Groton — Twenty-two people on Monday night voted in favor of the city's proposed 2019-20 budget of $19.4 million that will decrease the tax rate by 0.28 of a mill.

During the annual budget meeting, City Mayor Keith Hedrick read aloud his message about next year's spending plan, which is $3.4 million more than the current budget.

The city is anticipating an increase in revenues from building permits next year, due to projects by Electric Boat, Pfizer, other businesses and residents, city officials have said.

"The large increase in the proposed budget is based on the anticipation of an increase in building permit revenues," Hedrick read on Monday. "This will also result in increases to contractual services for assistance with the additional inspections that would be required. However, knowing that these revenues are not guaranteed, the budget was designed so that certain expenditures could be frozen with no affect to the taxpayers."

The budget also calls for $2 million in contingency for undesignated capital projects so the city can prioritize items in the Capital Improvement Plan that have been deferred for years, he said.

The budget uses $800,000 from the city's undesignated fund balance to help lower taxes. With the 0.28 mill decrease, the tax rate will be 4.3 mills next year. For taxpayers, this means a tax decrease of $28 per $100,000 of assessed property value.

k.drelich@theday.com