On June 4 Wellington North councillors decided to increase their remuneration based on the Consumer Price Index (CPI) to account for the end of the municipal one-third tax exemption.
The federal government is ending the one-third tax exemption for municipal councillors in 2019, which would decrease the net pay for councillors and the mayor.
In a May 22 report, director of finance Adam McNabb said Wellington North was “fairly closely aligned with the average remuneration for municipalities of similar size and geographic location.”
Wellington North switched to a flat rate of $27,000 for the mayor and $17,000 for each councillor in November 2016.
To compensate for the loss of net income as a result of losing the tax exemption, council decided to have an annual increase based on the CPI.
As an example, McNabb said the increase for 2019 would be $567 for the mayor and $357 for each councillor, totalling $1,995.
Council directed the clerk to revise the council remuneration bylaw with the following clauses:
– the remuneration for mayor and councillors will move up by a uniform percentage based on the Stats Can Ontario CPI;
– if it is a negative amount, the remuneration will stay the same as the previous year, and it will be netted against the positive percentage of the following year; and
– in June of the municipal election year, council will consider and approve a revised remuneration bylaw for the next term of council.
Council voted 3-1 in favour of the change, with councillor Steve McCabe voting against.
“I think the total increase of $2,000 is fine as well, but I still don’t see why we need an increase when it’s that little amount anyways,” said McCabe.
Councillor Dan Yake was absent.
