BANFF – The Town of Banff’s 2021 draft operating budget will see a 1.4 per cent inflationary increase to staff wages – down from current guidance in the municipality's financial plan of a 3.95 per cent increase due to the economic downturn with COVID-19.
But Mayor Karen Sorensen said this is simply a starting point so administration can draft the budget, adding that other options such as a wage freeze or wage decrease as suggested by some councillors will be still up for discussion during budget deliberations.
“I feel we’re in the midst of a budget discussion rather than philosophically discussing the financial plan,” she said during the governance and finance committee’s discussion on one-time changes to the financial plan due to the COVID-19 pandemic.
“At budget time, you can ask for any number that you want to ask for … I certainly understand and respect that wages are going to be as sensitive a topic as any other based on what we’re in the middle of.”
On a 5-2 vote, the committee directed administration to make the wage adjustment based on the Alberta Consumer Price Index, and not a 3.95 per cent increase that would happen under the current formula in Banff’s financial plan.
The guidance in the financial plan for base wage adjustments is based on an average of Alberta CPI and Statistics Canada data on average weekly earnings for non- overtime, non-union, local, municipal, and regional public administration.
“The current forecast based on this formula would result in an annual wage adjustment in 2021 of 3.95 per cent,” said Chris Hughes, the Town’s director corproate services.
Councillor Peter Poole, however, also wanted administration to present the implications of a five per cent decrease in the municipality’s wages and benefits line at budget time.
“In 2019, we had a full economy and things were going well. In 2020, we had a big hurdle. Many people in this town have had a steep cut to their wages and salaries, and so I think that many people would anticipate the Town would walk in step with the rest of the people in the community, “ he said.
“I may not vote for such an option … there could be lots of reasons we could not go there … but I would at least like administration to give us the information of what the implications of that would be.”
Coun. Corrie DiManno said she wanted to see the initial draft budget presented with a 1.4 per cent wage inflationary increase, adding that wages and benefits were already cut by $1.3 million earlier this year due to COVID-19.
That was largely through vacancies and temporary layoffs, though there was a reduction to wages in some cases.
“I am comfortable moving forward with the 1.4 per cent; that’s already a decrease of what we would normally do,” she said.
“We’ve already made savings in this area and I think going forward into budget I would like to see the 1.4 per cent. I would not like to see a five per cent decrease.”
Councillors Brian Standish and Grant Canning voted for the 1.4 per cent increase based on the knowledge wages are still up for debate at budget, but both initially indicated they could consider freezing wages for 2021.
“I don’t normally support wage reductions, but these are difficult times,” said Coun. Standish.
