KENNEBUNKPORT — The Kennebunkport Select Board voted unanimously Thursday night to amend a town ordinance regarding the operation of tour buses, essentially establishing a reservation system in an effort to manage congestion during peak tourism seasons.

The new system will require tour bus companies, or organizations in charge of their event planning, to book time slots to drop off and pick up passengers, with an estimate of how many people the bus will be carrying

It includes a $50 reservation fee.Violation of the ordinance would result in a $100 fine for a first offense.

The tour bus debate has sparked concerns in Kennebunkport’s business community, where some fear limiting the number of buses could drastically impact their earnings during crucial times of the year.

Initially, the Select Board had stated that the reservation system would have to wait until next year, but last week it announced it would implement the system for the upcoming season.

Ashley Padget, general manager of Alisson’s Restaurant in Dock Square, was one business owner surprised by the switch.

“ It’s hard enough to run a business in this town without every week wondering if you’re going to be making money in September and October,” Padget said in an interview Tuesday. “I have no idea right now what’s going to happen with the buses.”

The board explained at Thursday night’s meeting that the change occurred after the town discovered an efficient way to run the reservations.

“Our intent isn’t to limit the amount of buses,” board member Joseph Moan said. “It’s to actually facilitate the system so you can get more buses through more efficiently.”

Many businesses in Kennebunkport rely on tourism to remain open for the duration of the year, but some residents have spoken up about safety concerns with congestion and disregard for the current ordinance, which requires buses to shut off their engines and only park on the south side of Cross Street for 10 minutes to pick up or drop off passengers.

Additionally, the amendments prohibit the buses from parking on certain residential streets.

Bruce Hartford, operations manager at Portfire Events in York, spoke during the public comment period about a few concerns involving the reservation system. He said he loved the reservation idea but questioned the 6 p.m. stop time for tour buses written into the ordinance, noting that many tour groups often plan to have dinner in town.

The Select Board reworded the amendment to allow for an 8 p.m. stop time for the Ocean Avenue bus site while keeping the 6 p.m. cutoff at Cross Street due to its residential properties.

Prelude

The board also announced a nonbinding ballot question that will go before voters in June — members’ response to the recent discovery of a 40-year-old ordinance that prohibits the town from offering any municipal funds to commercial gatherings.

The ordinance, which establishes Christmas Prelude as a commercial gathering, requires that the organizers obtain a permit and ultimately pay the entire cost of putting on the event, including costs incurred by the town.

The ballot question offers the town a way to gauge voter opinion on the question of municipal funding for Prelude in 2026, as the board stated there would be no time to follow the proper legal process for an official ordinance amendment for the June referendum.

It will ask voters whether they want town funding to cover either none of the municipal costs of Prelude, up to $17,500 (covering roughly the first weekend) or up to $35,000 (covering most of the municipal costs).

Each board member emphasized their support for Prelude, and Selectman David Bancroft expressed how important it is to the fabric of the community. He and several fellow board members also explained that not only does the board not plan to cancel Prelude, it doesn’t even have that ability.

“The town of Kennebunkport supports Prelude. The town of Kennebunkport does not run Prelude,” Bancroft said. “The only people who are going to cancel Prelude are the businesses if they decide not to do it.”

At a meeting on March 19, Town Manager Laurie Smith explained that the difference between the Prelude ordinance and the bus ordinance is that state law allows the Select Board to amend traffic statutes, whereas a nontraffic statute like the town’s mass gathering ordinance must go through the town meeting process.

Tina Hewett-Gordon, president of the Kennebunkport Business Association, said she thought the proposed ballot draft presented at Thursday’s meeting was a “fair step in the right direction.”

She suggested the ballot question would benefit from some wording changes and emphasized the need for ongoing and constructive conversations, as well as education into the costs and impact of Prelude on the town.

However, to have enough time to put the question on the June ballot, the Select Board passed the language as it was written Thursday night.