Higgins says McIver's tax plan too costly

In a shot aimed at her main opponent in the race to become Calgary's next mayor, Barb Higgins says promising to keep a municipal tax hike to no more than four per cent could result in a bigger budget deficit.

Ald. Ric McIver said last week if he were elected he would ask council to pass a budget in November that holds the line on taxes, and not to work on a revised budget until the first quarter of 2011.

Higgins told an audience at a $250-per-ticket fundraiser on Tuesday night that McIver's plan could increase the current deficit to around $84 million.

'Public discussion on budgeting has been missing during the last 10 years...' —Ric McIver, mayoral candidate

Earlier this year city administrators told council Calgary is facing a 6.7 per cent tax increase and a budget shortfall of about $60 million.

"Even if we were to agree with the proposed 6.7 per cent tax increase next year, that amounts about $79," said a version of Higgins' Tuesday night speech on her website.

"Let me be clear — I understand that $79 can be a lot of money to some in our community — especially those who are on lower or fixed incomes. And through the budget process, I am going to do everything I can to get it lower," she said.

Higgins vows bonus system

Higgins promised to tell city administrators to create a bonus system for senior managers that would encourage them to find the biggest budget savings with the least impact on services.

The former television news anchor also said she would implement an immediate staffing freeze — meaning no layoffs, but no new hires either — until the end of the year.

On his campaign website McIver said he would ask city officials to "to look for sensible cost-controls"  — and share their progress with taxpayers — leading up to a fresh round of budget negotiations next March.

"Public discussion on budgeting has been missing during the last 10 years and it is needed in setting our spending priorities," McIver said on his website.

Mayoral candidate Ald. Bob Hawkesworth also took aim at McIver's plan for keeping taxes low, saying municipal cuts will unfairly impact families and vulnerable Calgarians.

"Ric McIver and other candidates who are promising massive change and deep spending cuts at city hall are out-of-step with Calgarians' views on the value of good city services," he said in a release.