Stonington ― Voters at Tuesday’s referendum approved an $86.6 million budget for 2024-25 by a vote of 324-131.

Just 3% of the town’s registered voters cast ballots.

Taxpayers will see no increase in the current 17.45 mill tax rate despite an 8% overall increase to the current $80.2 million budget, which includes a 4.5% school budget increase.

That’s because the Board of Finance was able to hold the tax rate steady by drawing $7.89 million from the town’s healthy undesignated fund balance to pay for $7.63 million in capital improvement projects.

The Board of Education meanwhile approved cutting nine positions among other reductions to the district budget earlier in April after the finance board reduced the proposed budget by approximately $500,000.

In addition to projects it approved in March, the finance board added significant capital projects after a public hearing in April including $720,000 toward artificial turf replacement at the high school, $1 million toward roof replacement at the high school and $1.2 million to fully fund the town’s portion of the Alpha Avenue viaduct replacement project.

The excess $255,000 drawn from the fund to maintain the current tax rate will be applied to the town’s debt service obligations.

After use of the funds, the town is projected to have $1.2 million in the undesignated fund, in addition to approximately $14 million it has to cover two months of operating expenses, which is needed to preserve the town’s high bond rating.

Board of Finance Chairman Tim O’Brien had previously explained during April’s budget deliberations that by setting aside the funding for these projects now, the town would realize savings in the future by reducing bonding needed to complete the work.