Hearing Set On Proposed New Orleans Tax Hike

New Orleans' City Council has adopted a $480 million general fund budget for 2011, after approving most, but not all, of a property tax increase proposed by Mayor Mitch Landrieu.

Landrieu, after trimming an estimated $80 million deficit he inherited when he took office in May, wanted to increase the rates by an estimated 7 percent to raise about $23 million, while also raising sanitation fees by $8 to bring in still more revenue.

Council members on Wednesday voted for a smaller property tax increase that will bring in an estimated $5 million less than Landrieu sought. Members also approved the $8 sanitation fee increase sought by Landrieu, and said they will consider adding another $2 to the sanitation fee in the coming weeks.