BANFF – Banff’s mayor and councillors plan on a wage freeze for themselves for the remainder of their term in recognition of the financial challenges residents and businesses are experiencing during the COVID-19 pandemic.
At this point, Mayor Karen Sorensen and the six town councillors don’t plan to take the 1.4 per cent inflationary increase proposed in the municipality’s 2021 operating budget.
Councillor Brian Standish proposed the pay freeze, which would save about $4,400.
“For me, it’s not about the savings; $4,400 in the big picture isn’t a lot,” he said during the governance and finance committee’s review of municipal services and associated budgets on Monday (Jan. 25).
“It’s more a philosophical thing. It’s the right thing to do in my mind.”
Sorensen’s base salary for this year is $96,721. A 1.4 per cent cost-of-living increase would take her salary to $98,075.
Base salary for councillors is $31,249 and the proposed inflationary increase would see that jump to $31,687.
Coun. Peter Poole, who has unsuccessfully tried to cut programs and services from various town departments given the financial hardships the community is facing, supported the wage freeze.
He said he was also willing to accept a pay decrease, but did not pursue that.
Coun. Poole said his draft business tax assessment indicated a five to 10 per cent drop, which means municipal revenues dropping commensurately.
“So residents will likely have to shoulder a heavier weight if we keep the same level of service,” he said. “It’s incumbent on us to reduce or freeze our pay.”
The vote to freeze wages until this council term is over in October was unanimous, however it won’t be finalized until council accepts the overall 2021-23 operating budget on Jan. 27.
Coun. Corrie DiManno said she understood why council would do this from a political perspective, but she also pointed out the important work of mayor and council.
“This is a very important job that we do here and I think it’s important we’re paid a proper wage to do this job,” she said. “We make some of the toughest decisions.”
As it stood at the end of service review deliberations on Monday, Banff residents would see a tax decrease of 5.37 per cent this year compared to 2019 – the base year council is using this year given the COVID-19 pandemic's implications in 2020. Final decisions will be made on Jan. 27.
For the average residential dwelling assessed at $469,100, that would equate to a tax reduction of $10.34 a month or $124.09 a year.
As for Town of Banff employees, the overall wages and benefits including the 1.4 per cent cost-of-living increase, amount to $18,352,603 for 2021.
The 1.4 per cent inflationary increase amounts to $199,000 – $152,000 tax-funded, $40,500 utility funded, $3,000 grant-funded and $3,500 reserve funded.
The actual wages and benefits for 2020 have not yet been finalized, but estimated to be $16,697,581 based on the third quarter forecast. In 2019, overall wages and benefits were $17,009,369.
