Atlanta homeowners and businesses are still facing a property tax increase to help lift the city out of its budget crisis — but Mayor Shirley Franklin said Monday the increase won't be as much as she initially estimated.

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Under the proposed property tax rate of 9.35 mills announced Monday, city officials said a person whose property is valued at $100,000 would pay $7.31 more in property taxes. City officials previously said that homeowner would pay between $43 to $55 more in property taxes because they thought they would have to raise the property tax rate by more than 9.35 mills. The city's property tax rate for this fiscal year is 8.92 mills.

The mayor's staff based the new projections on Fulton County officials appraising properties — particularly office buildings — higher than expected.

However, the appraisals could change. About 10,000 property owners — not an unusually high number — are appealing their appraisals, Fulton officials said Monday. Any property owners who win their appeals will pay less in property taxes. Fulton Chief Appraiser Burt Manning could not say Monday how long it will take to resolve those appeals.

Franklin said she needs to raise property taxes to collect $40 million to help balance the budget for the fiscal year starting July 1. Atlanta is facing a $140 million budget shortfall.

The mayor has tried to make up the rest of the difference by laying off 441 city employees, not filling 347 vacant positions and raising some fees.

Franklin said Monday the increase was "quite modest."

Despite the lower estimates, one group said Monday they oppose any tax increase.

"Whether it's $5 or $500, it'd be nice if we didn't hear the word 'increase' from the city for a long time," said Barbara Payne, executive director of the Fulton County Taxpayers Foundation.

The group held a news conference on the steps of City Hall Monday, announcing it had about 1,500 signatures on a petition opposing a property tax increase. They also announced they've set up a telephone number for people to call to report city waste or corruption.

The council is required to approve a property tax rate this month.

Council members Anne Fauver and Howard Shook said Monday they're still hoping to avert a property tax increase through additional cuts or other revenue increases. The two have been vocal in their opposition of a tax increase.

Meanwhile, the council voted Monday to uphold an ordinance blocking several increases in the mayor's spending authority. The changes, scheduled to take effect in October, would have allowed Franklin's staff to approve contracts up to $300,000 without council approval. The current threshold is $100,000.

Council members said they need to exert greater oversight over city finances. Franklin countered Atlanta's limits are much lower than other cities.

Below is how much more money Atlanta property owners would pay if the city raises its property tax rate to 9.35 mills. This does not include any possible property tax changes by the Atlanta Board of Education, DeKalb and Fulton County governments.