By JESSICA MAHER

Recorder News Staff

The Amsterdam Budget Review Committee will meet this evening to try to balance the city's proposed 2011-12 budget without a double-digit increase to the water rate, but 5th Ward Supervisor Karl Baia isn't waiting for the outcome to protest the controversial proposal.

Baia began circulating a petition on Tuesday to oppose the elimination of the 3 percent tax cap for the water fund.

"There's no telling what additional work they'll do on this," said Baia. "They've done work, and this is where they're at."

A 17 percent increase to the water rate was tentatively placed in the proposed budget last week -- along with a 10 percent retiree benefit contribution and other cuts -- as a solution to a budget that started out with more than a $2 million deficit.

The water rate increase has been pushed by Mayor Ann Thane and City Controller Heather Reynicke as the most fair way to balance the budget because outside users and non-profits also pay the tax.

It would require a local law to eliminate a 3 percent cap that was placed on all funds by public referendum in 2004.

"It is legal," Thane said Wednesday. "We think the original motion to limit the powers of the municipality was in awry."

Baia has enlisted the help of a handful of volunteers to carry the petition, including former 2nd Ward Alderman Dan Roth.

"This is my second budget since being gone out of office," said Roth. "It just disgusts me how things are being handled right now by this administration and the council, how they are blind towards everything going on in our economic society. We need to take a stance."

If the water cap proposal moves forward after today's budget meeting, Baia said he and others will go door-to-door in the city with the petition.

"If they want to go over that tax cap, they should do it by public referendum and go back to the people for vote," said Baia. "With these signatures I'm going to remind them on the council of what the people want."

Alternatives to the water rate increase tossed around by members of the Budget Review Committee have included layoffs in the fire and police departments, a wage freeze, elimination of the codes department, the city engineer position and more.

"I would hope that Mr. Baia is circulating some sort of solution to the budget shortfall as well, because it's easy to carry a petition but it's much more difficult to come up with a solution to the problem," said Thane.

Today's meeting of the Budget Review Committee will be held at 6:30 p.m. in the council chambers of City Hall.

Contact JESSICA MAHER

at jessica.maher@recordernews.com