The city has finally reached an agreement with one of its employee unions whose .
City leaders and the firefighters union agreed on a new contract on Aug. 27, nearly two months after the last fiscal year ended on June 30. The new contract will last until 2014.
According to a city staff report, the bulk of the negotiations with the firefighters union hinged on rising health care costs.
The city agreed to retroactively pay for the increase in health premium costs for the 2010 and 2011 fiscal years. The city will also pay the health benefit increase that goes into effect on Oct. 1.
The agreement also calls for a new plan to be established that allows new hires to retire at 55 with 90 percent of their pay after 30 years of service. Currently, firefighters only have to work until 50 to get those benefits.
According to the staff report, the additional medical costs, along with the elimination of furlough days, means that the city's budget this year will increase by $125,000.
Negotiations with the city's five other employee unions are still underway.