The Ashland City Council on Tuesday unanimously approved cost-of-living adjustments and incentive bonuses for Ashland Police Association members that will cost an estimated $96,664.
Members of the police union have gone without COLA increases in two of the three years of their last contract, which expired June 30.
On Tuesday night, councilors approved a variety of increases in a new three-year contract.
Police will receive a 2 percent raise this fiscal year and 3 percent increases each year in the second and third years of the contract.
Police with an associate's degree will get 2 percent raises, those with a bachelor's degree will get 3 percent raises and those with a master's degree will get 5 percent raises.
Police will receive 2 percent raises after attaining 10 years of continuous service and 4 percent raises for achieving 15 years of continuous service.
They can earn an extra $500 in the first year of the contract for achieving fitness targets and $600 each year during the following two years of the contract for reaching those goals.
Earlier this year, the City Council approved pay raises and COLA increases that averaged 3.4 percent for city government employees not represented by unions, such as department heads.
The department heads had gone without COLA increases or pay raises since 2008, when the city's finances were hurt by the recession.
Employees in an electrical workers' union are receiving 2.5 percent COLA increases this year and workers in a laborers' union are receiving a 2 percent increase.
— Vickie Aldous