Where does the money come from?
The City of Keene's General Fund collects revenue from seven categories. For fiscal year 2027, the City Manager recommends total General Fund revenue of $57,011,251, up $3,812,890 (+7.2%) from the FY26 adopted budget of $53,198,361. Property taxes are the largest single source, accounting for 61% of General Fund revenue. The remaining 39% comes from fees, state aid, service charges, investment income, and transfers from reserves and enterprise funds.
The General Fund is the City's main operating account — it pays for police, fire, public works, the library, parks, city administration, and debt service. It is distinct from the seven enterprise and internal service funds (Water, Sewer, Solid Waste, Parking, Equipment, PC Replacement, and Compensated Absences) that have their own revenue sources. Those funds are covered separately on the other funds page.
Source: General Fund Revenue Line Item by Category, pages 17–20 of the FY27 budget.
Revenue by category
The seven revenue categories and their FY27 City Manager recommended totals, compared to the FY26 adopted budget.
| Category | FY26 Budget | FY27 Recommended | Change ($) | Change (%) | Share |
|---|---|---|---|---|---|
| Taxes | $32,644,688 | $34,679,800 | +$2,035,112 | +6.2% | 60.8% |
| Licenses, Permits & Fees | $4,471,819 | $4,621,819 | +$150,000 | +3.4% | 8.1% |
| Intergovernmental | $3,767,264 | $4,003,216 | +$235,952 | +6.3% | 7.0% |
| Charges for Services | $2,819,219 | $2,867,086 | +$47,867 | +1.7% | 5.0% |
| Miscellaneous | $2,253,525 | $2,565,371 | +$311,846 | +13.8% | 4.5% |
| Other Financing Sources | $7,176,936 | $8,209,049 | +$1,032,113 | +14.4% | 14.4% |
| Fines & Forfeits | $64,910 | $64,910 | $0 | 0.0% | 0.1% |
| Total | $53,198,361 | $57,011,251 | +$3,812,890 | +7.2% | 100.0% |
At a glance
Taxes
Property taxes, payments in lieu of taxes (PILOT), Tax Increment Financing (TIF) revenue, timber yield taxes, and interest on late tax payments.
Net property tax revenue of $32,434,768 accounts for 57% of all General Fund revenue. The FY27 figure is up $2,127,153 (+7.0%) from the FY26 adopted budget. For a breakdown of how property taxes translate into the tax rate residents pay, see What's on your tax bill?
Payment in Lieu of Taxes (PILOT) is revenue from tax-exempt institutions — colleges, hospitals, certain nonprofits — that make voluntary or negotiated payments to the City rather than paying property taxes they don't owe. FY27 PILOT revenue is budgeted at $1,500,000, up from $1,440,000 in FY26.
Tax Increment Financing (TIF) captures property tax revenue from designated development districts and uses it to fund improvements within those districts. TIF revenue is budgeted at $485,032 in FY27, down from $1,086,549 in FY25 actual — a 55% decline. The FY27 budget does not explain the decline. For more on questions this raises, see the Questions page.
| Line Item | FY26 Budget | FY27 Recommended | Change ($) | Change (%) |
|---|---|---|---|---|
| Tax-Net Property | $30,307,615 | $32,434,768 | +$2,127,153 | +7.0% |
| Tax-Payment In Lieu | $1,440,000 | $1,500,000 | +$60,000 | +4.2% |
| Tax-Increment Financing | $639,073 | $485,032 | -$154,041 | -24.1% |
| Tax-Interest | $250,000 | $250,000 | $0 | 0.0% |
| Tax-Timber Yield | $8,000 | $10,000 | +$2,000 | +25.0% |
| Total Taxes | $32,644,688 | $34,679,800 | +$2,035,112 | +6.2% |
Source: pages 17–18 of the FY27 budget.
Licenses, Permits & Fees
Motor vehicle registrations, building permits, health licenses, planning fees, and other regulatory fees collected by the City.
Motor vehicle registration fees account for $3,800,000 of this category's $4,621,819 total — about 82%. The FY27 figure is up $150,000 from FY26.
| Line Item | FY26 Budget | FY27 Recommended | Change ($) | Change (%) |
|---|---|---|---|---|
| Permits-Motor Vehicle | $3,650,000 | $3,800,000 | +$150,000 | +4.1% |
| Fee-Permits | $488,700 | $488,700 | $0 | 0.0% |
| Fee-Tranportation Imp Fund | $99,000 | $99,000 | $0 | 0.0% |
| Fee-Municipal Agent Fee | $62,000 | $62,000 | $0 | 0.0% |
| Fee-Health Food Licenses | $51,900 | $51,900 | $0 | 0.0% |
| Fees-State Vital Records | $30,000 | $30,000 | $0 | 0.0% |
| Fee-Planning Board | $19,274 | $19,274 | $0 | 0.0% |
| Permits-Haz Mat Storage | $19,000 | $19,000 | $0 | 0.0% |
| Fees-Dog Licenses | $13,000 | $13,000 | $0 | 0.0% |
| Fee-Miscellaneous | $11,500 | $11,500 | $0 | 0.0% |
| Fees-City Licenses | $8,000 | $8,000 | $0 | 0.0% |
| Fee-Mail-In & E-Reg | $8,000 | $8,000 | $0 | 0.0% |
| Fee-Zba | $5,000 | $5,000 | $0 | 0.0% |
| Fee-Clss Licenses | $4,125 | $4,125 | $0 | 0.0% |
| Fee-NSF Check | $1,350 | $1,350 | $0 | 0.0% |
| Permits-Pistols | $620 | $620 | $0 | 0.0% |
| Fee-Historic Dist Comm | $350 | $350 | $0 | 0.0% |
| Total Licenses, Permits & Fees | $4,471,819 | $4,621,819 | +$150,000 | +3.4% |
Source: pages 17–18 of the FY27 budget.
Intergovernmental
Revenue from other levels of government — state shared taxes, highway aid, reimbursements from the school district and other towns, and federal reimbursements.
The Meals and Rooms Tax is a state tax on prepared meals and hotel lodging. New Hampshire returns a portion of the collected tax to municipalities based on population. Keene's FY27 budget includes $2,338,753 in Meals and Rooms tax revenue, up from $2,189,903 in FY26.
The City also receives $680,073 from the State related to Keene State College, and $475,000 in state highway aid.
| Line Item | FY26 Budget | FY27 Recommended | Change ($) | Change (%) |
|---|---|---|---|---|
| State-Rooms & Meals | $2,189,903 | $2,338,753 | +$148,850 | +6.8% |
| State-Keene State College | $668,800 | $680,073 | +$11,273 | +1.7% |
| State-Highway | $482,866 | $475,000 | -$7,866 | -1.6% |
| Local-Other Towns | $200,000 | $200,000 | $0 | 0.0% |
| Local-Keene School District | $133,630 | $194,360 | +$60,730 | +45.4% |
| County-JCC & YIP | $51,180 | $51,180 | $0 | 0.0% |
| State-Flood Control | $30,885 | $30,885 | $0 | 0.0% |
| State-Other | $0 | $22,965 | +$22,965 | 0.0% |
| State-Aeronautical | $10,000 | $10,000 | $0 | 0.0% |
| Total Intergovernmental | $3,767,264 | $4,003,216 | +$235,952 | +6.3% |
Source: pages 18–19 of the FY27 budget.
Charges for Services
Fees the City charges for specific services: ambulance transport, recreation programs, fire alarm monitoring, cemetery interments, airport operations, and other direct services.
Ambulance transport fees account for $1,900,000 of the category's $2,867,086 total — about 66%. This line is unchanged from FY26.
| Line Item | FY26 Budget | FY27 Recommended | Change ($) | Change (%) |
|---|---|---|---|---|
| Charges-Ambulance Services | $1,900,000 | $1,900,000 | $0 | 0.0% |
| Direct Reimbursement | $475,696 | $481,763 | +$6,067 | +1.3% |
| Charges-Programs | $149,602 | $189,602 | +$40,000 | +26.7% |
| Charges-Fire Master Box | $55,488 | $55,488 | $0 | 0.0% |
| Charges-Interments | $38,000 | $38,000 | $0 | 0.0% |
| Charges-Records Center | $29,773 | $29,773 | $0 | 0.0% |
| Charges-Aviation Fueling | $24,000 | $24,700 | +$700 | +2.9% |
| Charges-Fingerprints | $22,500 | $22,500 | $0 | 0.0% |
| Charges-Pools | $21,500 | $21,500 | $0 | 0.0% |
| Charges-Library Non Resident | $18,800 | $18,800 | $0 | 0.0% |
| Charges-Rental Rec Center | $16,300 | $16,300 | $0 | 0.0% |
| Charges-Ball Fields | $15,500 | $15,500 | $0 | 0.0% |
| Charges-Airport Gross Revenue | $15,000 | $15,500 | +$500 | +3.3% |
| Charges-Accident Reports | $11,000 | $11,000 | $0 | 0.0% |
| Charges-Airport Landing | $10,000 | $10,300 | +$300 | +3.0% |
| Charges-Excavation | $4,000 | $4,000 | $0 | 0.0% |
| SSI Interim Assistance | $2,500 | $2,500 | $0 | 0.0% |
| Medicaid Reimbursements | $2,500 | $2,500 | $0 | 0.0% |
| Charges-Equipment | $1,500 | $1,500 | $0 | 0.0% |
| Charges-Small Wireless (Swf) | $1,350 | $1,350 | $0 | 0.0% |
| Charges-Rental Library | $900 | $1,200 | +$300 | +33.3% |
| Charges-Reports | $1,150 | $1,150 | $0 | 0.0% |
| Charges-Photos/Tapes | $1,050 | $1,050 | $0 | 0.0% |
| Charges-Public Way Impediment | $500 | $500 | $0 | 0.0% |
| Charges-Drain Connect Permit | $500 | $500 | $0 | 0.0% |
| Charges-Criminal Records Check | $50 | $50 | $0 | 0.0% |
| Charges-Police Discoveries | $50 | $50 | $0 | 0.0% |
| Charges-Log Search | $10 | $10 | $0 | 0.0% |
| Total Charges for Services | $2,819,219 | $2,867,086 | +$47,867 | +1.7% |
Source: pages 19–20 of the FY27 budget.
Miscellaneous
Interest on invested funds, rental income from City-owned property (including airport facilities), and distributions from trust funds.
Interest earnings on invested funds account for $1,375,000 of this category, up from $1,250,000 in FY26. Airport rental income — from the wastewater treatment plant lease, T-hangars, land, terminal, and fuel farm — totals $531,700.
| Line Item | FY26 Budget | FY27 Recommended | Change ($) | Change (%) |
|---|---|---|---|---|
| Interest Earnings | $1,250,000 | $1,375,000 | +$125,000 | +10.0% |
| Rent-350 Marlboro | $259,276 | $259,276 | $0 | 0.0% |
| Trust-Cemetery | $106,252 | $254,000 | +$147,748 | +139.1% |
| Rent-Airport Wwtp | $222,758 | $229,400 | +$6,642 | +3.0% |
| Rent-Airport T-Hangar | $154,373 | $159,000 | +$4,627 | +3.0% |
| Rent-Airport Land | $88,195 | $90,800 | +$2,605 | +3.0% |
| Rent-City Hall | $65,000 | $65,000 | $0 | 0.0% |
| Rent-Airport Terminal | $31,131 | $32,100 | +$969 | +3.1% |
| Rent-Transportation Center | $26,000 | $26,000 | $0 | 0.0% |
| Other | $100 | $22,193 | +$22,093 | +22093.0% |
| Rent-Fuel Farm | $19,785 | $20,400 | +$615 | +3.1% |
| Trust-Sumner Knight Chpl | $3,710 | $6,500 | +$2,790 | +75.2% |
| Public Printer Copier Fee | $6,300 | $6,300 | $0 | 0.0% |
| Trust-Flower Fund | $4,648 | $4,200 | -$448 | -9.6% |
| Trust-Downtown Memorial Tree | $3,825 | $3,825 | $0 | 0.0% |
| Trust-Parks & Rec | $4,545 | $3,750 | -$795 | -17.5% |
| Trust-Charitable | $3,625 | $3,625 | $0 | 0.0% |
| Trust-Library | $3,500 | $3,500 | $0 | 0.0% |
| Trust-Deluge Hose | $302 | $302 | $0 | 0.0% |
| Copies | $100 | $100 | $0 | 0.0% |
| Maps Blueprints Etc | $100 | $100 | $0 | 0.0% |
| Total Miscellaneous | $2,253,525 | $2,565,371 | +$311,846 | +13.8% |
Source: page 20 of the FY27 budget.
Other Financing Sources
Transfers into the General Fund from other sources: draws on fund balance (surplus), capital reserve funds, administrative charges to enterprise funds, and proceeds from property sales. This is the most complex revenue category and the one that benefits most from explanation.
Use of fund balance (surplus)
The City is drawing $3,842,085 from fund balance to help balance the FY27 budget. Of this total, $850,000 is an operating draw — the amount by which recurring expenditures exceed recurring revenue. The remainder funds capital appropriations and other one-time items. The City Manager's transmittal memo describes this use of fund balance as "strategic, short-term" and notes it is "not sustainable long term." For more on the structural questions this raises, see the Questions page.
The budget's revenue schedule (page 20) combines operating and capital draws into a single $3,842,085 line item. The $850,000 operating figure comes from the City Manager's transmittal memo.
Capital reserve transfers
The General Fund receives $1,784,100 from capital reserve funds in FY27, down from $2,236,500 in FY26. Capital reserves are funds set aside in prior years for specific future capital expenditures.
Administrative charges to enterprise funds
Enterprise funds — Water, Sewer, Solid Waste, Parking, and Equipment — pay the General Fund for shared services like administration, finance, IT, and facilities. These charges total $2,528,129 in FY27, broken out as follows:
| Enterprise Fund | FY26 Budget | FY27 Recommended | Change ($) |
|---|---|---|---|
| Sewer | $749,177 | $777,938 | +$28,761 |
| Solid Waste | $580,270 | $647,716 | +$67,446 |
| Water | $771,382 | $548,127 | -$223,255 |
| Equipment | $376,252 | $409,062 | +$32,810 |
| Parking | $117,674 | $145,286 | +$27,612 |
| Total Admin Charges | $2,594,755 | $2,528,129 | -$66,626 |
These are not new revenue — they represent cost recovery. Enterprise fund ratepayers (water customers, sewer users, etc.) contribute to the cost of shared services that support all City operations.
Other items
The category also includes $50,000 from Special Revenue Fund transfers, $4,685 from the sale of found property, and $50 from surplus property sales.
| Line Item | FY26 Budget | FY27 Recommended | Change ($) | Change (%) |
|---|---|---|---|---|
| Use (Addition) To Surplus | $2,340,946 | $3,842,085 | +$1,501,139 | +64.1% |
| Capital Reserve | $2,236,500 | $1,784,100 | -$452,400 | -20.2% |
| Admin Chg - Sewer | $749,177 | $777,938 | +$28,761 | +3.8% |
| Admin Chg - Solid Waste | $580,270 | $647,716 | +$67,446 | +11.6% |
| Admin Chg - Water | $771,382 | $548,127 | -$223,255 | -28.9% |
| Admin Chg - Equipment | $376,252 | $409,062 | +$32,810 | +8.7% |
| Admin Chg - Parking | $117,674 | $145,286 | +$27,612 | +23.5% |
| Special Revenue Fund | $0 | $50,000 | +$50,000 | 0.0% |
| Sale of Found Property | $4,685 | $4,685 | $0 | 0.0% |
| Property Surplus Sale | $50 | $50 | $0 | 0.0% |
| Total Other Financing Sources | $7,176,936 | $8,209,049 | +$1,032,113 | +14.4% |
Source: page 20 of the FY27 budget.
Fines & Forfeits
Court fines, false alarm penalties, code violations, and forfeited property — the smallest revenue category.
Total Fines & Forfeits revenue is unchanged at $64,910 in FY27.
| Line Item | FY26 Budget | FY27 Recommended | Change ($) | Change (%) |
|---|---|---|---|---|
| Fines-Court | $23,500 | $23,500 | $0 | 0.0% |
| Fines-False Alarm | $20,610 | $20,610 | $0 | 0.0% |
| Charges-Evidence / Property | $7,000 | $7,000 | $0 | 0.0% |
| Fines-Library Overdue | $5,800 | $5,800 | $0 | 0.0% |
| Forfeit-Dog | $4,500 | $4,500 | $0 | 0.0% |
| Lost Library Materials | $2,800 | $2,800 | $0 | 0.0% |
| Violations-Code | $500 | $500 | $0 | 0.0% |
| Violations-Fire Code | $200 | $200 | $0 | 0.0% |
| Total Fines & Forfeits | $64,910 | $64,910 | $0 | 0.0% |
Source: page 20 of the FY27 budget.
See also
- What does $57 million buy? — where the General Fund money goes
- What's on your tax bill? — how property taxes break down into four components
- The City's debt — bonds, schedules, and the fiscal policy ceiling
- Questions the budget raises — structural questions about fund balance, revenue diversification, and more
Source: General Fund Revenue Line Item by Category, pages 17–20 of the FY27 budget. All figures are City Manager recommended unless otherwise noted.