The Palo Alto City Council voted Monday in favor of a new contract with the city’s Fire Chiefs’ Association that will save the city tens of thousands of dollars in upcoming years. The council’s vote was unanimous.

The agreement matches similar concessions made previously by other labor groups with the intent of helping to cut municipal spending and to balance the city budget.

The new contract will save the city approximately $51,000 in fiscal year 2012 and nearly $84,000 in fiscal year 2013, according to a report by the city’s human resources department. The bulk of the savings will be achieved through the discontinuation of bonuses provided in exchange for meeting performance targets, and through association members funding 10 percent of their medical premiums for the first time.

A further reform included in the contract will reduce the city’s pension obligations to new association employees. The reform, which will include increasing the retirement age from 50 to 55, isn’t expected to generate savings for the city until fiscal year 2015.

— Marshall Watkins