Yonkers residents could soon pay more to live in the city.

Mayor Mike Spano’s proposed $1.5 billion budget includes a 5.25% tax increase, which would go beyond the state’s 2% tax cap. City officials say the increase is needed to pay for union contracts, benefits and to maintain services.

At a special City Council meeting Tuesday night, members voted 6-0 to begin the process of overriding the tax cap. The meeting lasted about five minutes.

Residents who came to City Hall said the increase would hit working families hard.

“Already working families are being stretched thin,” said Yonkers resident Jeannette Garcia.

The city estimates a typical homeowner would pay about $551 more a year, or roughly $46 more per month.

Council Member Deana Norman called the decision difficult, saying, “Right now, we need to do what we need to do to move the city forward.”

The City Council would have to vote again in favor of this tax increase and Mayor Mike Spano would need to hold a public hearing prior to signing it. The next hearing on the tax cap override has not yet been scheduled.