NASHUA — Nearly one year after a union contract expired with city public works employees, a new collective-bargaining agreement has been reached that will require significant health care concessions.

The new agreement, which is not official until the Board of Aldermen votes on the contract next week, will impact about 110 members of Local 365 of the American Federation of State, County and Municipal Employees, or AFSCME.

Under the new contract, employees with the city’s Public Works Division will be forced to contribute 10 percent more for their health insurance costs, according to Dorothy Clarke, deputy corporation counsel. In addition, the health insurance contribution amounts are retroactive from Oct. 1, 2011, the date the current contract expired, she said.

Workers will also have to deal with increased co-pays, a deductible for inpatient and outpatient facilities and a three-tiered pharmacy benefit, Clarke said.

“This makes it consistent with the other bargaining agreements approved to date,” Mayor Donnalee Lozeau told the aldermanic Budget Review Committee Tuesday, explaining these are the same changes being asked of all city union workers.

Because of the “somewhat overwhelming” increase in health insurance contributions, Clarke said the city has offered to provide a one-time credit of $454.54 to employees, which will partially offset the retroactive health insurance contributions that will be owed if the contract is approved by city officials.

Under the proposed new bargaining agreement, public works employees will be provided with a .5 percent wage increase for fiscal year 2012, a 1 percent wage increase for fiscal year 2013, and a 2 percent wage increase for fiscal year 2014.

The union has agreed to give up two personal days in 2014, and members will not be entitled to any educational benefits throughout the duration of the agreement, said Clarke. In return, the city has agreed to maintain the current number of employees — 110 — until the contract expires on June 30, 2014, although workers may not necessarily remain in their current positions.

The budget review committee has recommended final passage of the proposed collective-bargaining agreement, which is expected to be voted on by the full Board of Aldermen on Tuesday.

If adopted, city officials will authorize the transfer of $14,898 from the 2013 general fund escrow accounts and $44,842 from the general fund operating budget to cover contingency costs associated with salary adjustments and the one-time credits recommended in the contract.

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Kimberly Houghton may be reached at khoughton@newstote.com.