The Biloxi City Council voted to hold the line on city property taxes, but the largest increase Biloxi residents may face, a $21 increase in average monthly residential water bill, is out of the city’s hands.
Councilmembers voted Tuesday afternoon to keep the city’s property tax rate at its existing level, and approved a slight increase requested by Biloxi Public Schools, amounting to about $14.70 a year on a $100,000 home.
However, councilmembers pointed out that despite the city having no plans to increase its water or sewer rates, the city must include a debt service payment to the Harrison County Utility Authority amounting to $21 for the average residential customer, who uses about 8,000 gallons of water a month.
The debt service costs are the result of payments being deferred in the wake of Hurricane Katrina and the utility authority’s debt being re-structured to include a variable interest rate post-Katrina.
Other options discussed Tuesday: increasing the monthly garbage fee to $10, a $2.50 increase.
Councilmembers also approved a measure where city employees will have to begin paying $50 a month for family medical insurance and $50 a month for family dental coverage.
Although councilmembers set the revenue portion of the budget today, deliberations over spending plans for FY 2011 will continue Tuesday at 9 a.m.
