FRUGALITY LIES AHEAD
There’s little question Calgarians are well served by their city manager. Jeff Fielding, who once chided city council for meetings that went on too long, now informs his political masters they’re going to have “to live by more modest means.”
Fielding deserves credit for delivering a common-sense message that raised the spectre of service cuts. He told city politicians that next year’s revenue shortfall will be in the range of $100 million, even after finding $325 million in savings in recent years. In 2016, for instance, Calgary Transit revenues fell by $17 million and utility proceeds declined $41 million — both the result of the economic downturn.
“As a new council, you’re going to have to make some decisions about core service delivery, and what you’re prepared to abandon if you want to be on a cost reduction scheme,” said Fielding, referencing the fact civic elections will be held this fall.
The city manager invoked a memory from his boyhood, telling politicians that although his family had “very modest means,” they always went on vacation, he always played sports and always wore nice clothes because his parents found ways to use their money efficiently.
“I never felt that we went without, but we never had any scads of money for lots of extras,” he said. “That’s how we have to shift right now. We’ve been very fortunate for the past 10 years of being not only a wealthy community, but a well-funded organization. And we’re now going to have to adopt some practices that will be different.”
Let’s hope council will be up to the challenge. Property tax increases have repeatedly exceeded the rate of inflation, suggesting little political appetite for living within their means — or more accurately, Calgarians’ means. With the economy still struggling, council will be under pressure to minimize tax and fee hikes while preserving important services.
Sadly, when there’s an opportunity to save money, it’s not always seized upon. The city gave its police members and firefighters 2.5 per cent wage increases in a contract that spans a single year. To public workers, that might appear like restraint, but those who are privately employed understand the salary increase is more than generous in today’s work environment.
When you consider the city has more than 2,000 sworn police officers and more than 1,300 firefighters, the costs of 2.5 per cent wage hikes aren’t inconsequential — not on salaries in the $100,000 range.
City politicians need to look for budget savings at every opportunity, not just when the urge strikes them.