With salary and benefits, police and firefighters could see a raise of more than 20%.
Councilman Paul Cheng is spearheading the effort with the backing of both police and fire unions.
"Our first responders have been underpaid for years and what we're doing is just getting them to fair market value," says Cheng.
But some worry these pay raises would put the city in a deficit budget that would cause financial problems in the future.
"We will find ourselves in three years, when we're already in deficit spending, we're using reserves and now we're supposed to give more raises in three years? Where is the money going to come from?" asks Councilwoman April Verlato.
This issue is becoming quite heated in this community. Over the weekend there was a rally at Arcadia Park where off-duty Arcadia police and firefighters showed up.
Resident Sonia Martin came to protest the increases.
"One of them approached me and started to question me, wanted to know where I lived," says Martin. "He asked me that twice."
Martin says she was surrounded and some people were screaming. She says she felt intimidated.
"Frankly, I thought Arcadia was above all that but I'm finding out that it's not," says Martin.
Cheng says the city can afford this increase since it has $70 million in its reserves.
"We're only talking $400,000 - and $400,000 out of $70 million I think is perfect. We're not in debt," says Cheng.
Verlato counters: "We have to be careful and mindful of how we spend the tax dollars. Otherwise we will be back to the taxpayers asking them to pay more."
The Arcadia City Council will vote on the new contract Tuesday night.
CORRECTION: This story has been updated to remove references to the pay increases making Arcadia first responders the highest paid in the San Gabriel Valley.