Keene council adopts FY2025–26 budget after heated debate over fleet lease; schedules Sept. 25 tax-rate vote

The Keene City Council approved the city’s fiscal 2025–26 budget on Sept. 18 after more than an hour of discussion focusing on a proposed fleet-leasing program and the long-term cost to taxpayers. Council enacted Ordinance No. 2025‑688 adopting the budget and then took a separate, required record vote to ratify the property-tax increase reflected in the budget.

City Manager Jonathan Seitz told the council the administration is preparing to implement the budget and noted recent community and development activity underway. A staff presentation to council indicated the proposed budget would raise $153,457 more in property-tax revenue (a 5.8 percent increase) and was based on a proposed tax rate of 0.828978, which the presenter said is higher than the no-new-revenue rate and lower than the voter-approval tax rate.

Much of the public discussion and council questioning centered on a proposed multi-year fleet lease agreement that council opponents described as a long-term obligation that would leave the city without owned vehicles at the end of the lease. One council member warned the plan would “commit the taxpayer a half 1,000,000 every single year for the next 10 years,” saying that could crowd out other priorities such as infrastructure and sewer plant needs. Residents and some council members asked for contract details and options for early termination or financial safeguards.

Supporters, including several residents and council members, said leasing is a common municipal practice that spreads costs and ensures reliable vehicles for emergency response. Council member Charles Easley and other supporters argued a leasing program helps manage depreciation and reduces short-term capital demands.

Police Chief Kidd urged council to prioritize public-safety needs, describing the existing fleet as aging and unreliable: “Out of our 7 patrol vehicles, 5 of them, by their recommendation, would need to be replaced,” he said, urging timely action so officers have safe, functioning vehicles.

On questions about federal ARPA (COVID-relief) spending, staff members provided a line-item breakdown and said the city received $1,629,066.30 in ARPA funds and listed allocations for generator work, live-streaming, sewer improvements, a water-line extension and well work. Staff stated, to their knowledge, none of those ARPA funds were used for payroll.

After deliberation the motion to adopt the budget passed in a recorded vote. The meeting transcript records individual roll-call statements; the mayor announced the motion carried. Because the adopted budget increases total property-tax revenue, the council separately ratified that increase in a second recorded vote as required by Texas Local Government Code §102.007.

The council also set Thursday, Sept. 25 at 6:00 p.m. as the date for a special meeting to vote on approving and adopting a tax rate for 2025. The mayor said the Sept. 25 session would be limited to the tax-rate vote so the meeting can be kept short.

Next steps: the budget ordinance is adopted and staff will proceed with implementation tasks described by the city manager. The council will consider the tax rate at the special meeting on Sept. 25.