Remuneration for Erin council will increase to offset a decrease in net pay due to the end of a one-third tax-free benefit.
Council voted in favour of the increase on Dec. 12.
The federal government is putting an end to the one-third tax exemption for municipal councillors in 2019. Once the exemption is removed, the mayor would see a net pay decrease of $3,117 and councillors would see a decrease of $1,870.
To maintain the same net pay, an increase of $4,722 for the mayor and $2,833 for each councillor was required. The total increase in remuneration, is projectecd to cost $26,662 per year.
Council voted unanimously for the increase, with two additions raised by councillor Jeff Duncan.
He asked that instead of a cost of living increase, council receive set annual increases. His proposal was $600 per year for the mayor and $500 a year for each councillor. Duncan also asked that council receive the same benefit package as the staff.
Director of finance Ursula D’Angelo said $600 equates to a 2.2% increase for the mayor’s 2018 rate and $400 equates to a 2.4% increase for councillors’ 2018 rates – both higher than the proposed cost of living increase.
“We’re not talking money here that’s significant of any sort,” said Mayor Allan Alls.
Council approved the set increase at $600 for mayor and $400 for councillors with councillor Matt Sammut opposed.
“I just don’t think it sends the right message,” he said.
For benefits, D’Angelo said the packages are different and it would cost an additional $2,300 for all five councillors to receive the same package.
Sammut asked why there is a difference in benefits.
CAO Nathan Hyde said he does not have the history, but he assumed the difference is “because you’re part-time councillors.”
Council approved the benefit increase unanimously.
