LYME–About 55 people came out Thursday evening to approve the $11.37 million 2025-26 budget and raise the cap on a tax break for elderly and disabled residents.
Members of the Board of Finance gathered immediately following the 25-minute Town Meeting to set the tax rate at 14.5 mills. The move left the rate unchanged from the current year.
The newly-approved spending plan includes $10.84 million in town operations expenses, up $513,372 over the current budget, and $530,400 in capital costs, down $1.53 million from the current budget.
Finance board Chairman Alan Sheiness said during the town meeting that the proposed budget anticipates ending the current year with a $200,000 surplus.
“So what you see here in summary is that we should finish this year ahead of budget,” he said. “That we should have next year a flat mill rate for property taxes, 5% growth in operating expenses, and a large decrease in capital.”
Included in the town operations budget is $6.96 million in education funding for the town’s estimated 231 students. That’s up $299,504, or 4.5%, from the town’s current payment to the Region 18 school district shared with Old Lyme. The increase is driven by debt payments on a multi-building renovation project approved by voters at a cost to the district of $57.5 million.
The only opposition to the proposed budget came from Affordable Housing Commission Co-Chairwoman Carleen Gerber when she called out the $1,000 budget allotted to her commission.
She said the commission is currently working on several plans to make it more possible for people to find an affordable place to live in town.
“To have no foresight for affordable housing in a town where service workers and teachers cannot afford a home may be pennywise – but it’s pound foolish,” she said. w
The commission for several years has been exploring the construction of multi-family options such as duplexes or quadplexes that young people and downsizing retirees can afford. They’ve also looked into rehabilitating houses with a focus on making space available for volunteers in the local emergency services.
But First Selectman David Lahm after the meeting said the $1,000 allocated to the commission in the town’s land use budget in the is for basic operational expenses.
“The real money for affordable housing is in our specific fund,” he said, referring to the reserve account started with private donations to promote housing for those who live and work in town. It currently totals $200,000.
Multiple approvals and time-intensive public notice requirements are required before the commission can access the reserve fund. Members have said the process impedes their ability to close on a property quickly when it becomes available in a hot real estate market.
Tax Break for Elderly Residents
A vote to amend income eligibility criteria in the Lyme Elderly Tax Relief Ordinance was approved unanimously.
Lahm said the new ordinance leaves it to the state Office of Policy and Management to set annual eligibility requirements for the tax relief program. Previous income limits of $40,000 for single residents and $47,500 for married residents were unchanged since 2007.
Lahm said the revised ordinance, pending official state numbers, will likely raise the income cap for single residents to $45,200 and married residents to $55,100.
The finance board after the Town Meeting voted to cap the program at $65,000 per year based on criteria outlined in state statute. The cap will stay in place for the next five years.
Sheiness said the total value of the tax break for all qualifying residents in town has not exceeded $20,000 in the past. That means everyone who qualifies should receive the full tax abatement.
“We don’t anticipate coming near that $65,000 cap,” he said.
