City Council’s finance committee Tuesday did not recommend the mayor’s proposed no-tax-hike $27.9 million budget.

The vote was 3-0 for “no recommendation” and the committee recommended further review by council, which holds its first reading of the proposed budget Thursday.

Voting were Councilwomen Liz Miele, Bonnie Katz and Gerry Fausnaught, who made up the committee.

Later, Mayor Gabriel J. Campana said he was not surprised by their vote, but said it was the committee’s prerogative.

Miele and the others on the committee expressed their main concerns were the mayor’s apparent removal of $100,000 earmarked for economic development consulting firms.

Currently, Penn Strategies Inc. and Delta Development Group have contracts that are up for renewal at the end of this month, said William E. Nichols Jr., city finance director and general manager of River Valley Transit.

Nichols told the committee he encouraged the mayor to put money in the legislative contingency fund because of the potential for arbitration or contract negotiations requiring counsel assistance.

Katz said that is what that fund is for not for paying for consulting firms. Delta has been successful in securing 10 grants that have helped to pay for progress on the East Third Street/Old City Gateway Revitalization project, Nichols said.

Penn Strategies, meanwhile, has worked for several years on behalf of the city. It has helped find funding for a handicapped accessible playground at Memorial Park and state Redevelopment Assistance Capital Project grants for upgrading Bowman Field. Presently, he said, it is involved in getting funding for Grafius Run and the levee recertification.

Katz said $100,000 in the legislative contingency fund isn’t going to cover possible expenses related to these consulting firms.

“It’s not enough,” she said, adding it appeared to her that Campana removed the line item in order to present the no-tax-hike budget.

“It makes no sense to stop funding them midstream,” Katz said of the consulting personnel who are working on behalf of the city and knowledgeable of the specific needs of the city.

Campana said after the meeting the money is there for consulting firms contracts, but he had finance department personnel put it in the budget’s legislative contingency fund.

He further explained his rationale. “I want Mayor-elect Derek Slaughter to have the option of using it for requests for proposals, should he decide the city wants other firms.”

Council holds a second budget work session tonight at 7. It focuses on budget drivers such as the salaries, benefits and pensions of police, fire and codes departments.