The recent salary pay raise increase will cost the city of Mexicali an additional 93 million pesos or about $4.5 million.

Mexicali Mayor Norma Bustamante recalled that the city signed last week a labor agreement with the Public Employee Union that included a 6 percent salary increase, as well as similar increases in benefits.

The Mayor said pay raise was based in inflation rates.

Mayor Bustamante denied the increase will affect city coffers. According to the Mayor this additional cost will be covered through federal funds and retirement of employees.

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