City council in Red Deer, Alta., has voted to freeze the salaries of the mayor and eight councillors this year.
Monday’s vote came as the city looks for ways to cope with potential senior government cutbacks and economic uncertainty.
Mayor Tara Veer says city administrators have been asked to look for $15 million in savings over the next three years.
She says it’s important for council to lead by example.
Veer earns more than $131,000 annually, while the councillors make slightly less than $69,000.
Compensation for Red Deer council is reviewed annually and mid-term.
“Financial sustainability is one of our top priorities, and it’s critical that we look at all avenues for addressing the financial pressures we are facing as a result of the continuing provincial and local economic realities,” said Veer.
Monday’s vote follows a 5-4 decision by Red Deer council late last November to boost their salaries to compensate for federal tax changes.
Effective Jan. 1 of this year, salaries and allowances for elected officials in Canada were no longer one-third tax exempt.
Veer’s annual pay would have dropped by more than $12,500 and that of councillors by just over $5,800 if their salaries at the time had remained the same.
The net result saw council take home almost the same salary they were receiving before the increase. (rdnewsNOW)