WINDHAM — Employees of the town of Windham won’t be getting raises for a third year.

The Town Council Thursday night cut proposed cost-of-living and step increases for non-union employees, before approving a $13.8 million budget that won’t raise the tax rate in Windham.

Residents will vote on the 2011-2012 budget at the June 18 town meeting.

The council restored funding for library staff and scholarships to the recreation department’s summer camp.

The budget approved by the council is about $400,000 less than the budget proposed by the town manager.