As Vallejo slogs through its third year of bankruptcy, city officials are giving local police a blunt choice: Forgo a raise or the city will lay off officers to pay for others' raises.

The ultimatum is rooted in a contract that the city struck with police in January 2009. Under the agreement, Vallejo promised to lift police pay to bring it in line with seven Bay Area cities this year and next. Vallejo officials estimate this year's raise at 7%. Some city officials say they thought they could support the raises at the time...