New London Mayor Daryl Finizio and and the police department have reached a tentative labor agreement that prevents layoffs for the 2012-2013 fiscal year and saves the city about $1 million.
At one point, the city was planning on 10 layoffs.
Finizio called the tentative agreement a "momumental step forward" during a news conference at 5 p.m. outside the mayor's office.
Finizio said $500,000 in savings come from overtime, but the city has added four comp days for members of the department.
Additional savings come from dropping grievances, the mayor said, and the savings come from not having to litigate those matters.
The budget posted on the city’s Web site on Thursday includes almost $8.5 million for the department, down 3.8 percent from the 2012 budget.
The reduction is the result of not filling vacant positions and a change in scheduling, according to the budget.