated Absences Fund is a $100,000 annual appropriation from the General Fund that sets aside money for employee leave payouts. When employees retire or leave City service, they are entitled to payment for accrued but unused vacation, sick, and other leave time. This fund ensures those obligations are pre-funded rather than absorbed as lump sums in the year of departure.
The fund's actual spending varies with retirements: FY25 actual expenditures were $376,543, nearly four times the budgeted amount, reflecting the departure of employees with significant accrued leave. The annual $100,000 contribution from the General Fund has been flat for several years. The fund is required by GASB Statement No. 101, which standardizes how governments account for compensated absence liabilities.
Source: Compensated Absences Fund, pages 171–174.
How these funds connect to the General Fund
These seven funds are not islands. They connect to the General Fund through three main channels:
Administrative charges
Five funds pay the General Fund for shared administrative services — HR, finance, IT, city management — through annual administrative charges. These charges total $2,528,129 in FY27 and appear as revenue on the General Fund's books:
| Fund | Admin Charge to GF |
|---|---|
| Sewer | $777,938 |
| Solid Waste | $647,716 |
| Water | $548,127 |
| Equipment (Fleet) | $409,062 |
| Parking | $145,286 |
| Total | $2,528,129 |
These charges are a real cost that enterprise fund customers ultimately pay through their water, sewer, and trash bills. They also represent real revenue to the General Fund — about 4.4% of total General Fund revenue. If these charges were eliminated, the General Fund would need to raise property taxes or cut spending by that amount.
Capital reserves and transfers
Several funds make annual contributions to capital reserve accounts and transfer money for capital projects. In FY27, capital-related transfers across the seven funds total $5,946,533. These funds also appear in the Capital Plans page, where the full seven-year project lists are broken out by fund.
Compensated absences
The General Fund transfers $100,000 annually to the Compensated Absences Fund. The Sewer Fund separately budgeted for compensated absence costs in prior years but shows $0 for FY27.
See also
- What does $57 million buy? — the General Fund operating budget
- Where does the money come from? — General Fund revenue, including admin charges from these funds
- Capital plans through 2033 — seven-year capital spending across all funds
- The City's debt — bond schedules including enterprise fund debt
Source: Fund-specific budget sections, pages 171–245 of the City of Keene FY27 Operating Budget. All figures are City Manager recommended unless otherwise noted.