Keene council directs manager to add fleet-management program to proposed FY26 budget

The Keene City Council on Sept. 4 unanimously directed City Manager Jonathan Seitz to add a fleet-management program to the city’s proposed fiscal year 2026 budget, following an extended public and council discussion about cost, maintenance and long-term fiscal risk.

Council members debated whether leasing and a third‑party fleet manager would save money by reducing maintenance, turnover and vehicle-age risk, or instead lock the city into recurring operating costs that could strain future budgets. The motion to include the program in the proposed budget was made by Councilman Rob Foster and seconded by Councilman Chapman; the motion carried unanimously.

The council’s discussion centered on two competing points. City Manager Jonathan Seitz said the program addresses an “immediate” operational problem: Keene’s fleet is aging and parts of the fleet are frequently in for repairs. “What I don’t want taxpayers to think for a minute is that just because we’re not doing [a fleet program], we’re saving $400,000,” Seitz said, describing the need to reduce the average vehicle age and improve reliability for police, public works and other departments.

Opponents during the public comment and council debate urged caution. One council member and several residents said long‑term leasing can shift capital into recurring operating expenses and remove equity the city would otherwise retain, and that a long-term lease could be more expensive over a decade. Several speakers said taxpayers were concerned about committing recurring funds without guaranteed revenue growth.

Seitz and supporters answered that the program’s structure includes vehicle resale (residual value) after short cycles and that some enterprise funds would cover part of the cost. Seitz described the budget impact the council was considering: with the fleet program included, the citywide surplus in the proposed budget would be smaller but still positive. He said the enterprise fund will absorb a portion of the program costs because many vehicles are used in enterprise operations.

Council members and residents asked for further detail before any contract is signed. The motion approved only the direction to include the fleet program in the proposed FY26 budget and to allow staff to prepare the back-end accounting and implementation details for later review; it did not finalize any contract or procurement. Seitz said staff will return with detailed GL setup, revenue allocations and the vendor terms for council review.

The council scheduled further budget deliberations and public hearings in coming meetings before final budget adoption.