PAWTUCKET –– Cooperating with an effort by the administration of Mayor James E. Doyle to balance the budget without a big tax hike, the smallest of the city’s four unions has agreed to a one-year contract with no increase in pay.

The contract, retroactive to July 1, 2007, was ratified last week by Local 3960 of the American Federation of State, County and Municipal Employees.

The union’s business agent, Sen. John J. Tassoni Jr., said yesterday the vote on the contract with no pay hike or improvement in benefits was favorable because the union includes mid-level managers concerned about the city’s financial crisis.

The city is in a financial crisis because of a sharp increase in school spending and steep decreases in state aid.

Knowing that the city would be struggling for revenue, Doyle administration officials announced in late April that they would be seeking substantial concessions –– including layoffs, furloughs and an increase in employee contributions to their health-care premiums –– from the unions representing city employees.

Local 3960 represents 46 employees, including the city’s director of zoning and code enforcement, the superintendent of streets and bridges, and the tax assessor.

Tassoni said the local voted by a wide margin to ratify the one-year retroactive agreement because “3960 knows the situation the city’s in.”

“That group has always been a leader working with the city –– no disrespect to other unions,” he said.

Tassoni didn’t know what the exact ratification vote was and referred the question to Paul G. Masse, the Local 3960 president.

Masse didn’t return repeated calls.

In a note to the City Council, Finance Director Ronald L. Wunschel said the one-year contract will have no impact on city finances.

For that reason, and also because the agreement is retroactive, council President Mary E. Bray said she believes the contract will win the support of council members.

“At first glance, I think they’ll ratify it,” Bray said. “There’s no fiscal impact at all.”

On the other hand, Bray said, there was no opportunity for gains from the agreement. “Anything that would have changed in this one wouldn’t have done any good because the year is already past,” she said.

As a result, the Doyle administration is still seeking concessions at the bargaining table from Local 3960, the Fraternal Order of Police, the Firefighters Independent Union and Local 1012 of the American Federation of State, County and Municipal Employees.

Local 1012 President Augie Venice said city officials and the union have met four times, but no progress has been made on the concessions. A fifth meeting was scheduled for yesterday afternoon.

Because the concessions the city is seeking could affect retirement benefits, the city’s financial crisis is causing uncertainty among city workers old enough to retire.

To stop a mass exodus of such employees, the city has been drawing up agreements giving employees a 60-day window of opportunity to retire with the benefits offered under existing collective bargaining agreements, even if those agreements are superseded by contracts negotiated during the upcoming year.

On June 11, the council voted unanimously to adopt an agreement protecting police retirement benefits. A similar agreement with Local 3960 members is listed on the docket of tonight’s City Council meeting. The agreement is expected to be referred to the council’s Finance Committee for review.

jcastell@projo.com