KEENE, N.H. (MyKeeneNow) The Keene Finance, Organization and Personnel Committee is recommending a series of changes intended to provide additional property tax relief for qualifying residents while working to resolve a projected budget deficit within the city’s Fire Department.

The committee voted Thursday to advance increases to property tax exemptions for elderly, disabled, deaf and blind homeowners as Keene prepares for the completion of its citywide property revaluation. City Assessor Dan Langille said residential property values are expected to increase by an average of about 60%, prompting staff to recommend boosting exemption amounts by approximately 65% to help eligible residents keep pace with higher assessments.

Committee members also supported increasing the income and asset limits used to qualify for the exemptions. Under the proposal, income limits would rise to $40,000 for single applicants and $60,000 for married applicants, while asset limits would increase to $75,000 for single residents and $110,000 for married couples.

In addition, the committee endorsed raising the optional veterans tax credit and the all-veterans tax credit to $450 and increasing the service-connected disabled veterans’ credit to the state maximum of $4,500. Staff will also research whether the city should adopt an optional combat service tax credit authorized under state law and explore whether another veterans’ exemption could be offered.

The committee also received an update on the fire department’s fiscal year 2026 budget.

Fire Chief Jason Martin reported the department is projected to end the year with a net budget overage of about $285,000. While the operating budget is expected to finish with a surplus of roughly $115,000, personnel expenses are projected to exceed the budget by about $400,000.

Martin said the shortfall is primarily the result of overtime costs needed to maintain minimum staffing levels while firefighters attended training, vacancies were filled and shifts were covered for employees on sick leave or family medical leave.

After the fiscal year closes, city staff plan to request permission to use the remaining operating funds to offset part of the personnel deficit. Finance officials will also identify savings elsewhere in the municipal budget in an effort to eliminate the remaining overage before the city’s books are finalized.

The committee accepted the fire department update as informational.

The proposed tax exemption and veterans credit changes will return to the committee as draft resolutions before advancing to the full Keene City Council later this summer. Ordinance changes are expected to be considered in July, with final action anticipated before the city’s tax rate is set in September.