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Old Saybrook Budgets, Up 2.5%, Go to May 10 Referendum

Old Saybrook voters can make their voices heard on Tuesday, May 10 by voting on the proposed town and education budgets. Polls are open at Old Saybrook High School from noon to 8 p.m. The total proposed budget is $48,377,698, a $1,189,977 or 2.52 percent increase.

Voters will consider the proposed town budget of $20,904,357 (a 2.39 percent increase) and a proposed education budget of 27,473,341 (a 2.62 percent increase). Though spending increases, Finance Director Lee Ann Palladino said that the mill rate may not.

“Due to an increase in the Grand List, particularly the Motor Vehicle Grand List, the town expects its mill rate to remain flat or have a slight increase. The mill rate is currently 20.05,” Palladino said.

Palladino said that no new positions were added or cut from the proposed town budget. The budget increase on the town side are largely led by benefit increases and operational costs, according to Palladino.

“The 2.39 percent increase was associated with a salary increase of 2.90 percent, benefit increases of 6.72 percent, and operational increases of 3.5 percent. Debt service decreased 4.30 percent,” Palladino said. “Salary increases were based on contractual obligation associated with the town’s four collective bargaining agreements. Operational expenses were associated with an increase in the paving budget, as well as higher costs of services and goods due to inflationary pressures.”

The town also restructured how benefits are handled according to Palladino.

“During this budget season, the town changed its philosophy for meeting its long-term obligation for the town’s defined benefit plan,” said Palladino. “The town now budgets the employer contribution according to the actuarial determined contribution (ADC) recommended by the town’s actuary, Milliman. This preferred budget practice will ensure that the pension plans are fully funded over the long term.”

Palladino attributed the increase in benefits to “the increase in the employer contribution for the town’s defined benefit plan.”

As for capital projects in the proposed budget, Palladino said the town is looking to add a new gazebo for the Town Hall, equipment for the Department of Public Works, and equipment for the Park and Recreation Department. The total cost of the capital projects is $164,217.

On the education side, Superintendent of Schools Jan Perruccio said that no positions would be added or cut under the proposed budget.

“This is a budget that sustains current programming and nothing more,” said Perruccio.

Planned capital projects include new gym floors at the high school and middle school, technology upgrades, and culinary room shelving at the high school.

Last year voters passed both proposed budgets in landslide margins. The town budget passed by a vote of 227 for and 15 against, while the education budget passed with a vote of 229 for and 10 against. Turnout, with 242 voting, was about three percent.

More information on the proposed budget can be found on the town website www.oldsaybrookct.gov.