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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 Ii 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,