Groton Town's proposed budget calls for a 3.8% increase
Groton — The proposed 2025-26 town and school budget stands at $163.1 million, an increase of approximately $6 million, or 3.8%, over the current budget.
The budget will be presented at a public hearing Wednesday at 6 p.m. at the Thrive 55+ Active Living Center.
Town Manager John Burt said he expects the proposed budget to change significantly as the Town Council and Representative Town Meeting review it.
'I'd like to see the overall budget decreased to limit the impact on our taxpayers,' he added.
The proposal, as it currently stands, would increase the tax rate from 23.08 to 24.98 mills, a 1.9-mill increase.
The proposal would use $5 million of fund balance, after the town collected higher than anticipated revenues in recent years, to offset the impact on taxes, Burt wrote in a document submitting the proposed budget to the Town Council and RTM.
Overall, the proposal calls for a 3% increase for town operations mostly due to employee benefits and raises; a 7.3% increase for education; a 6% increase for outside agencies; a 3.6% increase for political subdivisions such as the city, Groton Long Point and fire districts; a 20% increase for contingency; and a 13.6% decrease for capital and debt services.
Burt wrote that another factor impacting the tax rate is that the Oct. 1, 2024, net adjusted taxable grand list increased 0.12% from 2023.
Burt wrote that thanks to American Rescue Plan Act funds, the town 'made great strides in funding much of its Parks & Recreational facilities repairs and replacements,' except for high school fields and additional community fields. He said the town's responsibility now is to maintain its infrastructure, so it doesn't deteriorate and need to be replaced sooner.
He said the town also needs to 'arrive at a plan for replacing antiquated and in some cases dangerous athletic facilities at its schools, as well as increasing capacity for sporting events with the addition of more facilities.'
Burt noted that upcoming challenges include potential federal funding changes, particularly in education; the state's continued attempts to shift costs to towns; continued health care, retirement, fuel and electricity cost increases; and a likely loss in state education funding when Groton Public Schools comes off the Alliance District list in the future.
He said the town is anticipating a lot of construction over the next few years, but revenue from Electric Boat construction will be stifled because it is located in a state-designated Enterprise Zone.
'While very welcome news, the revenues cannot be counted on to meet all of the Town's financial goals even when combined with other prospective construction projects,' he wrote.
Burt wrote that the town needs to come to a shared vision on how to balance development with effects on neighborhoods and the appropriate amount of open space.
He also said 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,' Burt wrote. 'The challenge is how to best accomplish this goal.'
k.drelich@theday.com
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