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Mayor approves $1.8 billion budget

Mayor Mufi Hannemann today gave final approval to the city’s $1.8 billion operating budget.

City spending would increase by 1 percent over last year under Bill 15, which was approved unanimously by the City Council earlier this month.

The budget is balanced in part on a tax increase for landlords and others who own property they do not live in.

Hannemann contends that because of decreased property values statewide, the average property owner should see a decrease in their tax bill.

The budget’s slight increase is due largely to predetermined expenses such as previously arbitrated pay raises for police and firefighters, negotiated pay raises for bus drivers, and other work force costs, the mayor’s office said.

Also included in the budget is $14 million for public safety requirements associated with hosting the Asia Pacific Economic Cooperation conference in 2011. The city hopes to receive federal reimbursement for much of those costs, the mayor’s office said.

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