Mountain View County (MVC) council has instructed administration to amend the municipality's remuneration and compensation policy to reflect a 15 per cent increase in councillor pay effective Jan. 1, 2019. The move will cost the county $65,000.
The increase is being made to offset a reduction in councillor pay resulting from the upcoming removal of the federal income tax exemption for councillors.
In March 2017 the federal government announced that it was eliminating the one-third tax-free exemption for municipal elected officials beginning next year.
County administration recently reviewed the impacts of that change on MVC remuneration and determined that a 15 per cent increase would be in alignment with the projected reduction resulting from the elimination of the exemption, said CAO Jeff Holmes.
“As historically it has been a priority to ensure council remuneration is competitive, fair and equitable with comparable municipalities, it is administration’s recommendation to remain consistent with other municipalities that a 15 per cent increase is required,” he said.
“We feel this will counter the change in federal tax law so that councillor remuneration will remain consistent after the tax change. The intent is to keep councillor take-home pay at the same level that it is now.”
Reeve Bruce Beattie says other municipalities in the province are taking the same approach.
“This has to be understood as a direct payment to the federal government,” said Beattie. “They want their money.”
Coun. Peggy Johnson suggested the increase be split over two years.
Deputy Reeve Angela Aalbers put forward the motion for the 15 per cent increase effective Jan. 1.
“I support it,” said Aalbers. “Sometimes we have to be fair to ourselves. I think all of us put in a lot of work. I don’t feel that we should have to take it on the chin. We are not giving ourselves a raise. I think it is staying fair.”
Reeve Beattie added, “It put everybody in a tough position. I don’t think people are normally keen to take a 15 per cent cut in pay. It’s a federal government position to do this.”
Councillors passed a motion instructing administration to amend the operating budget and the councillor remuneration and compensation policy to reflect the pay increase.
Coun. Al Kemmere did not attend the Nov. 28 council meeting.
The Rural Municipalities of Alberta Association, representing 69 rural municipalities, passed a resolution last week to increase board member remuneration by 15 per cent in order to compensate for the change in federal tax law.
