ST. JOHN’S, NL: The Canadian Taxpayers Federation is calling on St. John’s City Council to rein in senior salaries at city hall instead of hiking taxes on residents.

“Before City Hall comes looking for more money from families, it should take a hard look at the six-figure salaries already on the payroll,” said Devin Drover, CTF Atlantic Director and General Counsel. “Taxpayers are tightening their belts. It’s time city hall did the same.”

The average management-level salary at city hall is $127,448.

The newly appointed city manager, Derek Coffey, is being paid $260,635 per year, according to his employment contract obtained by the CTF. That is more than city managers are paid in similarly sized Atlantic Canadian cities including Moncton, Charlottetown and the Cape Breton Regional Municipality.

Coffey’s salary is also higher than most senior bureaucrats working for the Government of Newfoundland and Labrador, including the clerk of the executive council.

Meanwhile, Mayor Danny Breen has mused about creating new taxes and fees, even though St. John’s taxpayers have seen significant tax increases over the past five years. The city has increased the residential mill rate by more than 18 per cent and the water tax by 13 per cent over the same period.

“City taxpayers shouldn’t be forced to fund huge salaries that outpace comparable cities and the provincial government,” said Drover. “If council is serious about avoiding tax hikes, leadership should start at the top.”

The CTF is calling on council to conduct a comprehensive review of management compensation and reduce senior salaries before considering any increase to property taxes, water taxes or new municipal levies.

“You don’t solve affordability problems by asking residents to pay more while city hall executives take home more every year,” said Drover. “The city needs to solve its budget woes by looking in executive offices, not the pockets of taxpayers.”