Keene council adopts FY2025–26 budget after heated debate over fleet lease plan

The Keene City Council on Sept. 18, 2025, approved ordinance 2025‑688 adopting the city’s fiscal year 2025–26 budget after a lengthy public and council discussion that centered on a proposed multi‑year vehicle‑leasing plan for police, fire and other city vehicles.

The budget, described in council packets as a roughly $13 million spending plan for the year beginning Oct. 1, 2025, will raise more property tax revenue than last year by $153,457 (about a 5.8 percent increase), according to city staff. Council also voted separately to ratify the property tax increase and set a Sept. 25 special meeting to vote on the exact tax rate.

Council discussion focused on competing priorities and the cost and structure of a proposed fleet program that would lease roughly 29 vehicles over a multi‑year contract. Supporters said leasing would ensure reliable, safe vehicles for first responders and reduce long‑term maintenance problems; opponents warned the lease would commit the city to recurring payments and reduce flexibility for other capital needs.

“Safety’s gotta come first,” said Paul Knott, a Keene resident during public comment, urging support for replacing aging emergency vehicles. City Manager Jonathan Seitz and other staff described an aging fleet with frequent maintenance issues that complicate police and fire responses.

Councilman Troy Smith urged confidence in staff and the proposal, saying, “I have full confidence in the staff in the way that it was presented,” and described the budget plan as a forward‑looking effort to address immediate operational needs. Police Chief Kidd told council that several patrol vehicles show very high wear and that, while most vehicles are running, many display persistent electrical or engine warnings and that routine idling increases wear.

Opposition centered on long‑term cost and tradeoffs. Councilman Thomas Guevara said the city has drained enterprise funds in prior years and expressed concern about committing to long leases while sewer and water infrastructure and other capital needs remain. “We have almost $22,000,000 that we have to issue as a bond to bring the infrastructure to a reasonable kind of state,” Guevara said, arguing the fleet plan would lock the city into recurring obligations.

Council members and staff also disputed whether CARES/ARPA (COVID) funds were used for payroll. In response to questions, a finance official told council the city received $1,629,066.30 in ARPA funds and provided a line‑by‑line accounting for several projects; the finance speaker said, “to my knowledge and according to all the vendors that we have paid, none of it [ARPA] went to payroll.” City Manager Seitz and others said some COVID‑era funds had previously been used to cover certain payroll costs tied to emergency response, and members noted that ARPA assistance is winding down.

Despite the contention, the council approved the budget ordinance. The mayor called for a record vote on Ordinance 2025‑688; several council members recorded “I vote for” and one recorded “I vote against.” After adopting the budget, the council took the separate state‑required ratification vote acknowledging that the FY2026 budget will raise more property tax revenue than the previous fiscal year and approved that resolution as well.

Ending: The council also approved a slate of noncontroversial items on the consent agenda, nominated two people to the Johnson County Appraisal District board, and scheduled a Sept. 25 meeting for a formal vote on the tax rate. Council members said they expect to return to streets, infrastructure and other capital topics in future meetings.