To override the tax cap, the town will need to enact a local law. At a meeting on Oct. 8, the North Elba Town Council scheduled a public hearing for 5 p.m. Wednesday, Oct. 30, which needs to take place before the budget is approved in November. Supervisor Derek Doty said the proposed tax cap override is just in case the town needs the flexibility to go above the 2% increase in the tax levy that the state allows.

“We’re not overly worried at this point,” Doty said. “This process of tax cap override is a safeguard.”

The real property tax cap is a restriction that the state imposes on local governments. It limits the amount they can raise the tax levy from the previous year to an increase of 2% or the rate of inflation, whichever is lower. According to state law, if a local government exceeds the allowed tax levy increase without an override, they have to place the excess amount in a reserve that is then used to offset the tax levy the following fiscal year. Exceeding the allowed tax levy increase can also result in other consequences, like being scrutinized more carefully by the state, according to North Elba budget officer Catherine Edman.

“We had the introduction of the local law done just to cover our bases, just in case we don’t get to the point where we don’t need to override the tax levy,” Edman said.

After the public hearing, the town board can vote on the local law any time before the budget is accepted. This is the point where they will determine whether a tax cap override is necessary, according to Doty.

The main reason the town is anticipating that the override might be needed is that overall prices on just about everything have increased, Doty said. The town is faced with the challenge of providing the same services at higher price points. This is the first year Doty can remember needing to seek a tax cap override, but he said he’s heard from Essex County officials that North Elba is far from the only community struggling to cover rising costs.

“Every year, more communities find themselves in the position of having to override the tax cap,” Doty said.