Keene City Council approved an ordinance adopting an ad valorem property tax rate of 0.828978 per $100 of assessed value for the 2025 tax year, passing on a 4-1 vote after debate and a brief recess.

The ordinance (No. 2025-689) levies the tax on all taxable property within the City of Keene as determined by the Johnson County Appraisal District for the fiscal year beginning Oct. 1, 2025, and ending Sept. 30, 2026. Councilmembers voting in favor were Councilmember Bob Chapman, Councilmember Rob Foster, Councilmember Shaw and Councilmember Smith; Councilmember Easley voted against the measure. Mayor Parish was not present for the vote.

Council members and staff debated both technical wording required by state law and the practical effect on individual taxpayers. City staff advised the council that state-mandated disclosure language can make a rate that produces more revenue from growth appear as an "increase" even though the municipality may be collecting more total revenue because property values rose. Staff also advised that adopting a lower tax rate after a budget has been approved would require reopening and amending the budget and reapproving it before the fiscal year starts.

At the meeting a council member, identified in the transcript as Councilman Gutwa, presented a multi-year example for a single 0.275-acre property to illustrate how increases in appraised value changed that homeowner's city tax bill. Gutwa said the property’s appraised value moved from about $110,000 in 2019 to about $310,000 in 2025, and that the city portion of the bill rose from roughly $2,800 in earlier years to about $6,000 in recent years; he used those figures to argue the council’s decision on the tax rate affects how much individual taxpayers pay when values change.

The council proceeded under the ordinance caption read aloud by the city secretary. After debate, a motion to adopt the rate was made and seconded. During the roll call, Councilmember Bob Chapman said, "I vote for the proposed tax rate of 0.828978 as set forth in ordinance number 2025-689." Councilmember Easley said, "I vote against the proposed tax rate of 0.828978," while Councilmember Rob Foster, Councilmember Shaw and Councilmember Smith each announced votes in favor.

The meeting was briefly recessed during the discussion after interruptions and disorder in the chamber; business resumed and the roll call proceeded, resulting in approval.

The ordinance apportions revenues among municipal funds, including a sinking fund for bonded debt, and references the city's adopted budget items such as the fleet enterprise plan and six new hires that staff said were included in the adopted budget. Council members noted that if the council chose to adopt a lower rate, staff would have to amend the adopted budget to reflect the change before the fiscal year begins.

No further public hearings or public comments on the tax rate were recorded at the special meeting. The council moved on to discuss scheduling future meetings after the vote.