SYRACUSE — The Syracuse City Council will hold a public hearing in August to finalize a proposed 20 percent property-tax increase.

The increase, expected to generate $1.8 million a year, cleared its first hurdle Tuesday night when the council voted 3-2 to move ahead with a public truth-in-taxation hearing during its Aug. 11 meeting.

Between now and then, the tax increase could be scaled back.

For senior staff members and three councilmen, the increase was necessary.

City administrator Rodger Worthen said he and finance director LaMar Holt sliced about $500,000 in needed road projects to balance the budget, which the city begins using July 1. Only $77,000 is left in the road budget for filling pot holes, Worthen said.

To stay on top of road repair, the city needs to spend $1 million to $1.5 million a year, he said.

Councilman Alan Clark, who made the motion to impose the 20 percent tax increase, said he wants the new tax revenue to go into fund reserves, which, according to law, have to maintain a balance of between 5 percent and 18 percent of the city's general fund.

The city's fund reserves would dip below that 5 percent threshold without the tax increase, Holt said.

Councilman Doug Hammond, who opposed the tax increase along with councilman Larry Shingleton, said he thinks the city could have cut more from its budget to lessen the tax burden on residents.

Hammond predicted that the 2010-11 budget year could also see a property-tax increase for residents.

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