LEWISTON – The proposed property tax cap leaves few choices for cities like Lewiston, according to a city panel Tuesday night.

“If it goes into law as written, it means no city government,” said Robert Reed, a member of the city’s panel reviewing the proposed 1 percent property tax cap. “If we put government back, paid for with fees, it means no savings for the taxpayer.”

Members of the panel reviewing the cap and the city’s possible responses said they were pleased with their work, however. A group of 16 people – the City Council, Mayor Lionel Guay and eight citizen volunteers – have been reviewing the tax cap for the last seven weeks, building two budgets based on tax cap cuts and user fees, and outlining legal changes they’d like state legislators to champion.

“We’ve done good work,” said panelist Stephen Kottler. “We’ve let people know what the city’s budget could look like if this passes.”

The group’s final meeting is scheduled for Oct. 25. The group will release the final draft of its report then.

The current draft is available online at www.ci.lewiston.me.us/palesky, on the city’s Web site.

Seven people turned up for Tuesday’s public hearing, and two spoke. Arthur Hughes, of 51 Winding Way, voiced voter frustration with the tax cap. He doesn’t plan to vote for it, he said.

“But we need tax relief,” Hughes said. “We’ve been hollering for it since 1980. And I’m afraid that if it does not pass, it’ll be seen as a license to keep on spending.”

Councilors said the tax cap wouldn’t mean the end for the city.

“I don’t want to tell people how to vote,” Councilor Renee Bernier said. “I want to encourage them to get as informed,” he said. “The City Council will do what they can if this passes or not.”

The group began meeting in September, first drafting a budget based on a strict interpretation of the tax cap. That would mean a $25 million cut in property taxes and severe cuts in city services. Several firetrucks would be retired, fire stations closed, police officers let go and many other city services would be eliminated. Schools would face equally tough cuts.

Next, the panel developed a plan to reinstate all but 10 percent of city services and pay for the difference with $15 million in user fees. That model called for an annual fee for fire service, a per-foot fee for road frontage, a pay-per-bag trash collection program, apartment inspection fees and higher fees for recreation and the library.

School athletic and extracurricular programs would cost an average $500 per student, per activity.

While most homes would see their property taxes cut in half, other fees and taxes would rise. For example, most homeowners can write off their property taxes in their state and federal income tax returns. That write-off would decrease, along with their property taxes, and most would pay $100 to $200 more to the state and federal government.