NEWS FILE PHOTO
City council members listen to a presentation at its April 2 meeting at city hall in Medicine Hat. Fairly substantial increases to the salaries of the mayor and councillors is on the agenda tonight at the final meeting of the year.
Medicine Hat News
City council members face one of the largest agendas in recent memory — including a recommendation to change their salaries — when they convene Monday night.
A potential resolution at the end of a 514-page council package suggests fairly substantial increases for eight councillors and the mayor. The total cost for all nine members, including the mayor, would be $130,000 per year in 2019, before a full review of compensation for 2020.
The item contains little explanation, but sources tell the News that increases of about $20,000 to the base salary of councillors and $60,000 for the mayor’s, are aimed at keeping total gross compensation similar to previous years after new federal tax rules regarding benefits come into effect next year.
Released as usual late Friday afternoon, the hefty packet includes the facets of the 2019-2022 budget, five presentations, documents to support eight public hearings, as well as borrowing bylaws to fund ongoing construction programs.
The compensation item would be dealt with last and would see base salaries for councillors rise from about $23,000 to $43,000 per year, and the mayor’s salary from $68,000 to about $130,000.
That base however is augmented with benefits and reimbursements that are currently not taxable. That will change next year when Canada Revenue Agency will limit such non-taxable benefits.
Sources say it will leave local elected officials worse off under the pay system that was last updated in 1999.
Monday’s decision item, written by chief administrative officer Bob Nicolay after the issue arose at council’s administrative review committee, also states councillors can opt out of increases, likely to lessen their tax exposure.
In the recent past some council members have said the current pay reflects an assumption of part-time hours when full-time work is required.
Some other councillors have declined increases that have been awarded as inflation is calculated and factored in.
According to the city’s most recent annual report, the mayor’s compensation was augmented with $55,000 in benefits and allowances in 2017.
The same year, councillors who served all 12 months of that election year were paid a maximum of $23,000 in base pay while some collected another $25,000 in benefits such as participation in a health plan, travel per diems, reimbursements and other benefits.
The item also suggests that going forward the city match up to six per cent of a council members participation in retirement savings plans or retirement income fund. That would mark a one per centage point decrease.
