Keene City Council previews $57 million FY27 budget; city tax rate projected to rise 6.7%

The Keene City Council heard an initial presentation of the proposed fiscal year 2027 general fund operating budget, which City Manager told the council totals $57 million and remains within the city’s fiscal policy limits. "The proposed FY27 general fund operating budget is $57 million and remains within the city's fiscal policy limits," the City Manager said, and the manager added the city's portion of the tax rate is projected to increase by 6.7 percent.

The manager said personnel-related costs — driven largely by contractual obligations under the city's six collective-bargaining agreements — are the primary driver of the increase. He also listed utilities, insurance, maintenance, professional services and a recent transition to cloud-based technology among additional pressures. The manager said departments are leveraging outside funding for capital projects and that the proposed budget includes more than $9.3 million in grant funding for capital work.

Public-safety staffing was a focal point of the discussion. The manager described sustained overtime costs in the fire department and outlined a proposal under development — not included in the current budget — to add four firefighters (one per shift) to move staffing above the minimum required to operate a third ambulance. "You can expect additional conversations on this topic over the next several months," the manager said, noting the change was intended to reduce overtime and stabilize operations.

Councilors were told the proposed budget remains roughly $685,000 below the city’s allowable fiscal-policy limit. The manager outlined the budget-review schedule: budget review with the Finance, Organization & Personnel Committee begins the week of the meeting with a special session on Tuesday, May 12 at 5:30 p.m.; the council was notified that a public hearing on the budget is set for June 4.

Background and next steps: the manager said an executive summary and manager comments are available on the finance web page and that outside agencies and departmental requests will be considered during upcoming hearings. The council referred the resolution related to the FY27 budget (R202609) to the Finance, Organization & Personnel Committee for further review and scheduled the public hearing on June 4. The council will return to the matter during committee meetings and at subsequent council sessions.

Actions and provenance: the council discussed the budget (introduction and referral of R202609) during the City Manager’s report and then formally referred the resolution to committee; committee-review dates and the public hearing were announced to the public.