JACKSONVILLE, Fla. -- City Council members worked until 2 am -- passing a controversial and hard-fought budget that includes cuts and new fees by a vote of 12 to 6.

The budget includes the storm water fees and the garbage fee was approved. A 6 percent fee will on JEA electric and water bills be debated in November. That fee was among the most debated issues by council members Tuesday night and into the wee hours of the morning.

The city council will reconvene at 1:00 p.m. Wednesday to take up the rest of the agenda.

City Council members on Monday approved the controversial $3 per month household garbage-collection fee -- down from the $5 monthly fee Mayor John Peyton proposed.

For the second time in as many days, a crowd of demonstrators gathered outside the building, protesting the proposed storm-water fee that they said would unfairly tax churches.

"(We are) against the taxation of churches, and we want this community to know that we strongly stand against this decision that the mayor and the City Council has made," the Rev. C. Edward Preston said at a Tuesday morning news conference.

The storm-water fee was among the most-debated issues by City Council members as they worked to balance the budget. The City Council did not make a decision on concessions for churches.

Some area churches and nonprofit organizations said that as tax-exempt organizations, the fees would be a burden on them.

"If you allow them to put one foot in there, then they suddenly put two, so we are very suspect of this particular tax," the Rev. R.L. Gundy said.

In reaction to the 11th-hour opposition by the churches, Mayor John Peyton has offered a plan under which churches would only have to pay 50 percent of the fee.

After several hours, the council approved the controversial storm-water fees by a vote of 10-9.

Some taxpayers said they were hoping City Council would not pass the budget Tuesday night, and that it would keep working and create a different one that does not have storm-water fees.

City Council must finalize the budget until the end of September, as the city's fiscal year begins Oct. 1.

• September 25, 2007: As Budget Vote Nears, Ministers Claim Fee Is Unconstitutional
• September 24, 2007: Budget Battle Continues At City Hall
• September 24, 2007: Church Members Protest Proposed City Fees
• September 20, 2007: Amid Budget Cuts, City Council Tries To Fund More Police OT
• September 13, 2007: New City Fees To Cost City Millions In Billing Expenses
• July 16, 2007: Mayor Announces City Shakeup, Budget Cuts, New Fees
• July 13, 2007: Mayor Gives First Look At New Fees
• July 9, 2007: Budget Cuts Take Bite Out Of Library Hours
• July 6, 2007: Jacksonville Considers Fees To Balance Budget
• July 3, 2007: City Finalizes Police, Fire Budget Cuts
• June 21, 2007: Crist Signs First Part Of Huge Property Tax Cut
• June 15, 2007: Legislature Passes Property Tax-Cutting Bill
• May 23, 2007: City Announces Grant Program Cut