BANFF – Staff at the Town of Banff will see a small cost-of-living increase this year.
On a close 4-3 vote, Banff council agreed to a 1.4 inflationary increase based on Alberta’s Consumer Price Index for employees, not the 3.95 per cent they would get if the municipality’s regular cost-of-living formula was used.
Councillor Brian Standish, however, argued that scrapping the 1.4 per cent salary increase for staff is the right thing to do because residents and businesses continue to struggle with the financial fallout of COVID-19.
“For someone who is at home, out of work, who’s been laid off, and to read in the paper that the Town of Banff staff are going to get a 1.4 per cent wage increase, I think that’s a slap in the face,” he said.
“This is our job and it’s a tough decision, yes, but when it comes down to it, we have to make the toughest decisions … I totally respect administration for the great work they’re doing, but at this time, we’re just all in this boat together.”
The Town of Banff’s wages and benefits, including the 1.4 per cent cost-of-living increase, is about $18.3 million for 2021.
The 1.4 per cent increase amounts to $199,000 – $152,000 tax-funded, $40,500 utility funded, $3,000 grant-funded and $3,500 reserve funded.
Council, however, did mandate administration to find $150,000 in wages and benefits savings for this year.
Coun. Corrie DiManno voiced strong support for 1.4 per cent employee cost-of-living increase.
She said staff were expecting a 3.95 per cent inflationary increase based on the formula typically used, which resulted in savings of $278,000.
In addition, there was an estimated $1.3 million saved in wages and benefits in 2020, she said.
“I understand both sides of this conversation and it certainly is a tough conversation to have, but I’m of the mind that we have made reductions,” Coun. DiManno said.
DiManno said 36 per cent of the Town’s employees have been affected in some way by the COVID-19 pandemic, whether that was reduced hours, or temporary layoff or permanent layoff.
“Of course, there’s the community at large, but folks that work with the municipality also live here too; they are residents and they will be facing the same cost-of-living increases that everyone else will,” she said.
“I feel that reductions have been made and that there’s effort for further reductions.”
Mayor Karen Sorensen also supported the 1.4 per cent wage increase.
“I know we’re in an off year, but we do need to assure that our employees are paid fairly,” she said. “We do try to pay at the 50th percentile and we are behind in that.”
Sorensen said she believes directing administration to find $150,000 in wages and benefits savings this year, rather than scrapping the 1.4 per cent wage increase, gives administration more flexibility.
“We all acknowledge the 1.4 per cent increase on your salary on a cheque by cheque you probably, honestly, won’t even notice a difference,” she said. “I feel this way leaves it a little bit more nimble for administration.”
In 2020, the Town of Banff saw 39 temporary layoffs due to the COVID-19 pandemic, 30 of which have been recalled, as well as six permanent layoffs within the organization.
Hours were reduced for 85 positions and nine letters of offer were rescinded.
Town Manager Kelly Gibson said there are still people on temporary layoff, noting the municipality will continue to respond based on the COVID-19 pandemic.
“As the pandemic pushes us, we will continue to manage our workforce in the way we need to to get through this,” he said.
Coun. Peter Poole said he felt torn on this issue, but in the end, voted against a cost-of-living increase for employees.
“They are doing good work, but we’re all sharing in the difficulties this year,” he said.
“I’d rather be spending money on wages and benefits than on some of the capital projects that would be money going to contractors outside of this community.”
Coun. Chip Olver, however, supported the move for administration to find the $150,000 in wages and benefits savings over cutting back on the cost-of-living increase.
She said she believes there is a very real possibility that the 2021 operating budget will be reopened this year, similar to what happened in 2020 in response to the COVID-19 pandemic.
“I am absolutely confident that administration will be looking at what service level is required based on the number of visitors that we have, and if there needs to be adjustment to the staffing levels again,” she said.
“I know we all feel the loss of each of those people to our community and to our Town staff. I think it’s quite possible that we will see more of that in 2021.”
