Guelph mayor, councillors approve pay raise as feds cut tax breaks

Changes to federal taxes mean Guelph's mayor and councillors will not be taking home any more money. Matt Carty / Global News

With the tax man set to dig deeper into the pockets of elected municipal officials in 2019, Guelph city council have voted in favour of giving the mayor and councillors a pay raise.

As of Dec. 1, the mayor’s gross salary will go from about $122,000 to $152,000 while a councillor will see their pay go from $35,000 to $40,000.

But no one will see any increases to their take-home pay because the federal government will eliminate a tax break on 33 per cent of the gross salaries of all mayors and councillors in Canada as of Jan. 1.

The increases city council approved on Monday make up the difference. The mayor’s net pay was actually due to be cut by over $16,000 in 2019 before council voted on the increases.

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With the municipal election scheduled for October, the pay increases wouldn’t come into effect until after the new council is in place.

A report presented to council noted that many other municipalities have or are planning on adjusting the base salary for council members to close the gap on the net pay as a result of the federal tax change.

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