Keene council sets proposed tax-rate ceiling after hours-long budget discussion

Keene City Council voted to approve a proposed tax-rate ceiling of $0.828978 per $100 of taxable assessed value for fiscal year 2025–26 and set a Sept. 11 special meeting as the public hearing on the rate.

The move, passed 3–2 after nearly two hours of discussion on Aug. 7, followed a presentation by consultant Doug Martella and a wide-ranging debate about the city’s preliminary budget, contingency margins and projected savings. Councilmembers Johnny Shaw and Thomas Gutwa led the motion; Bob Chapman seconded. Mayor Lisa Parish was present and did not cast a vote.

Martella, who identified himself as a fractional municipal CFO with Zactax and related advisory services, reviewed Keene’s certified appraisal roll and tax-rate calculations. He said the city’s total certified value rose from about $441 million in 2024 to about $449 million in 2025 and described the distinctions among the “no-new-revenue” rate, the voter-approval rate and the interest-and-sinking (I&S) debt rate. “The no-new-revenue rate is basically the same tax rate that would get the same revenue as last year,” Martella said. He added the recommended ceiling would reduce the average homeowner’s bill by about $26 annually under the assumptions in his presentation.

City Manager Jonathan Seitz and council members pressed on the narrow margin between the preliminary budget and the proposed tax revenue. Councilmember Troy Smith said the difference between the budget and revenue at the proposed ceiling is about $41,000 and urged a larger buffer: “We should be looking at having at least a $200,000 to $300,000 buffer to protect ourselves,” he said. Seitz said staff expected to find additional savings (he cited roughly $130,000 in potential additional reductions) and that fringe-benefit numbers and some other line items were still being finalized.

Opponents of the ceiling expressed concern about locking the council into an amount with little room for later adjustments if costs rise. Councilmember Rob Foster argued the council should preserve flexibility: “We don’t even have the numbers completely together,” he said, urging a higher ceiling to avoid a mid-year shortfall. Supporters said adopting the recommended ceiling signaled fiscal restraint and helped keep Keene competitive for new residents and businesses.

The roll-call record submitted at the meeting shows the following votes: Chapman — yes; Foster — no; Gutwa — yes; Shaw — yes; Smith — no. Mayor Parish recorded as present but not voting. The motion carried 3–2.

Staff said the proposed rate is a “not-to-exceed” amount; council may adopt a lower final rate at the later public hearings and the formal adoption meeting. Seitz said the council would receive a full budget book at the Aug. 21 meeting and additional modeling before the final tax-rate adoption.

The council’s action sets a public hearing for 6 p.m. on Sept. 11 as required by statute and administrative rules.