By JIMMY LAWTON

OGDENSBURG -- Ogdensburg City Council will set a public hearing for a proposal the would allow the city to override the state imposed tax cap at its Monday meeting at 7 p.m. at city hall.

The council has passed the resolution in previous years as a precaution, but has typically worked to keep the budget under the tax cap. The state implemented the tax cap with hopes of reducing property tax burdens. At the time it was supposed to be accompanied by a reduction in unfunded mandates, but the state has failed to make good on that claim.

City Manager Sarah Purdy is estimating the cap at 1 percent for the city, but the final number could come out even lower. She said that means the city can only raise an additional $130,000, without breeching the cap.

“Unfortunately we already know we have increased pension and health insurance costs that total more than this amount,” she said in a emailed response.

This year the council is facing financial difficulties including decreased sales tax revenues, impending needed upgrades at its wastewater treatment plant, and a low general fund balance.

The city manager and department heads have been looking for ways to cut costs while maintaining services, and city councilors recently began working on the budget.

Last year the city spent $419,499 from the general fund to keep the tax rate below the cap, which was just about .73.

At a May council meeting Purdy said if the city continues to allocate significant portions of the quickly dwindling fund balance to offset tax increases the city’s cash on hand will be depleted in two years.

At that time she also pointed out that a major problem for Ogdensburg is that 59 percent of all property in Ogdensburg is tax exempt.

It’s a problem the city has faced for years, but the city is considering to attempting to negotiate PILOT programs with some of the non-taxable entities, which could help the city reduce the tax burden.

Because 70 percent of general fund spending goes to wages and benefits the city manager has also suggested the city must work with its unions to come up with affordable contracts.