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KEENE, N.H. (MyKeeneNow) After weeks of committee reviews, budget workshops and a public hearing, the Keene City Council has approved a nearly $80 million spending plan for fiscal year 2027 that is expected to increase the city’s share of the property tax rate by about 8 percent.
Councilors voted Thursday to adopt the budget, which takes effect July 1, the start of the new fiscal year. The spending plan includes approximately $80 million in operating appropriations and calls for nearly $33 million to be raised through local property taxes.
Based on current projections, the city’s portion of the tax rate will increase by about $1.13 per $1,000 of assessed valuation, bringing the municipal rate to an estimated $14.74 per $1,000. For a home assessed at $300,000, the city tax bill would total about $4,422.
The overall property tax rate, which also includes county, local education and state education taxes, is currently estimated at approximately $37.75 per $1,000 of assessed value. However, city officials caution that figure could change as Keene completes a citywide property revaluation later this year.
The budget’s approval marks the conclusion of a two-month review process led by the Finance, Organization and Personnel Committee. Councilors spent several weeks examining departmental spending requests and hearing presentations from city staff before forwarding the proposal to the full council.
During Thursday’s meeting, Councilor Randy Filiault acknowledged residents’ concerns about rising taxes, arguing that increasing costs shifted from the state to local governments have placed additional pressure on municipal budgets and taxpayers. He encouraged residents frustrated by higher tax bills to voice those concerns to state officials.
City Manager Elizabeth Ferland has previously noted that the final tax rate will not be determined until the fall, after the city’s mandatory property reassessment is completed. New Hampshire communities are required to conduct revaluations every five years to ensure assessed property values reflect current market conditions. Keene’s last revaluation occurred in 2021.
A significant portion of the budget increase is tied to personnel costs, including negotiated union contracts and the addition of four firefighters. The staffing increase will raise fire department staffing levels from 12 to 13 firefighters per shift, a move city officials have said will improve operational coverage and reduce overtime demands.
The city’s general fund, which supports core municipal services such as police, fire, public works, parks and recreation, administration and facility maintenance, totals approximately $57 million for fiscal year 2027. That represents an increase of about 8 percent over the current year.
In addition to operating expenses, councilors approved funding for several major capital projects. Nearly $4 million in bond funding was authorized for the city’s downtown infrastructure project, which is scheduled to begin construction this summer. Additional borrowing was approved for stormwater resiliency improvements, downtown sewer upgrades, water distribution system improvements, roadway rehabilitation projects and the Gilbo Avenue Solar Pavilion.
The approved budget also incorporates the first year of projects outlined in the city’s 2027-2033 Capital Improvement Program, establishing funding priorities for infrastructure and facility improvements throughout the coming fiscal year.