Calgary Mayor and Councillors Should Cut Salaries for Savings
CALGARY, AB: The Canadian Taxpayers Federation (CTF) is calling on Calgary city councillors and Mayor Naheed Nenshi to restrain city government salaries, starting with their own.
The CTF recommends reducing councillor salaries by 5 per cent and the mayor’s salary by 10 per cent – and pushing for a 5 per cent roll back for all municipal government employees in upcoming union negotiations. Doing so could lower property taxes by 2.57 per cent.
“Reducing pay and perks means reducing property taxes,” said MacPherson. “Calgary workers and businesses are taking wage cuts and layoffs to stay afloat. Government employees should join reality and help take the burden off taxpayers.”
Salaries, wages, overtime and benefits account for 45 per cent of total City of Calgary tax-supported expenditures, according to the city’s own documents.
“If city council is looking for savings, pay and perks eat up nearly half of the operating budget,” said CTF Alberta Director Paige MacPherson. “Stop shaking the couch cushions and address the obvious line item.”
The CTF is also calling for councillors to scrap their gold-plated pensions.
In February of last year, Alberta MLAs took a 5 per cent reduction in pay. In 1993, MLAs scrapped their gold-plated defined-benefit pensions in favour of more commonplace RRSP-style retirement savings plan.
“If our provincial politicians can roll back their salaries and pensions to save money, city councillors can too,” said MacPherson.
Calgary Mayor Naheed Nenshi is reportedly the highest paid mayor in the country.
Mayor and councillor salaries were increased on January 1st of this year, bringing Mayor Nenshi’s paycheque to $218,285 and councillors’ to $116,313.
A recent City of Calgary survey found Calgarians overwhelmingly wanted to see council cut back on unnecessary spending and offer tax cuts.
“Calgary taxpayers clearly want spending reductions,” said MacPherson. “Rolling back compensation would save money without hurting service delivery.”
The last union negotiation gave municipal government employees a 12.5 per cent increase over four years, including 3.5 per cent this year and 4 per cent next year.
“Council must set the tone for restraint in union negotiations,” said MacPherson. “A tough year like this one shows how unsustainable these salary increases are.”
Municipal government employees in Calgary enjoy a 7.6 per cent wage premium over other workers, according to the Canadian Federation of Independent Business. With benefits, the government employee premium rises to 18 per cent.
The CTF estimates that reducing all municipal government employee salaries by 5 per cent would save over $119 million in 2017 and could reduce the property tax rate by 2.57 per cent.
After a reduction of 10 per cent, Mayor Nenshi would make $196,456 and councillors would make $110,497 in addition to generous benefits and perks.
Additionally, the CTF recommends Calgary City Council explore other ways to save money on compensation, such as reducing salaries and pension perks for new hires, reducing staff through attrition, or introducing unpaid days off for government employees as former Ontario Premier Bob Rae did.
— 30 —
For more information:
Alberta Director Paige MacPherson
office: 403-475-6207, email: [email protected]