Jacksonville Mayor John Peyton will propose a 9 percent increase to the city’s property tax rate, a move he says is necessary to combat sinking property values.

The increase wouldn’t bring in any new money but simply keep the same property tax revenue as the current year.

It’s either that or find another $45 million to cut — the difference between the current 9.27 millage rate and the 10.12 Peyton will present when he hands over the proposed budget to the City Council on Wednesday.

This would be the second consecutive year with a 9 percent rate hike for Jacksonville property owners after cuts and flat rates since the early 1990s.

The median market value of a home in Jacksonville was about $142,000 in 2009, according to the Property Appraiser’s Office. Once the standard $50,000 homestead exemptions are applied and assuming the assessed property value does not change for next year, a homeowner would see a tax increase of about $79.

Last year, council President Richard Clark pledged to find money to cut instead of agreeing to a millage rate increase. In the end, the council agreed to a 9 percent increase.

Now council members are three months removed from doubling the garbage fee to more than $150 a year and are acutely aware of the city’s financial struggles.

Councilman Daniel Davis, chairman of the Finance Committee that will dissect the budget and make recommendations to the full council, said the committee will need to look at everything. That includes looking at more places to cut and considering increasing the millage rate as Peyton suggests.

“It would be inappropriate for me to do anything else,” Davis said.

Overall, the taxable value of property dropped 7 percent, according to the city budget office.

Peyton has long planned a tax rate for the next budget that brings in the same in tax revenue as last year, spokeswoman Misty Skipper said. The new rate will bring in about $489 million — just less than half of the city’s total projected budget.

On top of the rate increase, the city is considering other cuts, including layoffs. The proposed budget will also keep cuts that started this summer, including reduced library hours and scaled-back mowing of grass at city parks and along local roads.

matt.galnor@jacksonville.com, (904) 359-4550