The mayor and city councillors unanimously voted in favor of pay increases for themselves to offset the loss of a tax exemption.
Starting in 2019, the federal government is removing a personal tax exemption for elected officials. A report from city administration says it would reduce the mayor's after-tax income by nearly $12,000 per year, while councillors would see a reduction of about $4,000.
The pay increase approved by the Governance and Priorities Committee on Tuesday, which is comprised of the mayor and councillors, raises the mayor's salary from $123,379 to $145,152. That’s the same as a provincial cabinet minister. City councillor salaries will go up from $56,754 to $66,770.
City council still has to approve the salary increases at a future meeting.
The Municipal Review Commission says the intent would be to ensure the take-home pay for mayor and council stays roughly the same since the pay increase is meant to offset the loss of the tax exemption.
Administration says the increases will cost the city about $122,000 in 2019. Administration recommends next year council use a contingency fund set aside that has approximately $300,000. It says other potential funding options include raising property taxes by 0.05 per cent or reducing program expenditures.
