Butler City Council on Thursday approved a new employee health plan and agreed to freeze municipal employee wages in 2011, both with the goal of saving the city money.

The change from Highmark PPOBlue Enhanced to Highmark PPOBlue will require the city to cover a $1,250 deductible for any employee’s claim as well as up to $500 in medical copay costs. However, the city also anticipates saving about $47,000 this year alone.

Employee health care costs overall account for about $877,000 of the city’s estimated $7.88 million 2011 budget, or about 12 percent.

The budget’s first reading passed Thursday, while rising about $40,000 from the budget proposed by Councilman Joe Bratkovich on Tuesday.

He attributed the increase primarily to insurance costs — the health insurance change was previously thought to save the city more — and revenue increases primarily to building permits associated with the Butler Area Sewer Authority’s holding tanks project.

The council also passed first readings of ordinances fixing the city’s tax rate at 41.5 mills for 2011 and fixing the salaries of municipal employees for next year.

Mayor Maggie Stock voted against the wage-fixing measure. She had previously stated that the city is asking employees to do more work for less compensation.

As an example, she cited the city’s health officer, who will shoulder the additional responsibility of overseeing gaming in the city, a measure made necessary as Butler updates its codified ordinances to mirror those of the state.

The wage fixing affects seven city employees: the city clerk, administrative assistant, solicitor, plumbing inspector, health officer, code management officer and code enforcement officer.

Each of the full-time employees stands to lose about $1,000 in cost-of-living increases, while part-time employees such as the plumbing inspector and health officer would forfeit $100 to $300.

The second reading and passage of the city’s 2011 budget, tax rate and municipal wage freeze are scheduled for the council’s meeting at 7 p.m. Dec. 16.