After receiving a "commendable" review for his first year performance, Ceres City Manager Toby Wells has been granted a raise under an employment agreement approved by the Ceres City Council.

The council, which is staring at a $1.6 million deficit in the 2015-16 fiscal year budget and prepared to issue layoff notices to some employees, is boosting Wells' salary from $150,000 to $157,000, a five percent hike.

Wells was promoted to city manager in March 2014 after Art deWerk left the city under a cloud of controversy. When he was elevated from Public Works Director / city engineer to city manager, the council approved a $150,000 per year salary as well as a labor contract that calls for:

• A six-month severance package;

• $500 per month car allowance;

• $50 per month cell phone allowance;

• Life insurance policy equal to his annual salary;

• 12 sick days per year, with the option to convert up to 40 hours of unused sick time into pay each year;

• 15 days of vacation annually and can cash out up to 60 hours of unused vacation leave;

• $1,218 toward monthly health insurance plan.