After a year and a half of negotiations, the City Council this week approved a four-year contract for city employees that includes pay and pension increases.
A mediator helped broker the contract between the city and Anaheim Municipal Employees Assn., which represents 700 city employees.
The contract, retroactive to October 1996, provides for two 3% pay increases. The first is retroactive to Jan. 9, and the second will go into effect Dec. 10, 1999. The employee group's last pay increase was 4% in May 1995.
The contract also calls for enhanced pension benefits, including lowering retirement age eligibility from 60 to 55.
The total cost to the city over the four-year contract is $3.4 million.