Vallone, Bloomberg Discuss Taxes, Cuts, Hikes

During the last seven and a half years, The city Department of Planning has rezoned more than two dozen neighborhoods. That is one sixth of the entire city, Mayor Michael Bloomberg said.

The Astoria rezoning, proposed near the end of the mayor's second term and projected for completion during a yet-tobe third term, is currently in the planning stages.

Bloomberg, speaking at the Astoria Ditmars Homeowners, Tenants and Business Civic Association on June 11, said the rezoning of some 250 blocks was to preserve the character of neighborhoods. "We have to make a balance," Bloomberg told the overflow audience at St. Francis of Assisi School.

City Councilmember Peter Vallone Jr. said the massive rezoning "will let people develop their property in context with the community. While you could still add onto your house, you could not build a 12- story building between two single-family homes," said Vallone.

Vallone said people will be divided between those who say the rezoning didn't go far enough and those who don't want anybody telling them what to do with their property. "At the end of the day, lots of people will be mad," he said.

"I don't think people in the city appreciate the good job our City Council has done," Bloomberg said, noting public hearings are held on all proposed bills, including the upcoming budget.

"[Mayor Bloomberg] and I are facing some real tough decisions," said Vallone.

Vallone opposes property tax increases and cuts to police. "The 114th Precinct has been severely hit by cuts," he said. "You don't see the beat cop, but they still do the job."

With the city losing $5 billion in tax revenue because of the poor economy, Bloomberg is facing a $1 billion deficit in next year's budget. Two of his proposals to close that gap, a charge of 5 cents on plastic shopping bags and an additional sales tax on all clothing purchases, were not supported by the city council.

Instead, Bloomberg and the council have agreed on a proposal to end the current sales tax exemption on all clothing and begin a sales tax on clothing over $110. In addition, they would increase the city's sales tax by half a percent, to 8.875 percent.

The tax on clothing over $110 would result in an extra $74 a year in sales taxes paid by a city household earning $35,000 a year, according to the city's Independent Budget Office. A household earning $125,000 would pay an additional $237 a year and one earning $500,000 would pay $687 more.

The $887 million generated, if the new proposals are adopted, still leaves the city $160 million short of the balanced budget needed by July 1. The remainder will probably come from spending cuts or other new taxes.

Though he said the final budget will be very tough, Vallone said he will work toward that goal. "[Mayor Bloomberg] knows where we agree and where we don't agree, but it's such a comfort to know that there's a man at the other end of [City Hall] of such integrity," he said.