The City Council voted Tuesday in closed session to extend City Manager Russell Allen’s contract by a year and give him about a 5 percent raise.
The increase will bump Allen’s annual salary from $210,000 to $220,000. Allen’s pay has risen 57 percent since he was hired in 2001 at an annual salary of $140,000.
Meeker said after the closed session that the council believes that Allen continues to do an outstanding job and is a key reason Raleigh is recognized as one of the best places to live in the country.
Allen had one year left on his existing contract, so the one year extension roll overs and means he will continue to work under a two-year deal.
Although Raleigh has had a hiring freeze in effect since July 1, 2008, the city has not frozen pay or benefits of its employees. City employees are eligible to receive merit raises up to 5 percent each year.
Allen is scheduled to present his proposed 2009-2010 budget to the City Council on May 19. He warned the council in March that Raleigh could face a budget shortfall of $18 million to $22 million next fiscal year in its general fund.
Allen said Thursday that he has reviewed employee pay and other benefits as well as all programs and services offered by the city. But he declined to share his recommendations in those areas until he presents his proposed budget to council.
Allen has already said he will not recommend any increases in the property tax rate, or any increases in the privilege license fee, the stormwater fee or the solid waste fee.
Allen also proposes reducing the number of general fund employees by not filling vacant positions in an attempt to avoid the need for layoffs.
The city will continue to fill police, fire and other critical service positions that become vacant but likely won’t be creating any new positions in those areas next fiscal year.