Avoiding expensive arbitration, the City Council voted 7-1 to approve contracts for the police, firefighters and fire officers unions. The 2009-2012 contracts call for 2.75 percent annual raises. Additionally, the unions will not have to pay 1.5 percent of their salaries into healthcare, since they met the May 21 deadline before Governor Chris Christie’s healthcare contribution law for public employees goes into effect.

The previous contracts voted down last month called for 3, 3.3, 3.4 and 3.5 percent raises.

“When we voted down the contracts last month, we had a window of opportunity,” said Councilman Mike Sottolano. “The previous contracts were more expensive. I think it’s a good sign when you have both sides sit down and see the financial impact.”

Councilwoman Nidia Lopez voted against the contracts, which will cost the city approximately $32 million more over the course of the contract years, but also save $11 million in lower raises and healthcare costs.

“Police and firefighters are commendable,” Lopez said. “But my dad always said ‘if it doesn’t feel right, if it doesn’t feel good, don’t do it’ so I vote no.”

Councilwoman Viola Richardson was absent.