City of Phoenix plans $28.9 million in raises, awards

05-20-2011 • http://www.azcentral.com/

Phoenix will spend about $28.9 million in performance pay raises and longevity awards to employees under City Manager David Cavazos' proposed budget for the 2011-12 fiscal year.

It's a move at least one elected official decries as fiscally irresponsible and an issue that could dominate the City Council's first major debate of the coming fiscal-year budget on May 24.

City officials expect to close a projected $59 million budget deficit for the fiscal year that starts in July through refinancing debt and making internal operating cuts.

Cavazos' budget proposes spending $11.6 million in merit pay increases and $17.3 million in longevity pay, which rewards city employees for their years of service on the job.

Critics say the merit and longevity pay expend precious city money that could be spent on programs and services.