Groton — The city's annual budget meeting will be held at 7 p.m. Monday in the Municipal Building, 295 Meridian St.

The proposed budget for next fiscal year is $19,427,449, an increase of $3,427,344 over the current year's budget. The proposal would use $800,000 from the undesignated fund balance.

City Mayor Keith Hedrick, in an April phone interview, called the plan a "level services budget" that would result in a tax rate of 4.3 mills, a decrease of 0.28 mill from the current rate.

The spending plan anticipates growth in the city and an uptick in revenue from building permits, due to projects by Pfizer, Electric Boat, businesses and residents, Hedrick and Finance Director Ron Yuhas have said.

The budget includes $2.1 million in contingency, which is about $1.3 million more than the current year's level. Since the revenues are anticipated, but not guaranteed, the city can freeze funding until it receives the revenues, Yuhas had said.