Budget cuts are starting at the top for the city of Quesnel council and staff.
On Friday, Mayor Bob Simpson announced he and his six council colleagues would not be taking the previously approved wage hike for 2015.
The previous council approved a 1.2 per cent increase last November, which would have increased the total budget for council pay in 2015 by about $1,570.
Senior management will also undergo a wage freeze and the city will dissolve its economic development corporation.
"This is just a first step for council as we are taking a hard look at every line item of the city budget, particularly the expense accounts which are directly within the purview of council," Simpson said in a press release.
With no expected impact on service or staffing levels, the changes are estimated to save about $160,000 this year - about 1.2 per cent of the city's total budget.
The decisions were made during a closed Jan. 12 meeting that also saw council authorize a two per cent pay increase for exempt city staff.
Council is early in its 2015 budget deliberations and needs to address a revenue shortfall of approximately $575,000 to maintain programs, services and infrastructure maintenance spending at 2014 levels.
According to information from the city, the shortfall comes primarily as a result of the closure of the Canfor mill, an industrial tax re-assessment at West Fraser sawmill, wage increases and inflation. Quesnel also has a $2 million infrastructure deficit on top of the $2 million already spent annually on capital improvements.
"Failure to address this issue in a timely manner through cost-savings measures and/or increased taxation will ultimately result in council borrowing money just to maintain the city's existing infrastructure," said the press release.
In a written statement, Simpson said staff deserve to be compensated fairly and competitively and thanked the city's management for their willingness to freeze their wages for the year.
The move to dissolve the city's economic development branch came as a result of the new council's strategic planning session.
"Council believes that an in-house economic development function will more directly align with its strategic plan and budget constraints and, as a consequence, is taking steps to dissolve [Quesnel Community and Economic Development Corporation] and its board," Simpson said. "We're grateful for the time, energy and commitment that the volunteer board of the QCEDC have put into economic development for our region and thank the board members for their dedication and service to our community."
