Keene staff outline revenue mix, warn ARPA funds are one-time

Keene finance staff presented projected revenue sources for the fiscal year 2025–26 at a July 10 special budget workshop, telling the City Council that property tax makes up the majority of the city’s ongoing revenue and that a large American Rescue Plan Act reimbursement recorded in the current year should not be counted as recurring income.

The presentation, led by Finance Director Mary and introduced by the city manager, showed that 53% of year‑to‑date revenue came from property tax, 11% from sales tax (after local allocations), and an unusually large 31% of revenues categorized as “other miscellaneous income.” Staff said much of that miscellaneous revenue reflected a one‑time ARPA reimbursement of about $858,000 and a one‑time Blue Cross Blue Shield refund of roughly $88,000.

City staff said counting the ARPA reimbursement as recurring revenue would overstate the city’s baseline finances and urged a conservative budgeting approach. “ARPA was completely obligated and fully expended as of April 29,” the presenter said; staff flagged the need to remove that amount from baseline revenue assumptions going forward.

City manager and finance staff framed the workshop as the start of a multistep budget process that will push departments to justify service levels and itemize recurring…