The City's debt
Cities borrow to spread the cost of long-lived investments — buildings, infrastructure, equipment that lasts decades — over the years those assets are in use. A fire station that serves the community for 30 years is paid for over time, rather than requiring a single year's taxpayers to bear the full cost. This is how most municipalities fund major capital projects, and it is distinct from the operating budget, which covers year-to-year expenses like salaries, utilities, and supplies.
When a city borrows, it issues bonds — essentially loans from investors, repaid over a fixed term with interest. Each year, the city makes principal payments (paying down the original amount) and interest payments. Together, these are called debt service. The City of Keene's fiscal year 2027 General Fund budget includes $4,897,076 in debt service.
This page shows every General Fund debt obligation: what was borrowed, what it funded, what it costs each year, and when it will be paid off. Enterprise fund debt (water, sewer, and other self-supporting funds) is not shown here; it appears in the budget's enterprise fund sections.
Source: Long-Term Debt section, pages 33–35 of the FY27 budget.
The City's current debt position
The City's fiscal policy sets a ceiling of 12% on General Fund debt service as a percentage of the operating budget, measured as a five-year average. The FY27 budget states that all authorized, issued, unissued, and proposed debt is within this cap. The single-year FY27 ratio — $4,897,076 in debt service divided by the $57.0M operating budget — is 8.6%. This is a single-year calculation, not the five-year average the policy specifies; the budget does not publish the five-year figure.
Debt service in FY27 is $4,897,076, up from $3,821,383 in FY26.
FY27 debt service by what each bond funded
Outstanding bonds
The City has 40 outstanding bonds with a combined remaining balance of $21.2M as of June 30, 2027. They are grouped below by what they funded.
Streets & Infrastructure
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Infrastructure improvements | Sep 2016 | Sep 2026 | avg 1.85% | $137,700 | Retired |
| Infrastructure improvements | Sep 2016 | Sep 2026 | avg 1.85% | $147,900 | Retired |
| Infrastructure improvements (2018) | Sep 2018 | Sep 2028 | avg 2.74% | $146,250 | $260,000 |
| Infrastructure improvements (2019) | Sep 2018 | Sep 2028 | avg 2.74% | $140,625 | $250,000 |
| Winchester Street Bypass | Sep 2018 | Sep 2033 | avg 2.74% | $51,050 | $280,000 |
| Winchester Street Bypass | Sep 2020 | Sep 2035 | 1.65% | $65,967 | $515,000 |
| Road rehabilitation | Sep 2020 | Sep 2030 | 1.65% | $134,512 | $514,000 |
| Road rehabilitation | Sep 2020 | Sep 2030 | 1.65% | $95,657 | $359,000 |
| Road rehabilitation | Aug 2023 | Aug 2033 | 5.10% | $37,313 | $188,925 |
| Winchester Street Bypass | Aug 2023 | Aug 2033 | 5.10% | $73,123 | $370,244 |
| Road rehabilitation | Aug 2023 | Aug 2033 | 5.10% | $115,444 | $584,528 |
| Road preservation | Aug 2024 | Aug 2034 | 5.10% | $68,148 | $380,100 |
| Thompson Road stabilization | Aug 2024 | Aug 2034 | 5.10% | $138,474 | $772,750 |
| Road rehabilitation | Jan 2026 | Feb 2036 | 5.05% | $189,869 | $1,120,000 |
| Subtotal — Streets & Infrastructure | $1,542,032 | $5,594,547 | |||
Water & Flood Management
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Flood management | Sep 2016 | Sep 2026 | avg 1.85% | $39,780 | Retired |
| Flood management | Sep 2018 | Sep 2033 | avg 2.74% | $76,575 | $420,000 |
| Flood management | Sep 2020 | Sep 2035 | 1.65% | $39,329 | $306,000 |
| Flood management | Sep 2020 | Sep 2035 | 1.65% | $56,647 | $439,000 |
| Flood management | Aug 2023 | Aug 2038 | 5.10% | $72,626 | $532,222 |
| Carpenter Street flood management | Aug 2023 | Aug 2038 | 5.10% | $9,762 | $71,534 |
| Stormwater resiliency | Aug 2024 | Aug 2034 | 5.10% | $139,355 | $1,072,550 |
| Stormwater resiliency (Key Road) | Jan 2026 | Feb 2041 | 5.05% | $371,161 | $2,955,000 |
| Stormwater resiliency | Jan 2026 | Feb 2041 | 5.05% | $141,556 | $1,095,000 |
| Subtotal — Water & Flood Management | $946,791 | $6,891,306 | |||
Parks & Recreation
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Ice rink facility | Jun 2015 | Jun 2035 | avg 2.17% | $82,875 | $520,000 |
| Goose Pond Dam improvements | Sep 2018 | Sep 2038 | avg 2.74% | $64,563 | $525,000 |
| Robin Hood Dam upgrade | Sep 2020 | Oct 2030 | 1.36% | $31,768 | $115,000 |
| Patricia T. Russell Park improvements | Aug 2023 | Aug 2038 | 5.10% | $125,241 | $917,796 |
| Patricia T. Russell Park improvements | Aug 2023 | Aug 2038 | 5.10% | $34,166 | $250,373 |
| Subtotal — Parks & Recreation | $338,613 | $2,328,169 | |||
Municipal Buildings
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Boiler replacement | Sep 2016 | Sep 2026 | avg 1.85% | $10,200 | Retired |
| City Hall rear wall repair | Sep 2020 | Sep 2027 | 1.65% | $25,619 | $25,000 |
| Municipal building roofs | Aug 2023 | Aug 2033 | 5.10% | $67,740 | $342,982 |
| Salt shed replacement | Aug 2023 | Aug 2033 | 5.10% | $54,968 | $278,316 |
| City Hall structural repairs | Jan 2026 | Feb 2041 | 5.05% | $133,221 | $1,045,000 |
| Subtotal — Municipal Buildings | $291,748 | $1,691,298 | |||
Public Safety
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Central Fire Station | Sep 2020 | Oct 2030 | 1.36% | $264,688 | $955,000 |
| Fire apparatus (truck) replacement | Jan 2026 | Feb 2031 | 5.05% | $297,607 | $925,000 |
| Subtotal — Public Safety | $562,295 | $1,880,000 | |||
Airport
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Airport fuel tanks | Sep 2020 | Sep 2030 | 1.65% | $54,754 | $202,000 |
| Airport hangar apron maintenance | Jan 2026 | Feb 2036 | 5.05% | $29,014 | $160,000 |
| Airport solar project | Jan 2026 | Feb 2046 | 5.05% | $133,127 | $1,245,000 |
| Subtotal — Airport | $216,895 | $1,607,000 | |||
Community Development
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Library Campus development (Tax Increment Financing district) | Sep 2016 | Sep 2036 | avg 1.85% | $135,033 | $985,000 |
Debt Refunding
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Debt refunding | Nov 2016 | Jul 2028 | avg 1.61% | $165,815 | $197,761 |
Interfund loan
The City also has one outstanding interfund loan. Unlike a bond, an interfund loan is money the City has borrowed from one of its own funds — in this case, to finance the Winchester Street Roundabout Project. The loan is being repaid through the General Fund and is fully retired at the end of FY27.
| What it funded | Issued | Matures | Rate | FY27 Payment | Balance |
|---|---|---|---|---|---|
| Winchester Street Roundabout | Jul 2006 | Jan 2027 | 4.30% | $88,023 | Retired |
Authorized but unissued
These are bonds the City Council has approved but that have not yet been sold. The Council's authorization gives the City the legal authority to issue the bonds, but the City retains flexibility on timing — it can wait for favorable market conditions or defer a project without further Council action. Until a bond is sold, no principal or interest payments are due.
The budget estimates FY27 interest costs for these bonds at $360,183, assuming a 5% interest rate and issuance during the fiscal year.
| Project | Authorization | Approved Amount | Est. FY27 Interest |
|---|---|---|---|
| Lower Winchester Street reconstruction | R-2024-11 | $805,000 | $20,125 |
| Lower Winchester Street reconstruction | R-2025-14 | $687,000 | $17,175 |
| Airport solar project | R-2025-31 | $12,915,268 | $322,883 |
| Total authorized, unissued | $14,407,268 | $360,183 | |
Anticipated FY27 issuance
These bonds are planned for sale during fiscal year 2027 to fund capital projects in the City's Capital Improvement Program. "Anticipated" means planned — not certain. If a project is deferred or canceled, the bond is not issued.
The budget assumes an interest rate of approximately 5% for these bonds, reflecting current market conditions for municipal debt. Bonds issued in 2026 priced at higher interest rates than bonds in the existing portfolio, where rates range from 1.36% to 2.74% on bonds issued between 2015 and 2020.
| Project | Amount | Est. FY27 Interest |
|---|---|---|
| Ashuelot River greenspace | $200,000 | $5,000 |
| Ashuelot River dam repair or removal | $144,000 | $3,600 |
| Downtown infrastructure improvements | $3,932,830 | $98,321 |
| Gilbo Avenue solar pavilion | $439,200 | $10,980 |
| Lower Winchester Street reconstruction | $143,550 | $3,589 |
| Roadway preservation and rehabilitation | $500,000 | $12,500 |
| Robin Hood Park improvements | $1,117,000 | $27,925 |
| Stormwater resiliency | $3,509,300 | $87,733 |
| Total anticipated FY27 | $9,985,880 | $249,648 |
Anticipated future issuance, FY28–FY33
The City's Capital Improvement Program anticipates $25.2M in additional bond issuances over fiscal years 2028 through 2033. These are planning figures, not commitments. Each year's bonds are subject to Council authorization and market conditions at the time of issuance.
| Fiscal Year | Project | Amount |
|---|---|---|
| 2028 | Ashuelot River greenspace | $300,000 |
| Downtown restroom | $442,000 | |
| Roadway preservation and rehabilitation | $1,163,800 | |
| Stormwater resiliency | $1,053,300 | |
| FY28 subtotal | $2,959,100 | |
| 2029 | Ashuelot River dam repair or replacement | $1,232,000 |
| Beaver Brook flood mitigation | $500,000 | |
| Liquid brine pre-treatment system | $578,000 | |
| Lower Winchester Street reconstruction | $2,063,215 | |
| Roadway preservation and rehabilitation | $1,627,100 | |
| Stormwater resiliency | $1,943,900 | |
| FY29 subtotal | $7,944,215 | |
| 2030 | Beaver Brook flood mitigation | $500,000 |
| Roadway preservation and rehabilitation | $1,764,400 | |
| Stormwater resiliency | $2,066,600 | |
| FY30 subtotal | $4,331,000 | |
| 2031 | Roadway preservation and rehabilitation | $1,656,400 |
| Stormwater resiliency | $1,132,500 | |
| Transportation Heritage Trail | $300,000 | |
| FY31 subtotal | $3,088,900 | |
| 2032 | Roadway preservation and rehabilitation | $1,710,300 |
| Stormwater resiliency | $1,197,200 | |
| West Street corridor improvements | $1,412,602 | |
| FY32 subtotal | $4,320,102 | |
| 2033 | Roadway preservation and rehabilitation | $1,710,300 |
| Stormwater resiliency | $846,200 | |
| FY33 subtotal | $2,556,500 | |
| Total anticipated future bonds | $25,199,817 | |
What this page does not cover
This page covers General Fund debt only. Enterprise fund debt (water, sewer, parking, solid waste, and equipment funds) is serviced by those funds' own revenues and is not shown here.
This page does not project future debt service, analyze whether the City's debt level is appropriate, or comment on interest rate trends. The capital projects funded by these bonds are described in detail on the Capital plans through 2033 page.
See also
- What does $57 million buy? — where debt service fits within the operating budget
- Capital plans through 2033 — the projects these bonds are funding
- What's on your tax bill? — how debt service is included in the city tax rate
Source: Long-Term Debt section, pages 33–35 of the FY27 budget. All figures are City Manager recommended.