SANFORD — The city and its public works employees have inked a new, three-year contract.

The contract will grant the department’s 20 or more workers 2 percent pay increases over each of the next three years. As well, those marking 18 and 25 years of service will be eligible for step increases.

Until now, step increases have been marked at five, nine and 13 years of service.

Workers will contribute 20 percent of the cost of their health insurance premiums for each of the next three years in one insurance plan, but have an option to switch to another plan in which the city would contribute to a health reserve account.

The public works employees are represented by the American Federation of State County and Municipal Employees, local 481. Their previous contract expired on June 30.

In a recent report, City Manager Steve Buck said collective bargaining was expected to commence soon for the Sanford Regional Communications Association, the union that represents emergency dispatchers, the Sanford Police Association and the Sanford Firefighters Association Local 1624.

“The city is aggressively pursuing positive negotiations with the goal of closing all agreements prior to their expirations June 30 of this year,” said Buck.

The City Council voted unanimously to approve the Public Works contract last week.