Council votes to give itself a raise to offset tax changes

Saskatoon city council will take home the same pay next year, but it will cost Saskatoon taxpayers more.

Council voted unanimously Tuesday to increase their salaries next year to account for the elimination by the federal government of a tax exemption for one-third of elected officials’ income.

“So the take-home pay if this is approved would be the same for mayor and councillors,” Coun. Darren Hill said at council’s governance and priorities committee meeting.

In 2019, though, it will require about $122,000 more to pay for the increases.

The increases would bump the mayor’s annual salary to equal that of a Saskatoon provincial cabinet minister, from $123,379 to $145,152 in 2019.

Mayor Charlie Clark’s current salary is set at 85 per cent of that of a cabinet minister to account for the tax-free portion. Councillors, who are considered part time, are paid 46 per cent of the mayor’s salary. The salaries of councillors would increase from $56,754 to $66,770 under the change endorsed Tuesday.

The increased spending on council salaries in 2019 is equivalent to a 0.05 per cent property tax increase. A report from City of Saskatoon administration recommends a contingency fund of $300,000 set aside in next year’s budget for unplanned expenditures be used to cover the extra cost.

Council also has the option to increase property taxes or reduce spending on other council expenses or some combination to pay for the increase.

The preliminary property tax increase for 2019 has been set a 4.5 per cent.

The city report also offered the option of phasing in the salary increases over two years.

Paul Jaspar, the chair of the municipal review commission, appeared before council Tuesday to endorse the move.

“This is not an increase,” Jaspar said.

“The total compensation will be the same.”

The commission was appointed by council to offer advice on areas like politicians’ remuneration. Council has accepted some of the commission’s recommendations and rejected others.

Final approval of the increases is scheduled to take place at a city council public hearing Monday at 6 p.m. at city hall.

The report suggested council approval would take place in December.

The city’s approach to the salaries of the mayor and councillors dates back to 1980. In 2005, the mayor’s salary was set at 85 per cent of a cabinet minister’s to account for the tax-free portion of the mayor’s salary, the report says.

The approach to addressing the tax changes supported by council is the most common one adopted by municipalities across Canada, the report says.