Hearing to be held Monday on Groton City proposed budget
Groton — A public hearing to present the city's proposed fiscal year 2020 budget, which would decrease the city's tax rate, will be held Monday.
The meeting will take place at 6:30 p.m. in the Municipal Building, 295 Meridian St.
City Mayor Keith Hedrick is proposing a budget for next year of $19,427,449, or $3,427,344 more than the current year's budget. The proposed budget will decrease the tax rate by 0.28 mill, which will result in a tax rate of 4.3 mills, Hedrick said.
The budget takes $800,000 from the undesignated fund balance, leaving the city with a reserve of 22.15 percent, he said.
Finance Director Ron Yuhas said the proposed budget was built with the anticipation of growth in the city and a corresponding anticipated increase in building permit revenues. Several entities are pulling permits, including Pfizer, other businesses and residents, and Electric Boat is in the process of submitting its proposal for the new facility for Columbia-class submarines, Hedrick said.
The city is anticipating it may need to contract out for additional inspections and support to assist with the potential growth, Yuhas said. The budget sets aside funding for contractual services both in the building department and for the fire department for inspections.
Since there is no certainty in the anticipated revenues, the proposed budget calls for increasing funding for contingency. About $2.1 million is proposed for "undesignated capital projects," or a $1.3 million increase over this year's budget, according to the budget proposal. The city will be able to freeze the funding until the revenues are received, Yuhas said.
"It's pretty much a level services budget. We're trying to be fiscally prudent," Hedrick said, adding that the city already is looking at the financial forecasts for the next year. City officials are analyzing projected expenditures and revenues for the future and will determine whether or not department heads will need to submit a tighter budget the following year.
The City Council will continue its review of the budget at a special Committee of the Whole meeting at 7 p.m. Monday. The council must approve a budget by May 20, and the annual budget meeting will be held on June 3.
The budget proposal is available at bit.ly/GrotonFY2020.
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