Inflation-driven wage increases expected to hammer 2024 City of Kamloops budget

“There are a lot of assumptions in our budget right now because there is so much uncertainty,” notes Corporate Services Director David Hallinan. “We don’t have signed contracts with our union groups. Inflation is slowly getting better from a consumer perspective, but when we start looking at sectoral inflation for the construction industry, we’re still seeing double-digit that are occurring in the products and services that we buy.”

The largest single operating expense for the city is labour, and those contract obligations make up roughly 7 per cent of the proposed 10.81 per cent impact to the 2024 tax rate.

“A lot of the services that the city does have [people] involved with [them]. Whether it’s our policing, whether it’s our snow removal, garbage pick-up, etc,” explained Hallinan. “We have a lot of people who do a lot of different jobs in the city and they look to get compensated and it’s going to be a significant component of our budget.”

The union contracts with firefighters, RCMP and the city’s CUPE staff are all either expired or going to expire by the end of 2023. When those contracts are renegotiated, it’s expected wages will need to increase.

“I think what we’re seeing right now is a little bit of a post-inflationary hangover. I think what we’re seeing is a lot of contracts from the union organizations who are looking to catch up for their membership.”

Residents who spoke with CFJC Monday afternoon (Nov. 27) say rising costs are par for the course — they primarily want to see the money spent wisely.

“There are many people who are working and struggling in this community,” noted one man. “And 11 per cent might not sound like a lot, but it is for those folks. I think they (council) need to check the pulse of the community and have taxes that reflect that.”

Another resident expressed concern around emergency preparedness and wanted to see taxpayer dollars used to boost wildfire prevention.

“If our funds are going towards preventing fire from consuming the city, I think we’re heading in the right direction,” he said.

Another man stated he was glad to have the road improvements along Tranquille Road on the city’s North Shore and wanted to see more of it throughout Kamloops.

“Well, I would certainly like to know what’s going to be involved in that for sure,” he said. “If it’s a positive thing for growth and for our city, that’s great. I love the town.”

Hallinan reiterates that it is a provisional figure. Between now and the finalization of the 2024 budget, city staff will continue revisiting and adjusting budget estimates as needed.

“(It) definitely hasn’t been finalized by council yet at this point in time. Everything goes to them tomorrow (Nov. 28), and I’m certain that we’re going to have a lot of really good conversations about what’s in the budget and some of the direction that they’re going to provide to the organization (of it).”

Supplemental items that mayor and council decide on will also need to be included, with the budget and tax rates expected to be set by April.

by Dylana Kneeshaw

Inflation-driven wage increases expected to hammer 2024 City of Kamloops budget

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