New Castle City Council approved a five-year contract with police last night.

The agreement with Lodge 21, Fraternal Order of Police, which runs from Jan. 1, 2008, through Dec. 31, 2012, includes a pay freeze for this year, 2 percent pay increases in each of the next three years and a 3 percent increase in 2012.

The contract also allows the city, at its discretion, to use part-time police officers, who will not be covered by the collective bargaining agreement.

In addition, the city also will have the right to determine the number of ranking officers. The contract will not link functions or duties to any particular rank and allows the city to create the position of assistant chief, which would be a management position.

The contract also includes changes in health care premiums, clothing allowance and overtime pay.

Council approved the pact by a 4-0 vote. Councilman Will Quimby was absent.

Although his daughter is on the 35-member police force, William M. Panella said, solicitor Michael Bonner had ruled that he could vote on the contract.

Panella said he believes the agreement that was negotiated “tried to do the best for both parties.

Councilwoman Christine Sands noted the agreement has been approved by the Act 47 coordinator. She added the pact is “basically fair because both sides have given up quite a lot.”