Pitt Meadows city council is forming a task force to look at the total compensation for mayor and council, in light of changes to tax laws that see them paying more in 2019
Stephanie St. Jean, director of corporate services, outlined that one-third of remuneration paid to mayor and council has not been taxable, but effective January 2019 their entire income will be taxed.
The mayor’s salary is $75,414, and councillors make $28,280.
City councils across Canada have been dealing with this issue.
The new task force will look at that issue, as well as the remuneration to neighbouring city councils and those of a comparable size.
It was an issue council dealt with on Tuesday night, immediately following a discussion about a potential 5.75 per cent tax and utilities increase.
“This is certainly an awkward agenda item following that budget increase we just had – the item before,” noted Coun. Tracy Miyashita.
She said councillors should not be on the task force to review their own pay, but citizens should be.
“They’re our bosses, and that’s normally what should happen, is that the citizens would decide what to do with that …” she added.
Coun. Gwen O’Connell said that has been the process on past councils, with staff and citizens conducting the review, and “council completely took a back seat.
“I think that’s the only fair way you can do this,” she added.
One third of the total remuneration received by municipal politicians has been treated as a non-accountable allowance that is not included in income. The justification was “an allowance for expenses incidental to the discharge of the person’s duties as an elected officer,” noted St. Jean.
However, the 2017 federal budget contained provisions to require that non-accountable allowances paid to elected officials be brought into income for 2019 and later years.
She noted some cities made adjustments to their remuneration packages while others have not yet acted.
Maple Ridge council voted in June to give the incoming mayor and councillors pay increases of approximately 20 per cent to offset the changes in the tax laws.
They were clear that the increase will not give the new councillors a hike in their take-home pay.
Former mayor John Becker also said in October 2017 that he would be bringing forward a motion to have councillors pay increased to cover the loss of the tax-free portion of their salary.
Metro Vancouver is compiling information from across the region which may be helpful. Its questionnaire asks about mayor and council’s 2017 total compensation, including base pay, expense allowances, health and benefits, and technology – such as Internet and cell phone.
It also asks what process and criteria are used to determine remuneration, and how often the process and criteria is reviewed. The results of the survey are expected to be released in the coming weeks.
“Periodic review of mayor and council remuneration provides citizens with an opportunity to evaluate whether parity and equity with other comparable municipalities exists. Without periodic review and appropriate adjustments disparity in compensation can begin to occur,” she said.
Pitt Meadows’ council remuneration has not been formally reviewed since 2007. Staff is recommending a form of independent review of council’s total compensation with recommendations from the reviewing body, formed by the CAO, to be implemented in 2019.
The goal is to have the review done by the end of March for council’s consideration.