The City of Tonawanda Common Council did not pass a local law on Tuesday that would have allowed the city to override the state's 2 percent cap on a tax levy increase.
"For a city like ours, to stay under the 2 percent tax cap requires some drastic cuts in services," said Treasurer Joseph Hogenkamp. "This budget is all salaries and benefits."
The city has had to override the cap on the levy for the past three years.
But the vote Tuesday was tied, with Councilors Jackie Smilinich and Timothy Toth voting against the override. Councilman Chuck Gilbert was absent.
President Jenna Koch said they would re-vote with the full board at a special meeting at 5:30 p.m. Monday.