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Staff flag tighter non‑tax revenues, new solar reimbursement and possible impact‑fee revenue
Summary
Finance staff showed a roughly $65,000 projected decrease in non‑tax revenues for FY27 but said core revenues rise if the rainy‑day transfer is excluded; they also noted a new state solar reimbursement (~$29,000) and discussed impact fees as a future revenue source for capital needs.
At the South Berwick budget workshop, finance staff reviewed revenue assumptions driving the FY27 draft budget and highlighted several items councilors should note.
The packet shows a projected decrease of about $65,000 in non‑tax revenues for FY27. Staff explained that number is driven primarily by a planned draw from the undesignated fund in the current year; if that transfer is excluded, other revenue sources increase by roughly $402,000. "The major delta as mentioned was that undesignated fund transfer," Tim said.
Jen outlined line‑item changes: vehicle excise tax is budgeted up $50,000 year‑over‑year and homestead reimbursement from the state is reduced by about $21,000. Staff also flagged an unexpected state solar energy reimbursement of approximately $29,000 this year and said they conservatively budgeted $25,000 for next year.
Councilors discussed impact fees as a future mechanism to offset incremental capital costs related to growth. Staff cautioned impact fees may not be applied to ongoing operating costs but could help cover future capital items such as facility expansions.
Why it matters: revenue assumptions determine the size of the property‑tax increase councilors will ask voters to approve. Staff recommended conservative forecasting and planned follow‑up with department heads and the fire chief for areas where revenue and cost assumptions carry uncertainty.
Next steps: staff will provide detailed worksheets and answer line‑item questions in department hearings; councilors asked staff to continue refining revenue sources and bring clarifying evidence for key estimates before finalizing the packet.
