City council is turning to an independent committee to sort through all of the tax changes that were demanded by the federal government. Currently, members of city council get one-third of their pay tax free, but that’s about to change.
It means this third party body will do a once over of city council’s pay and perks a little earlier than scheduled.
“Every six years, the council compensation committee looks at all aspects of council compensation,” said Coun. Bryan Anderson, who chairs the council services committee.
It last made recommendations in 2012 and, at the time, suggested council drop the one-third status. Edmonton refused because it would have meant sending more of property tax dollars to the city. But it can’t be avoided this time.
“There will be an additional cost to the city because the feds want their portion of the one-third,” Coun. Tony Caterina said.
According to material drawn up by city staff, the mayor’s current net pay will go from $173,269 plus a car allowance for a total of $135,506 to a higher net pay of $209,835 and a car allowance which will work out to $126,808, a drop of about $9,000.
For councillors, it’ll go from $98,362 and a car allowance to a take home of $85,706 and switch to a combined $116,062 and car allowance for a current net of $83,521, a new bottom-line reduction of more than $2,000.
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What happens next is a motion that Mayor Don Iveson put forward that needs to be approved at the next council meeting Tuesday. The motion requests the independent committee returns with a report in August, making a final recommendation that takes into account the economic situation and other comparables.
“This needs to be whipped into shape, I would assume before the next election, so new candidates running for council have a full understanding of what their compensation is going to be,” Anderson said.
Another factor that will be considered is how individual councillors have a choice on their pension. They can get a top-up if they invest in their own RRSP, or they can have a contribution made to the Alberta Urban Municipalities Association pension plan.
“Generally speaking, every recommendation that they make will probably be accepted by sitting council members to avoid the feeling that they are setting their own compensation,” Anderson said.
Calgary Mayor Naheed Nenshi recently took a pay cut, dropping his salary to $200,474 down from $212,870.
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