HUNTINGTON BEACH CIVIC CENTER (Orange County Tribune photo).
A proposed pay increase of 17 percent over three years for Huntington Beach police officers has raised the prospect of bankruptcy for the city.
At Tuesday’s meeting of the city council, the Memorandum of Understanding between the city and the Huntington Beach Police Officers Association was debated and a divided council eventually voted 4-3 to create a council subcommittee to look into the impact of the agreement on the city’s general fund.
Opposed were Councilmembers Andrew Gruel, Gracey Van Der Mark and Chad Williams.
In favor were Mayor Casey McKeon and Councilmembers Pat Burns, Don Kennedy and Butch Twining.
The proposed contract calls for an 8 percent pay raise for this year, a 4 percent raise next year and a 5 percent increase in the third year.
Supporters of the deal argued that it helped retention of police officers; skeptics worried that the city budget – which required tapping $15 million from reserves to be balanced – was in trouble.
The council majority directed the city manager – in conjunction with the city treasurer – to prepare a five-to-10-year analysis of the city’s finances in light of the MOU and bankruptcy risk in the light of the memorandum and other issues including unfunded liabilities.
Also, the city manager and city treasurer were directed to prepare “a series of financial options” to avoid bankruptcy and return them to the council by Sept. 1.
