Groton — The Groton Town Council began the enormous task Wednesday of searching for millions of dollars in cuts to hold taxes steady. 

The proposed $125.6 million budget would require an 8.3 percent tax rate hike even though the spending plan is less than last year, because revenues have fallen.

Holding taxes at zero would require $6.4 million in cuts.

Town Manager Mark Oefinger outlined in a memo about $2.8 million in potential savings or cuts the council could make, without advocating for any of them.

Councilors could cut education spending by $262,657 due to an enrollment decline, furlough all 265 town employees for one day to save $65,000, eliminate a number of upcoming capital projects to save $732,000 and cut its contribution to the capital reserve to get $200,000.

Oefinger said the Board of Education agreed this week to return $600,000 to the town this year and the town expects to have about $40,000 of contingency at the end of the fiscal year.

Groton also could receive a potential $300,000 in reimbursement for the Mystic Streetscape project and get $653,172 by closing previously authorized capital projects from 2012 through 2016.

Additionally, the council could put less money toward replacing vehicles and look at its contributions to the fire districts, libraries and other outside agencies, his memo explained. 

Town Councilor Joe de la Cruz said he knows people are worried about taxes. But residents at a budget hearing Tuesday also asked the council to spare services like libraries and the senior center, de la Cruz said.

“We don’t have a lot of new, shiny stuff in this town,” de la Cruz said, adding that he believes the town is run well.

Speakers also praised the planning department and business owners spoke, which gives him hope for the future, de la Cruz said.

“I’m not completely down,” he told his colleagues. “I know we’re in tough times.”

d.straszheim@theday.com