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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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 hikes 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.

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.

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

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.