Keene Finance Committee backs tax breaks, public works funding and housing plan

City staff endorsed the request, saying it fits the city’s housing revitalization goals.

The Keene City Council’s Finance, Organization and Personnel Committee moved a wide range of proposals forward Thursday, sending tax relief measures, infrastructure spending and housing-related requests to the full council for review.

Among the biggest items was a plan for 429 Elm St. that would give about four years of property tax relief to support the conversion of a historic barn into two rental apartments. George Hansel, speaking for property owners Cheryl and Joe Bagster, said the roughly $200,000 project would increase the number of apartments on the site from three to five by adapting the existing structure. City staff endorsed the request, saying it fits the city’s housing revitalization goals.

The committee also approved an ordinance creating a new legal assistant position to replace a paralegal who is retiring.

Public works spending drew several favorable votes as well. Members gave the city manager authority to negotiate a change order worth as much as $150,000 with Lakes Region Fuel Systems for extra work tied to the Martell Court Pump Station fuel tank replacement. City Engineer Brian Ruof said using the current contractor would be more efficient and less costly than rebidding the job.

In another infrastructure move, the committee agreed to shift $50,000 in unused money from the Martell Court Sewer Force Main Inspection Project to the Island Street Sewer Improvement Project so repairs can be made to the collapsed Pearl Street sewer main. Members also supported a change order of up to $1,000,330 for McFarland Johnson to handle added engineering services, including help with right-of-way acquisition, for the Lower Winchester Street Reconstruction Project.

Tax policy changes were also approved, including higher income and asset limits for elderly, disabled, blind and deaf or severely hearing-impaired residents seeking property tax exemptions.

The committee additionally raised the city’s optional veterans tax credit and combat service credit. The committee unanimously backed a request from the Yankee Bottle Club for a historical marker along the Cheshire Rail Trail honoring the Keene Glass Company. Steve Saraichick, a Keene native and longtime antique bottle collector representing the club, said existing markers do not adequately reflect the significance of the Marble Street Glass Factory to the city’s industrial past. The Heritage Commission, Historic District Commission and Bicycle and Pedestrian Path Advisory Committee have all already supported the idea. The Heritage Commission has offered $500, the Yankee Bottle Club has pledged $200, and the club plans to raise the remaining money.

Much of the meeting also centered on proposed updates to city fiscal rules, including nonprofit funding standards, budget preparation procedures, capital project reporting and ambulance billing practices. A lengthy debate focused on how revenue from land use change taxes should be directed to the Conservation Fund. Instead of voting on the full package, the committee placed the fiscal policy revisions on more time so staff can revise the language before the matter returns for further review.

All of the committee’s recommendations now go to the full Keene City Council.