A proposed budget package of $121,500,383 for the 2023-’24 fiscal year will head to a May 8 Town Meeting before going for a referendum vote on May 16.

The North Haven Board of Selectmen (BOS) presented a proposed financial outline at its monthly meeting on April 6, walking through the various budgetary strategies for a responsible municipality framework.

Those actions are meant to meet the goals of the budget, which is crafted to continue supporting public education, enhance the town’s “current public safety,” and maintain “existing services,” with the determination that it “covers the inflationary increase in existing services.”

The proposed budget represents $121,500,383 in town expenditures, including the Board of Education (BOE) budget. This amount represents a 4.7% increase from the current year’s budget, totaling $116,023,597. Of the total package, BOE spending represents 51% of all spending, with a request of $61,643,954, an increase of 2.5% over the current year.

The current year’s budget is set to expire on June 30. If town electors officially approve the proposed budget at an upcoming referendum, it will go into effect on July 1.

The BOS recognized the impact that nationwide inflation has had on municipalities, including North Haven, and its increases in costs for fuel, electricity, equipment, and supplies by public safety and infrastructure departments.

“Although inflation was 8.7% this year, here in North Haven, I look at it and say that the incremental inflationary aspect for us is anywhere from 3.2 to 3.8%. And on a $100-plus million budget, that can be quite significant,” said First Selectman Michael Freda.

Citing an example of inflation, Freda noted that expenses for paving new roads have increased from $230,000 per mile to $300,000 from 2021 to 2023. The impact of inflation on the Public Works Department and other services, such as public safety and the library, has resulted in $3,112,514 in budget decrements. Freda said those and several other departments requested these cuts.

Debt from the reconstruction at North Haven Middle School and the construction of the firehouses and police department headquarters has also influenced incremental expenses needed to maintain and enhance services. Additionally, increased spending of $5 million will go toward debt services, public safety, and town health insurance and pension obligations.

Several departments have made capital requests for a total of $723,533. Among those requests, the fire department is seeking a four- to five-year lease on a new fire engine at the cost of $300,000. The police department has requested $104,000 earmarked for a new cruiser, body armor, and portable radios.

One of the major increases in the budget includes a 32% increase in funding for the North Haven Senior Center. According to Freda, 57% of the increase will go to hiring new full-time staff necessary to support the center following its reopening after the COVID-19 pandemic.

“There was a dramatic reduction in the attendance at the senior citizens center because we are very concerned about our seniors here and, in a pandemic, we certainly did not want them exposed to anything that could precipitate them from getting COVID,” said Freda. “So now that that’s behind us, we’ve got to reopen the senior citizen center and provide all these activities.”

Returning activities and services means hiring six full-time and part-time employees, including the addition of a senior clerk, which accounts for “the bulk of the increase in added full-time member positions,” said Freda.

The proposed spending package also brings an increased mil rate. According to Freda, should voters approve the budget, the mil rate would increase by 1.94% to 32.65 mils after remaining at 30.71 mils since 2020. Freda said its increase contributes to supporting and enhancing town services such as those in public safety.

“In an effort to maintain everything we’re doing, enhance public safety or to support public safety education, keep leaf collection… we’re the only municipality that picks up loose leaves, this is the cost to maintain and slightly enhance all those services,” said Freda.

Lost revenue running up to the new fiscal year is another contributor to the mil rate raise. According to Freda, while the town saw an increase of $1,363,000 in the tax revenue from economic development growth over the current fiscal year, or a 1.4% increase in the grand list growth, coupled with the increase in public safety expenses, it will not be enough to balance out revenue loss.

“Hence, the difference in the mill rate,” said Freda.

Even with its increase, Freda said that the 32.65 rate would remain one of the region’s lowest and contribute to a sound budget that bolsters its goals.

“I’m hopeful that the residents will understand that the value or the cost of the services have gone up tremendously,” said Freda. And my opinion has always been that people who live in North Haven and want to move to North Haven, of which there’s many people right now that want to move to North Haven, value these services, and this does not cut back any services. It maintains and enhances.”

The Annual Town Meeting is on Monday, May 8, at North Haven High School, 221 Elm Street, at 7 p.m. A referendum is scheduled for Tuesday, May 16.