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Nanaimo Council boosts salary to offset incoming tax changes

Dec 18, 2018 | 5:17 PM

Nanaimo councillors have bumped up their salaries, citing incoming changes to federal tax laws as the reason for the increase.

During Monday night’s meeting Council voted 8-1 in favour of increasing salaries to offset Canada Revenue Agency changes set to take effect next year. The changes would have seen a councillor’s take-home pay reduced by nearly $5,000.

With the approved increase, councillors will now take home $34,975, an increase of $1,200 compared to 2018 wages. The mayor’s salary will increase $15,000, however net pay will not change from $81,000. A staff report said the changes represent a .07 per cent increase in property taxes in 2019.

“Those who choose to engage in public service often do so at great sacrifice to their family time, if they can keep their families together. I can assure you I’ve recognized a high divorce rate among active politicians,” mayor Leonard Krog said.

“We need to value our democracy and paying people what I do not regard by any stretch as a very high salary for what they do is appropriate and I’m prepared to defend it publicly.”

Several other councillors said the move would increase accessibility to politics, with better pay opening the door for working parents and people who may not be retired with a pension to rely on.

Only coun. Jim Turley voted against the motion.

“Given the fact we’re proposing a 5.1 per cent increase in property taxes this year…I think we’re asking our citizens to tighten their belts a little bit and I’m quite prepared to tighten mine to show respect for that,” Turley said, noting it was a discussion he’d prefer to revisit next year.

Councillors also approved a new provision which will see their salary increase annually by the rate of inflation. A staff report said the practice of an annual raise tied to inflation for Nanaimo Council was eliminated when a new policy was adopted in 2016.

Chief administrative officer Jake Rudolph also recommended Council appoint an independent task force to do a comprehensive review of all compensation for councillors, including expenses and benefits. Rudolph proposed the task force be struck no later than 2021, with recommendations returned in 2023.

Coun. Ian Thorpe wanted the timeline moved up, something the rest of Council supported. Thorpe’s motion called for the task force to be appointed no later than 2019, with recommendations filed by January 2021.

“I’m hearing the last time there was a review of councillor remuneration was in 2015 and if we follow through with this recommendation the task force recommendations would not take place in 2023. That’s eight years,” Thorpe said.

On top of their Council salary, all of Nanaimo’s municipal politicans, with the exception of coun. Zeni Maartman, earn $17,000 for their role serving on the Regional District of Nanaimo board. As board chair, Thorpe earns an extra $48,000 from the RDN.

Nanaimo councillors are also allowed to claim expenses for things like travel related to Council business, internet and home phone, legal fees and hospitality. In 2018, each councillor had an $11,100 expense budget, while the mayor’s was $12,600.

Several municipal councils on Vancouver Island and around B.C. have made similar increases to salaries to offset the incoming tax changes.

 

dom@nanaimonewsnow.com

On Twitter: @domabassi