Two tax-abatement ideas are being floated on how to make Butler’s business privilege tax more friendly to new enterprises.

For the financially strapped city, the idea tabled Thursday by the city council makes the most sense. Not only would it help businesses that are beginning operations here, but it would not go overboard in terms of depriving the city’s coffers of badly needed revenue.

The less-desirable of the two plans would not achieve such a positive two-pronged result.

The council should not allow the tabled plan to gather dust but, instead, move ahead with it.

That plan, which was introduced on Sept. 25, would provide three years of business privilege tax abatements: a 100 percent tax exemption the first year, 75 percent for the second year, and 50 percent for the third year, with full payments due thereafter.

Currently, new businesses get two years of tax abatements — a 50 percent exemption the first year and 25 percent for the second year.

The less-desirable plan from the city’s fiscal perspective was put forth in May by Butler Downtown’s Economic Restructuring Committee. It stipulates five years of abatements: 100 percent in each of the first three years, then 50 percent during the fourth and fifth years.

While that plan would provide a greater incentive for businesses to open or relocate here, municipal coffers should be allowed to share in a business’ success within a reasonable period of time — more reasonable than what Butler Downtown’s committee proposes.

The city’s shaky financial condition would dictate restraint regarding tax generosity even if the unknowns stemming from the unresolved union contracts that expired nine months ago weren’t hanging over the city.

Even without the three union contracts still in limbo, the city has been edging closer to bankrupcy or state fiscally distressed status.

New businesses wishing to capitalize on the opportunities that the city presents should want to be a part of helping the municipality overcome its problems, not exacerbating its fiscal dilemma by way of tax breaks that they can operate profitably without.

A 100 percent exemption in the first year is fair. So are the other provisions of the tabled plan.

A fair, reasonable opportunity to become established is the limit of what new businesses should expect. Most of the established businesses here embrace that kind of thinking.

If the city ever is going to overcome its current financial difficulties, good fiscal decisions are imperative. Being too generous would be wrong. But failing to make a reasonable adjustment to the business privilege tax to try to help the city in the short and long run would be irresponsible.

It’s a complex situation amid the reality that the 7-mill business privilege levy is much too high. It’s the highest in the state. Neighboring Butler Township’s levy is only 1.25 mills, for example.

However, until other options for the city to raise revenue emerge, there’s no way Butler can afford to do without the more than $1.25 million that the business privilege tax produces.

The city’s 2012 budget totals $7.67 million.

The city should make itself attractive to businesses by way of cleanliness, beautification measures and ensuring public safety. Efforts here must project optimism, not stagnation or pessimism.

The council is right in exploring the possibility of widening the tax abatement for new businesses, but Butler Downtown’s plan, while more attractive on the one hand, doesn’t make fiscal sense when stacked up against the city’s financial realities.

The best option, even better than the do-nothing option, is for the council to approve the tabled plan and see what the future brings.