HomeMy WebLinkAboutCL 13-02
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REPORT TO COUNCIL
FROM:
Bruce Taylor, AMCT, CMM
City Clerk
DATE: May 3, 2002
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REPORT NUMBER: CL 13-02
SUBJECT:
Council Expenses
RECOMMENDATION:
Whereas Subsection 255(1) of the Municipal Act, RS.O. 1990, c. MA5, as amended, (the "Act")
provides that where an elected member of a council of a municipality or a local board is, under a
by-law or resolution of the council or such local board, paid a salary, indemnity, allowance or
other remuneration, one-third of such amount shall be deemed to be for expenses incident to the
discharge ofhis or her duties as a member of the council or such local board; and
Whereas Subsection 478(10) of the Municipal Act, 2001, S.O. 2001, c. 25, provides that
subsection 255(1) of the Act ceases to apply to elected members ofthe council of a municipality
or its local boards on January 1,2003 unless the municipality passes a resolution before January 1,
2003 stating its intention 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 ofthe council or local board;
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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.
ORIGIN:
Changes to the new Municipal Act
AUTHORITY:
Section 478(10) ofthe Municipal Act, 2001
FINANCIAL IMPLICATIONS:
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Not applicable
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Report to Council CL 13-02
Date: May 3, 2002
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Subject: Council Expenses
Page 2
EXECUTIVE SUMMARY:
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The current Municipal Act provides Members of Council and members of local boards that are
paid an honorarium a one-third tax deduction to reflect the expenses incurred for being elected or
appointed to Council or a local board. The new Municipal Act requires Council to pass a
resolution prior to January 1, 2003 stating its intention that one-third of the remuneration paid to
Members of Council and the members of local boards shall continue as expenses incident to the
discharge oftheir duties.
BACKGROUND:
Please be advised that Section 255(1) of the current Municipal Act reads as follows:
Despite this Act or any other general or special Act, where an elected member of a
council of a municipality or a local board, as defined in the Municipal Affairs Act,
is, under a by-law or resolution of the councilor such local board, paid a salary,
indemnity, allowance or other remuneration, one-third of such amount shall be
deemed to be for expenses incident to the discharge of his or her duties as a
member of the council or such local board.
Section 478(10) of the new Municipal Act added a subsection (2) that reads as follows:
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Subsection (1) ceases to apply to elected members of the council of a municipality
or its local boards on January 1, 2003 unless the municipality passes a resolution
before January 1, 2003 stating its intention 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 the council or local
board.
If Council agrees that one-third of its salary and one third of the honorarium paid to members of a
local board (which includes only the Committee of Adjustment and the Property Standards
Committee) should continue to be deemed as expenses for income tax purposes after January 1,
2003, then it must pass the resolution set out in the Recommendation above.
For your information, Section 283(7) of the new Municipal Act states that Council shall review
the policy of deeming one-third of their remuneration as expenses once during a term of Council.
Therefore, if Council passes the above resolution, it will not need to review this issue again until
sometime after the 2003 municipal election but before the 2006 municipal election.
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Copy: Director, Corporate Services & Treasurer
Recommended for the consideration of Pickering
City Council
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