East Lyme — Residents reviewed and discussed the proposed 2022-23 budget of $80.6 million at the annual town meeting Monday and sent the package on to a budget referendum May 19.

The proposed budget includes $54.1 million for education, $20.2 million for general government, $5.7 million for debt service and $636,860 for capital expenses. This reflects a 4.3% increase in the general government budget, a decrease of $46,701 in debt service, a $1.9 million or 3.64% increase in education and $46,253 decrease in capital expenditures.

Overall, the proposed budget represents a total increase of $2.6 million or 3.39% over the current budget.

An estimated tax rate of 23.84 mills was submitted on Monday pending approval at the annual budget referendum. A five-year capital plan that identified the town’s departmental requests was also reviewed and approved at the meeting.

The May 19 budget referendum will take place at East Lyme Community Center, 41 Society Road from 8 a.m. to 8 p.m.

“Overall, we think we had a really good budget process," Board of Finance Chair Denise Hall said. "I have to say everybody was completely cognizant of the strain that everybody is under with inflation and very, very concerned with trying to mitigate the impact of any tax increase that might be passed on."

Using a revaluation average increase of 24%, a taxpayer with a home assessed at $250,000 with an estimated revaluation of $307,500 would pay approximately $7,390 in the coming fiscal year based on the projected tax rate. That's an increase of $263 per year.

A taxpayer with a home assessed at $350,000 with an estimated revaluation of $430,500 would pay approximately $10,347 in the coming fiscal year based on the projected tax rate, an increase of $368 per year.

First Selectman Kevin Seery said the general government budget increases are primarily due to necessary staffing increases, which includes two full-time public safety dispatchers, a dedicated information technology director, 1.5 police positions — one of the officers would start mid-year — a human resources assistant and a firefighter, who would start mid-year.

During the education presentation, Superintendent Jeffrey Newton said the Board of Education focused next year’s budgets on student needs. He highlighted an uptick in student behavioral and emotional issues, ongoing achievement gaps, a growing need for student support services and more students with special needs.

The school district also is dealing with utility costs that have increased by $300,000 and a health insurance increase of $340,000.

“We are still working through the unexpected health care costs, but there should be minimal to no direct impact on students,” Newton said. “We have been working this year with the Youth Coalition and the town Wellness, Prevention, and Mentoring Coordinator, Sarah Firmin, on bringing mental health activities and speakers to our schools."