East Lyme― The proposed $86 million budget for 2023-24 is on its way to a referendum where voters will be able to weigh in on a projected 4.3% tax increase.

A largely procedural town meeting was held Monday night in keeping with the budget process laid out in the town charter. Voters at the meeting adjourned to a May 18 budget referendum after approving a $4 million, five-year capital plan.

The $86 million proposed budget is up 7.2% from the current budget. It comprises $21.5 million in town operations expenses, up 4.9%, and $57.8 million in education spending, up 6.8%.

A taxpayer with a home valued at $300,000 would pay $5,223 in property taxes in the coming year based on the proposed budget, according to the finance department. That’s an increase of $216.

The capital plan approved Monday includes big ticket items like $850,000 in annual bonding to keep repair roads, $272,000 for a new roof for the Niantic Fire Department’s main station and $275,000 for pickleball courts.

The town charter dictates that if the budget fails, the finance board is required to submit a revised spending plan for another referendum vote two weeks later.

First Selectman Kevin Seery said the budget has not failed in the 13 years since the town switched from voting at a town meeting to casting ballots in a machine vote during an all-day referendum.

The budget referendum is scheduled to be held from 8 a.m. to 8 p.m. on Thursday, May 18, at the East Lyme Community Center, 41 Society Road.

e.regan@theday.com