A major tax hike is proposed in the City of Binghamton. Mayor Matt Ryan unveiled his 2009 Budget last night. It includes a property tax rate increase of 16.9-percent for homeowners, and 17.8 percent for businesses.

Ryan says it's a tough time for the city. He's asking taxpayers to understand. He says being a mayor is a horrible position to be in to bring these kinds of tax increases to the public but claims he has no choice.

Mayor Matt Ryan says rising costs, a flat tax base, and no new sources of revenue are driving up city property taxes. In his 2009 budget proposal, fuel costs increased 500-thousand dollars. That’s 3% of the entire budget. Increasing personnel and pension costs tacked on millions more.

As it stands, the average homeowner in Binghamton could end up paying about 232 dollars more in property taxes in 2009.

Ryan called on all city departments to trim spending by 5-percent. He says it led to a 1-million dollar cut in the overall budget. 5 positions were also eliminated. Four through attrition in the police department. Though his office says the number of officers on the street will not be affected. As for cutting city positions, it could be just the start.

More cuts are expected. Ryan says "we're going to have to live with less people in city government." Under Mayor Ryan, the city has more than doubled its property tax rate increase each year since he took office in 2006.

The 2009 budget is now in the hands of city council.