City and school employees may not be getting raises this year, but bonuses could be in the cards, City Council signaled during its Wednesday meeting.

The body unanimously voted to direct City Manager Selena Cuffee-Glenn to investigate the feasibility of using cost savings and other one-time funds to provide bonuses to both city and school employees.

Several City Council members expressed dismay at the superintendent’s proposed budget, which asks the city for an extra $3.5 million and would provide a 3-percent raise for teachers and a 2-percent increase for all other employees.

“I don’t want to inflate people’s hopes … when we know full well there’s not going to be room for 3- to 5-percent raises for anybody,” said Councilman Charles Parr, who made the motion.

City Council members said the proposal was unrealistic, especially since it came before City Assessor Jean Jackson reported only a 1.7-percent increase in the average assessment and before fourth-quarter numbers for city receipts are available.

Superintendent Deran Whitney revealed the spending plan in the Feb. 13 School Board meeting. He called it “bare bones” and said other increased costs included $500,000 toward a plan to replace aging heating, ventilation and air-conditioning infrastructure.

The school budget also counts on increased state revenue of $2.9 million.

Parr said the proposal repeats an ineffective cycle that has gone on for years —school division budgets he considers unrealistic followed by the city usually funding less than requested. The city manager and superintendent have been meeting more often, but Parr said it appeared nothing had changed.

“Every year, it’s the same story,” Parr said. “I would like nothing more than for the School Board to propose a budget that is within the city’s means.”

City Manager Selena Cuffee-Glenn agreed that full funding of the school division’s request isn’t likely this year.

“I know that we don’t have $3.5 million to handle raises,” she said.

Parr said the proposed school employee raises alone would require a 5-cent increase on the real estate tax rate, which would bring it to $1.08 per $100 of assessed value, never mind other shortfalls and unforeseen expenses. The council already has voted to direct the city manager to propose a budget without a real estate tax increase.

Parr said he would like the city to fund the school system by category rather than lump sum if the school division can’t come up with budget he considers realistic. Categorical funding would mean the schools would have to ask city permission to move money, for example, from instruction to transportation. The city currently provides all the funding as a lump sum.

Parr and other City Council members also supported taking over the school division’s capital projects, believing it would help save money that could provide raises.

“I think we can do it better,” Parr said.

The approved motion also requested the city manager to investigate the feasibility of doing a joint compensation study of all city and school employees.