Published: Mar 04, 2011 11:51 PM EST
Updated: Mar 04, 2011 8:53 PM EST

Cape Coral, Fla. - After five months of negotiations, Cape city leaders and union worker presidents have reached an agreement.

The agreement is 800 city employees will take a 3% pay cut.

They will also have to pay 2% more into their pension fund contributions.

City Manager Gary King said Friday that 75% of the city's operating budget is spent on employee costs.

With tax revenue down, the city has to cut somewhere.

If union leaders did not make the concessions there would have been lay offs.

This is a tentative agreement until union city workers vote on the issue.

They are expected to do that in the coming weeks.

This agreement does not apply to the firefighters or police officers.

They have their own union representation.