City council gets automatic 2.41% salary increase for 2024

As many Calgary homeowners prepare for a property tax increase in 2024, their city council is getting a pay raise.

An independent commission set the formula in 2020 for this council's remuneration.

It tied their salaries to the increase or decrease in Albertans' average weekly earnings (AWE) as compiled by Statistics Canada.

For 2023, the AWE in Alberta went up by 2.41 per cent. So effective Jan. 1, council received a similar increase in its paycheques.

The city says Mayor Jyoti Gondek is now paid $213,737 a year while the 14 councillors make $120,755 annually.

It's the third consecutive year of pay increases for council.

Since its members were elected in October 2021, their pay scales have climbed by 6.4 per cent, which is in line with the increase in Albertans' average weekly wages in that period.

Coun. Kourtney Penner said these are essentially cost of living increases.

"I don't think councillors are immune to any of the inflationary pressures that we're all experiencing, but it's a formula that was decided before our time," said Penner.

But that said, she doesn't support politicians setting their pay.

"I'm very much in favour of a policy that takes it out of our hands and gives it to an independent committee to review against other jurisdictions, other orders of government and also benchmarking against other professions that might hold similar capacity, functions, hours," said Penner.

A political scientist at Mount Royal University, Lori Williams, said the optics of the increase this year might not resonate well with many voters.

"Raising salaries for elected officials is always a tricky proposition," said Williams.

"It's particularly difficult when you are instituting the biggest property tax increase in some time."

Calgarians get property tax hike

In November, city council approved a 7.8 per cent property tax increase for the owners' residential properties.

Williams suggested that council might consider taking a pass on the raise at this time.

"In light of the fact that Calgarians are being asked to make an increased sacrifice for the sake of the city budget, I think a wise thing would be for the city council members themselves to forgo an increase, at least for this year," she said.

There are recent precedents for council rejecting a pay raise.

Under a similar pay formula, council was in line for a salary hike in 2019, 2020 and 2021. But in each of those years, council opted for a pay freeze instead given the economic conditions at the time.

Penner said she hasn't heard yet whether any of her colleagues plan to bring forward a motion calling for a pay freeze.

But she isn't sure that sends a good signal.

Penner said it could send a message that council isn't worth the money.

"As somebody who works greater than 50 hours every week and sits on a number of committees, I think I'm worth what I get paid," said Penner.

"I think we actually provide Calgarians very good value for what we're getting paid, for the number of hours that we put in and the quantity of work that we individually produce."

Coun. Evan Spencer said he would likely vote in favour of a pay freeze if it were to come forward in council. 

The Ward 12 representative said he can see why some Calgarians are unhappy with the raise. 

"The optics of that are not lost on me. I can see why people are frustrated and particularly when they're looking at the tax increase that they are for this year." 

A new council compensation review committee is in the process of being formed and its members will be named by city council in February.

Its final report, including recommendations on pay and benefits for the 2025-29 city council, is expected by the end of the year.