Old Lyme ― The proposed 2024-25 budget of $42.1 million going to voters at a town meeting next month comes with a projected 3.8% increase to the tax rate.
The spending plan ― which includes town operations, education and capital costs ― represents an increase of $1.1 million, or 2.7%, over the current budget.
That translates to a tax rate of 24.4 mills based on Board of Finance calculations. That’s 0.9 mills higher than the current tax rate. A resident with a house appraised at $600,000 would be looking at a tax bill of $10,248, up $378 from the current payment.
Last year, the finance board used $600,000 from the town’s rainy day fund to keep the tax rate from increasing. The proposal this year does not contemplate dipping into the town’s reserves, which were estimated as of June 30, 2023 at $13.1 million, or 32.8% of the total operating budget.
The finance board will officially set the tax rate after the town budget vote on May 20, if approved.
Board of Finance Chairman Bennett J. Bernblum at a public hearing earlier this month attributed the brunt of the increase to the Region 18 school district comprising Lyme and Old Lyme.
“I don’t say that in a negative or critical way,” he said. “It’s just a matter of fact that they’ve got a big budget and it went up this year.”
Education spending accounts for 70.1% of Old Lyme’s proposed budget, with $29.5 million allocated for a predicted 1,055 students. The increase amounts to $1.3 million, or 4.5%, over current spending.
The numbers represent the town’s share of the proposed $36.9 million 2024-25 Region 18 Board of Education budget approved in February, which will go to voters at referendums in Lyme and Old Lyme on May 7.
School board members in February voted to approve a 3% increase, up from the 0.62% increase proposed by Superintendent of Schools Ian Neviaser the month prior. Estimated budget figures provided by Neviaser show that allocating $853,000 for the project to renovate four of the district’s schools in the 2024-25 proposal will save $95,025 on debt payments the following year and almost half a million dollars over the 23-year life of the loan.
The district anticipates it will begin soliciting construction bids in May, according to Neviaser.
Town spending up 4%
Spending for government operations in the Old Lyme budget comes in at $10.6 million, an increase of $413,870, or 4%.
The budget proposes boosting to full-time the positions of town facilities manager and assistant director of the Parks and Recreation Department. A $29,856 increase to the transfer station budget covers technology to allow credit card payments.
Under the proposal, the nonprofit Old Lyme Phoebe Griffin Noyes Library would receive $20,000 more than the $395,000 it receives now. Grants to private beach associations in town would add up to $13,300 more than the $71,700 currently appropriated.
Capital spending is down 23%, leaving $2 million for big ticket expenses like a dump truck, road improvements, and a rescue unit for the Old Lyme Fire Department.
e.regan@theday.com
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