Council OKs $3.5B budget, 3.85% property-tax hike

LIKE IT OR NOT, a temporary property-tax hike is on the way for a second year in a row.

City Council concluded its final session before its summer break yesterday by passing a $3.5 billion budget that included a temporary 3.85 percent property-tax increase to collect $37 million for the cash-strapped school district.

Additionally, Council will reduce the city's surplus-fund balance and raise parking-meter fees for a total of $53 million to restore yellow-bus transportation, maintain reduced class sizes for K-3 classrooms, preserve accelerated schools at the same level as this year and restore 270 slots for students in an early-education program.

Last year, Council and Mayor Nutter hiked property taxes by 10 percent. The temporary real-estate-tax hike passed yesterday with an 11-6 vote.

"You can say that children and families won in the short term, but in the long term we still recognize that there are serious management and competency issues over in the school district," said Councilman Bill Green, who voted for the measure. "This body and the state and others will have to be vigilant to make sure that next year we're not in the same situation."

But Council President Anna Verna voted against it, saying that she couldn't support yet another property-tax hike.

"We raised property taxes last year," Verna said. "We're asked to raise property taxes this year. . . . When does it stop?There are many people, many people in my district that are saying they cannot afford it, and I'm inclined to agree with them - many people can't."

Nutter's budget includes funding for a few new items, including a police class and a citywide literacy program, as well as increased funding for the recently created Office of Property Assessment.

Finance Director Rob Dubow said that the city is still watching for the conclusion of the state-budget process, to see if that forces any changes to the plan. After that, the city will submit its five-year financial plan to the Pennsylvania Intergovernmental Cooperation Authority, which must approve it.

In other news:

* Council passed legislation introduced by Frank DiCicco and Jim Kenney approving the use of electronic signs on Market Street, between 7th and 13th, to attract more business. The signage bill requires building owners to make at least $10 million in improvements to their properties before they can install larger signs.

* Council approved the sidewalk-behavior bill introduced by DiCicco that maintains safeguards for the homeless while allowing police to arrest those being disorderly. The measure will include Councilman Darrell Clarke's 5th District, which was previously exempted.

* Council approved a bill introduced by Clarke that will make the Health Department responsible for controlling raccoons and removing them from homes.

Staff writer Catherine Lucey contributed to this report.