(ABC 6 News) – The City of Austin is considering a 13.85% property tax increase on homeowners and businesses for the 2025 budget.

Council members weighed the pros and cons of a tax hike that high at Tuesday’s work session.

According to Austin Mayor Stephen King, an 11% tax increase is needed just to maintain the city’s current employee contracts.

“We have to get to a point where we can stabilize, and the only way, and stabilize for the next few years and the only way to do that is to get us up I think to the 13%,” said Joyce Poshusta, Third Ward council member.

The additional increase would be to add two new staff positions – a property inspector and HR tech.

“The HR position I do think is important. it’s something all of our staff groups have identified internally,” said Michael Postma, Second Ward council member.

While council members were on board, for others the cost is just too high.

“I’m not in favor of 13.85%, I think we can get down, but I think let’s get down there smartly,” said Jason Baskin, Second Ward council member.

13.85% would mean an $88 tax increase for the average Austin resident, based on a home value of $161,000.

“This is not monopoly money, this is other people’s money that we are playing with,” said Geoff Baker, First Ward council member.

Some Austin business owners are concerned higher taxes will mean less business – forcing them to increase costs, reduce staff or close their doors altogether.

“From a business standpoint we really like to see taxes kept to a minimum, if possible. I think taxpayers feel the same way. Where does that disposable income go? Toward your taxes,” said Joe Bower, President of the Austin Area Chamber of Commerce.

Ultimately, the six council members present at the work session were split on whether to move forward with the proposed tax increase, leaving it to Mayor King to break the tie, which he did in favor of the increase.

Austin city council will make its final decision on whether to approve the 13.85% tax increase at its September 16 meeting.

If passed, it would go into effect on January 1.