Council Remuneration Review Council Remuneration Ad Hoc Committee - - PDF document

2/28/2018

Corporation of the Town of Cobourg

Council Remuneration Review

Council Remuneration Ad Hoc Committee Meeting Thursday March 1, 2018 Board Room, Victoria Hall, Cobourg

Corporation of the Town of Cobourg Corporation of the Town of Cobourg

Council Remuneration Review

Objective: Review salaries, benefits and expense policies for Cobourg Municipal Council for the positions of Mayor, Deputy Mayor and Councillor and report back to Council for a decision. Guiding Principles- The purpose of the Ad Hoc Committee shall be to review Council Remuneration and make recommendations based on:

• 1. An understanding of what is asked and expected when an individual is elected to Municipal

Council;

• 2. Responsibility level of the office as elected representatives of the citizens of the Town of Cobourg

based upon the position held being Mayor, Deputy Mayor and Councillor;

• 3. Remuneration compared to other similar Ontario Municipalities having a similar population and

having a seven (7) member Council comprised of one (1) mayor, one (1) deputy mayor and five (5) Councillors wherever possible to reflect the current make-up of the Town of Cobourg Municipal Council.

Corporation of the Town of Cobourg

1

2/28/2018

Corporation of the Town of Cobourg

Council Remuneration Review

Planning

• Guiding Principles, Mandate from Council
• Ad Hoc Committee, information provided by Staff

Data Gathering

• Benchmarking with Comparators
• Council On-line Survey and Discussion

Analysis

• Cornpensation analysis/Comparability
• Expenses and Mileage options analysis

Recommendations

• Aligned with Guiding Principles
• Consideration of proposed changes to Council

Corporation of the Town of Cobourg Corporation of the Town of Cobourg

Council Remuneration Review

By-law No. 078-2015 — Paying of Remuneration including Expenses, Insurance and Benefits to

Members of Council.

Remuneration and Expenses — Section 283 of the Municipal Act, 2001 283 (1) A municipality may pay any part of the remuneration and expenses of the members of any

local board of the municipality and of the officers and employees of the local board.

Limitation

(2) Despite any Act, a municipality may only pay the expenses of the members of its council or of a local board of the municipality and of the officers and employees of the municipality or local board if the expenses are of those persons in their capacity as members, officers or employees and if, a) the expenses are actually incurred; or

b) the expenses are, in lieu of the expenses actually incurred, a reasonable estimate, in the opinion

• f the council or local board, of the actual expenses that would be incurred.

Corporation of the

PriV,

Town of Cobourg

2

2/28/2018

Corporation of the Town of Cobourg

Council Remuneration Review

Highlights of By-law No. 078-2015 — Paying of Remuneration including Expenses, Insurance

and Benefits to Members of Council.

• Council Remuneration amount paid to each elected position office, with an annual

adjustment in accordance with the CPI; " Special Note- Remuneration is subject to a reduction in the amount of $250.00 per meeting for absence from Regular Council and Committee of the Whole meetings in excess of five meetings per year.

• Insurance Benefits-

Members of Council are included in the non-union salary group of eligible insurance benefits, excluding the Ontario Municipal Employment Retirement

• System. (OMERS). Benefits include; extended health, dental and life insurance.

Benefit Premium for Council over 65 = $5,649.12 annually Benefit Premium for Council under 65 = $5,752.80 annually

Corporation of the Town of Cobourg Corporation of the Town of Cobourg

Council Remuneration Review

Highlights of By-law No. 078-2015 — Paying of Remuneration including Expenses, Insurance

and Benefits to Members of Council.

• Council Per Diem — Each Member of Council may be paid remuneration for loss of wages

in the amount of $250.00 per day to a maximum of $1,000.00 per year for attendance at conferences, seminars, workshops and other meetings as a member of Council may be required to attend representing a service or function for the Corporation.

• Council Expenses — Members of Council are entitled to reimbursement of expenses

incurred while attending conferences, conventions or educational seminars as required by their Council position for: Registration Fees, Hotel Accommodation, Attendance at

Meetings, Travel/Mileage Allowance, Admission fees.

• Members of Council shall be limited to an annual expense allowance of an amount

established in the annual Council Operating Budget.

Corporation of the Town of Cobourg

3

Council Remuneration Review

Elected Office 2 Remuneration 2017 Mayor $34,720 Deputy Mayor $21,851 Councillor $17,528 ***Annual Compensation adjustments made each year in accordance with the Ontario Consumer Price Index (CPI) effective July 1, each year.

2/28/2018

Corporation of the Town of Cobourg

Council Remuneration Review

Highlights of By-law No. 078-2015 — Paying of Remuneration including Expenses, Insurance and Benefits to Members of Council.

• Council Memberships: The Town of Cobourg pays the annual fees for on-going

memberships in the associations and organizations approved during the Annual budget deliberate on process.

• Council Parking — Car Allowance: Members of Council are provided with an annual

parking pass each year during their term of office for use in all municipal parking areas.

• Mayor is provided with a reserved parking space beside Victoria Hall;
• Mayor is provided with a annual car allowance in the amount of $1,000 per year for

local travel.

Corporation of the Town of Cobourg Corporation of the Town of Cobourg

4

Conferences/Conventions Mayor- $4,200.00 Deputy Mayor/ Councillor — 12,000.00 ($2,000.00 per Councillor) Travel Expense $3,500.00 Corporation of the Town of Cobourg

4-9

4;ft.

v.

Corporation of the Town of Cobourg

Council Remuneration Review

Expense Budget

Cell Phones (includes all Council) $4,200.00 Memberships/Subscriptions (AMO, ROMA/OGRA) $10,875.00 Vehicle Allowance Mayor- $1,000.00

TOTAL

$35,775.00

Corporation of the Town of Cobourg

Council Remuneration Review

1/3 Tax Free Allowance

• Municipal elected officials across the country have been able to decide to use a 1/3 tax

exemption in lieu of claiming expenses related to their duties. The Town of Cobourg has passed a By-law for the 1/3 Tax Free Allowance.

• The 2017 Federal Governement Budget introduced the removal of the tax exemptions

for non-accountable expense allowances paid to members of provincial and territorial legislative assemblies and to certain municipal office-holders. This exemption is only available to certain provincial, territorial and municipal office holders, and provides an advantage that other Canadians do not enjoy. (Expert from the Federal Governement)

• For 2019 and later tax years, non-accountable allowances paid to elected officers will

be included in their income. This change was stated in the 2017 federal budget, which received royal assent on June 22, 2017 (Bill C 44).

Corporation of the Town of Cobourg

2/28/2018

5

2/28/2018

Corporation of the Town of Cobourg

Council Remuneration Review

Council Member Survey

• Standard compensation practices are based on valuing a position based on a job
• description. However, since there is no job description for a Mayor or Councillor a survey

will be circulated related to Council roles and responsibilities and meeting attendance requirements to gain a better understanding of basic minimum statutory obligations.

• Members of Council are required to attend meetings during normal workday business

hours which impacts employed and self-employed members of Council. Members of Council must also allocate time during evenings and weekends. Members of Council can, and do, allocate significant time and energy to interacting with constituents, reading background materials, carrying out research in preparation of meetings, and taking other steps to ensure they are fully informed when analyzing, advocating, and voting on issues.

Corporation of the Town of Cobourg

Council Remuneration Review

Committee Considerations

• Scope of Position/Responsibility of elected office;
• Base Number of Hours required for Council Members as gatherd

from Cobourg Municipal Council Survey;

• Review Comparable municipalities;
• Impact of 1/3 tax-free allowance;
• Town-paid group Insurance and benefits;
• Technology/ways of conducting business.

Corporation of the Town of Cobourg

6

Corporation of the Town of Cobourg

r:,4 Pikiy

2/28/2018

Cobourg Police Services Board

As per the Council Notice of Motion passed on January 15, 2018, the Council Remuneration Ad Hoc Committee will be responsible to review the current Remuneration provided to the Cobourg Police Service Board as stated:

• THAT the current remuneration provided to the Cobourg Police Service

Board be reviewed by the Council Remuneration Ad Hoc Committee and any input or recommendations by the Ad Hoc Committee should be reported to Council for a decision.

Corporation of the Town of Cobourg Corporation of the Town of Cobourg

• ourg Police Services Board

A Council resolution was passed on January 28, 2013 authorizing that the compensation for Cobourg Police Services Board members be maintained at the current level of relative to members of Cobourg Council; and That as supported by the Cobourg Police Services Board that Starting July 1, 2013 the remuneration formula for the Cobourg Police Services Board be established as follows: a) Board Member: 28.5% of the compensation established for the Town of Cobourg Councillors b) Board Chair: 1.25 times the established rate for Police Services Board Members; and As Changes to appointments to the Police Services Board Memberships occur, the offer of providing Town of Cobourg benefits to new members be discontinued. (RES #031-13)

Corporation of the Town of Cobourg

7

2/28/2018

Corporation of the Town of Cobourg

Council Remuneration Review

Police Services Board

Pursuant to 0. Reg 268/10 of the Police Services Board Act for Provincially appointed Members:

• 5. A municipality shall pay to each board member who is appointed by the Lieutenant Governor in Council or the

Solicitor General, (a) in a municipality having a population exceeding 500,000 according to the last revised assessment roll, not less than $1,000 a year; (b) in a municipality having a population exceeding 100,000 and not exceeding 500,000 according to the last revised assessment roll, not less than $500 a year;

(c) in a municipality having a population exceeding 10,000 and not exceeding 100,000 according to the

last revised assessment roll, not less than $300 a year; (d) in a municipality whose population does not exceed 10,000 according to the last revised assessment roll, not

less than $100 a year. 0. Reg. 268/10, s. 5.

Corporation of the Town of Cobourg Corporation of the

'F4'44

Town of Cobourg

41.

Council Remuneration Review

Cobourg Police Services Board

Police Services Board Chair $6,245 Member (Head of Council) $4,995 $4,995 Member (Council Coordinator of Protection)

Corporation of the Town of Cobourg

8

2/28/2018

9