By JIMMY LAWTON

OGDENSBURG – An early projection of the city finances shows the city will need to close a $400,000 gap in spending if it’s going to stay within in the state tax cap.

At a special meeting Monday, City Manager Sarah Purdy told city councilors that the numbers significantly better than they were last year, but that the budget process would still be tough.

Purdy says major cost increases include $120,000 in employee wages, $125,000 in funds to pay Ogdensburg City School for uncollected taxes, health insurance costs, general fund debt services and need to increase retirement incentives.

Purdy said those expenses are currently estimated to cost the city an additional $600,000.

Purdy said the city has managed to save about $100,000 through attrition and delays in filling jobs. She says the city could also raise $98,595 through taxes and still stay under the tax cap, leaving the city a $400,000 gap as councilors prepare to begin working on the budget.

However that gap could widen if councilors decide not to increase taxes. Deputy Mayor Michael Morley questioned whether city residents could take another increase. The city’s tax rate is already more than $19 per $1,000 of assessed property value.

Purdy said the city will need to find additional savings this year in order to avoid substantial increases in the 2018 budget, but added that she would not recommend using any of the city’s fund balance too offset and increase because it remains low.

She also warned the council that should they decide to reduce the city’s workforce they should expect a decrease in the city’s services.

Purdy said she intends to submit a budget to the council Oct. 13, which will begin the budgeting process. An overview will be presented Oct. 23.