City hall: A look behind the numbers

by Melissa Ligertwood - Vernon Correspondent - Castanet Jul 11, 2013 / 11:00 am
Publishing staff salaries is just a part of open and responsible government in Canada, says City of Vernon Mayor Rob Sawatsky.  Provincial legislation requires all government organizations to publicly disclose a list of all employees who earn more than $75,000 per year. Sawatsky says he doesn’t see a problem with the information being made public, although he admits it’s uncomfortable for employees. “It’s one of the things that can make it difficult to attract staff, and we also know from our consultants that they can make more [money] in the private sector,” said Sawatsky. He also hopes people can look at the numbers objectively. “You have to apply some rationality to the standard. The benchmark has been at $75,000 for years, so that should probably be revisited,” he said. Rising property taxes are always a tough pill for homeowners to swallow, but Sawatsky cautions that the increased costs are not in the salaries. “It’s the most visible tax so people sometimes have a hard time with it. But if you look closely at the numbers, the money is going into infrastructure and other community projects,” says Sawatsky. “If we want these things in the community and want to be able to attract more people, there’s a cost,” he said. Sawatsky adds that the costs of fire and police protection services have increased out of proportion to other sectors – a cost to municipalities that Sawatsky says is significant and the most difficult to control. In 2007, the City of Vernon employed 23 individuals at a salary greater than $75,000. At that time, only two individuals made more than $100,000. Five years later in 2012, the number of city employees making over $75,000 has skyrocketed from 23 to 91, and the number making more than $100,000 now totals 14. There are also at least five employees whose salaries increased by $20,000 to $30,000 over five years in the same position, and an additional three employees who received promotions or new positions and are currently receiving $20,000 to $30,000 more than the previous incumbent. Granted, these numbers don’t take into account corporate restructuring or changes in job responsibilities. One outspoken industry expert says government organizations, especially municipalities, are spending far too much on staffing. Philip Hochstein is the President of the Independent Contractors and Businesses Association of BC (ICBA). Hochstein says that local government spending is out of control. “[Municipal] spending is 60 per cent over inflation and population growth, and most of that is salary increases,” he said. Contrary to what the politicians say, Hochstein adds, government spending and salaries are not in line with the private sector. “The private sector is doing it for less. If the private sector ran things the way municipalities do, they would be bankrupt,” said Hochstein. He says there is no shortage of qualified people who want to work for municipalities, so the notion of paying to attract or keep people is just false. “It’s simply reluctance on behalf of elected officials to deal with an issue that taxpayers want dealt with. Political leaders are cowardly when it comes to addressing the problem.”   Hochstein says that between the dismal voter turnout for municipal elections and the skilled organization of public sector unions, municipal leaders are taking advantage of a public that’s not paying attention. “We run a provincial election on the basis of fiscal responsibility and prudent financial management. Municipal elections should be no different,” said Hochstein.