Keene finance director outlines FY2027 budget, GASB 103 changes and expanded water/sewer CIP

Keene — City staff used a budget workshop to explain forthcoming accounting changes under GASB 103 and to present proposed FY2027 operating and capital budgets that would increase total spending and reclassify capital items by fund.

Mira, the finance director, told the council GASB 103 requires more detailed management discussion and that the city will report by fund rather than by department. She said the city is budgeting roughly a 3% increase to cover inflation and that the proposed FY2027 combined budgets reflect about a 10% variance from 2026, driven in part by capital reclassifications.

"Most cities right now are preparing for GASB 103," Mira said, adding it will force more detailed, fund‑level reporting and separate capital items into a distinct CIP fund.

Mira reviewed a range of capital projects. For water and sewer the packet identified a total roughly in the $600,000 range (staff cited $607,980 and later references around $989,180 when combined items are tallied) covering sewer replacement on Old Betsy, other line relocations or replacements, and a proposed belt press with awning at the sewer plant (presented as roughly $300,000) to improve solids dewatering and reduce the risk of future permit violations. A staff member explained a belt press will dewater solids more efficiently than the city's current box, reducing hauling weight and operational strain.

Council asked for clarification on project descriptions and carryover funding: in one instance staff said $100,000 had been budgeted previously for a sewer project but the current line‑item for next year should show a $38,000 carryover; councilmembers requested the figures be reconciled so the packet accurately reflects prior commitments and carryovers.

Mira also reviewed debt and EDC CIP items, noting the debt amortization schedule requires approximately $785,127 in payments this year and that EDC funds will support sidewalks, skate‑park work, park lighting and outdoor warning signs from available EDC cash reserves. She told the council that some EDC projects are already under procurement and that the EDC accounts have sufficient balances to cover planned CIP requests.

On utility policy, Mira walked the council through the city's financial policy on transfers from the water/sewer utility fund to the general fund, noting an administrative allocation can be up to 10% of the general fund. Staff emphasized the last water rate change occurred in 2009 and that enterprise costs have historically been underfunded by operating practice; modeling and potential rate adjustments were identified as issues for upcoming revenue discussions.

The finance director asked for a one‑time temporary services contract (about $20,000) to bring in outside help and accelerate audit readiness and accounting corrections. She said staff prefers process fixes and short‑term consulting rather than adding permanent positions.

What comes next: council scheduled follow‑up meetings to separate employee‑cost and fringe‑benefit discussions (July 28) from revenue discussions (July 30), when staff expects certified values and will present revenue options and how to apply them to the FY2027 wish list.