Due to federal tax legislation changes, City of Powell River mayor and councillors are looking at an increase in their remuneration. The raise would keep council at the same pay level as 2018.
“To get councillors to the same take-home pay in 2019 as in 2018, the remuneration will have to be increased by $1,851,” said city chief financial officer Adam Langenmaier in a report made to committee of the whole on Thursday, January 24. He added that the net effect is a pay increase of $9.35 for each of the six councillors per year.
Currently, councillors receive $19,400 and the mayor gets $48,500 before tax.
“The mayor’s remuneration would increase by $6,750, which would result in a net pay increase of $7.23,” said Langenmaier. “These increases are the absolute minimum to provide mayor and council with net pay similar to the pre-Income Tax Act change amounts.”
The increase for remuneration would be approximately $17,850 total for mayor and council.
Prior to 2019, pay received by elected officials was subject to a one-third non-taxable allowance under the assumption that elected officials were incurring costs associated with their public office. Under new legislation, elected officials can no longer claim those expenses. Councillor CaroleAnn Leishman said she blames it on the federal government.
“I’m not happy with taking a hit,” said Leishman. “We’ll get beat up if we try to make the difference, which is not even our fault. It’s the federal government that’s going to take the one-third that’s going to cost us more taxes.”
Langenmaier also gave council a comparison of remuneration for other municipalities similar to Powell River. In Parksville, the mayor is paid $39,982 and council receives $16,532. Port Alberni’s mayor receives $40,432 with council members paid $17,919. For the $48,500 paid to mayor Dave Formosa and $19,400 for council members, it breaks down to $1.47 for each resident.
“We don’t have to feel guilty for the amount of work that we do,” said Formosa.
Both Leishman and councillor Cindy Elliott said their hours spent on council matters has forced them to cut back on hours at their regular jobs.
“It’s not just here that we’re taking a hit, but it’s our personal ability to work and make money,” said Elliott.
The committee approved the recommendation that remuneration increases will go to council for approval.
