CANAJOHARIE - The Town Board announced Thursday it will hold a public hearing on a proposal to allow it to raise taxes above the 2 percent tax cap, along with other town budget concerns such as the release of the town's preliminary budget.
At Town Hall on Thursday, the board voted to approve conducting the hearing on Oct. 18 at 7:30 p.m.
Supervisor Herbert Allen said he is confident the town will not need to raise taxes that much, but he wants the law on the books in case it needs too.
Allen said a similar plan was put in place last year.
Rodney Young, a member of the Town Board, said he is against any rise in taxes, but would vote to approve the meeting.
Allen also announced Friday that the preliminary budget was completed Thursday and will be available Tuesday. The proposed budget is similar to last year's budget, Allen said, but includes a 9 percent increase in health insurance costs and a slight increase in pay for employees. As it stands now, he said, the tax levy increase would be 1.002 percent.
Legislation was enacted in 2011 imposing a 2 percent annual cap on property tax levy increases.
However, certain costs are exempt from the cap, such as increases to the state pension system above 2 percent of payroll, capital construction projects, some court judgments and successful tax assessment challenges.
That means municipalities may be technically under the capy even though a property tax levy increase is above 2 percent.
In other matters, bids for heating the town garage and the possible purchase of a new town truck were discussed Thursday.
The board decided to wait until the bids were discussed at the Oct. 18 meeting before moving forward.