Council pay hike not justified: Clarke

Four city councillors vote against 12.3% council pay hike at budget meeting

City council voted 7-4 on Monday night to give councillors a 12.3 per cent pay raise and give the mayor a 17.4 per cent raise to make up for the recent loss of a tax break — although one councillor was adamant it was an unnecessary move.

Coun. Henry Clarke said the duties of city council haven’t changed, even though their salaries are being fully taxed for the first time.

Clarke said councillors should be investigating which expenses they can claim on their taxes, instead of paying themselves more so their take-home pay isn’t reduced compared to last term.

“There’s no justification for council seeking — or receiving — an increase in compensation,” he said.

Council did ask for a new city staff report that examines which expenses can be claimed. Clarke said he agrees that’s a good idea.

“That’s what we should be looking at — not increasing our compensation,” he said. “But to increase our salary as an offset? No. I’m sorry.”

Under the plan, the mayor’s pay will go from $70,696 in 2019 to $83,334 (an increase of $12,365).

Meanwhile each councillor’s pay will go from $29,059 to $32,644 (an increase of $3,585).

Clarke asked that his rejection of the idea be recorded in the minutes.

Clarke was joined by three other councillors against the raise: Coun. Lesley Parnell, Coun. Gary Baldwin and Coun. Andrew Beamer.

The rest voted in favour. No councillors spoke in favour of the hike.

Prior to the vote, city treasurer Richard Freymond spoke to councillors about how city staff is recommending they increase their pay solely as a way to ensure their takehome pay is the same as last term, now that salaries are fully taxable.

Prior to Jan. 1, city councillors and mayors received a third of their pay free of income tax (to make up for any expenses public officials incur to do their jobs).

But not anymore: starting Jan. 1, the federal government has removed the tax break.

To compensate for that loss, states a new city staff report, council must keep track of expenses for reim-

bursement or get paid more.

Last year council voted to keep track of expenses while adding money to a fund meant to reimburse them.

They voted to add $10,000 to a $15,000 fund for reimbursement of expenses; that brought the fund to $25,000 (or $2,500 for each councillor).

But the new staff report states that it’s “much less efficient” to track personal expenses such as mileage, for instance, than to simply increase council’s pay.

If council gives itself this raise, it will cost $31,491 in 2019.

To cover the cost, the staff report recommends taking the $10,000 from the reimbursement fund and then taking the rest — $21,491 — from the city’s general contingency fund.