Keane city budget analysis highlights expected sales tax growth with new retailers

The City Council of Keene, Texas, held a budget workshop on July 10, 2025, focusing on the fiscal year 2026 budget. Key discussions revolved around projected revenues, including property tax, sales tax, and franchise tax, as well as strategies for managing city finances.

During the meeting, council members reviewed the adopted budget for 2025 and discussed projections for property tax growth, estimating a conservative increase of 2.5% pending the July 25 tax roll. The council acknowledged that sales tax revenue targets had not been met in previous years, set at $680,000. However, optimism was expressed regarding the potential impact of two unnamed major retailers expected to open in Keene, which could boost sales tax revenues beyond projections.

Franchise tax contributions were also discussed, with specific figures provided for major contributors such as Encore and United Co-op. The council noted that miscellaneous income, primarily from interest, had been budgeted conservatively, with a significant reduction anticipated from previous years due to the absence of refunds from Blue Cross Blue Shield.

A highlight of the meeting was the successful negotiation of a fixed 4% interest rate for the city's money market accounts, which was seen as a positive step in managing city funds amid fluctuating market conditions. The council emphasized the importance of securing favorable interest rates to maximize returns on city investments.

Overall, the workshop underscored the council's commitment to prudent financial planning and the anticipation of increased revenues from new retail developments, setting a hopeful tone for the upcoming fiscal year.