Councilman Bill Green skeptical of "AVI transition fairy," Councilman Mark Squilla spinning yarns about shallow water, as opposition to mayor's property plans takes shape.

Folksy wisdom from Council on the mayor's property plans.

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Councilman Bill Green skeptical of "AVI transition fairy," Councilman Mark Squilla spinning yarns about shallow water, as opposition to mayor's property plans takes shape.

POSTED: Thursday, March 22, 2012, 3:53 PM
Filed Under: Hall Monitor | News

The public should question the existence of an "AVI transition fairy."

The public should "not to jump in the water until you know how deep it is."

Such is the folksy wisdom coming from City Council today, as opposition to the mayor's property plans takes shape.

The first tidbit came from a post-Council conversation with At-Large Councilman Bill Green, who frequently tends to set himself up in counterpoint to the mayor's proposals and has not failed to do so when it comes to the administration's plans for a move to an "Actual Value Initiative" (AVI) property reassessment program. Green supports AVI, but calls the mayor's plan to bring in $90 million extra from property taxes as a result of instituting it a "backdoor tax increase" — which Green believes deserves its own discussion.

The cautionary lesson about jumping into murky water came from First District Councilman Mark Squilla, who says that moving to Actual Value Initiative would be "irresponsible" because of a lack of available data on new assessments and uncertainty over legilsation in the state House that would enable an exemption for some owner-occupied residences.

Both indicate that opposition to the mayor's proposed budget is already taking definite shape in Council.

There are a few points of contention over the proposed property tax reforms and budgeting. Briefly:

$90 million in increased revenue: The city, citing a study it commissioned, says it anticipates that the ongoing property reassessment will end up showing that housing values rose, overall, by about 25%, or $90 million. The mayor wants to dedicate that money to the ailing Philadelphia School District. The city characterizes this not as a tax hike, but as, essentially, the city's collecting money it should have been collecting all along, but for a broken property tax assessment system.

But critics like Councilman Green contend that that's a backhanded way of simply imposing a property tax hike. There is, he says, no reason to believe in an "AVI transition fairy" that will deliver $90 million extra to the city. And even if the fairy delivers, there's no reason Council should automatically allow that money to be appropriated and spent.

"Should we spend it, or should we lower [the property tax]?" Green asked CP. "[The mayor] doesn't want to call it what it is: a tax increase."

— Homestead exemption: The mayor and Council want to give a break to certain owner-occupied residences. To do that, they need enabling legislation to be passed in Harrisburg, where nothing is ever certain — and, indeed, Councilman Squilla says he was told by members of the Philadelphia delegation that the current bill's prospects are bleak. What's more, complete property reassessment data won't likely be available until after Council would have to approve this plan.

"I believe my district may be hit the hardest by this," Squilla told CP over the phone, "and my fear is that if we rush into it we may not do it correctly."

Squilla says he's working to build a coalition among Council members who share his concern.

To implement or not to implement: For all the nervousness within Council over implementing the various components of a transition to AVI, the question is less whether than when: the administration wants to make the transition in more or less one stroke; but Council could decide to delay implementation until after data is available.

Posted by Isaiah Thompson @ 3:53 PM  Permalink | 1 comment
Comments  (1)
  • 0 like this / 0 don't   •   Posted 1:55 PM, 03/23/2012
    I agree that Chip should run for City Council, with Bob Brady, Johnny"Doc", and his Congressman father backing and blessing, he be a shoe-in!!!!!
    Dadair1


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