DALLAS - The New Orleans City Council on Monday night adopted a $1.16 billion operating budget for 2009 after rejecting Mayor Ray Nagin's call for a $24.5 million property tax increase.

The council narrowly complied with the statutory requirement to adopt a balanced budget for the next year by Dec. 1. The 7-to-0 vote by the council took placed at 9:30 p.m. at the end of a contentious 12-hour session.

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