City Manager Seitz presented fiscal-year 2026 personnel and fringe-benefit projections at a special City of Keene budget workshop (no action taken) and outlined proposed cost-of-living adjustments, new hires for public safety and development, and benefit-plan changes intended to reduce the city’s employer costs while preserving employee coverage.

Seitz said the session was informational only: "this is just a workshop... the goal is to educate, be transparent so that we can see what the needs of the department is, what the future needs are, and formulate a plan around that," and emphasized no votes would be taken at the meeting.

The proposal presented to council would include a 3% cost-of-living increase for directors and managers and a 5% increase for hourly staff, with existing step plans remaining for police and fire. The manager’s presentation also listed several proposed hires: a full-time marketing/PR position partially funded across departments, a development-services coordinator to speed permitting, and three new firefighter positions with a potential fourth position contingent on converting a current part-time role to full time.

Chief Warner detailed how a full-time fire marshal would expand inspection and prevention work and create revenue opportunities through existing fee schedules. "We just don't have the full time personnel where we can actually send somebody out and recoup some of that," Chief Warner said, describing fees for permits, plan reviews and inspections that the city is not currently capturing because of staffing limits. The current part-time fire marshal (Cheever) performs those duties on a 16-hour-a-week on-call basis, staff said.

City staff said the proposed fire hires are partially funded through negotiations with an Emergency Services District (ESD) grant. Seitz said the ESD would pay roughly 75% for the first two years, up to $65,000, with the ESD contribution dropping in year three and the city assuming full cost by year four. Seitz presented figures showing roughly $385,000 in total potential costs but an estimated city share of about $121,000 when ESD and other revenue sources are applied.

Human-resources and benefits staff (Sandra, staff member) summarized health- and ancillary-benefit negotiations. Sandra said UnitedHealthcare’s renewal produced "No plan change, no increase to the rates." She also reported a potential 13% reduction in medical costs if the city moves to the Texas Health Benefit Pool, which staff estimated could save roughly $103,000. Sandra described switching dental, vision, long-term disability and basic life coverage to Mutual of Omaha with projected savings in those lines totaling about $5,800.

Staff described a potential medical-expense-reimbursement plan (MERP) to reduce out-of-pocket costs for employees and possibly lower future premiums by rolling unused funds. Sandra explained the MERP analogy: "Instead of Johnny paying $20 because he got to meet his deductible, that MERP... is on a card like the HRA card, and Johnny goes, 'Here. Take it out.'" Staff said the city would continue to analyze MERP and other plan structures before a final recommendation.

Seitz also discussed retirement-plan options that could increase employer costs significantly; staff said adopting an 8% contribution with a 2-to-1 match would require finding several hundred thousand dollars and is not a priority in the current year. "I don't think this year is the year to do it," Seitz said, noting competing infrastructure needs.

Council members asked whether some hires could be filled internally and how quickly specialized candidates (for example, a full-time fire marshal) could be recruited. Fire staff said a hiring search might require outreach beyond current staff because of the specialized qualifications required. Captain Stroud asked about network-provider continuity under plan changes; staff said they would request provider-network lists from vendors and follow up.

No motions or votes were taken; Seitz said budget books with finalized numbers would be presented to council the following Thursday for review. The meeting closed with reminders of upcoming public meetings on Aug. 7, Aug. 21 (tentative), Sept. 4, Sept. 11 (tentative special meeting) and Sept. 18.