DIDSBURY - Didsbury council has voted to approve a wage increase for councillors to compensate for upcoming federal legislation that removes a one-third tax exemption. The new federal legislation goes into effect on Jan. 1, 2019.
The increase in the monthly remuneration voted was 14 per cent, which will mean an increase of $23,579 for councillor expenses in the 2019 budget.
"This is the overall increase to the council budget line, which does include an increase to council remuneration, which results in the same after-tax amount because of the changes to the taxation of remuneration for elected municipal officials," said Amanda Riley, chief financial officer for the Town of Didsbury.
For 2018, the mayor of Didsbury, Rhonda Hunter received an honorarium of $2,287.79 per month, while the deputy mayor, which rotates, makes $1,639.20. The remaining councillors receive $1,258.28 per month.
In addition to a monthly honorarium, councillors may claim expenses for formal meetings outside of their normal duties as well as for professional development.
For 2018, up to and including September, Mayor Hunter received $20,801 honorarium to date, $6,516.25 expenses to date, and $811.16 in benefits to date. Councillor expenses are: John Baswick, $3,465.20; Mel Crothers, $4,763.22; Curt Engel, $1,785.63; Dorothy Moore, $2,595.03; Erhard Poggemiller, $2,975.03; and Bill Windsor, $5,073.13.
"Council did not get a 'raise,'" said Hunter to the Gazette. "What councils and elected officials across Canada are doing is adjusting remuneration rates to realize a net zero change after taxation on remuneration. This is in response to the federal government taking away a tax exemption for elected officials that has been in effect for more than 60 years.
"The dissolution of this tax exemption affects the bottom line in having elected officials take what would have worked out to be a 15 per cent cut in remuneration."
Riley said that the council budget is funded by taxation and will therefore affect the overall net municipal taxes generated for the year.
Carstairs council has already voted a raise equal to the amount councillors would lose due to the lost tax exemption with the mayor, Lance Colby, going from $1,834.65 per month in 2018 to $1,956.96 per month in 2019.
The deputy mayor position will go from $1,559.45.45 per month in 2018 to $1,702.56 per month in 2019, while other councillors will go from $1,375.99 per month in 2018 to $1,506.86 per month in 2019.
Both Mountain View County and Olds agreed earlier to an increase of 15 per cent.
