New London - Residents have begun seeking signatures to force a referendum on the $42.3 million general government budget, which was approved Tuesday by the City Council.

William Vogel, chairman of the Republican Town Committee, said Friday that he has available at his home on Lower Boulevard petitions to reject the budget, which represents a 7.5 percent increase in taxes.

"I'm asking people to stop by and sign the petition so we can get this thing to a vote and hopefully defeat it,'' Vogel said.

Eveyln Louziotis, a member of LOT (Looking Out for Taxpayers), said she, too, has petitions available for circulation.

"We want to overturn the vote and lower the tax increase,'' she said. "If there was no increase ... I think there would be support.''

Vogel, who said he would like to see a less than 5 percent increase, said a way to save money in the budget would be to cut the five positions that initially were eliminated by the council. Funding for the positions, all of which were appointment made by Mayor Daryl Justin Finizio since he took office in December, was restored after Finizio announced that the city had reached money-saving concessions with the police and fire unions.

Vogel said the 20 percent tax increase that Finizio first proposed was unrealistic.

The petition needs signatures from 10 percent of the voters in the last municipal election. The 483 signatures must be submitted to the city clerk by July 3.

The City Council, under the City Charter, has the ability either to repeal its approval of the budget or send it to the electors for a vote.

"Some in the community are saying no increase and some are saying we've gone too long without a tax increase,'' said council President Michael Passero, adding that he would rather pose the question to the voters than rescind the council vote. "Part of my motive ... is let's get this to the people. Why delay it? We don't know till we get to this vote."

The 2012-13 budget totals $83 million, which includes $40.6 million for education and $42.3 million for general government expenses. It requires a 7.6 percent increase in taxes. Under the spending plan, the tax rate will go up 1.91 mills, from 25.31 mills to 27.22 mills.

The two parts of the budget were approved in separate ordinances. The petition seeks only to overturn general government spending.

In a separate development, the City Council will hold a special meeting at 7 p.m. Monday to consider rescinding the school budget to remove $809,000 that should not have been included in its bottom line. The $809,000 is a state Education Cost Sharing grant, which cannot be allocated as part of the district's 2012-13 budget because it comes from the state and must be kept in a separate municipal account for school use only.

k.edgecomb@theday.com