Keene’s finance staff told the City Council on Dec. 4 that fiscal year 2025 closed with slightly higher revenue than budgeted, but with notable expense drivers and a utility revenue shortfall caused by meter failures.

The year‑end summary showed actual revenues of $6,129,534.05 versus a budgeted $6,074,130 (about $55,000 over budget). The finance presenter attributed much of the revenue uptick to building permit receipts and higher sales tax collections, while also flagging departmental overages for property liability insurance, legal and audit services, and third‑party building inspections.

On utilities, staff said a technical problem left 431 water meters offline because their radio communications and batteries had failed. “It turns out that we had 431 water meters that had dead batteries,” the finance presenter said during the meeting. The meter failures led the city to bill many customers on an average basis for several months, producing a revenue shortfall. Public works and utility staff replaced meters; the presentation showed monthly collections rising from prior lows to $145,000 in October and roughly $150,000 in November after repairs.

Council members questioned whether budgeted transfers into the street‑rehab fund were executed as intended. Staff said transfers are typically made after audit completion and reported they had not located a clear directive moving $55,000 from the street fund for Fairview Street in archived minutes back to 2023; they promised additional review of minutes and accounting records.

Finance also reported that the ARPA account had been exhausted and closed as of April 2025 and summarized debt service and cash positions: pool cash around $2.0 million and reserve balances of roughly $2.05 million as of Sept. 30, 2025. Staff noted the city is still closing the books on prior years and expects accrual‑basis adjustments when audits are complete.

Council directed staff to return with audit‑reviewed figures and to continue monitoring meter replacements and billing procedures to prevent recurrence. The finance presentation and the staff exchange with council are expected to appear in the audit and the next posted financial statements.

Ending: Staff said audit and accrual reporting will refine these numbers and pledged follow‑up reporting to council.