Negotiations on a new police contract, between the City of Omaha and the police union, are at an impasse.

For years, police have enjoyed perks like free health care and the opportunity to spike their retirement pay. The sticking point now seems to be health care and neither side is ready to give in.

City officials say that they have made their best and final offer to Omaha's police union. As far as the city is concerned, the talking is over.

Omaha Mayor Mike Fahey says the city wants to put the negotiations in the hands of the state.

Fahey says, "Earlier, I presented the union with my final and best offer. Unfortunately the police union declined the offer and made counter-offers that are unacceptable to the city. As a result this matter will be taken to the Court of Industrial Relations."

The city offers a three-and-a-half percent wage increase over the next three years. It also wants to eliminate spiking -- a technique used to raise pension numbers. Police officers would also have to pay for some of their health care. Right now it's free. Fahey wants a five percent premium that amounts to $50 to $60 dollars per month, per family.

The mayor says, "We simply no longer can afford free health care and we must stop union pension spiking."

But representatives of the police union say there are still difficult and complicated issues on the table and they want to talk about them.

The police union's Aaron Hanson says, "We advised them that as far as we were concerned we're still engaged in negotiations. They're aware of that. Why they have declared an impasse at this point, you'll have to ask them."

It takes only one side to force an impasse. Fahey says the issue could take several months before a decision is reached by the Court of Industrial Relations.

A month ago, the fire union filed an impasse in its negotiations with the city. That contract is scheduled to go before the Court of Industrial Relations on July 14.