Governor and Executive Council Agenda item PDF - 2026-03-04 - agenda 45

Meeting Date

2026-03-04

Attachment Kind Label

Agenda item PDF

Attachment Relation

primary_meeting_attachment

Agenda Numbers

45

Agency Names

Department Of Natural And Cultural Resources

Parent Meeting Title

Governor and Executive Council meeting - 2026-03-04

State of New Hampshire

DEPARTMENT OF NATURAL & CULTURAL RESOURCES

DIVISION OF PARKS & RECREATION

172 Pembroke Road Concord, New Hampshire 03301

Phone: 603-271-3556 Fax: 603-271-3553

TDD Access: Relay NH 1-800-735-2964

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January 29, 2026

The Honorable Ken Weyler, Chairman

Fiscal Committee of the General Court and

Her Excellency, Governor Kelly A. Ayotte

and the Honorable Executive Council

State House

Concord, New Hampshire 03301

REQUESTED ACTION

Pursuant to RSA 14:30-a, VI, authorize the Department of Natural and Cultural Resources, (DNCR) Division of Parks and

Recreation, Cannon Mountain Aerial Tramway & Ski Area, to budget and expend prior-year carryforward funds between

and among Cannon Mountain Operations and Retail/Concessions accounts from the Cannon Mountain Ski Account, in the

amount of $750,000, for the purpose of aligning appropriations with actual operating requirements across established

class lines, effective upon Fiscal Committee and Governor and Executive Council approval through June 30, 2026. 100%

Cannon Mountain Ski Account Funds.

Funds are to be budgeted in Fiscal Year 2026 in the following accounts:

03-35-35-351510-37030000 Cannon Mountain

Class-Account-

Revenue Group Class Description

FY26 Current

Adjusted

Authorized

Requested

Action

Revised FY26

Adjusted

Authorized

003-402021-26 Franconia Notch Concession $280,000 $0 $280,000

007-402193-28 Sale of Services Income $0 $600,000 $600,000

009-402032-26 Ski Area Income $8,999,178 $8,999,178

Total Revenue $9,279,178 $600,000 $9,879,178

010-500100 Personal Services Perm Clas $925,156 $925,156

011-500126 Personal Services Unclassif $101,478 $101,478

018-500106 Overtime $120,000 $120,000

019-500105 Holiday Pay $27,000 $27,000

020-500200 Current Expenses $803,624 $200,000 $1,003,624

022-500255 Rents-Leases Other Than Sta $720,432 $720,432

023-500264 Heat Electricity Water $1,190,000 $400,000 $1,590,000

024-500228 Maint Other Than Build-Grn $140,000 $140,000

026-500251 Organizational Dues $45,000 $45,000

027-582703 Transfers To Doit $139,915 $139,915

029-500290 Intra-Agency Transfers $1,000 $1,000

030-500311 Equipment New Replacement $123,993 $123,993

039-500180 Telecommunications $50,000 $50,000

040-501587 Indirect Costs $74,691 $74,691

042-500620 Additional Fringe Benefits $129,700 $129,700

044-500400 Debt Service Other Agencies $37,922 $37,922

047-500240 Own Forces Maint Build-Grn $157,005 $157,005

049-584914 Transfer To Other State Age $5,000 $5,000

050-500109 Personal Service Temp Appoi $1,500,000 $1,500,000

059-500117 Temp Full Time $594,610 $594,610

060-500601 Benefits $1,218,265 $1,218,265

061-500536 Unemployment Compensation $5,000 $5,000

062-500538 Workers Compensation $150,000 $150,000

066-500543 Employee Training $7,000 $7,000

069-500567 Promotional Marketing Exp $332,142 $332,142

070-500703 In State Travel Reimburseme $2,000 $2,000

080-500710 Out Of State Travel Reimb $1,500 $1,500

103-500736 Contracts For Op Services $441,995 $441,995

211-501530 Catastrophic Casualty Ins $234,750 $234,750

Total Expenses $9,279,178 $600,000 $9,879,178

03-35-35-351510-37040000 Cannon Retail & Concessions

Class-Account-

Revenue Group Class Description

FY26 Current

Adjusted

Authorized

Requested

Action

Revised FY26

Adjusted

Authorized

003-402021-26 Franconia Notch Concession $1,146,941 $0 $1,146,941

007-402193-28 Sale of Services Income $0 $150,000 $150,000

009-402032-26 Ski Area Income $65,000 $0 $65,000

Total Revenue $1,211,941 $150,000 $1,361,941

EXPENSE

018-500106 Overtime $5,000 $5,000

019-500105 Holiday Pay $3,500 $3,500

020-500200 Current Expenses $31,300 $31,300

023-500291 Heat Electricity & Water $5,000 $5,000

024-500228 Maint. Othern than B&G $1,000 $1,000

026-500251 Organizational Dues $150 $150

030-500300 Equipment $10,000 $10,000

042-500620 Additional Fringe Benefits $7,815 $7,815

047-500240 Own Force Maint. B&G $1,000 $1,000

048-500226 Contractural Maint. B&G $1,000 $1,000

050-500109 Personal Services/Temp $450,000 $450,000

059-500117 Full Time Temp $97,677 $97,677

060-500602 Benefits $115,999 $115,999

062-500538 Workers Compensation $5,000 $5,000

070-500705 In-State Travel $1,500 $1,500

080-500710 Out of State Travel $1,000 $1,000

103-502664 Contracts for Oper Service $0 $0

106-500746 Goods for Resale $475,000 $150,000 $625,000

Total Expenses $1,211,941 $150,000 $1,361,941

EXPLANATION

As the fiscal year progresses, Cannon Mountain routinely manages operating activity across multiple state-required class

lines that were established at the start of the biennium. As a high-volume, weather-dependent enterprise operation.

Cannon Mountain experiences both timing variances and permanent variances throughout the fiscal year, particularly

within repair, maintenance, utilities, and service-related expense categories.

Internally, Cannon Mountain manages a zero-based operating budget and monitors expenditures holistically across the

enterprise. However, under state budgeting requirements, expenditures must be authorized and expended within fixed

class lines that were appropriated approximately eighteen months in advance. As operational conditions evolve, periodic

transfers between class lines are necessary to ensure appropriations accurately reflect actual business activity.

Cannon Mountain is therefore requesting authorization to withdraw $750,000 from the Cannon Mountain Ski Account

retained earnings to reinforce three operating class lines - Current Expenses (020), Heat, Electricity, and Water (023), and

Goods for Resale (106) - where expenditures are tracking ahead of original appropriations due to a combination of

permanent and timing variances, while overall enterprise performance remains strong.

Cannon Mountain's account balance at the close of Fiscal Year 2025 was approximately $1.2 million. The requested

transfer represents a prudent use of retained earnings to manage class-line alignment while maintaining a healthy reserve.

Based on current revenue projections and winter performance to date. Cannon Mountain anticipates sufficient operating

strength to support this adjustment.

CLASS-SPECIFIC JUSTIFICATION

Class 020 - Current Expenses

Additional appropriation is requested to address a permanent variance related to credit card processing fees. At the

beginning of the biennium. Cannon Mountain anticipated offsetting these fees directly through revenue, similar to

commission-based expenses. Upon further review, it was determined that these fees must be expended within Class 020,

resulting in a permanent variance of approximately $262,000 within this class line.

Class 023 - Heat, Electricity, and Water

During the current fiscal year. Cannon Mountain experienced an unprecedented early-season snowmaking window,

resulting in higher-than-anticipated kilowatt (kW) usage and utility expense, representing primarily a timing variance. This

was a deliberate operational decision that enabled the mountain to open earlier and more fully than at any point in over

a decade. The resulting increase in utility costs is expected to be offset by increased visitation and revenue generated by

early and expanded operations.

Class 106- Goods for Resale

Additional appropriation is requested in Class 106 to address timing variances related to inventory procurement and

internal reallocations. Inventory purchases to support winter guest service levels were committed earlier in the fiscal year

than anticipated. In addition, $175,000 was transferred from this class to support a one-time uniform replacement

initiative, authorized in advance to ensure continuity of operations ahead of anticipated revenue constraints related to

the Aerial Tramway. This request replenishes the Goods for Resale class to align appropriations with committed inventory

levels through the remainder of the fiscal year.

This request reflects routine class-line management within a dynamic, enterprise-funded operation. It does not represent

an increase in overall spending authority beyond retained earnings, nor does it involve General Fund dollars. Rather, it

ensures that appropriations accurately align with actual operating conditions while maintaining fiscal discipline and

operational continuity.

Thank you for your consideration.

Respectfully submitted,

ah L. Stewart

Commissioner