The City of Binghamton's preliminary budget is sobering.

The average homeowner could face a tax increase of 345-hundred dollars.

The mayor's office won't release all of the number its working with in the 2009 spending plan.

We're told the tax projection is based on the assessment of the average home at 81-thousand dollars in the city.

Action News Reporter Julianne Sweeney tells us what the Mayor's doing now to avoid that much of a tax hike.

Mayor Matt Ryan says Binghamton faces increasingly tough economic times.

Tax increases could make times even tougher.

Ryan is working with a budget that starts with an increase of 345 dollars for the average property owner.

"That is simply unacceptable, and I will not allow our city tax payers and businesses to bear this heavy burden." says Ryan.

Ryan says there will be a tax hike in 2009.

But, he's taking action to scale back the amount.

He ordered a hiring freeze that will last until the end of this year.

He's also asking all departments to find a way to cut spending by 5-percent.

City council members agree these steps are necessary.

"I know it's going to be tough for the department heads because as the mayor said there just isn't, there isn't a lot there extra already." says Council Member Martin Gerchman.

"The city's working to cut additional personnel costs. It wants to eliminate over-time pay and have city employees contribute more to their health insurance plans."

Ryan blames a declining cash reserve, and a huge spike in gas and health-care costs.

He has already enlisted the help of city council members, who expressed frustration in the past about not being involved in the budget process early on.

"They don't always agree with me on everything, but every time there's a real challenge that faces the whole city, there's been real team work." says Ryan.

The city's also hoping the state pitches in too.

It's waiting to find how much it's secured in state aid for next year.

In Binghamton, WBNG-TV, Action News.

The city's current budget is a 73.4-million dollar spending plan.

Hitting homeowners with 7.73 percent increase this year.

Mayor Ryan will give his 2009 Budget Address on August 18 in City Council Chambers.