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“We need to have more government sector wages and hiring controls in place,” said Amber Ruddy, senior policy analyst for the CFIB.

“When you look at what’s happening right now in the private sector, lots of jobs are being shed and salaries rolled back,” Ruddy said. “But in the government sector that doesn’t ever happen.”

Photo by Ted Rhodes / Calgary Herald

The CFIB says municipal workers in Calgary and Edmonton have, respectively, 19 per cent and 13 per cent wage compensation advantage over the private sector.

Coun. Ward Sutherland, vice-chair of the city’s priorities and finance committee, said wages have a significant influence on tax increases.

“When we’re looking at our tax increases one of the biggest factors and influence that we have is simply our wage contract that we did,” said Sutherland.

In 2014, City Hall’s largest union, CUPE Local 38, inked a new agreement with the city that sees workers get a 12.5 per cent pay raise over the next four years.

“When we did the contract the economy was much better,” Sutherland said. “Now we’re paying the price for it because the economy is down.”

Photo by Colleen De Neve / Calgary Herald

The CFIB notes spending spiked in 2013 in the wake of devastating floods that year but the trend over 10 years was unsustainable.

Edmonton, with a population growth of 23 per cent and operating spending increase of 74 per cent, ranked 107 overall and eighth among the largest municipalities.

According to the report, only three of the 180 municipalities maintained operating spending at or below inflation and population growth since 2003.

The CFIB report was released Monday when top city managers brief councillors on capital funding, operating revenues and fiscal reserves a week before budget deliberations begin.

Council approved a four-year plan last year that includes a 4.7 per cent tax hike for 2016, though some, like Sutherland, believe the rate could be lowered to 3.5 per cent.

thowell@calgaryherald.com