Old Lyme — Residents unanimously approved at the town's annual budget meeting on Monday a 2016-17 budget of $35,208,538, or a 1.3 percent increase over the current year.

Prior to the vote, Board of Finance Chairman Andy Russell outlined the budget to about 30 residents and town officials.

The town government's budget is decreasing by about 1 percent to $9,642,562. Old Lyme's share of the Lyme-Old Lyme school district budget is $25,565,976, or a 2.2 percent increase.

The spending plan uses about $600,000 from the town's surplus to offset a shortfall in state aid to the town and keep the tax rate down, Russell said. The town's surplus is more than $6 million.

The Board of Finance is anticipating a loss in state aid to the town in 2016-17, including $605,000 less in Education Cost Sharing grants, according to the presentation.

Russell said that the town could get back about $324,000 in ECS funds under a state budget proposal, but he said the governor has not yet signed the budget. He said the town will budget conservatively, since the state budget can change. 

At a Board of Finance meeting following the town meeting, the board set the tax rate for 2016-17 at 21.2 mills, up from 20.62 during the current year.

According to the budget presentation, a homeowner with a house assessed at $243,000 who pays $5,011 in taxes under the current tax rate would pay $5,152 in 2016-17.

A homeowner with a house assessed at $378,100 who currently pays $7,796 in taxes would instead pay $8,016 in 2016-17.

A homeowner with a house assessed at $878,000 who pays $18,104 in taxes would pay $18,614 in 2016-17.

At the town meeting, residents also adopted a schedule for the payment of taxes.

They also approved that the town accept and spend private monetary donations for the boathouse project.

k.drelich@theday.com