HomeMy WebLinkAboutCL 30-03
REPORT TO
COMMITTEE OF THE WHOLE
Report Number: CL 30-03
Date: December 5,2003
From:
Bruce Taylor, AMCT, CMM
City Clerk
Subject:
Council Remuneration
- Minor Amendments
Recommendation:
1.
That Clerk's Report CL 30-03 respecting Council Remuneration and
Communications Policy be received.
2.
That the draft by-law to implement the amendments with respect to
remuneration, per diem payments, life insurance and declaring one-third of
Council salary as expenses be forwarded to Council for enactment.
3.
That Resolution #97/02, Item #2, to establish a Communications Policy be
amended by deleting Section 8(b) and substituting therefore the following:
8(b) The City will cover the cost of preparing, printing and mailing newsletters,
neighbourhood letters and cooperative letters as well as the cost of
creating and maintaining a website. A budget per Councillor of $7,500 for
the first calendar year, $7,500 for the second calendar year and $6,000 for
the final calendar year of a term will be provided for these items. If the
budget is under spent in any given year, there will be no carry-forward of
dollars to subsequent budgets.
Executive Summary:
This Report summarizes the minor changes made to Council's salary, allowances and
benefits and the Communications Policy at the Orientation Session held on November
17,2003.
Financial Implications:
There are minor financial implications that are set out in the body of the Report.
Report CL 30-03
December 5, 2003
Subject: Council Remuneration
Page 2
Background:
At an Orientation Session held on November 17, 2003, I reviewed with the Council-elect
the Salary, Allowances and Benefits available to Members of Council as well as the
Communications Policy. At that time, some suggestions for changes were made as
follows:
1.
The steps for remuneration payable to the Mayor and Councillors were removed
and remuneration for all Members of Council will reflect the third step being
$60,000 per annum for the Mayor and $25,000 per annum for Councillors.
2.
Councillors will be authorized to submit a claim for a per diem payment for
attending meetings, workshops or seminars without the authorization of the
Mayor.
3.
Members of Council are eligible for a Life Insurance Policy and the amount of
insurance is two times the annual salary of the Member of Council. A question
was asked about the cost of increasing the life insurance to a fixed amount such
as $100,000 or $200,000. The cost implications are as follows:
PRESENT COST OF LIFE INSURANCE PER MEMBER:
Councillor $25,000 X 2 = $ 50,000 - Premium cost is $14. 1 O/month
Mayor $60,000 X 2 = $120,000 - Premium cost is $33.84/month
PROPOSED COST OF LIFE INSURANCE PER MEMBER:
$100,000 Life Insurance Policy - Premium cost is $28.20/month
$200,000 Life Insurance Policy - Premium cost is $56.40/month
I would recommend that the Life Insurance benefit for Members of Council be
increased from double their annual salary to a flat rate of $100,000 for
Councillors and $200,000 for the Mayor.
It is important to note that the cost of Life Insurance is reported as a taxable
benefit.
A question was asked if the method of contributions to a Register Retirement
Saving Plan could be examined to determine if there was some other method
that would provide addition tax benefits. The Treasurer has examined this issue
and has reported that the current method of contribution maximizes the tax
benefits available.
CORPO227-07/01
4.
Report CL 30-03
December 5, 2003
Subject: Council Remuneration
Page 3
5.
The budget for preparing, printing and mailing newsletters, neighbourhood letters
and cooperative letters as well as the cost of creating and maintaining a website
shall increase from $5,500 to $7,500 per Councillor for the first and second
calendar year of a term and from $4,000 to $6,000 for the third calendar year of a
term. This is a realistic reflection of all costs involved in the entire process of
newsletters and creating and maintaining websites.
At the November 1 ¡th meeting, Members of Council were reminded that the
following resolution was passed on May 21,2002:
6.
....NOW THEREFORE it is the intention of the Council of the Corporation of
the City of Pickering that one-third of the remuneration paid to the elected
members of the Council and its local boards shall continue as expenses
incident to the discharge of their duties as Members of Council or local
boards.
Section 283(7) of the Municipal Act states as follows:
On or after December 1, 2003, a council shall review a by-law under
subsection (5) at a public meeting at least once during the three-year
period corresponding to the term of office of its members after a regular
election.
There was a suggestion made at the November 1 ¡th meeting that some
municipalities may not be passing a by-law to deem one-third of the salary of
Members of Council as expenses. I did conduct a limited survey of municipalities
in Durham and found that the Municipality of Clarington has already passed such
a by-law and the Town of Whitby will be considering such a by-law in early
January. I did not get responses back from the other municipalities.
I have included the provision in the attached draft by-law to deem one-third of
Council's salary as expenses in order for Members of Council to receive the
appropriate tax benefit.
Attachments:
1.
Draft By-law
Prepared By:
ßt
/Bruce Taylor
City Clerk
CORPO227-07/01
--"
Report CL 30-03
December 5,2003
Subject: Council Remuneration
Page 4
Attachments
Copy: Director, Corporate Services & Treasurer
Division Head, Human Resources
Recommended for the consideration of
Pickering City Council
Thomas J. Quinn, Chief Administrative Officer
CORPO227-07/01
THE CORPORATION OF THE CITY OF PICKERING
BY~LAW NO.
Being a by~law to amend By~law Number
5999/02 to provide remuneration and benefits
for Members of Council.
WHEREAS the Council of the Corporation of the City of Pickering enacted By~law
Number 5999/02 on June 24, 2002 to provide remuneration and benefits for Members
of Council; and
WHEREAS at a meeting held on November 17, 2003, Council has requested that
certain amendments be made to that By~law;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF
PICKERING HEREBY ENACTS AS FOLLOWS:
1.
Section 2(a) of By-law Number 5999/02 is hereby amended by deleting the
following:
The remuneration payable to the Mayor shall be as follows:
First year in office
Second consecutive year in office
Third and subsequent consecutive years in office
$54,000.00
$58,000.00
$60,000.00
And substituting therefore the following:
The remuneration payable to the Mayor shall be $60,000 per annum.
2.
Section 3(a) of By-law Number 5999/02 is hereby amended by deleting the
following:
The remuneration payable to a Councillor shall be as follows:
First year in office
Second consecutive year in office
Third and subsequent consecutive years in office
$22,000.00
$24,000.00
$25,000.00
and substituting therefore the following:
The remuneration payable to a Councillor shall be $25,000 per annum.
3.
Section 4(a)(iii) of By-law Number 5999/02 is hereby amended by deleting the
following:
attending a meeting, workshop, seminar or convention authorized by the
Mayor, by policy, such as....
and substituting therefore the following
attending a meeting, workshop, seminar or convention such as....
CORPO223-D7/01
'I
'I
I,
II
II
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II,
4.
6.
By-law Number 5999/02 is hereby amended by adding thereto the following
Section:
8.
A Life Insurance Policy that is paid by the City of Pickering on behalf of
Members of Council in the following amounts:
Councillor - $100,000.00
Mayor - $200,000.00
5.
By-law Number 5999/02 is hereby amended by adding thereto the following
Section:
9.
Pursuant to Section 283(7) of the Municipal Act, 2001, one-third of the
remuneration paid to the elected members of the Council and its local
boards shall be deemed as expenses incident to the discharge of their
duties as Members of Council or local boards.
Sections 1, 2 and 5 of this By-law shall take effect as of December 1, 2003.
BY-LAW read a first, second and third time and finally passed this 15th day of
December, 2003.
David Ryan, Mayor
Bruce Taylor, Clerk,