An agreement was reached Thursday evening between the New York City Council and Mayor Michael Bloomberg on the city’s $59 billion fiscal 2009 budget that retains a 7% property tax cut. Bloomberg said earlier this month that the city couldn’t afford the cut that it would cost the city $1.1 billion. The City Council, citing a $4.6 billion surplus, rallied to save the cut.

The Mayor’s office said that the budget would keep the early payment of $2.35 billion of debt service due in fiscal 2010 and 2011 to reduce projected budget gaps in those years.

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