AUBURN – City leaders reiterated their concerns with a 1 percent property tax cap on November’s ballot at Monday night’s workshop meeting.

City Manager Pat Finnigan said she attended a legal briefing by attorneys from the law firm of Jenson, Baird, Gardner and Henry in Yarmouth last week.

The firm presented a report on the legal issues surrounding the proposed cap and the effect it would have.

Based on that report, Finnigan said Auburn would be able to collect about 30 percent of the $37.1 million in property taxes it budgeted for 2005.

“You all know the difficulty we had putting together a budget this year,” Finnigan said. “It would just get harder and harder if this passes.”

If voters approve, the cap would set municipal property tax rates at $10 per $1,000 of value. Auburn currently collects $29.38 per $1,000 of value.

Finnigan said the allowed property taxes wouldn’t even fully fund Auburn’s schools. The cap would hurt in other areas as well. Cities like Auburn would have to trim public safety costs, including fire and police budgets.

“The insurance industry is watching us very carefully now,” Finnigan said. “We have good rates now, for people living here, because we have good services. But that would change, too.”

“People have to realize that they may be saving money on one hand, but they’re going to be paying it out on the other,” Mayor Normand Guay said.

Councilor Kelly Matzen said he agrees that Maine needs tax reform.

“But doing so should not be a poison pill for municipal government,” Matzen said.