Calgary police and transit officers patrol a C-Train car. (CBC)

Calgary city council has rejected adding funding for 12 new transit peace officers on its first day of budget deliberations, keeping the proposed property tax increase at 4.8 per cent for now.

The motion by Ald. Diane Colley-Urquhart to add $1.3 million to the budget for the extra security — which was recommended in a transit safety audit — was narrowly defeated by a vote of 8-7.

Also on Monday, council approved a motion Ald. Bob Hawkesworth to drop the $3 park-and-ride fee at bus rapid-transit lots. Hawkesworth argued that eliminating pay parking in those lots would also remove the need for the Calgary Parking Authority to patrol them for drivers who haven't paid.

The projected annual revenue from the three lots amounts to about $100,000, which administrators felt could be absorbed within Calgary Transit's budget.

But a push to slash the parking fee at LRT lots to $1 was voted down because the move would cost $4.3 million.

A motion by Ald. Jim Stevenson to make that up through the fiscal stability reserve was rejected because the rainy day fund is set up only for one-time expenses.

An amendment to cover the lost LRT parking revenue by cutting more transit hours, security and janitorial maintenance at lots and stations was also defeated by a 9-6 vote.

Department cuts

The proposed 2010-11 city budget, released this month, calls for every department except the police service to take a 1.7 per cent budget cut.

Cutting back on low-demand transit routes and eliminating 135 city positions will also help limit a property tax increase to 4.8 per cent in 2010. The tax hike translates to about $4.50 per month for the average Calgary household.

But Ald. Ric McIver believes more cuts can be made to bring the tax hike down another percentage point.

"That way, there's at least some evidence that we're working for the taxpayers and trying to keep the city affordable," he told reporters Monday.

Give taxpayers latte back

When a reporter noted that the average tax increase is akin to one Starbucks latte a month, McIver shot back: "Let's give that latte back ... for the taxpayers. It's their latte, not ours."

McIver accused the administration staff of not doing their job and limiting council in their budgetary debate.

"We should be picking from the alternatives, rather than them say, 'Here, ram this down your throat, there is no other choice. Take it or leave it, have a nice day.'"

McIver's motion to cut $2.8 million from corporate services — which did not specify if it would trim jobs or services or both — was rejected by a vote of 8-7.

A more modest motion by Ald. Andre Chabot to cut two human-resources positions for a savings of about $200,000 did pass.

Snow removal test

As part of a two-year pilot project, the city will hire private contractors to clear snow from secondary and residential roads at a cost of $1 million.

The expense will be taken from the city's fiscal stability reserve as necessary, which will have no impact on the property tax rate.

The budget discussions continue Tuesday.