The Estherville City Council approved agreements Monday with both the police and city employees' union on contracts for the upcoming 2013-14 fiscal year in which both groups will receive a 2 percent raise.
In the initial bargaining stage, both the police union and the city employees union had sought a 3.25 percent wage increase while city officials countered with a 1 percent increase.
For the 2012-13 fiscal year agreement last year, the union workers received a 3 percent increase.
In other business Monday, the city council sold city property at 312 N. Sixth St. to Dennis and Betty Lukins for $500. The sale is on condition that the Lukins tear down the house on the property.
Council also approved the default snow removal fees and charges. The city will now charge the cost of the snow removal plus a $35 administrative fee.
Council set Monday, Jan. 21 as the date for a public hearing on general obligation sanitary sewer improvements loan agreement. The principal amount is not to exceed $1.20 million.
City administrator Penny Clayton said that this is the digester cover repair project. The $1.2 million bond will cover the new digester, a 7 1/2 percent contingency und, engineering fees, the bond issuance fees and related expenses with the bond sale.
Council also approved an application from Troy Matheason requesting a partical property tax exemption as defined in the city's urban revitaliztaion plan. The plan allows for the first $75,00 of valuation on new structures to be exempt for the first five years.