It could reportedly cost the city of Chicago $65 million for retroactive pay increases for police officers. Nonetheless, the city will not use long-term borrowing to cover the salary payments, Chicago Budget Director Alex Holt said Tuesday.
The 2 percent retroactive pay increase dating back to 2012 as well as an 11 percent pay bump over five years for officers is part of a contract deal recently reached by the city and the police union. The contract would reportedly expire in 2017.
Holt said the city would only use "short-term" borrowing, if necessary, to cover the salary payments.
“The mayor has been pretty clear that he wants to make a break from the past and not borrow 30-year money for short-term payments,” she said, the Chicago Sun-Times reported .
“We haven’t borrowed for contracts settled under his watch. We’ve paid for it with current cash. These are short-term operating expenses for four or five years. He doesn’t want to be borrowing money for 30 years.…That’s part of his approach to financial management.”
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