DEXTER – A contract between the Dexter Town Council and the local union representing most municipal employees has been settled.

The council on Thursday officially signed the contract that they agreed to in principal earlier this month. Members of the American Federation of State, County and Municipal Employees, Council 93 AFL-CIO, have ratified the contract, which will continue from year to year unless written notice is given by either party to modify it.

Highlights of the contract include a 3 percent wage increase effective the next payroll period and a cost-of-living increase of no less than 2 percent and no more than 4 percent based on the Consumer Price Index percent increase over the past 12 months. In addition, bargaining unit employees will contribute at least 10 percent of the premiums of their health insurance.

In other business, the council declared a home at 52 Spring St. to be a dangerous building. The Veterans Administration, which owns the dilapidated building, may appeal the town’s action or come up with a plan to demolish or renovate the building. If the town has to demolish the building, liens can be placed on the property, Town Manager Robert Simpson said.

A motion to allow business owner John Chappell to lease a 1.65-acre town-owned lot on Corinna Road failed for lack of a second. Chappell wanted to purchase the property, but said there were too many Internal Revenue Service and Maine Bureau of Taxation tax liens placed on the property.

Instead, he offered to pay the town $100 a year in lieu of taxes for five years and then wanted the option to purchase it at the end of the lease.

“I can’t see leasing this for less than the taxes,” Councilor Fred Banks said Thursday.

Simpson also advised the council that the reconstruction of Spring Street had again been “slipped” from the Department of Transportation’s road improvement plans. While that road will not be done in 2006-2007, four other projects are in the plan, including two at the airport, he said.

To fill a vacancy on the SAD 46 board of directors, the council appointed Michael Bennett.