CHICAGO (WLS) — Mayor Brandon Johnson will propose a property tax increase when he presents his budget plan to the City Council on Wednesday, sources say.

Mayor Johnson promised not to raise property taxes during his campaign. The city was put under a hiring freeze to close a budget gap of nearly $1 billion.

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The proposal is already encountering resistance from some members of the city council. Chicago homeowners, already facing higher property taxes due to new upcoming reassessments, will now have to prepare for more.

“The 43rd District receives a lot of the property tax and generates a lot of revenue. There’s no doubt about that. And I don’t think, I think I’m speaking to my constituents when I say I’m not in the comfortable with property. increase taxes if I don’t also see a balance,” said Ald. Timmy Knudson. “We have to create revenue in different ways. We have to make cuts where there are cuts to be made and right-size some departments.”

According to city hall sources, the mayor informed some aldermen that, in his budget speech, he would propose an increase in property taxes to close the gap.

During an interview with ABC7’s Mark Rivera earlier this month, Mayor Johnson suggested property tax increases may be necessary.

“I don’t want cuts, I don’t want layoffs,” Mayor Johnson said. “I saved taxpayers more than $200 million in last year’s budget. But the harsh reality is this: Our expenses exceeded our revenues.”

A tax watchdog group says the city can avoid a property tax increase by reducing costs through increased revenue.

“This is a highly political decision that shows the hard work that needed to be done has not been done,” Civic Federation President Joe Ferguson said.

The Civic Federation recommends raising the city’s alcohol tax, implementing a 1 percent tax on groceries, adding video games or increasing trash collection fees for fill the deficit.

The City Council’s progressive caucus is calling for no layoffs of city workers, and raising taxes could be a way for the mayor to avoid angering workers’ interests.

“Everything should be on the table,” said Alderman David Moore. “But you also have to wonder if we’re as thin as we should be, because you can lay people off and then you’re not providing the appropriate services that you need.”

Published reports indicate the city has hired or promoted 490 people since a hiring freeze took effect in September.

But the president of the Civic Federation said this was problematic given the financial crisis facing the city.

“It’s a mistake not to ask unions to be partners in the shared sacrifice that will be necessary,” Ferguson said.

A city ordinance allows for an automatic property tax increase tied to inflation, but capped at 5 percent. Some aldermen say the mayor’s decision not to do so last year was a mistake.

“Yes, it’s a bad idea, because with that, if he had kept that component, we wouldn’t be in the mess we’re in now,” said 13th Ward Ald. Felxi Cardona.

But given the current budget deficit, the city council and mayor have their backs against the wall and don’t have many good options.

ABC7 political analyst Laura Washington said the budget crisis has created a perfect financial storm.

“I think some aldermen are concerned about these kinds of fees because they’re regressive and they’re going to go after low-income families more than high-income families and they don’t want to see a heavier burden be imposed on them, so those kinds of taxes and fees I think Johnson would want to avoid,” Washington said.

The mayor is expected to deliver his budget speech to the city council Wednesday morning.

The mayor’s budget speech will be followed by two weeks of budget hearings. They are scheduled to begin on November 6.

By law, a budget must be adopted before December 31.