Aug. 31--NORTH TONAWANDA -- Mayor Lawrence V. Soos' proposed budget for next year predicts that the city will reap record sales tax revenue.

In addition, North Tonawanda is projected to see benefits from two yet-to-be-finalized deals with the New York Power Authority and a private corporation hoping to lease space at the wastewater-treatment plant.

Soos' proposed $43.9 million spending plan relies on $7.5 million in sales tax revenue next year, an amount $225,000 greater than what the city budgeted to receive this year and about $540,000 more than what the city got in 2008, according to figures from the city Accounting Department.

A public hearing on the budget will be held at 6 p. m. Sept. 8 in Common Council chambers in City Hall, 216 Payne Ave.

The city's sales tax revenue generally increases by $200,000 each year, City Accountant David R. Jakubaszek said. The new spending plan projects an additional $130,000 beyond the average increase, which is based on historical trends.

"I'll say that this is more on the aggressive side," Jakubaszek told The Buffalo News, ". . . but it's within reason."

Aside from the jump in anticipated sales tax revenue, Soos' spending plan also includes cost savings at the city's water and sewer plants, thanks to expected receipt of low-cost electricity from the Power Authority.

Soos has projected a cost savings of $200,000 next year, even though an agreement with the authority is still being negotiated.

The City of North Tonawanda is one of 17 members of the Eastern Niagara Power Project Alliance, a group of Western New York municipalities and school districts that has been seeking compensation from the authority for several years in connection with the new federal license for the Niagara Power Project.

"We're still in negotiations with NYPA, and we were basically told not to talk about this stuff too much," Soos said.

The alliance, which also includes the City of Lockport, and the towns of Amherst, Tonawanda and Grand Island, has received an offer from the authority, and expects to submit a counterproposal to them next week, said Soos, a Democrat.

Spokeswoman Connie Cullen said the authority has begun talking with the city about an energy-efficiency program but did not address any potential deal involving low-cost power.

Soos' budget has been submitted to the Common Council for review. The Council has planned a budget workshop after its regular meeting Tuesday evening.

The proposed budget would reduce the tax rate to $12.57 per $1,000 in assessed valuation, from $12.62. The water and sewer rates were unchanged.