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MEADOWLAKES — City Council passed a 3.5 percent property tax rate increase and a $2 million budget for the 2012-2013 fiscal year Sept. 18.

Residents also will see a hike in water rates. The budget goes into effect Oct. 1.

The current tax rate is 30.45 cents per $100 valuation. The new tax rate will be 31.59 cents, or about a cent-and-a-half increase.

Council members unanimously approved the property-tax and water rate increases.

“The proposed fiscal year 2013 budget covers operating expenditures, debt-service requirements and creates additional working capital of $58,000 which will be utilized to increase fund balances,” City Manager Johnnie Thompson said.

Among those expenditures is a new water-storage tank.

With the proposed tax increase and adjusted 2012 appraised property values, a homeowner can expect to pay 3.5 percent more, or about $24 extra.

The average water customer is expected to pay about $66 a year more  — or $5.50 monthly.

Councilwoman Franzella Jones was unable to attend the Sept. 18 regular meeting.

connie@thepicayune.com