Long Beach residents attended a public hearing Tuesday night where they learned more about the city's proposed $97.6 million budget that would raise taxes by nearly 8%, or about $305 more a year for the average homeowner.

Residents would also face increases to their water and sewage fees. Many of them were outraged by the hikes.

Acting City Manager Rob Agostisi says the proposed tax hike may be painful, but "it's absolutely essential."

MORE: Proposed tax increase could cost Long Beach taxpayers hundreds more

City officials say this year's proposed budget maintains programs and services, but includes a more than $586,000 increase in health care costs and $1 million more for salary increases for city workers.

Residents blasted city council members, saying they should find ways to cut costs rather than increase taxes.

The City Council says it will take residents' comments into consideration and that the proposed budget can still be amended. The council has until the end of the month to vote on the spending plan.