Proposed Groton City budget brings lower tax rate
Groton — A proposed city budget of $20,896,634, or $904,145 more than the current year’s budget, will go to a public hearing on Monday evening.
The budget would lower the city’s mill rate next year by 0.63 mills, or 15%, to 3.67 mills, due to a rise in property values, permit fees from Electric Boat construction, and use of some of the city’s undesignated fund balance, City of Groton Mayor Keith Hedrick said. The proposal calls for using $2.5 million of the city's undesignated fund balance, which still leaves the city with a healthy reserve, Hedrick said.
Hedrick said the revaluation raised the grand list, with properties on average rising about 16% or 17%, though the grand list will not be finalized until after the Board of Assessment Appeals process.
The budget proposal is increasing by $904,145 as it includes half the funding for the Shore Avenue seawall reconstruction — the city has requested the other half of funding from the town — and also funding for contractual services for inspections of construction at Electric Boat, Hedrick said.
Electric Boat is expanding in the City of Groton, with the 200,000-square-foot South Yard Assembly Building, under construction, for the assembly of the Columbia-class submarines as the centerpiece.
Hedrick said the city is carrying over some unexpended permit fees from this year and the past to cover the contractual services for the inspections. In his budget message to the City Council, Hedrick explained that, like in the current year budget, the city will fund the contractual services through "the use of fund balance based on the unexpended contractual services" budgeted for in fiscal years 2020, 2021 and 2022.
The city also is continuing to fund capital projects and set aside funding to buy vehicles in the future, the mayor said in his budget message.
Hedrick explained that the construction at Electric Boat does not yet affect taxes, aside from the revenue from building permits, but once the South Yard Assembly Building receives a certificate of occupancy, it will go on the grand list.
The budget hearing will be held at 6:30 p.m. Monday in the Council Chambers of the Municipal Building at 295 Meridian Street.
The City Council started its budget reviews this week. The Council is slated to approve a budget on May 23, and the annual budget meeting will be held on June 6, Hedrick said.
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