Councillors call for city hall pay cut in wake of provincial budget concerns

3 councillors propose motion to roll back city hall wages 3 city councillors want salary rollbacks from city workers. Tyson Fedor reports.

CALGARY – A trio of councillors plan to call for a pay cut at city hall in an urgent notice of motion on Tuesday.

Councillors Jeromy Farkas, Joe Magliocca and Sean Chu say they will request a blanket five per cent wage reduction at city hall, including a cut to the wages of the mayor and councillors, ahead of budget deliberation later this month.

The suggested move comes in the wake of the provincial budget and a forecasted minimum $70-million shortfall on the city’s books.

City hall is currently set for a 1.5 per cent wage increase in 2020. According to the notice of motion, that increase would represent a $31-million increase to the base operational budget, which equates to a 1.8 per cent property tax increase.

"Calgary city hall has hit the fiscal cliff and we have a decision to make," said Farkas in a statement released Monday morning. "After years of generous wage and salary settlements, we have to do more than tap the brakes. In order to turn this mess around and deliver meaningful tax relief for Calgarians, we have to roll back the unsustainable increases in public sector compensation."

When asked if he would support pay cuts, Mayor Naheed Nenshi said it was a possible option. "Of course we should try anything we can do to help ensure that we're able to move forward with a budget that's fair to Calgarians," said Nenshi.

"I do want to remind people," he added, "that, unlife the provincial government, we're not dealing with a deficit here. Since I've been mayor we've had 10 straight balanced budgets and will continue to do that.

"Our property taxes remain, for residents, the lowest in the country," he said, continuing, "and for businesses among the lowest so that's something I'm pretty proud of."

Nenshi adds that he is willing to explore a potential pay cut but isn't certain if a cut is realistic.

"I'm always happy to ask," he said. "Is it realistic?...I don't know."

Alexander Shevalier, president of the Calgary and District Labour Council, referred to the calls for a salary reduction as "posturing from city councilors" without indication of an actual plan to address the issue.

"The City of Calgary is facing a structural problem; the value of the downtown core has collapsed, which has led to the tax shift," said Shevalier in a statement released Monday. "City Council found money for the BMO Centre, they found the money for a new Flames arena, while cutting $60 million from the budget. They chose to empty their reserves in order to subsidize a sports team."

"We're subsidizing millionaires playing for billionaires, but now we're contemplating wage rollbacks here?" he said.

"There is no cohesive plan," he added. "I don't have confidence in this council right now, and they are trying to bargain in public with the union."

"What we haven't seen is how these proposed reductions will actually solve the problem."

Farkas, Chu and Magliocca are hoping to direct city administration to officially request that all unions reconsider that 1.5 per cent wage increase and agree to a voluntary zero per cent increase in 2020, saing Kenney's government is paving the way for them to do this after their proposal of wage rollbacks for provincial workers last week.

Later this month, council will debate the minimum $70M shortfall in the budget.

According to Farkas, Chu and Magliocca, current options up for consideration include a tax increase as high as nine per cent for the typical homeowner and a 20 per cent tax hike on the typical strip mall owner.

Chu reiterated the need for council to reign in its spending.

"We cannot treat a citizen or taxpayer like an ATM," Chu said.

When asked about the concerns of the unions, Ward 11 Councillor Farkas said, "Either they can accept job security, or they can accept wage security."

In response to Nenshi saying there's no deficit at the municipal level, Farkas said, "By definition, the city's not going to have a deficit when you're cranking up taxes every year."

Magliocca said he understood the unions' reluctance.

"Nobody wants to do a five per cent pay cut," he said.

Chu said there was little choice but to pursue cuts.

"The situation is so bad," he said, "That I don't think there is a choice. We have to do it."