Abuse of taxpayers goes far beyond HST. Politicians, workers enjoy huge pay hikes in battered economy

John Bermingham, The Province August 16, 2010 5:02 PM

It's puzzling why, while so many folks continue to vent their rage over the HST, so few voice concern over the spiralling costs of civic government . . . and over hefty property tax hikes costing them at least as much cash. I mean, the way salaries for our municipal politicians, managers and workers keep rising, you have to wonder whether those in the overprotected public sector are even aware the battered private sector, which pays their bills, is still under water. Look no further than the eye-popping salary increases that Port Coquitlam Mayor Greg Moore (42 per cent) and fellow council members (27 per cent) unblushingly handed themselves. Or how about the 17-per-cent pay raise, retroactive to Jan. 1, awarded Burnaby Mayor Derek Corrigan (from around $97,500 to just over $114,000)?

I'm happy to report, though, that of late there do seem to be a few community leaders prepared to speak out about wage bills that typically make up at least 70 per cent of spending by municipalities, school boards and other public agencies. They include Barbara Sharp, the former City of North Vancouver mayor, who stated in a North Shore News article last Friday that she was in "shock and awe" over a story (by reporter Jane Seyd) about six-figure salaries being on the increase at metro municipal halls. Deploring public apathy over the misuse of tax dollars, Sharp said the salaries for the mayor and chief administrative officer (CAO) of North Van city -- with a population of just 45,000 -- had already increased by more than 35 per cent in the past 4½ years. Sharp pointed out her final salary as mayor at the end of 2005 was around $68,000. Now, North Van city Mayor Darrell Mussatto gets more than $100,000 annually -- which, Sharp noted, is the equivalent of around $120,000 for normal salary-earners. That's because one-third of the income of all municipal elected officials, except those in Vancouver, is tax free.

It's a tax break that also applies to the generous remuneration paid civic politicians who attend Metro Vancouver board and committee meetings, and likely make a further $20,000 to $30,000 a year. Sharp added that, in 2005, the salary of North Van city's CAO was about $180,000. Last year, CAO Ken Tollstam pulled in a whopping $250,000. "When so many North Vancouver citizens are struggling to pay their bills," Sharp said, "it is totally incomprehensible that our leaders continue to give themselves such fat-cat increases at our expense." She's absolutely right. Many Lower Mainland homeowners are being hit with property tax hikes of four and five per cent at a time when the economy is sputtering and the B.C. inflation rate is under one per cent. Over the top salary and benefit increases are evident at virtually every civic level. As Seyd reported, 183 municipal employees on the North Shore earned more than $100,000 last year -- double the number in 2008 and almost quadruple that six years ago. (Police officers are not included in these figures). The bottom line: We taxpayers badly need to redirect some of our understandable HST anger -- and rein in civic spending that's out of control.