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City of Powell River council considers increases to its rate of compensation

Bylaw increases to be spread over a five-year period
City of Powell River Council
FINANCIAL FUTURE: City of Powell River Council wrestled with a decision about raises to its remuneration at its meeting on Thursday, April 18. Paul Galinski photo

City of Powell River council gave the first three readings to its remuneration bylaw, which would feature raises to compensate for Canada Revenue Agency rule changes, and for narrowing the gap between what the mayor and councillors make.

The Council Remuneration Bylaw was reviewed at the Thursday, April 18, council meeting, after chief financial officer Adam Langenmaier had written a report for council. Langenmaier reported that prior to 2019, when Income Tax Act changes take effect, elected officials could claim a one-third non-taxable allowance, which was designed under the assumption that elected officials were incurring costs associated with public office. In 2019 and beyond, elected officials now have to make expense claims. The change in the remuneration bylaw would provide an allowance to alleviate impacts from the Income Tax Act change.

Langenmaier’s report also proposes incremental increases in remuneration between 2019 and 2023, which would provide a lift for councillors, from a ratio of the mayor making 2.5 times what a councillor makes, to 1.9 times in 2023.

Councillor Cindy Elliott said she had been giving the matter a lot of thought and is in favour of the direction to make changes to offset the Income Tax Act. She said she is not in favour of perpetuating the current system, which does not allow participation from people who cannot afford to be on council.

“It’s incumbent on our leadership to make that change,” she said. “I do, however, prefer to delay that change to the next election.”

Councillor George Doubt said he struggled with the whole concept of council remuneration. He said he is at a stage of life where his pensions are suitable for keeping him and his family going. He added, however, that he agrees with Elliott, and does not believe serving on council should be limited to those with the wherewithal to make a living.

“If we don’t have reasonable pay for the work that people do as councillors or mayor, it will limit the people who can do it,” said Doubt. “You’re going to limit the people who have to go out and earn their bread and butter every day from participating in municipal government. I don’t think we should do that.”

He said he thinks it is reasonable to have a rate of pay that compensates the time it takes to serve the community.

“This bylaw does that,” said Doubt.

He added that it is uncomfortable for council to have to make decisions on their own about what its rate of pay is.

Doubt said when he lived in Kelowna, when he was not a municipal councillor, he was asked to serve on a committee to determine remuneration for mayor and council, so the process was at arms-length. However, he thinks the best way is for the province to set up legislation to set out what municipal mayors and councillors should be paid.

Doubt said since council has to set the policy, he believes the resolution before council was fair remuneration for what people do.

“It’s a reasonable way to go, it’s fair to taxpayers and it’s fair to people who are going to serve as mayor and council,” said Doubt.

Councillor CaroleAnn Leishman said she concurred with what had been expressed.

“This is one of the most difficult things mayor and council have to deal with,” said Leishman. “It’s one of the things you don’t even want to talk about.”

She said she talked to many people before the election, encouraging them to run for council, and most said they cannot afford to do the body of work required of a council member.

“It’s a full-time job and overwhelming most times,” said Leishman.

She agreed with Doubt that it would be appropriate for the province to set rates.

“Everyone should be on a level playing field,” said Leishman.

Councillor Maggie Hathaway said comparison with other local governments is impossible. Other governments get medical and dental, dinner at every meeting, and pensions in some cases.

“If we were to do an honest comparison with other communities, it is impossible,” said Hathaway.

She said she thought the proposal before council was fair.

Councillor Jim Palm said he did not feel ashamed about the money councillors make.

“This job, when you are working another job, is burnout city,” said Palm. “What we make is a small amount and I don’t feel guilty, one iota. We are serving this community; we have served faithfully and we have worked hard to turn this city around in the last 10 years.”

Elliott said she hopes talented young people can be attracted to council but they can’t afford to run.

“I’m in favour of making the wages for council reflective of that,” said Elliott.

She reiterated that she’s okay with the adjustments to be made for the next term of council.

Acting mayor Rob Southcott thanked Langenmaier for the report and for giving council a number of options to make this difficult decision.

Council voted in favour of the first three readings, with Elliott opposed. Final adoption of the bylaw will be slated for a later council meeting.