If Winnipeggers want to know why their property taxes have been soaring in recent years, they should look at the salary increases Winnipeg police officers and firefighters have been getting over the past 16 years.

Police and fire budgets are the biggest cost drivers at city hall. And salaries and benefits make up the lion’s share of those spending lines.

Both groups have enjoyed salary increases that are more than twice the rate of inflation from 2000-2016, according to statistics obtained by the Winnipeg Sun.

In fact, there was only one year since 2000 that either of the two groups had a salary increase below the rate of inflation. That was in 2001 when the inflation rate was 2.88% and firefighters received a 2.5% increase. Beyond that, every wage settlement for firefighters has been above or well above the rate of inflation – sometimes six or seven times the rate. Winnipeg police have not seen a single year since 2000 where their wage increases were below inflation.

Between 2000 and 2016, Winnipeg’s inflation rate grew by 36.97%. However, during that same period, police salaries soared 82.59%, well over twice the rate of inflation. And firefighters weren’t that far behind with salary increases of 77.26% during that period.

In six of the last 17 years, firefighters have received salary increases of 4%. In 2011, they took in a salary increase of 4.5%, even though the inflation rate for that year was only 2.9%.

Police have had two salary increases of 4.5% since 2000 and have enjoyed increases of 3.5% to 4% most years.

The compounding increases have added tens of millions to the city’s salary and benefits costs. And it’s one of the chief reasons property taxes, fees and sewer and water rates (some of which are diverted to general revenues) are going up as much as they are.

The total costs of salary and benefits at city hall in 2000 was $435 million. Had the growth of that expenditure been limited to the combined rate of inflation and population growth, that line would have been $652.5 million by 2015. Instead, because of unsustainable salary increases – as well as other labour costs like overtime, retirement bonuses and new hires – total salaries and benefits skyrocketed to $806 million in 2015 (the numbers aren’t in yet for 2016).

Put another way, had labour costs been limited to inflation and population growth during that period, city hall would have had an extra $153.5 million a year (as of 2015) to spend on things like road repair, park maintenance and general infrastructure costs.

It’s a staggering amount of money considering the city’s operating budget is just over $1 billion.

The good news is the new firefighter/paramedic contract approved by city council Wednesday is the first time in at least 17 years that salaries will be limited to inflation, maybe even slightly below. The four-year deal calls for salary increases of 1.8% at the end of 2017 and 2% increases for each of the following three years. Given the generous salary increases firefighters have received over the past 17 years, the new contract is still pretty generous. But it’s at least a step in the right direction.

We can only hope the city can place similar limits on a new police contract, which is still under negotiations.

We want police officers, firefighters and paramedics to be well paid. And they are, including generous benefits, pensions and overtime. But there is a limit. And those costs have to be balanced with taxpayers’ ability to pay. Many taxpayers are low income or struggle on fixed incomes and it’s grossly unfair for them to have to finance salary increases of 4% a year.

More than half of police constables were paid over $100,000 in 2015, including overtime. Something has to give. And let’s hope the firefighters contract was the first sign of relief for taxpayers.

United Fire Fighters of Winnipeg

Salary increases

2000-2016

2000 – 2.5%

2001 – 2.5%

2002 – 4%

2003 – 3%

2004 – 4%

2005 – 3%

2006 – 4%

2007 – 3.5%

2008 – 4%

2009 – 3%

2010 – 4%

2011 – 4.5%

2012 – 4%

2013 – 3.25%

2014 – 3%

2015 – 3%

2016 – 3%

Total increase: 77.26%

Winnipeg Police Association

Salary increases

2000-2016

2000

3.50%

2001

3.50%

2002

4.50%

2003

3.50%

2004

3.30%

2005

3.50%

2006

3.50%

2007

3.50%

2008

4.00%

2009

3.50%

2010

3.50%

2011

4.50%

2012

4.00%

2013

3.50%

2014

3.50%

2015

3.00%

2016

3.00%

Total increase: 82.59%

Winnipeg’s inflation rate

2000-2016

2000 – 2.43%

2001 – 2.88%

2002 – 1.48%

2003 – 1.8%

2004 – 1.9%

2005 – 2.7%

2006 – 1.9%

2007 – 2.1%

2008 – 2.3%

2009 – 0.5%

2010 – 0.8%

2011 – 2.9%

2012 – 1.5%

2013 – 2.2%

2014 – 1.9%

2015 – 1.3%

2016 – 1.2%

Total increase: 36.97%

Source: City of Winnipeg/Statistics Canada consumer price index for Winnipeg 2000-2016