Groton - The Representative Town Meeting will begin deliberations Wednesday on a $125.75 million budget proposal for the coming fiscal year, which would require a tax rate increase of .82 mills.

The tax rate would rise from 20.13 to 20.95 mills.

Town Manager Mark Oefinger had proposed a $128.47 million spending plan for the 2015-16 fiscal year, an increase of $5.69 million or 4.6 percent over the current $122.78 million budget. Under the initial proposal, taxpayers would have seen a tax rate increase of 1.6 mills, or 7.9 percent, partly due to declining revenue.

The town council then revised it, resulting in the current proposed budget.

Councilors cut $400,000 from the Board of Education; $830,292 from City of Groton highways; $84,564 from City of Groton police; $100,000 from town public works; $107,848 from the health insurance account and $2,076,600 from the capital reserve contribution, or money for future capital projects.

The RTM will convene at 7 p.m. on Wednesday in the Groton Senior Center. It will accept public comment on the budget at that time.

The town council also made additions to the budget, adding $830,292 in a separate line item for city highways, as a contingency item in case Groton City, which is fighting the highway cut, wins an arbitration ruling.

Town councilors also added $18,214 to support the Visiting Nurses Association, $8,232 for planning and development and $22,000 for the Spicer Fund.

Changes could still be made, Town Clerk Betsy Moukawsher said Monday.

"They actually have until tomorrow to finish the budget," she said.

d.straszheim@theday.com

@DStraszheim