New London — City business owners, property owners and residents, some holding “no increase” signs, converged en masse at Monday’s City Council meeting to deliver a united message: “no new taxes.”

More than 20 people spoke out against Mayor Daryl Justin Finizio’s $90.3 million proposed spending plan, a budget that represents a 5.97 percent increase in spending and a 12.5 percent hike to the tax rate. For a home assessed at the city’s average value of $126,309 that translates to a $601 annual tax increase.

“It’s not a threat, but I may have to close shop. It’s just a fact,” said Monica Rossi, owner of Monica’s State Street Diner.

Rossi, who lost months of business after a fire two years ago, said she would like to stay but could not keep up with a hike in her rent caused by the tax increase.

Others echoed similar sentiments.

Scott Magruder, who said he owns five investment properties, said he is paying about $25,000 annually in taxes.

“New London already has a huge amount of vacant store fronts,” he said. “To continually put the tax burden on property owners is a recipe for disaster. People are leaving.”

Charlotte Hennegan, owner of Thames River Greenery on State Street, said the harsh winter was detrimental to downtown businesses.

“Give us a chance to get our heads above water,” she said.

Hennigan said the retail business environment downtown “has never looked so depressed and desolate,” with empty storefronts and blighted properties. The area clearly had not rebounded from the recession, she said.

Frank McLaughlin, who said he has been redeveloping properties in New London for more than a decade, said tax increases lead to higher rents and less upkeep of properties by landlords.

“It’s a downward spiral,” he said.

Finizio has called the proposed spending plan a “hold steady budget,” with needed increases in education as the city transitions into an all magnet school district.

“I believe that fundamentally reforming our education system while continuing to maintain balanced budgets will lift our city out of its current financial difficulties, while leading to increased property values and providing for long-term growth,” Finizio said.

Finizio continued to advocate for the $625,000 proposed increase to the city’s public library, which he called integral to the city's overall educational investment.

Council members all indicated they did not expect the proposed tax rate hike to stand and would continue to look at areas to make cuts.

Council member Martin Olsen said those gathered at Monday’s meeting sent a “powerful message.”

“This is the mayor’s proposed budget. This is not our budget,” Olsen said.

“I’m not sure what the increase will be, but I don’t think it will be anywhere around 12.5 percent,” said council member Erica Richardson.

Michael Passero, who is challenging Finizio for the mayor’s seat, said “I don’t think this is a particularly honest document,” in reference to the budget.

Finizio’s proposed budget contains $46.6 million in general government spending and $43.7 million for the Board of Education.

Passero said he would not support a budget out of the finance committee without a zero percent increase on the city government spending side.

“We have to find particular items to cut,” Passero said. “This is the year to hold the line.”

g.smith@theday.com

Twitter: @SmittyDay