The issue is a result of two clashing state laws. One obligates the city to annually pay the sum equal to one-third of a mill of every assessable property within the city. For last year, that amounted to slightly more than $243,000. But a state law capping municipal budget increases by 4 percent places the city in a financial bind, the council has argued. The city last year tried unsuccessfully to change the status of the library to that of a department of the municipal government, which would have given the council control of its budget.

DelVecchio has claimed that the current status of mandatory revenue for the library hamstrings the city's efforts to meet other rising operational costs.

People who are in a position to know about the negotiations say both sides are working on a specific amount of funds the library would transfer to the city's budget. If they reach an agreement, there would be no question on the ballot.

The council at its meeting last week seemed reluctant to proceed with the necessary vote to get the question on the ballot for November. If the negotiations are not finalized it is likely the council will vote at its Aug. 18 meeting to have voters decide the issue again.

Another issue for voters to decide is whether the city should extend its open space tax. The proposal is for the city to acquire between six and seven acres of land on Music Mountain that could po tentially be developed for housing.

DelVecchio said if the acquisi tions were completed, the entire steep hillside and the ridge line in an area from the Buttonwood Street to York Street would remain as woodlands.

The tax was used previously to acquire large properties along the hillside, including behind the elementary school and the recreation complex, both on North Main Street.

The mayor said it is not a proposed increase in the amount of the tax but an extension of the levy until the acquisitions are paid off. If the voters approve the non-binding proposal, the city would then seek private and public grants to help fi nance the transaction.

The tax is 2 cents per $100 of assessed value of a property and is scheduled to expire in 2010.

While the city continues to study the economic benefits of a merger of its police department with its neighboring communities, it has reached an agreement with West Amwell to share the services of a tax assessor.

DelVecchio said it is another step with several to come as the city restructures its budget as a re sult of the state's 4 percent cap on spending. He estimated the move would save the city about $7,500 a year. "That may not be a great amount, but it is $7,500 we don't have to get from taxes," said the mayor.