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Low Tax Hike in New Budget

Healy has recommended a city commitment of $20million in annual contribution to "maintain,expand and stimulate affordable housing." TheCouncil last night recommended full approval ofthe City Manager's commitment.

"It's more money, we believe, than any city ofits size is spending on affordable housing," CityCouncillor Francis H. Duehay '55 said last night.

Other major expenses in the new budget include:

The addition of six Police Department patrolofficers, costing $230,055;

Debt service and operating funds, totaling$1,264,160, for the new city-wide senior center,set to open let 1995;

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A rent control budget of $818,960, down nearlyhalf from last year's budget after the abolitionof rent control by a state referendum;

The school budget, totaling $85,404,980.

At last night's meeting, critics charged thatthe magnitude of city expenses, combined with thepossibility of federal cuts to social services,that should make Cambridge save more and spendless, critics charged at last night's City Councilmeeting.

"Reduce the budget," John R. Moot, a member ofthe Cambridge Civic Association, told Healy lastnight. Moot produced figures showing thatCambridge spends more per capita than severalother Massachusetts communities with largerpopulations.

Cambridge spends $143.45 per person on generalgovernment expenses compared to the $47.22 spentby Worcester, even though the city has only 94,000residents to Worcester's 163,000.

"We're a rich, lucky city but we're spendingevery penny we get and borrowing more," Moot said.

Moot cited the recent departures of Stride Riteand Polaroid from the city. "You're taxing themtoo much, and corporate flight is a realpossibility," he said. "This city council haschosen to hit the [businesses] with everythingthey've got and to hit them hard."

But other councillors defended the budget,saying it is necessary to maintain the manyservices the city provides its residents.

Mayor Kenneth E. Reeves '72 said StrideRitemoved because it was centralizing its productionsite in Kentucky.

Responding to concerns over the city'scommercial tax base--which accounts for two-thirdsof Cambridge's total property tax revenue--thecouncil passed, 8-0, a resolution ordering Healyto arrange a presentation on the city's long-termefforts to preserve its commercial tax base.

Councillor Anthony D. Galluccio, who sponsoredthe resolution, said companies need to be certainof both the obligations and benefits of beinglocated in Cambridge. "They want to have aconsistent, clear environment they can count on,"Galluccio said.

Duehay disagreed, saying the city's financialposition remains enviable. "The tax base of thiscity has exploded, and we have offered humanservices other cities are not able to offer," hesaid.Crimson File PhotoCity Manager ROBERT W. HEALY, who isresponsible for the city's finance andadministration, in his City Hall office.

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