Lyme — First Selectman Ralph Eno outlined the town's proposed 2016-17 budget of $11,368,907 at a public hearing Thursday attended by a single resident.

Overall, the budget for next fiscal year, including both operating and capital expenses, would increase by about 12.7 percent over this year's adopted spending plan, according to budget documents.

The 2015-16 budget was lower than the previous year's.

The proposed $1,722,194 in capital expenses, which is about $1.1 million over this year's capital spending, include funding for a project to close the landfill and convert it into a transfer station, purchase a new town dump truck, and pay, in part, for a new firetruck.

The landfill closure, estimated at $1 million, is offset by a $650,000 state grant, while the other $350,000 would come from the town's capital and nonrecurring reserves, budget documents show.

The project has not been finalized, and officials expect the cost would be less than that and require fewer town funds. 

The $9,646,713 in operating expenses, up by about $176,483 from last year's, include funds for the revaluation, Lyme's share of the Lyme-Old Lyme education budget, new election training mandates from the state Secretary of the State's Office, and an increased donation to the local soup kitchen, among other items.

Health insurance is down over projections due to savings from a higher, self-funded deductible plan, according to budget documents.

Residents will vote on the budget at a town meeting slated for 7:30 p.m. May 19 at Town Hall.

Town officials are anticipating a tax rate increase of about half a mill, but the Board of Finance will officially set the rate following the town meeting.

Half of the increase is due to a loss in state funding, Eno said.

The town's budget process comes at a time when the state has not yet approved its budget.

The town of Lyme received about $145,000 in Education Cost Sharing grants from the state in 2015-16 and was expected to receive about $139,700 in 2016-17, said Eno, as he updated the Board of Finance.

The governor's proposed budget slates zero ECS funds for Lyme, while a consensus budget restores some ECS funding to the town.

The town's budget anticipates receiving zero dollars in cost-sharing grants.

Eno noted in discussions with the Board of Finance that while the town's grand list of taxable properties for the upcoming year is up, about $650,000 in relief was granted during the Board of Assessment Appeals process.

k.drelich@theday.com