By Charles Lefebvre

Pay changes for mayor and councillors to be discussed at city council meeting

Dec 17, 2018 | 10:38 AM

MEDICINE HAT, AB — A potential increase to salaries for the mayor and city council is up for discussion during tonight’s city council meeting.

Councillors will discuss a recommendation which would increase the yearly compensation for council starting next year.

According to the city’s annual report released in 2017, Mayor Ted Clugston received a base salary of $68,000, and added $55,000 in benefits, for a total of $123,000.

Under the proposed changes, the annual salary for the mayor would increase to $129,650 per year in gross pay.

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Councillors would also see a pay increase. The proposal would see councillors make $43,150 per year, up from approximately $23,000 per year.

The briefing note says the changes are being made as a result of changes to the federal Income Tax Act, which come into effect on January 1, making the current pay compensation “outdated.”

The new rules changed how municipal elected representatives, councillors and mayors are taxed.

“Previously, there was up to a third of their compensation that was tax-free, and the change to the Income Tax Act would make it taxable,” said Brian Mastel, commissioner of corporate services with the city. “Effective January 1, 2019, that portion of their compensation would be tax-effected. We were asked to prepare and adjustment that was to try and keep council members tax neutral, or net pay neutral, and that’s why the item was brought forward.

“There will likely be some in the public who will not identify with the changes made to Council compensation review,” the briefing note reads. “However, the commitment to serve in public office is a significant one and reasonable compensation for the Mayor and Councillor’s is anticipated.”

The changes would add $130,300 to the 2019-2022 budget.

If passed, the new salaries would take effect on January 1. The annual base salary would be reviewed every year in January, and increased “in accordance with adjustments to the Alberta Consumer Price Index.” Any increases to the salary each year would take place in March.

Council members who don’t wish to have their base salary adjusted in any given year can decline the increase by writing to the city’s Chief Administrative Officer.

If passed, the city would also have to create a new council remuneration policy for consideration and approval by October 2020.

The meeting gets underway at 6:30 p.m.