Lyme — The Board of Finance approved a $12.4 million 2022-23 proposed budget earlier this month that will hold the tax rate at 19.95 mills for the fifth consecutive year.

The budget proposal contains a $1.43 million, or 13%, increase in spending from the previous year.

“The town of Lyme does a good job of forecasting eight to 10 years into the future. We like to look at mill rate for current years, but also in the years ahead. We try to smooth the impact to the taxpayer,” First Selectman Steve Mattson said.

The budget and mill rate are not final until the residents vote at a town meeting set sometime after the school budget referendum on May 3. More details on the town meeting will be released on the town's website, townlyme.org.

The proposed spending increase is largely due to an expected $2.44 million in capital expenses, which include public safety and road projects, to name a few items.

“Our increase is due to two bridge replacement projects and will likely reach construction phase this year,” Mattson said. The Birch Mill Road Bridge and Macintosh Road Bridge projects account for $1.41 million of the increase.

Money allocated to the Open Space Reserve Fund increased by $323,000 in the 2022-23 proposed budget. Last year, the Board of Finance drastically reduced the allocation for the fund from $479,000 to $75,000 and halved the fund's minimum goal to $500,000. Residents opposed the move and in May of last year voted to set a minimum goal of $1 million in the fund and to replenish it in a timely fashion after any property acquisition.

American Rescue Plan Act funds, which the town received to address negative impacts of the COVID-19 pandemic, account for a $685,422 increase in capital expenses.

Alan Sheinness, chairman of the Board of Finance, said there is a plan for the ARPA funds to go to some town infrastructure needs, road work and to help organizations that struggled during the pandemic. Mattson added that applications for ARPA funds are available for nonprofits negatively impacted by the pandemic, on the town website at townlyme.org/?s=arpa.

The Region 18 school budget costs are divided between Lyme and Old Lyme, and each town's share fluctuates based on the number of students from each town in the school system, which is calculated twice yearly in April and October. Lyme’s current portion stands at 17.8% of the district's student population, with the town's total education expenses projected at $5.92 million for 2022-23, a slight decrease of $77,311 from last year.

The total proposed budget for Lyme-Old Lyme schools has a 0.13% decrease in spending, $44,084 less than in 2021-22.