Manager cites revenue shifts — ambulance-billing changes, state revenue sharing and a $7.2M fund-balance impact — as risks to next year’s budget

Town Manager Paul Macali reviewed the revenue side of the ledger and highlighted several items the council should consider when deliberating the budget.

Macali said a recent change in state rules for ambulance billing allows the town to bill at higher rates; he indicated the finance team will present a fuller explanation and revenue projection at a subsequent meeting but that he expects ambulance fees to increase by $250,000–$300,000 in the coming year under the new rules.

He said state rooms-and-meals revenue-sharing has historically underperformed guidance and that legislative adjustments in Concord have altered earlier cap structures; towns learn final distributions in September or October, so the number remains uncertain for the current deliberation.

Macali also told the council the town experienced a notable loss to fund-balance interest: a roughly $7.2 million reduction after a payment tied to an outlet-mall lawsuit that reduced funds available to earn pooled interest; he said this lowered projected investment income and constrained discretionary capacity.

The manager urged the council to treat revenue estimates conservatively, noting the town will revisit revenues in September when state-shared figures are finalized and staff will model updated ambulance-fee projections once policy changes are fully implemented.

Ending: Finance will present updated revenue scenarios at a later meeting, and the council will incorporate those figures in final deliberations.