Groton — A proposed fiscal year 2023 budget of $148,334,375, which is a 7.8% increase over the current year's budget, will go to public hearing on Thursday.

According to the budget proposal submitted to the Town Council and Representative Town Meeting by Town Manager John Burt, the proposal would lower the tax rate from the current 25.98 mills to 22.4 mills next year, a decrease of 3.58 mills.

Burt said the tax rate for next year is set to decrease primarily because of an increase in home values with the revaluation. He explained that the value of homes generally went up with the five-year revaluation, so they generate more tax revenue per mill: "If we continued the same mill rate, we would collect considerably more revenue than what is needed for the budget," he said.

The proposed budget will use $4 million of the town's fund balance, "which will maintain the Town's Unassigned Fund Balance Level at 19% in June 2023," the document states. Of the $4 million, $2.6 million will be for capital improvement projects and $1.4 million to further "offset tax increases."

According to the budget proposal, town operations spending is increasing $1,506,439, or 3.9%, to $39,765,707. Burt said the largest increase is an additional $455,451 for health insurance.

The proposed education spending for next year would increase $1,719,181, or 2.2%, over this year's spending, to $79,157,271, according to the proposal.

Funding for capital/debt service would be $18,723,706, under the proposal, an increase of 42.6%, or $5,590,256. That includes an increase of $4,026,000 for proposed capital improvement projects, as Burt said the town "has not been spending enough to keep up with CIPs over the years. Additionally, the Town’s bond to pay for roads has run out of funding resulting in roads being moved in to the CIP budget." It also includes an increase of $1,564,256 for the 2020 schools project, which consolidated the town's middle schools and constructed two new elementary schools.

Funding for outside agencies — regional agencies and health and service agencies — is proposed to increase by $398,505, or 19.9%, to $2,399,354, according to the proposal. $1,797 of the increase is for regional agencies, while $396,708 is for the health and service agencies and is primarily due to the Visiting Nurse Association and Groton Ambulance, he said.

Funding for subdivisions is proposed to increase $1,466,627, or 22.7%, to $7,938,337 next year, according to the document. The increase is primarily due to the City of Groton’s need for funds toward fixing a sea wall, Burt said.

Proposed funding for contingency — $350,000 — is the same as the current year, according to the proposal.

The town manager and superintendent of schools are slated to present their budget proposals at Thursday's hearing and then the public will have the opportunity to comment. The hearing will be held at 7 p.m. Thursday at Thrive 55+ (Groton Senior Center) and virtually. People who wish to speak at the public hearing via Zoom can email council@groton-ct.gov.

The budget proposal is available online on the town's website at bit.ly/gtbudget2022.

"As we see with budgets each year, changes will be made by the Town Council and RTM as it makes its way through the process," Burt said.

k.drelich@theday.com