Let me begin by expressing my appreciation to the mayor and city council for the opportunity to make this submission. As most of you know, I am Saskatchewan Director for the Canadian Taxpayers Federation, an organization that wholly exists on the contributions of individuals and businesses who share our goals of lower taxes, less waste, and more accountable government.

City council has a decision before it whether to give a $50,000 raise to manager Glen Davies. It is acknowledged that Davies was first hired as a consultant to the city to see how services could be improved. And subsequently he was given a five-year contract through 2011 to fulfill that vision. However when Davies was hired, his initial salary of $187,000 in 2006 was already substantially more than his counterparts earned in cities of a similar size. It was reported in the Star Phoenix that it actually resulted in Saskatoon’s city manager Phil Richards getting a raise. Richards, who had been in that position for many years, received a $30,000 raise to bring his compensation to $195,000. Davies’ high salary was cited by officials from the City of Saskatoon as being the reason for the bump.

The trickle-down effect continued throughout that city. Following Richards’ pay hike, the salaries for all city managerial positions rose. Whereas they were anywhere from $110,000 to $140,000, they rose to $155,000. Most notable is the increase for police chief, Clive Weighill. Weighill had been hired in September of 2006 for $143,000 under a 5 year contract. But, because of Richards’ raise, the Board of Police Commissioners requested Weighill get a $32,000 raise to earn $175,000 annually.

The irony was that Regina’s police chief at the time, Cal Johnston, was making $135,000, despite having the role of chief for ten years. Even more striking is the fact that Johnston was Weighill’s superior in Regina before Weighill left to take the role in Saskatoon. Did an inter-city comparison bring Weighill’s pay down or keep it down? No.

The point of this story is not to blame Davies for higher wages and therefore higher taxes in Saskatoon. It is to demonstrate that Davies’ salary was already generous by Saskatchewan standards. It also demonstrates that in the municipal wage comparison game, it is the highest denominator that is always accepted, not the lowest. Finally it shows that a pay hike for Davies will almost inevitably lead to a pay hike for other managers in the City of Regina, and be used as leverage for higher wages for unionized workers. The contracts for all five city workers’ unions expire at the end of this year.

One of those unions, CUPE, has already pointed out that Davies has increased the number of managers at city hall from 60 to 112 and that they earn more than rank-and-file workers. This raises questions about the efficacy of Davies’ management and if it has truly meant the efficient use of tax dollars or not. The city’s pension plan has a substantial shortfall that means substantial contribution levels not just from employees, but also taxpayers. Yet, the defined-benefit pension plans for city workers remain. As well, we see golf courses such as the Regent Par 3 have five times the operating expenses as it does revenues. And yet they stay open.

It’s welcome to see more services are being contracted out, even if it is for just a few million dollars at best. Implementing recommendations from the services review has been somewhat helpful. However, we believe there is plenty of more room for better fiscal management at city hall. It is questionable whether Davies’s services are so invaluable as to justify the substantial pay increase proposed today. Indeed, his $50,000 bump is by itself more than most Regina citizens will make annually. Nor will they enjoy such a generous pension in retirement.

Davies is under contract with the city until December 31, 2011. His years already spent as city manager seem plenty of time for him to implement the core services review and other ideas he gleaned through his time consulting to the city. As for better offers elsewhere, Davies hails from southern Ontario where there are many other municipalities with a higher population than Regina and can therefore offer higher wages. Toronto has a population 20 times that of Regina. If Davies is offered a job elsewhere it is possible he would be paid more. But he would be given a larger budget and be entrusted with a greater responsibility. The pay for a Regina-sized role simply shouldn’t be as high as that for a Toronto, a Missisauga, a Vancouver, or what have you.

For these reasons we would ask that city council not approve this pay hike and accept whatever Davies chooses to do for a career in the future.

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Update: City council voted unanimously to offer Davies the pay hike. Within days, the city also announced its intentions to replace the Regent Par 3 golf course with different rec facilities. To Davies' credit, although he has hired more managers, he has made the city more lean overall in terms of employment numbers. As well, user fees have increased, meaning less reliance on taxes to overcome operational deficits.

By: Lee Harding
Posted: November 23, 2009
Topic: Saskatchewan

Contact the regional director Colin Craig for further information.

Type: Related

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