BATAVIA—Details of the city’s 2010-11 budget were discussed Monday during a public hearing that also focused on an increase in water rates, including a five-year plan to upgrade the city’s aging water and sewer infrastructure.

The $21.7 million budget, a decline of more than $2.5 million in spending, will result in a tax rate boost of 1.5 percent, or about 16 cents per $1,000 of assessed valuation. The new rate is $10.34, which would increase the annual tax bill of the average homeowner by $415.

The increase in water rates—2.2 percent— is accompanied by an assessment of $1 per quarter to finance $4 million in improvements to water and sewer lines. The fee is scheduled for five years.

The budget as originally proposed carried a 3 percent property tax hike, but the City Council last month cut expenses and tapped into funds. The budget, which calls for $5.4 million in local taxes, becomes effective April 1, the start of the city’s fiscal year. A Council vote on the budget will be held next month.

The Council also amended a law to clarify the responsibilitie of the city and property owners on sewer maintenance and construction.