The Phoenix City Council discussed Tuesday raising property taxes to alleviate the $37 million gap in the city’s budget.

According to the city’s Chief Financial Officer, Denise Olson, the current tax rate is 1.82 percent, but with one option the city suggested, the rate could be raised to 2.17 percent if the city approves it.

Olsen explained during the policy session on March 22, that the city of Phoenix has kept the current property tax rate the same since 2010, adding, “Overall we have saved our average residential property owners $290 in taxes every year.”

A second plan introduced by the city would keep the current property tax rate the same, but would raise the food tax by 1.25 percent.

Phoenix citizen, Walt Gray, explained to the council that a food tax would be financially burdening to citizens.

“I’d much rather have a property tax increase than what’s proposed here rather than an increased sales or food tax,” Gray said.

Jeff Barton, the city’s budget and resource director, said the revenue raised from increasing the property tax would go toward employee compensation and improving services to the community.

Citizen Richard Wright supported the city’s suggestion of raising the property tax rate in Phoenix, adding, his desire for city employees to be compensated “appropriately.”

“Get taxes up and get Phoenix back to what it was before,” Wright said.

City Councilmember Jim Waring said he was concerned about the options presented during the meeting and the possible effects they would have on citizens, adding, “I strongly suggest we take a second look at this plan.”