LISBON – Selectmen on Tuesday approved a three-year labor contract with the American Federation of State, County and Municipal Employees, the union that represents eight town office employees and the Beaver Park ranger.

The new pact gives 3.5 percent wage hikes each of the first two years and a 4 percent hike in the third year. In return, employees have agreed to pay 15 percent of their health insurance costs in the first two years, and 20 percent in the final year. They currently pay 10 percent of the cost.

At the request of Development Director Dan Feeney, selectmen tabled a request that the town share the estimated $56,000 cost of a sewer extension for Gendron Realty. Feeney said that since the item was placed on the agenda, less costly alternatives have been found.

In other business, a review of the plan for the second segment of Lisbon Trail was presented. It was noted that a proposal to bring the trail down Frost Hill Avenue to Lisbon Falls was strongly opposed by neighborhood residents at a recent meeting. Consequently, other routes will being considered, including one running under the new bridge and along the railroad tracks.

A special entertainment permit and liquor license was granted to the Left Hand Club. Adopted was a proclamation that Nov. 21-28 be designated National Bible Week in Lisbon.

Selectmen Layne Curtis and Paul Chizmar were named delegate and alternate to the Maine Municipal Association annual business meeting on Oct. 6.

Tabled for further review were several nominations for Community Service Awards. It was decided to send letters to nominees commending them for their work on behalf of the town, and to review and establish criteria for awards. Sue Conroy presented the town with a proclamation signed by Gov. John Baldacci designating the week of July 9 through 11 as Moxie Festival Day in the Maine.

Town Manager Curtis Lunt reported that the Board of Appeals hearing requested by Walter Morse upheld an earlier codes office decision against Morse. The Charter Commission will host a public hearing for input on Sept. 30 and will meet about every two weeks for the next two months. The public is welcome to attend.

School Committee Chairman Harold Moran said the first public forum on forming a Community School District with Durham to build a new high school will be held Sept. 27 at the new elementary school where a draft will be presented. A special town meeting or referendum vote will be held in both towns during December.