Council seems to be edging toward property-tax hike

With a final resolution still a ways off, budget tensions erupted in City Hall yesterday.

It seems Council is slouching toward a plan that would contain a property-tax hike and some additional cuts to close a budget gap estimated at up to $150 million, instead of Mayor Nutter's proposal to charge an annual $300 trash-collection fee and a 2-cents-per-ounce soda tax.

But a final deal, which Council and Nutter must reach by May 31, won't come easy. Yesterday's highlights:

* We learned that most Council members would rather hide under their desks than publicly back a property-tax hike.

* Nutter cited a new poll as proof that the soda tax should still be on the table.

* And Councilman Bill Green touted a detailed list of budget cuts as a possible part of the final fix.

Want more? Here is a full rundown:

Council kicked off with a surprise announcement by Councilman Frank DiCicco that he planned to withdraw legislation to raise the city property tax by 12 percent. The bill, introduced weeks ago, would have replaced the $107 million in revenue expected from the trash fee.

Citing frustration with the process, DiCicco said, "No one wants to step forward and do the hike I think is necessary to maintain basic city services."

That left Council scrambling to keep the property-tax option alive, although no one wanted to get too close to the issue. Councilman W. Wilson Goode Jr. introduced legislation with a 9 percent property-tax hike, stressing it was on behalf of Council leadership.

But Republicans on leadership, Brian O'Neill and Frank Rizzo, said they weren't involved. Council President Anna Verna and Majority Whip Darrell Clarke hurried to point out that they hadn't written the bill. Majority Leader Marian Tasco was absent.

Later in the session, O'Neill asked Council to consider withdrawing Nutter's soda-tax legislation, saying that there was no support for the bill and that Council should move forward with other options. But he halted the proposal at the request of other members.

Meanwhile, a national group called the Campaign for Healthy Kids made an appearance in Council yesterday with a poll of 401 likely voters that showed 44 percent surveyed favored a soda tax to solve the city's budget problems, compared with smaller numbers for other taxes.

Nutter praised the poll as evidence that the soda tax - which has been criticized by the soda industry, Teamsters and retailers as harmful to jobs and businesses - was still a viable option.

"[The poll] reaffirms that, one, this is a very serious issue and, second, there is a significant public-health crisis here," Nutter said.

Before Council concluded business, Councilman Bill Green made an impassioned speech in favor of further cuts to close the city budget gap. Green argued that if the city doesn't hire to fill hundreds of vacant jobs and reduce the surplus budget dollars, smaller tax hikes would be needed.

"We must tighten our belts. We must reduce the size and cost of government," Green said. "We can provide the same level of service, though not ideal, without increasing taxes."

Nutter attacked Green's arguments yesterday, saying that the city already had reduced the size of government and that further cuts would hit services.

"I'm not willing to engage in theoretical conversations about fantasies," Nutter said.

Green's list of suggested cuts - totaling about $45 million - have been circulating in Council offices. He suggests not filling vacant jobs in many departments, including prisons, fire and police. He also wants the city to reduce the surplus in the next fiscal year from $64 million to $20 million. Green said he didn't know if he had Council support for all of his proposals, although he said there was support for some cuts.

Nutter's aides argued that not filling jobs could negatively affect services and safety. They also said lowering the surplus could leave the city without enough cash to pay the bills or damage the city's ability to borrow.

Green said that the vacant jobs have been covered through overtime or other means and that it should stay that way until the city has more money. He also said he didn't want to hold on to surplus dollars while placing extra taxes on citizens.

Also yesterday, a Council committee approved legislation that would bar the city from billing parades and cultural events for costs like police or sanitation. Under the bill, by Councilwoman Maria Quinones-Sanchez, organizers would pay to rent city equipment or for additional services requested. The bill goes to full Council for approval.