City hall proposes cuts to trim deficit

City of Calgary administrators presented council with a budget-trimming plan on Wednesday that they say will address amulti-million dollar shortfall while notexceeding a previously approved property tax rate increase.

If the mayor and council approve the plan, several city departments would face cuts in order to cover a projecteddeficit of $47.4 million in the 2011 budget, officials said.

The budget adjustments would keep the property tax rate hike at the approved 6.7 per cent, the rate council approved which would amount to about $6.60 per month more for the median household, the city said in a release.

"If Calgarians can live with that additional $6.60 per month on average, then I would suspect that in fact this budget does a lot of things that Calgarians want," said Mayor Naheed Nenshi.

"It preserves some growth funding for things like snow and ice removal, it preserves growth funding for the library -- these are things we've heard loud and clear."

There would be no increase in the business tax rate.

"City staff worked very hard to find ways to achieve the cost reductions and show that we are listening to Calgarians' needs for delivery of city services at affordable property tax rates," said Eric Sawyer, the city's chief financial officer.

The plan drafted by the administration calls for a raft of spending cuts and service reductions, including:

• $3.7 million less for the fire department, including a reduction intraining shifts.
• $3.3 million less for the parks department, where fleet sizes will be scaled back and seasonal maintenance work will be cut.
• $1.4 million less for Calgary Transit's cleaning budget.
• $465,000 less for Calgary Transit's parking lot maintenance budget.
• $950,000 less for the city's community and neighbourhood services.

The city's budget plan also proposes to maintain several previously planned expenditures, including:

• $8.2 million to hire65 new officers in the Calgary Police Service.
• $2 million for the Calgary Public Library.
• $2.2 million for Public Safety Communications, which handles 911 calls.
• $3.7 million for the fire department.

The plan would alsocover the city's commitment,announced earlier this year, tospend$10 million on better snow and ice control.

An operating shortfall of$1 millionat the Talisman Centre would be funded, and $1 millionwould go towardfully staffingthe new Sage Hill fire station in the northwest.

Administrators have also prepared another $35 million worth of cuts but some of those are seen as politically dangerous, such as not opening two new fire halls, chopping transit services and cutting snow and ice control on city roads.

Because growth has slowed, the city is not going to grow its workforce. If the plan is approved, 136 jobs will be cut, but only 13 people would actually be laid off.

"We've certainly got some numbers on the table right now," Nenshi said. "I think that aldermen will find most of the things in the 6.7 per cent package palatable."

Ald. Andre Chabot said he didn't think council would get below the 5.5 per cent mark.

Council will start debating next year's budget later this month.