The City of Tonawanda Common Council voted, 4-1, to allow the city's 2019 budget to exceed the state's 2 percent tax cap.
The resolution gives the city permission to exceed the cap for a fourth year in a row.
Treasurer Joseph Hogenkamp said if all of 2018's budget numbers were plugged in to the 2019 budget, the tax levy would increase by 9 percent.
He said this year, the city had a 5 percent increase in the tax levy, using $300,000 from the fund balance, but the fund balance won't be available for 2019.
Council President Jenna Koch said, "Unless there is significant layoffs we cannot fall below the tax levy."
Second Ward Councilwoman Dawn Kammerdeiner, the only no vote, said she'd like to find a way to keep spending under control.