The City Council on Tuesday approved an extension of memoranda of understanding (MOU) with three of the City’s employee associations, extending the agreements through June 30, 2012.

The agreements with the City’s Police, Fire and Fire Management associations were negotiated over the past several months.

The agreements demonstrate the continued support by the unions for the City’s ongoing financial difficulties in the face of decreasing revenues brought on by the national recession and reflect changes that address the changing economy and the City’s future personnel costs.

Under the agreements, employee groups will receive no across-the-board pay increases before June of 2012. Each of the employee groups also agreed to provide furloughs or equivalent savings of 80 hours per employee for each of the remaining years of the agreement.

The agreement is expected to save $1,677,580 to the City’s General Fund through June 30, 2012. The extension will also result in significant future savings to the General Fund.

Mayor Pat Gilbreath lauded the agreements after what she called “firm negotiations” between the Council and employee groups.

“The employee groups are making every effort to partner with the Council and the City Manager in light of the current budget situation,” Gilbreath said. “The employees are recognizing the economic times we are in.”