ANNAPOLIS, Md. (AP) — Homeowners in Anne Arundel county will pay about $26 more a year in property taxes under the $1.3 billion budget for fiscal year 2014.

The County Council approved County Executive Laura Neuman’s operating budget on Tuesday. It includes a 3 percent hike in water and sewer rates and a 3 percent raise for all county employees.

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The budget is about 7.1 percent higher than the current year.

Neuman, who replaced county executive John R. Leopold in February, presented her first budget in May.

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The Capital of Annapolis reports that the council also passed Neuman’s $201.4 million capital budget for next year.

Fiscal year 2014 begins July 1.

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