Keene City Council Concludes Budget with 8 Percent Property Tax Rise

The operating budget is set at around $80 million, with close to $33 million expected to come from property taxes.

In its recent meeting, the Keene City Council finalized the budget for fiscal year 2027, which includes an increase for the city's share of property taxes. The approved budget includes a rise of $1.13 per $1,000 in assessed value, raising the city’s tax rate to $14.74 per $1,000. This reflects an approximate increase of 8 percent compared to the previous year's rate.

The operating budget is set at around $80 million, with close to $33 million expected to come from property taxes. For a home valued at $300,000, this translates to an estimated tax payment of $4,422. Residents are advised that the overall tax rate, which incorporates the county, state education, and local education rates, may reach approximately $37.75 per $1,000, though this is subject to modifications due to an ongoing revaluation of properties around the city.

The conclusion of the budgetary process followed a two-month review that involved extensive discussions in various subcommittees along with a public hearing. The budget will be implemented starting July 1, marking the beginning of the new fiscal year.

Councilor Randy Filiault expressed his concerns regarding the pressures faced by local governments stemming from state actions that have transferred costs to municipalities, significantly impacting taxpayers. He acknowledged the dissatisfaction regarding tax levels and urged community members to voice their concerns to state leaders.

City Manager Elizabeth Ferland noted that the tax rate is not yet finalized and could undergo changes once the city completes its mandated reassessment of property values, which is required every five years. The last revaluation in Keene occurred in 2021. The definitive tax rate should be established by this fall after the revaluation process is concluded.

The budget includes provisions primarily tied to employment costs, reflecting agreements with unions. Key changes involve the addition of four firefighters, boosting staffing to 13 personnel per 24-hour shift. The general fund, crucial for day-to-day operations, will total around $57 million, representing an 8 percent rise from the current fiscal period. This fund supports various city operations, encompassing public safety, administration, and maintenance of facilities.

The city will generate its property taxes primarily for the general fund, while other operating funds are financed through user fees from services such as water and sewer management, solid waste collection, and parking.

Additionally, the City Council has authorized bond allocations for ten capital improvement projects slated for fiscal 2027. Among these, nearly $4 million is designated for downtown infrastructure improvements, complemented by funds from the general, water, and sewer accounts. Other bonds include about $3.5 million for improving stormwater resilience, $1.4 million for sewer enhancements in the downtown area, $1.7 million for bettering water distribution, $440,000 for the Gilbo Avenue Solar Pavilion, and $500,000 allocated for roadway maintenance and rehabilitation. The council had already approved these ventures in April under the capital improvement program covering 2027-2033.