Norwich -- The budget season is officially underway for the City Council.

On Monday night, City Manager John Salomone presented aldermen with a proposed 2022-23 budget of $139.5 million, which calls for a 1.8% spending increase compared to the current budget.

The budget calls for a 2.12% citywide tax hike.

Salomone said increases in salary and fringe benefits, and health insurance for city employees, as well as capital improvements are the main reasons for the increases. Health insurance costs have increased by 20% due to backlogged medical care deferred during the pandemic, plus increases in prescription drug costs. Decreases in pension costs, though, have partially offset the increase for the city.

The budget proposal calls for two new positions. A public works laborer slot that was cut in the current fiscal year would be restored. A new environmental compliance coordinator would be hired, with partial funding for that position coming from revenue from the state's new tax on the sale of alcoholic beverages in small "nip" containers. In addition, maintenance workers and equipment in the Recreation Department would now be under the oversight of the Public Works and Parks Division.

Federal American Rescue Plan funds would be used to fund nine additional new positions in the city: A third records clerk in the City Clerk's office, a grant project manager in the City Manager's office, an assistant zoning/blight enforcement officer, an additional fire inspector for the paid fire department, an auto equipment mechanic for Public Works, a human services manager, and three additional police officers. Salomone says all these positions will be evaluated in the 2023-24 budget cycle to determine if they will remain funded.

The Board of Education would receive a 1% increase over the current budget. The board had requested a 2.3% hike.

Salomone said the city's grand list has increased 2.38% compared to the current grand list in part due to the increased value of motor vehicles over the past year.

Otis Library would see its funding would go up by $77,000 to $1.17 million, a 6% increase. It had requested a $238,000 increase. Salomone's budget also boosts funding for the Norwich Community Development Corporation to $175,000.

Residents in the City Consolidated District would pay an additional 7 mills in taxes to cover the cost of the paid fire department. That represents a 0.42 mill increase over the current fire tax rate. Town Consolidated District residents, who are served by volunteer fire departments, would pay an additional 0.35-mill on top of the city wide tax rate. That represents a slight decrease in the fire tax levy.

The city manager's proposal estimates a CCD homeowner with a residence that has a market value of $143,000 would pay almost $5,700 in property taxes.

Salomone also outlined his recommendations on how the city will allocate more than $10 million in American Rescue Plan funds. Among his proposals: $2 million for building code compliance projects, $1.4 million to complete a master plan for a park upgrade to Yantic Falls, and $750,000 to expand the police department's public safety surveillance camera system to the West Side, Norwichtown, and Taftville.

Aldermen will now review the City Manager's proposal, with city departmental meetings starting Tuesday. The first of two scheduled public hearings on the budget proposal is April 14 at 7:30 p.m. at Norwich City Hall. Salomone says public comment will also be taken on his recommendations for Rescue Plan funding.

The city council has to adopt a preliminary budget on May 2, and a final budget by June 13.