Irvine to pay bonuses to city employees

Armed with an unexpected surplus, a divided Irvine City Council has agreed to pay bonuses to all full-time and part-time city employees.

In all, the city will hand out $450,000 in bonuses — $500 to each full-time worker, $250 to each part-time employee who works more than 10 hours a week and $100 to each part-timer who works fewer than 10 hours a week.

The money comes from a nearly $14.4-million surplus in the general fund, the result of a 15% increase in sales tax income and a 14% increase in hotel tax revenue, according to city officials.

The bonus is “not a lot of money, but it says to every employee, ‘We recognize that we’ve been through a tough time together,’ ” Councilman Larry Agran said. “It is not a bonus; it is recognition of the tough times, the harder work, the smarter work, that has allowed us to restore ourselves to a position of being whole.”

Not everyone agreed.

“It is very difficult to sit in front of our city employees and to object to that type of recommendation as a bonus compensation [for] a good job well done,” said Councilman Steven Choi, who voted against the bonuses. “But for me, I’d rather be more cautious than celebrating with the temporary surplus.”

Councilman Jeffrey Lalloway, who also voted against the bonuses, suggested that the money be added to the city’s insurance fund or its reserve fund, which the city tries to keep at 15% of the general fund.

“I think it sets a rather poor precedent to give away taxpayer money when so many in the nation are struggling right now,” Lalloway said Thursday.

Council members will not receive bonus checks, said Craig Reem, director of public affairs and communications, who will receive a bonus.

The city eliminated 70 positions through attrition but has not laid off any employees over the last three years.

The year-end surplus will also provide $11,540,884 to the contingency reserve fund, $2.3 million to the infrastructure and rehabilitation fund, $40,000 to create an online application process for special events permits and $35,000 to establish a grant funding review for the city’s commuter shuttle system.

sarah.peters@latimes.com