Members of the next town council have been granted a raise in pay by current councillors.
Council set remuneration rates for the 2019 to 2022 council term, including a contingency for a lower rate if the federal government does not go through with plans to eliminate a tax-free allowance of one-third of council salaries, set to go into effect next year.
Since 1990, the Municipal Act has provided that one-third of the salary paid to an elected member of council was deemed to be for “expenses incurred in the discharge of the member’s duties,” and not subject to income tax. The federal government announced plans to end the exception in its budget in March 2017.
While some lobbying against the change continues, Minto treasurer Gordon Duff said there’s no reason to anticipate it being dropped.
“I realize AMO (Association of Municipalities of Ontario) is continuing to lobby, but as it stands now this is a for-sure thing,” said Duff.
CAO Bill White said the additional increase will go into effect once the tax-free allowance is eliminated to keep council’s remuneration “at the same level.”
Currently, the mayor receives a base salary of $16,411. That will be increased to $17,012 if the tax exemption continues and $18,373 if the allowance is eliminated.
Deputy Mayor currently earns $13,235 in salary. That would rise to $13,719 or $14,816, depending on the fate of the tax-free allowance.
Councillors, who currently receive a salary of $11,117 would receive $11,524 if the allowance continues and $12,446 if it is eliminated.
“To maintain wages for all members of council the same as 2018 without the tax free exemption, the annual cost to the municipality is estimated at about $10,000 per year,” states a staff report from White, Duff and deputy clerk Annilene McRobb.
“The actual cost will depend on cost of living increase, meeting per diems claimed and changes to Canada Pension, Employment Insurance and other benefits,” the report adds.
Per diem rates
Increases in per diem rates for council members were also approved as follows:
– meeting rate for less than four hours from $85 to $90 ($98 if the exemption is removed);
– meeting rate over four hours from $150 to $160 ($173 if exemption removed);
– rate for attendance at regular council meetings from $50 to $55 per meeting ($60 without exemption).
While council adopted the new amounts for the 2018-22 term, the report notes the added cost will be part of 2019 budget deliberations.
“If the new council wants to revisit this matter it can always seek further public consultation and amend the bylaw,” the report states.
