The Goleta City Council unanimously adopted its two-year budget plan Tuesday night, which includes an extra $708,352 in police funding to continue the same service levels under its contract with the Santa Barbara County Sheriff’s Department.

Goleta contracts with the county for police services, and the city has approved ever-increasing amounts to keep the same number of deputies, including four motorcycle officers.

Council members also approved designating $1 million to complete the San Jose Creek Capacity Improvement and Fish Passage Project, which was largely funded by the now-defunct Redevelopment Agency. The California Department of Finance has disputed about $18 million in funding for the project, but the city is fighting back and may even take legal action.

The budget includes money to update the city’s Zoning Code, replace aging vehicles and add to the street maintenance budget. Another $500,000 will be added to the City Hall Reserve Fund each year, which should bring the total balance to $1.5 million by the end of 2014-15, according to budget documents.

Council members have talked a lot about competitive compensation rates during this year’s budget process and are having employees pay a larger percentage of their own retirement share each year. Employees should get extra compensation in their salaries to make up for this cut in take-home pay, employee Marti Milan said during public comment.

Milan has worked as a civil engineer for the city for 10 years, and the recruitment flier mentioning that the city paid for California Public Employees’ Retirement System contributions was a deciding factor to work there. The council increased health benefit allowances in the budget, but she said she would have preferred an across-the-board salary increase instead.

Councilwoman Paula Perotte said it was difficult to understand why no cost-of-living adjustment was given to salaries this year.

“I look at my own personal bills,” she said. “My trash is going up, my phone bill is going up, our waste bill is going up, everything is going up, and the cost of living is just that — it’s just to be able to keep up with everything that’s going on. I struggle with that one.”

Councilman Ed Easton agreed that there should be a COLA, but said the intent of that adjustment isn’t to make people whole from policy decisions such as retirement contributions.

Mayor Roger Aceves said older employees are paying more than they used to, but new employees are paying “the whole boatload” — 6.75 percent of their retirement contribution.

A two-tier benefits program kicked in Jan. 1 for new employees throughout California, which includes employees contributing more to their retirements and a cap on payouts.

“Do we give them 6.75 percent to offset what the state now requires they contribute?” Aceves asked.

He has repeatedly asked for a more thorough discussion of total compensation, beyond just salaries, and City Manager Dan Singer has said that presentation will come back to the City Council within six months.

The city’s general fund budget is $21.8 million for the next fiscal year and $21.19 million for fiscal year 2014-15.

Noozhawk staff writer Giana Magnoli can be reached at gmagnoli@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.