At issue is adding some longevity plan to a proposed budget where revenues are currently $159,000 over expenses.

In a memo to council from City Manager Paul Sabiston for a specially called meeting Tuesay, the city manager writes, "If the city council were to fully reinstate the longevity pay for the upcoming budget year, without any other changes, that revenue over expense sum would be reduced to $45,900."

Longevity pay, the memo notes, is $114,000 for one year.

Sabiston's recommendation is to request the city council amend the policy so all employees are under the same system and eliminate an old system. Putting employees on the same system, the memo says, would cost the city $52,769 per year.

Currently, the city operates under two longevity policies, an old system for employees who began work before November 1, 1995, which was a percentage of salary and produced a higher payout amount. Employees hired after November 1, 1995, have been paid under a new system which imposes a flat fee. There are approximately 30 employees paid under the old system, the memo states. "By eliminating the 'old system' and converting all employees to the new system, the employees will be treated equally based simply on years of service and the city will save approximately $61,231 for each year it elects to pay the longevity bonus."

Sabiston noted in the memo longevity pay is a somewhat antiquated manner of providing a bonus. "It is a rare occurrence in the local government sector and has been replaced in most jurisdictions by a merit pay bonus that rewards employees, when funds are available, based on performance and training instead of simple longevity. Longevity pay is not required, nor is it guaranteed to any employee, existing or future."

Councilman Greg Lawson said he was struggling with the issue because the money was something employees anticipated. "We've got to do something to curb the budget but I know our employees are counting on this."

Councilman Ernest Bobbitt said, "I don't think it's right to jerk it out from under their feet. We keep talking about how great they are, this is about the only way to show that."

Councilman Ed Liverman said council has to look at making a business decision, something that would help the budget. "All across this city people have had to do without. We need to do what's best for the city."

Lawson said he understands the situation the city is facing in the budget after this one when the theater reserve fund is gone. "That's when we're really going to be hurting. I know we have to be more business like."

Mayor Emery Doughtie said wording of longevity pay has to be clear. "If it is considered a bonus it needs to say that. We've got people who would be more than glad to give up a supplement to keep their jobs."