HOLLYWOOD (CBS4) – Hollywood residents will go to the polls on Tuesday to cast their ballots as to whether pensions given to city employees along with police and firefighters should be cut.

If the measure fails, city residents could be facing a tax and fee increases of up to 23 percent, according to CBS4 news partner The Miami Herald.

Currently, the city is facing a $38 million budget for the new year which begins October 1st. If Tuesday’s pension referendum passes, it would save the city $8.5 million.

In addition to increase in taxes and service fees, other options will which be discussed Monday night during a budget hearing by the commission are cutting employee salaries and lay offs.

“I am not a fan of laying off employees,” Mayor Peter Bober told the paper. “I’m more likely to consider tax increases or salary cuts.”

If the pension referendum is approved, employees who receive one will have to work longer before they retire and receive less when they do so.

A “no” vote means the city will consider cutting salaries by as much as 18 percent, raising taxes and fees, eliminating nearly 80 jobs and scaling back on school programs and summer camp.