As revenues lag, city faces 2% cut in all departments

The city is set to pull its financial belt even tighter, as some tax revenues slouch in at lower rates than expected.

Finance Director Rob Dubow said the city will likely receive $13.5 million less than planned this year, mostly due to weak returns from the property tax and the business privilege tax. He said this puts further pressure on already strained resources.

"We were already going to have significant challenges in terms of keeping cash in the general fund positive. This will just make it that much more difficult," Dubow said.

Budget Director Stephen Agostini sent a letter to department heads Friday, announcing an immediate spending freeze on supplies and equipment, as well as a 2 percent cut in all city departments in the coming budget year, which starts July 1.

Mayor Nutter announced two weeks ago that he would cut $20 million from the budget after City Council failed to act on his proposed tax on sugary drinks. Council approved a plan to temporarily increase the property tax by 9.9 percent, but Nutter said that alone would not yield enough cash to get through the year.

So far Council has shown no interest in passing further tax increases. It has just three more sessions scheduled before the start of the budget year.

Advocates are expected to rally at City Hall tomorrow on behalf of services facing cuts.