Groton — Poquonnock Bridge Fire District taxpayers will be asked in May to approve a $4.63 million budget for the coming fiscal year, an increase of about 16.9 percent over current spending that would require a tax rate increase of about 0.1 mills.

The district board was able to approve more spending but avoid a comparable tax increase because the grand list, or the amount of taxable property in Poquonnock Bridge, rose this year. The district also expects to end the fiscal year with a surplus due to earlier cuts. That would allow it to use about $325,000 to offset future costs.

The annual meeting of district taxpayers is expected to be scheduled the week of May 13, Board President Alan Ackley said.

"Given all the problems we've had, I think it's a relatively fair budget, but that will certainly be up to the public to make that determination," he said.

The tax rate would rise from its current 5.9 mills to 6 mills or 6.1 mills, depending on the collection rate and total moved forward from this fiscal year, Fire Chief Joseph Winski said. As of this week, the increase is calculated at 0.1 mills.

"This budget meets all our financial needs and obligations for the district and this would provide the same services we're providing now, which is very adequate," he said.

Last summer, Poquonnock Bridge laid off nine firefighters — two of whom have since been hired back — to save money. In 2013, finances were so bad that the district closed one of its two firehouses, struggled to pay its monthly bills and resorted to using a pickup truck to respond to medical calls.

One unknown that remains is the contract between the firefighters union and district board. The contract is going to arbitration, with the first meeting scheduled Monday.

"I just hope that whatever is decided when we get through this whole process, that the budget will support whatever changes occur," Ackley said.

Union President Mark Murphy said Wednesday he could not comment due to the upcoming proceedings.

The budget includes money for 16 firefighters, three more than the district has now, to help maintain staffing. The department has kept five firefighters on duty partly by calling people in on overtime.

Members of the Town Council's public safety committee also have begun looking at the tax burden in Poquonnock Bridge. Councilors agreed to take up the issue recently after board members said fire district taxpayers have been shouldering an unfair share of the burden of protecting tax-exempt property.

Winski said the department also is planning for the future by setting aside $75,000 to establish a fund to pay for post-employment benefits for retirees. In the past, Poquonnock Bridge functioned on a pay-as-you-go basis, spending only what it needed in a given year.

The budget also includes $10,000 to train volunteers, $4,000 to buy clothing and $40,000 to purchase gear for future volunteers. In addition, the budget would spend $49,503 — a one-time cost — to overhaul one of the department's fire engines.

d.straszheim@theday.com

Twitter: @DStraszheim