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City aims to 'limit future wage growth' for workers

Luckily for you, I’ve read through the City of Vancouver’s “2016-2020 Budget Outlook” so you don’t have to. It’s quite the page-turner.
firefighter
Vancouver firefighters and police officers are expected to get pay increases, which the City of Vancouver says will put “significant pressure” on the 2016 budget. Photo Dan Toulgoet

 

Luckily for you, I’ve read through the City of Vancouver’s “2016-2020 Budget Outlook” so you don’t have to.

It’s quite the page-turner.

As part of my civic duty, I thought I’d share some interesting points so taxpayers can set their own budgets for those expected tax increases to come.

And they will come, in large part because collective agreements for the majority of city bargaining units will expire at the end of this year. Yep, that means pay increases.

For whom, exactly?

“Significant pressure on the 2016 budget and five-year budget outlook is anticipated as a result of this uncertainty in wage levels, particularly related to police and fire-rescue services, which represent 40 per cent of the tax budget and have historically exceeded both inflation and comparable increases for other public sector unions.”

You’ll find that quote on the first page of the budget document, which sets up the work city council will have to do to keep tax increases in line with inflation. Apparently, for each one per cent wage increase citywide, the cost is about $7 million, which equates to a 1.1 per cent tax hike.

The last page of the document signals that negotiations with unions will be tough going and actually points to “limiting future wage growth.” Wow. Here’s the full sentence for context: “Limiting future wage growth to levels affordable to taxpayers will be an important aspect of achieving a balanced budget while keeping property tax increases in with inflation.”

That’s interesting because, as regular readers will know, the ruling Vision Vancouver party is tight with unions, many of which have been regular and significant financial contributors to the party’s election campaigns.

That little voice I’m suddenly hearing in my head sounds a lot like a Vision councillor — or maybe it’s Mayor Gregor Robertson — saying: “There is no expectation for the city to pass a budget suitable to its union brothers and sisters. No connection, such a ridiculous suggestion Howell, no story here.”

Anyway, the story earlier this year was that council settled on a 2.46 per cent tax hike for 2015, one of the lowest in the region. Surrey taxpayers got hit with almost a four per cent hike while Port Coquitlam residents saw an increase just under 1.5 per cent.

In recent years, tax increases in Vancouver have ranged from 1.4 per cent to 2.8 per cent, which have been considered “modest” by Vision Vancouver politicians. Annual inflation has run between 0.1 per cent and 2.3 per cent.

As I finished that sentence, I could hear another little voice in my head sounding a lot like NPA Coun. George Affleck saying: “Yeah, but that’s not the whole story for taxpayers. You have to factor in utility fees.”

In fact, Affleck is kind of right.

When council approved the 2.4 per cent tax hike in March, it translated to an estimated increase of $44 per year for a home worth $1 million. Add increases to utility fees, including sewer, water and solid waste, the same owner of the $1-million home would see an increase of about $88 per year.

OK, that’s enough numbers for one column.

Meanwhile, here are some dates to remember: Nov. 25 (the date the 2016-2020 budget report is posted on the city’s website), Dec. 9 (city staff presents budget to council and speakers line up to wag fingers at council) and Dec. 16 (council makes final vote on budget, mayor lets doves loose, Affleck is shocked and appalled).

You’re up to date.

Now I must go and do something about those pesky political voices in my head.

There's got to be an app for that.

Or maybe a holiday would work.

mhowell@vancourier.com

@Howellings

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