City Controller Alan Butkovitz recalls that, just a few years ago, there was growing momentum for Philadelphia to change the way it computes property taxes.
Right now, the Board of Revision of Taxes sets rates by using a complicated formula that includes only a portion of a property’s actual value.
There’s an effort to change the system, using a formula that includes a property’s true value and lower tax rate. Proponents insist the method would be "revenue neutral."
"I was the first person to say, ‘Slow down,’ " Butkovitz said.
The controller believes many property owners would receive a "back-door tax increase" if the new system were put in place. He sees support for a change eroding in City Council because Philadelphia property taxes are a "bargain" compared to the rest of the region.
Butkovitz, a former state representative from Castor Gardens, spoke about property taxes and other issues at last week’s meeting of the Burholme Community Town Watch and Civic Association. He was joined by Lisa Deeley, the head of the controller’s office of community affairs.
The civic group’s president, Al Taubenberger, frequently talked about his opposition to a change in the property tax formula during his 2007 campaign for mayor.
Butkovitz, who was elected controller in 2005, told the crowd that, on average, the city waits 20 days to deposit checks. This practice, he said, causes a loss in revenue from interest, money that could be used for recreation, police and other city departments.
By contrast, the state of Pennsylvania and the cities of Cleveland and Baltimore deposit checks within 24 hours.
The controller is a supporter of the 10-year tax abatement on new construction, arguing that it has helped revitalize Center City by attracting empty-nesters and others with high incomes. The real estate transfer tax is bringing money to the city coffers. He’s also glad that the city wage tax dropped to 3.98 percent on July 1.
The city’s emergency medical services system should change, in Butkovitz’s opinion. He described the current setup as first come, first served, meaning someone with a splinter could be treated before an individual suffering a heart attack.
During a question-and-answer session, Butkovitz cited public schools and a lack of police services as reasons that the city continues to lose residents. He also questioned the future of the long-delayed private development along the North Delaware Avenue waterfront.
"When in the world is that going to happen?" he asked.
When asked why consumers must mail their Philadelphia Gas Works bills to a collection agency in Newark, N.J., Butkovitz evaded the question and instead praised the city-owned utility for being more efficient by lowering its delinquency rate and paying back loans to the city.
Butkovitz also came out against elected officials being allowed to participate in the city’s Deferred Retirement Option Plan (DROP), which was created to prevent police officers and firefighters from retiring at the same time, leaving a shortage of coverage.
Under the program, employee pensions are frozen, and they receive a lump sum payment upon retirement within four years.
"Elected officials don’t need that incentive," Butkovitz said.
City Councilwoman Joan Krajewski and City Commissioner Marge Tartaglione were roundly criticized for enrolling in DROP, winning re-election in 2007, retiring for a day, then beginning new four-year terms.
Council members Frank DiCicco, Anna Verna, Donna Reed Miller, Marian Tasco, Frank Rizzo and Jack Kelly have also signed up for DROP.
Freshman Councilman Bill Green has introduced a bill that would prohibit future elected officials from enrolling in DROP.
"He can’t even get a hearing on the bill," said Butkovitz, suggesting that some Council members in DROP believe Green’s measure makes them look bad.
In other news from the July 10 meeting:
• The membership unanimously voted to support businessman Mandy Dimitri’s bid to open a pizza and sandwich shop at 7315 Oxford Ave. (at Rising Sun Avenue).
The property is the former home of an Indian grocery store. The business owner, who has a 10-year lease on the property, has collected petitions of support from neighbors. He’s renovated the building and will operate the business with a handful of employees.
Dimitri has been in the business for more than 30 years. He wants to open Johnny G’s Famous Pizza with all homemade sauces.
The store will offer takeout and delivery. There is no seating. It will be open Tuesdays through Saturdays.
A hearing is pending in front of the Zoning Board of Adjustment. Dimitri needs a variance that would allow takeout food.
• A number of people signed a "petition to intervene" in an effort to transfer ownership of a liquor license for a nightclub at 7301-09 Oxford Ave.
The establishment has been closed for several years. Previous names include Chuck’s Alibi, the Blarney, Fat Daddy’s, Rumors and Five Points Pub. The proposed new name is Toni’s Place.
The Pennsylvania Liquor Control Board will hold a hearing on the matter. Residents will be welcome to state why they support or oppose the license transfer.
• Burholme Community Town Watch and Civic Association will not meet in August. The group will not host its annual National Night Out celebration, scheduled for Aug. 5, but it will honor patrolling members at a ceremony on Aug. 12.
The next general membership meeting will be on Thursday, Sept. 11, at 7 p.m. at United Methodist Church of the Redeemer, Cottman and Lawndale avenues. ••
Reporter Tom Waring can be reached at 215-354-3034 or twaring@phillynews.com