South Philly Review

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Mayor Michael Nutter did not plan to cut services this year after the uproar residents made when he shuttered many pools and proposed to close libraries at the end of 2008. In fact, he announced many of the pools that were empty last year would reopen this summer.

However, after City Council passed its budget May 20, Nutter announced needed service cuts, which included police, fire and libraries, to keep the city afloat throughout the fiscal year.

Council’s $3.85 billion budget created a negative cash flow, according Budget Director Steve Agostini who suggested cutting 339 jobs and more than $20 million from the budget.

“The $22 million reduction in the fiscal year ’11 General Fund fund balance proposed by City Council will create a negative cash flow situation for fiscal year ’11 even though the projected General Fund balance remains positive at approximately $40 million,” Agostini said in a letter to Nutter’s Chief of Staff Clarence D. Armbrister after the budget passed.

However, members of City Council believe the surplus is more than sufficient.

“[The city] should end fiscal ‘11 with a $42.5 million surplus,” Tony Radwanski, spokesman for Council President Anna Verna. “The mayor doesn’t believe that’s enough.”

With $20 million less than Nutter wanted, he announced plans to implement service cuts in addition to cutting new revenue allocated to various other departments.

“These additional cuts were made necessary by Council’s decision not to raise more revenue,” Nutter said in a statement. “I did not initially propose these cuts to City services and I do not want to make them. That said, I will work hard to minimize their impact on city residents.”

Some residents aren’t too keen on the cuts Nutter said he was forced to make.

“I think the man’s crazy,” Jackie Williamson, of 19th and Reed streets, said of the mayor. “I personally think he’s crazy. I don’t think he looks at the long-term. He looks at his term, which is almost over.”

Council members plan to address the mayor’s proposed cuts this week, Radwanski said.

“Besides to continue to monitor spending and continue discussions with the administration, they’re hoping that there’s another way to do it besides cutting police, fire and libraries,” he said of Council’s next steps after the cuts were announced last week.

Williamson said she believes an agreement of some sort will be reached between Nutter and Council.

While shortened library hours may be fine during the summer, libraries must be opened during the school year whereas there are some areas that the city can’t risk cutting, Williamson said.

“They can’t cut down on police,” she said.

The compromise will likely result in a tax increase even though there are other alternatives, local resident Tom Biggins said.

“What they do need to do is spend the money they have wisely,” Biggins, of 11th Street and Washington Avenue, said. “What it is now is just a free-for-all.”

Nutter proposed a two-cent-per-ounce tax on sugar sweetened beverages, as well as a $300 fee for sanitation services during his March 4 budget address. Those revenue options could have generated an estimated $77 million and $107 million, respectively, per year with some of that money designated for new programs.

Instead, City Council raised tobacco and real estate taxes while administering trash fees to commercial businesses. The tobacco and trash measures are set to begin July 1 while the 9.9 percent real estate tax hike — which is the first in 21 years, according to Radwanski — is temporary and only applies to ’11 and ’12. The three revenue measures will raise the city about $11 million, Radwanski said.