HUNTINGTON BEACH CIVIC CENTER (Orange County Tribune photo).

A proposed labor contract – officially a “memorandum of understanding “– between the City of Huntington Beach and the police union calling for a 17 percent pay raise over three years would require taking $2.7 million from municipal reserves.

When the city council meets on Tuesday, it will receive a presentation on the financial impact of the proposed contract with the Huntington Beach Police Officers Association on the city’s general fund, along with “long range” staff projections about the contract, unfunded pension liabilities and reserve levels.

To balance the most recent city budget, $15 million was moved from reserves.

The report also considered the possibility of bankruptcy, and additional revenue options – such as a cannabis tax, and increases in sales tax and utility tax – to balance the budget without taking more from reserves.

Following that, the council will take up the issue of approving or rejecting the proposed MOU with the police union.

The council will meet in a closed session at 3:30 p.m. with the regular meeting at 6 p.m. in its chambers at 2000 Main St. (at Yorktown Avenue).