East Lyme — The Board of Finance unanimously voted at a special meeting on Monday to approve a 0.8-mill tax rate increase for 2017-18, according to the finance board chairman. This will bring the tax rate in 2017-18 to 26.16 mills.

Town voters approved at a referendum last Thursday a $70,827,806 budget for 2017-18, or a 2.29 percent increase over the current year's budget.

At a public hearing in April and annual town meeting in May, local officials had projected a 0.66-mill tax rate increase for next year. The state has not yet passed a budget, and officials had said at the time that options in the face of state aid cuts would include further budget cutting, freezing the budget, increasing the tax rate, issuing supplemental tax bills or using funds in the undesignated fund balance.

Board of Finance Chairman Camille Alberti said the primary reason the board on Monday decided to increase the rate beyond the 0.66 presented at the town meeting is "due to a worsening outlook of the state budget, and an anticipated larger reduction in state revenues to the town."

She said the Board of Finance took this action to avoid having to issue supplemental tax bills after the state finalizes its budget. 

"A further reduction in revenues will most likely be absorbed by a reduction in town and Board of Education expenditures," she said.

According to an analysis provided by Alberti, a taxpayer with a house assessed at $250,000 that pays $6,340 in taxes in 2016-17 would pay $6,540 in taxes in 2017-18. A property owner with a house assessed at $350,000 that pays $8,876 in taxes this year would pay $9,156 next year. A property owner with a home assessed at $450,000 that currently pays $11,412 in taxes would pay $11,772 next year.

k.drelich@theday.com