Technically, the property tax increase rescinds an earlier 7% reduction in the tax rate. The average property tax increase citywide for a single-family home will be $118, while for co-ops with 10 or more units in the building, the average citywide increase will be $162, according to figures from the City Council. The hotel tax hike will average $3 per night.

"The economic crisis has forced all of us in government to reassess our priorities, so that we can balance the budget in the face of record revenue shortfalls," says Speaker Christine C. Quinn in a statement. "By taking the responsible approach today, we can generate nearly three quarters of a billon dollars, money that will go to funding NYPD's cadet classes and to employment programs and foreclosure prevention programs. These investments stand in stark contrast to decisions made in the wake of the fiscal crisis of 1975, when the city was forced to reduce the size of the police force by 20%."

At the same time, the Bloomberg administration has agreed to mail out the annual property tax rebate of $400 per homeowner, as it has done since 2004. Mayor Michael Bloomberg had considered scrapping the rebate, but worked out an agreement with the council. In addition, the city will go ahead with hiring 250 police cadets in both the January and July 2009 classes, rather than canceling outright a class of 1,100 cadets.