The City Manager introduced the proposed fiscal year 2026 operating budget at the Keene City Council meeting on May 1, presenting a plan that is $468,506 below the council's fiscal policy limit and anticipates a 2.06% increase in the city's portion of the property tax rate — approximately $0.27 per $1,000 of assessed value.

The proposed budget includes four additional firefighters (one per shift), a 3% cost-of-living adjustment for union and nonunion employees, and increases in part-time wages in the library. The manager said interest income is projected to rise by about $600,000 and that motor vehicle registration and ambulance-billing increases are contributing to revenue projections.

Why it matters: The manager said the proposal balances staffing and service needs with the council's fiscal policy, which limits property-tax revenue increases to a rolling three-year average of the Northeast Region CPI. The council must review the book in committee meetings in May before a public hearing and potential adoption in June.

Key details from the introduction:
- Fiscal position: The manager said the proposed budget is $468,506 under the fiscal-policy ceiling.
- Tax impact: An “anticipated 2.06% increase in the city's portion of the tax rate,” described by the manager as roughly $0.27 per $1,000 of assessed value.
- Staffing and wages: The proposal reflects four new firefighter positions (one per shift) already approved by the council and a 3% COLA; library part-time wages rise to match recent staffing changes.
- Capital changes: The downtown public-restroom debt project was moved out a year while the Gilboa Avenue portion of the downtown infrastructure project was deferred to fiscal 2027; the West Keene Fire Station remains on hold pending grant funding.
- Revenue assumptions: The manager described a conservative assumption of no net increase in citywide assessed value pending a scheduled revaluation next year; interest income and some fee revenues were forecast higher in the proposal.

The manager recognized staff involved in preparing the document, including Finance Director Carrie Chamberlain, Assistant Finance Director Rob Constable, HR Director and Assistant City Manager Beth Fox, Deputy City Manager Andy Bohannon, and Deputy City Manager Rebecca Landry, and outlined a schedule of Finance, Organization and Personnel (FOP) committee meetings beginning May 6. The public hearing on the operating budget is set for June 5, with potential adoption on June 19.

Council reaction was broadly procedural: Councilors were urged to review the budget memo and supporting book ahead of the scheduled FOP sessions. The manager emphasized that further discussion and adjustments will follow during committee review.

The council's next steps include multiple FOP special meetings in May to review departmental budgets and the salary ordinance; the public hearing on the budget is scheduled for June 5.