Budget projections show Phoenix will have an estimated surplus of $76 million going into the next fiscal year, which starts July 1. Elected officials have different ideas on how to spend it.

For years, Phoenix has been trying to staff its police force with 3,125 officers. Today, they’re short by about 400. The city’s been using money from vacant positions to  pay overtime and offer retention and hiring bonuses. But Councilman Jim Waring said more must be done.

“We start spending money on other stuff, on new programs or whatever, and we don’t address that, we’re going to look foolish as time goes on,” he said.

Councilman Sal DiCiccio also said  the city must do more to retain and hire officers and he suggested spending surplus dollars to pay down the city’s pension debt.

Councilmember Carlos Garcia said the city should focus more on addressing and preventing homelessness.

“There’s actually some opportunities and great organizations and folks really wanting to work to provide more affordable housing, more shelters and just helping more folks that are unsheltered,” he said.

The council will discuss a preliminary budget in late March with public hearings to be held virtually in April.

Phoenix has survived COVID-19 without cutting city services, programs or employees. The city has actually created new programs using federal relief funds.

Budget Director Amber Williamson told the council the projected surplus demonstrates two things, “That the COVID aid did what it was intended to do, to help prevent a prolonged and protracted recession but I think what it also highlights is Phoenix — our fundamentals economically are just a lot stronger than they were 20 years ago.”

She said Phoenix is less reliant on construction and has more diverse business sectors creating higher-wage jobs.