“It is impossible.”

That was Butler City Councilman Joe Bratkovich’s response when lowering the city’s business privilege tax was proposed Thursday by members of Butler Downtown’s economic restructuring committee.

Bratkovich, the city’s finance director, was supported by other council members at Thursday’s council meeting, when reducing the city’s precariously balanced revenue was suggested.

Tom Graham, owner of Frames and Pixels, and Jay Shaffer, owner of Shaffer Financial Services, spoke on behalf of the committee and Butler businesses Thursday, stating that the city’s 7-mill business privilege tax provides 17 percent to 18 percent of the city’s $7.8 million 2011 budget.

“The city’s budget is kind of balanced on the backs of the businesses downtown,” Graham said.

“This is one of the major reasons why we’re having problems luring businesses downtown.”

The tax, enacted in 1978, is the highest business privilege tax in the state and several times higher than that of surrounding municipalities.

For example, the business privilege tax in Butler Township is 1.25 mills, 0.25 mills in Center Township, and 1 mill in Cranberry Township.

Bratkovich said that based on 2011 spending so far, an estimated $786,000 will be needed to balance the 2012 city budget, and the business privilege tax is revenue the city cannot afford to lose or even reduce.

Both parties acknowledged the city’s financial position is further clouded by its negotiations with the three unions representing 55 city employees, which could go on through December.

Councilman Rick Schontz Jr. said that if the committee could suggest alternative sources of revenue, “we would drop that tax tomorrow.”

Graham countered by warning the council that a proactive solution is necessary because “as more businesses leave, your revenue is going to drop down anyway. The city of Butler is not competitive.”

Councilwoman Kathy Kline said the city does not have an excess of services or any obvious place from which to draw funds.

“That’s the crux of the problem,” she said. “There’s no place left to cut.”

At Tuesday’s council meeting, representatives from Parents, Friends and Families of Lesbian and Gay individuals met with a similar stone wall.

They called for a nondiscrimination ordinance that would establish a human rights commission in the city.

“It sends a message that Butler is a welcoming community to everyone,” said speaker Joe Tomlinson.

“It reaffirms the basic American value of fairness.”

Speaker Sabrina Schnur pointed out that many larger cities and other third-class cities like Bethlehem, Pa., have adopted similar ordinances that protect the gay, lesbian and transgender community. They argued that current state antidiscrimination laws do not specifically protect people based on sexual preference or gender identity, so the ordinance would not duplicate existing laws.

However, city solicitor Jim Coulter advised the council that, despite the proposition for an all-volunteer rights commission, a stenographer and attorney, who would advise the commission, would be needed for such a group.

“This is something we will take under advisement,” Bratkovich said on Tuesday.

But his comments at Thursday’s meeting about limited finances summed up the council’s stance on any group looking to get money from the city.

“Unless we can see that revenue evened out, or expenses reduced, with all due respect, it’s just not workable,” Bratkovich said.