San Jose city officials on Wednesday formally rejected the latest contract proposal from San Jose Fire Fighters Local 230, which claims its offer would save the city at least $5.3 million.

But in a six-page letter to union President Randy Sekany issued the same day, the City Council asked the union to allow its membership to vote on an 8.91 percent reduction in total compensation that the city says would restore one firetruck and four fire engines, and allow the city to hire back the 49 firefighters who were laid off last week.

"We are supremely disappointed," Sekany said of the city's offer. "It looks like this is politics over public safety."

On Sunday, the union proposed a package of concessions that includes some items that had previously been introduced, such as a 5.25 percent take-home pay reduction and increased health-care co-pays for office visits and prescription drugs.

But the union said it is now willing to adopt a two-tier retirement system for new hires, which could include reducing benefits by 10 percent, changing the vesting time, increasing employee contributions and raising the retirement age. Some veteran firefighters can now retire at 90 percent of their pay.

Alex Gurza, employee relations manager for the city, said that while he appreciated the proposal, it is still more than $6 million short of the concessions needed. "I think we are equally disappointed," Gurza said.