DERRY | It's a new year in Derry, and 250 town employees will enter into it without a new contract.

The town failed to reach an agreement with any of its seven employee unions by its self-imposed June 30 deadline, the end of the budget year.

The same contracts will hold going into the new budget year, meaning for now, any increased costs in health insurance or other areas will be borne by the town instead of the employees. Employees will work without any salary or benefit increases.

Interim Town Administrator John Moody wouldn't say if the Town Council included any money in the $36.6 million budget for the coming fiscal year for pay raises or other increased costs, should agreements be reached during the year.

None of the unions has a strike provision in its contract, Moody said, so members would be breaking the law if they walked off the job. Only seven of the town's 257 employees aren't unionized.

"I don't think (the talks) are contentious," Moody said. "It's just that everyone knows there's a lot at stake. We want to keep the people we have working for us. Our job is to make sure it's within the finite resources available to us."

As of last week, none of the unions had declared an impasse, which makes Moody optimistic that they will be able to come to an agreement. That includes the Derry Police Patrolman's Association, which represents 42 of the town's 59 officers. The union had declared an impasse earlier in the year, but has since returned to the bargaining table.

The sticking point then, union President Michael Houle said, was a proposal by the union that would require police road details on 66 of the town's 700 streets. Attempts to reach Houle last week were unsuccessful.

The town can also declare negotiations at an impasse at any point if they feel they are deadlocked.

Most union presidents were reluctant to talk about any particular sticking points last week since negotiations are still ongoing.

But the firefighters union, which at 80 employees is the town's largest, has been waiting for more than two weeks to return to the bargaining table, President Gary Williams said. Williams said his union has been trying to negotiate a new contract since November.

"I do not understand what the delay is," Williams said. He declined to say more at this point because the union has not declared an impasse yet.

Moody said it is unlikely that the unions will reach an agreement before new Town Administrator Gary Stenhouse starts on July 9. But that shouldn't be a problem, he said, as the negotiations will continue to be handled by Human Resources Director Larry Budreau.

Town Council Chairman Craig Bulkley said the town's inability to reach contract agreements with the unions before the end of the fiscal year is not cause for alarm.

"I am not concerned that these contracts are not settled yet," Council Chairman Craig Bulkley said. "The important thing is that the union and town negotiating teams are continuing to work together in (good) faith toward settlement."

Councilor Kevin Coyle agreed. "Given the tax cap, I'm confident we've put a reasonable proposal on the table," he said.

Other councilors were less pleased with the status of the contract talks.

Both Brian Chirichiello and Janet Fairbanks said they want to see the contracts wrapped up soon. They also expressed frustration at the fact that the council hasn't been updated on the progress of the talks in more than a month.

"It would be nice to get it wrapped up and know where everybody stands," Chirichiello said.