BUCKSPORT — The Town Council Aug. 11 approved two-year contracts for employees in the highway, fire and police departments.
Town Manger Roger Raymond said there will be no raises in the first year of the contract. There will be a 3 percent cost-of-living increase in the second contract year.
As a cost-saving measure, the town is changing health insurance plans with the Maine Municipal Association for all town employees starting Jan. 1.
The new plan increases out-of-pocket expenses by $200 for individual health plans and $400 for family plans.
To help offset the cost, the council approved the creation of a Health Reimbursement Account for each employee. The town will deposit $300 into the accounts in 2012 only.