In an effort to cover a $30 million shortfall, the city of Orlando is one step closer to raising property taxes for the first time in six years.
Mayor Buddy Dyer said the average property owner will pay about $100 more each year.
Dyer and the commissioners defended the tax hike on Monday. They are all in favor of the increase, stating it's necessary to help up for the shortfall and to prevent any further budget cuts.
Property owners, homeowners and business owners will be receiving a letter in mid-August warning them of the potential tax hike.
The city's plan is to increase the millage rate from 5.65 to 6.65 — meaning residents would pay a $1 more for every $1,000 of taxable value.
So, if your home is worth $200,000, you'd be paying about $150 more per year.
"I'm convinced the millage increase is appropriate,” Orlando City Commissioner Jim Gray said Monday. "But it's not the end. We've got to continue to find better ways to do what we do because there (are) revenue constraints."
Commissioner Tony Ortiz said the increase is needed if residents expect the same levels of service.
Not everyone is on board with the increase, though.
Dyer on Monday was quick to mention that the fund doesn't support the city's "headline initiatives," such as the $200 million for the renovations at the Citrus Bowl or the millions of dollars going toward the new soccer stadium for Orlando City Soccer. Dyer said the money generated from the increase will go into the city's general fund.
"The general fund can be used for all of the other purposes," Dyer said. "So, largely, they are used for fire, police, public works, parks and recreation."
And without this increase, Dyer said, the city would have to make cuts to basic services and programs used in the community.
The public will get to weigh in on the budget at two public hearings being held in September. The increase would take effect in October.