Waterford — The Board of Finance on Thursday agreed to cut $661,440 from the town’s operating budget in response to the COVID-19 pandemic.

In February, the Board of Selectmen proposed a $46.8 million spending plan, which called for a 2.1% increase from the current budget. On Thursday, First Selectman Rob Brule proposed a $960,000 decrease to that number in an effort to make sure residents wouldn’t face a tax increase this year during the difficult economic circumstances brought about by the coronavirus.

“Although proud of the budget I submitted in December, those days three months ago seem so long ago,” Brule said in an address to the finance board. “Since that time, life changed for our community, our employees and our taxpayers. Friends have lost jobs, neighbors have lost much of their retirement and owners of small businesses in Waterford are praying they can stay afloat, hoping they can provide for their children and send them to college, and for some, just be able to make the next mortgage payment. This pandemic has changed the way we look at ‘priorities’ within municipal government and spending. My goal of presenting you today a level-funded capital plan and modest 2.1% increase is no longer my goal. It is no longer a feather in the cap, nor is it good enough now. COVID-19 has forced me to reassess, re-evaluate and change course.”

While the town need to cut $960,000 to ensure no tax increase, the finance board decided not to cut $300,000 to remove a septic tank at Cohanzie Fire Department because the removal has been mandated by the Environmental Protection Agency. Brule said he plans to find another $300,000 to cut and present that plan to the finance board on April 21.

The $661,440 cut calls for the elimination of $400,000 in education capital expenses, including plans for auditorium and bathroom upgrades and other projects.

In February, Brule said he made an effort to hold the line at last year's $45,930,439 operating budget number. What has driven expenses up, according to Brule and Retirement Commission member Susan Driscoll, is the Retirement Commission's budget, which increased 14.6% from last year, the largest such hike among departments.

Other Post-Employment Benefits is the chief culprit — it's what state and local governments provide to retired employees aside from pensions. The Board of Selectmen recommended $1.4 million go toward paying off its approximately $22 million Other Post-Employment Benefits debt.

The Board of Finance continues to deliberate before sending the budget to the Representative Town Meeting for a final decision.