Groton ― The town manager is proposing a $149.4 million town and school budget for 2023-24, which is approximately $6.4 million or 4.4% more than the current budget.

A public hearing on the budget will be held at 6 p.m. Wednesday at Thrive 55+ Active Living Center and also via Zoom.

The budget, if approved as is, would raise the tax rate to 22.24 mills, or 0.96 mills more than the current rate.

Town Manager John Burt said the budget proposal is “just the starting point” for Town Council and Representative Town Meeting deliberations, and he expects the budget will be reduced as the town moves through the budget process.

Burt said the draft budget keeps services level.

Under the budget proposal, funding for town operations would increase by 7.2%, funding for outside agencies would increase by 6.4%, education funding would increase by about 3%, funding for subdivisions would increase by 5.1%, and funding for the capital project/debt service would increase by 4.6%.

Superintendent of Schools Susan Austin has said salaries, inflation, and rising fuel, electricity, and transportation costs are behind the increases in the education budget.

Burt said the increase for town departments is almost completely due to personnel costs, as well as increased gas, fuel oil, and utilities costs.

The town used American Rescue Plan Act funds for many capital projects in this year’s budget. He said with those funds no longer available, capital projects have to be funded in the budget.

About 80% of the debt service is due to the Groton 2020 school project, according to the proposal.

Burt wrote in his budget proposal that the town’s grand list and estimated state grant revenues are increasing, and the town has seen “higher than expected revenues in recent years.”

He wrote that he is proposing to use $2.5 million of the town’s fund balance towards capital improvement projects and $2 million of the balance to offset taxes.

Town manager’s message

In his written proposal, Burt said that ARPA funds have helped the town with repairs and replacements to Parks and Recreation facilities, but the town will need to maintain them so they don’t fall into disrepair.

He named rising costs for health care, retirement, fuel and electricity, the state trying to make towns pick up more costs, and town staffing levels that do “not allow much flexibility to incorporate any new services,” as among the challenges the town will face in the next few years. He also said the town needs a plan to replace aging school athletic facilities and increase their number.

He mentioned that much construction is anticipated in Groton over the next few years, including the expansion at Electric Boat, but he pointed out that tax revenues from new Electric Boat construction will be “stifled for several years due to the State granting them an Enterprise Zone designation,” which allows local property tax abatements for a period of time.

Burt further called for the Town Council, Representative Town Meeting, and community to “come to a shared vision” on the town’s future.

“We have seen recent conflicting opinions on how to best balance commercial and industrial development with effects on residential neighborhoods,” Burt said. “There has additionally been unresolved discussion on the appropriate level of open space, along with how best to buffer them, in Town.”

He also wrote that: “A low tax rate is only one component of prosperity. Without suitably maintained parks, libraries, athletic facilities, and other similar services, the Town will suffer and never realize its full potential. The challenge is how to best accomplish this goal.”

k.drelich@theday.com