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Council Remuneration Review Committee Agenda - 2020/07/28 The Corporation of the Township of Malahide COUNCIL REMUNERATION REVIEW COMMITTEE July 28, 2020 10:00 a.m. Springfield & Area Community Services Building 51221 Ron McNeil Line, Springfield** ** Note: Due to the COVID-19 situation, this meeting will be held electronically via videoconference.** (A) Call to Order and Roll Call (B) Disclosure of Pecuniary Interest (C) Approval of Minutes July 14, 2020. (Pages 3 - 6) (D) Business Arising from the Minutes - Excerpt from Municipal Act, 2001 Role of Mayor and Council. (Pages 7 - 8) (E) Compensation Review Reports from other Municipalities - Town of the Blue Mountains (pop. 7,000) (Pages 9 - 37) - Municipality of Brockton (pop. 9,400) (Pages 38 - 54) - Municipality of Port Hope (pop. 16,750) (Pages 55 - 59) (F) Council Remuneration Comparison (From July 14, 2020 Agenda). (Pages 60 - 61) (G) Review of Council Benefits - Mileage monthly allowance vs per km (H) Survey of Incumbent Council Members - Hours spent per week/month for Council business. (To be circulated at the meeting.) (I) Next Committee Meeting August 11, 2020 at 10:00 a.m. (tentative) (J) Adjournment RES **VIDEOCONFERENCE MEETING Note for Members of the Public: In order to respect the State of Emergency declared by the Province of Ontario and not hold public gatherings, please note that the Ad hoc Working Group meeting scheduled to be held on July 28, 2020 will be via videoconference only. Please note that, at this time, there is not an option for the public to participate in to this meeting. However, you may watch the meeting by clicking on the following ZOOM meeting link: https://us02web.zoom.us/j/82669189032?pwd=V2NEbGcrc3ZlVWJWb3l5cytQU UlnZz09 Written comments regarding the Agenda items are welcome please forward such to the Clerk at mcasavecchia@malahide.ca 20-1 The Corporation of the Township of Malahide Council Remuneration Review Committee July 14, 2020 9:00 a.m. The Council Remuneration Review Committee met via videoconference at 10:00 a.m. Due to COVID-19 and public health concerns, public attendance was not permitted at this meeting. The original scheduled date of March 16, 2020 was cancelled and rescheduled to July 14, 2020. The Committee Members and Staff participated remotely. Committee Members: Martin Baelde, Kevin Morrell, Susan Morrell, and Richard Robilliard. Municipal Staff: Chief Administrative Officer/Clerk M. Casavecchia-Somers and Deputy Clerk D. Wilson. CALL TO ORDER: Due to technical difficulties the start time of the meeting was delayed. CAO/Clerk M. Casavecchia-Somers called the meeting to order at 10:38 a.m. and welcomed those in attendance. DISCLOSURE OF PECUNIARY INTEREST and the General Nature thereof: No disclosures of pecuniary interests were declared. Committee Member Susan Morrell noted that, due to a scheduling conflict, Maureen Jenkins was no longer able to participate on the Committee and questioned whether an additional Member would be appointed. The CAO advised that there would not be a replacement Member appointed. She indicated that the Council was aware that Ms. Jenkins had withdrawn her name and were agreeable to proceeding with the four remaining Members. She noted that the Terms of Reference for this Committee required a minimum of three Committee Members and as such the current complement would be in compliance. APPOINTMENT OF MEETING CHAIR AND VICE-CHAIR: Moved by: Martin Baelde Seconded by: Richard Robilliard THAT Susan Morrell be appointed as the Chair of the Council Remuneration Review Committee. Carried. Moved by: Kevin Morrell Seconded by: Richard Robilliard THAT Martin Baelde be appointed as the Vice-Chair of the Council Remuneration Review Committee. Carried. Susan Morrell assumed the position of Chair. 20-2 COMMITTEE ORIENTATION SESSION: The Chief Administrative Officer/Clerk reviewed the following documentation with the Committee: - Committee Terms of Reference - Procedural By-law - Conflict of Interest Act - Confidentiality Policy. The CAO advised that the Agenda package contained a Confirmation of Understanding of the Township of Malahide Confidentiality Policy. She requested that each Member sign and return this policy at their earliest convenience. The CAO advised that the purpose of the Committee was review the remuneration and benefits paid to the Township of Malahide Council and determine if changes were required. The CAO advised that the philosophy is to base the compensation for the Mayor and Members of Council on realistic standards so that elected officials may be compensated according to their roles and responsibilities. She noted that to achieve this, a compensation plan reflects one that: (i) Is fair and reasonable and will it attract a diverse and representative pool of candidates from residents wishing to seek election to Council but also be seen as fair by taxpayers; (ii) Recognizes that the work of the Mayor and Council is demanding and important and as such they should be appropriately compensated; (iii) Recognizes the complexity, responsibilities, time commitments and accountabilities associated with the role of Mayor and Council; (iv) Is appropriate for the average full-time earnings within the community; (v) Must demonstrate fiscal responsibility. Committee Member Keven Morrell retired from the meeting at 11:00 a.m. due to a prior commitment. In response to an inquiry from Committee Member Susan Morrell regarding how past compensation reviews were undertaken, the CAO advised that appointing a Committee to review the Council Compensation was a new undertaking for the Council, but that this type of Committee has been used in other municipalities. The CAO advised that, in the past, the Municipal Staff were usually directed to survey other municipalities regarding Council Compensation and the Council typically selected a median compensation within the range of other Municipal Councillor salaries. However, in 2020, the Malahide Council thought it would be beneficial to undertake a review of the compensation package for Council Members by way of a Committee comprised of members of the public. Committee Member Martin Baelde requested clarification regarding the loss of the 1/3 tax allowance previously provided to the Council Members. The CAO advised that previously Revenue Canada allowed 1/3 of the Council Compensation to be tax exempt to encourage people to run for positions on the municipal councils. This allowance was discontinued by Revenue Canada recently, thereby reducing the actual net amount that the Council Members received in compensation. The CAO noted that some Municipal Councils approved increases in their base compensation to make up the difference in their net wages. She noted that the Malahide Council did not decided to an increase their wages to make up for this shortfall, but determined that it would be appropriateto review the entire compensation package payable to Council Members. Committee Member Martin Baelde questioned why the deduction was taken prior to the date Revenue Canada required. The CAO advised that the decision was made by the Council. The CAO also advised that some Council Members had expressed concerns regarding the effect that the removal of the 1/3 tax exempt portion had on their own personal tax situation and had questioned why Staff had not advised them of this situation prior to the Council making a decision. The CAO indicated that the Municipal Staff were not privy to personal financial information of individual Council Members to determine if it would detrimentally affect their personal income tax. 20-3 Upon an inquiry from Committee Member Richard Robilliard regarding the availability of Compensation Review reports of other municipalities that have undertaken a similar compensation review, the CAO advised she would endeavor to reach out to other municipalities for their final reports and provide any reports received to the Committee Members. REFERENCE MATERIALS: The Chief Administrative Officer/Clerk noted that the following additional documentation was being review and reference during its deliberations: - Malahide Council Remuneration By-law No. 19-49 - Council Remuneration Comparison (March 2019) - Malahide Council List of Committees/Participation (November 2019) - Malahide Council Travel & Convention Policy (2015) - Malahide Council Code of Conduct (2019) - AMCTO Report Municipal Council Compensation in Ontario (March 2018). In response to an inquiry from Committee Member Susan Morrell regarding whether or not the Committee could recommend a change from the current monthly stipend for mileage to a per kilometer basis, the CAO advised that benefits would be reviewed by the Committee as well as the base compensation. In response to an inquiry from Committee Member Richard Robilliard regarding additional costs that Council Members may incur related to use of personal vehicles, the CAO advised that the Township does carry liability insurance that would extend to Council Members when they are on Township business but that this does not replace regular car liability insurance. She indicated that the Township does not cover extra is used for Township business. Mr. Robilliard suggested that consideration might be given to Councillors using rental vehicles for Township business. The CAO advised that the Remuneration Comparison included in the Agenda Package did include a comparison of wages from other similar municipalities. She noted that this chart also noted that actions taken by other municipalities regarding the loss of the 1/3 tax free allowance. The CAO clarified that the Report on Page 50 of the Agenda package that set out all of the various boards and committees the Malahide Council Members participated in. As well, it was noted that the compensation noted in the report was not currently paid to Council Members, but rather this chart had been prepared to provide some possible costings if a per diem was to be paid to Council Members for participation on each of these Committees/Boards. The CAO noted that the Code of Conduct for the Council Members does set out various rules on how the Council must conduct themselves including accountability, conflict of interest, and use of influence. She noted that a number of these sections also applies to this Council Remuneration Review Committee as it is a Committee of the Council. The CAO advised that the Association of Municipal Managers, Clerks and Treasurers of Ontario (AMCTO) had prepared a report in 2018 surveying municipalities regarding Council Compensation. She noted that this report provides additional date to show what other municipalities were paying Council members. In response toan inquiry from Committee Member Richard Robilliard regarding information on the mandated roles and responsibilities of Council Members, the CAO advised she would provide the Committee Members with an excerptof the Municipal Act, 2001 which sets out the roles and responsibilities of the Mayor and Council Members. In response toan inquiry from Committee Member Martin Baelde regarding the time commitment for the Council Members, the CAO advised she would canvass the current members of the Malahide Council to determine the approximate number of hours per 20-4 week/month that they commit to Malahide Council business. Committee Member Martin Baelde noted that the Mayor and Deputy Mayor also receive payment directly from the County for their work on the County of Elgin Council. NEXT COUNCIL REMUNERATION REVIEW COMMITTEE MEETING: The next Council Remuneration Review Committee Meeting will be Tuesday, July 28, 2020, at 10:00 a.m. A tentative future Council Remuneration Review Committee Meeting was set for Tuesday, August 11, 2020, at 10:00 a.m. ADJOURNMENT: Moved by: Martin Baelde Seconded by: Richard Robilliard THAT the Council Remuneration Review Committee meeting be adjourned at 11:56 a.m. to meet on July 28, 2020 at 10:00 a.m. via teleconference. Carried. __________________________________ Chair S. Morrell __________________________________ Clerk M. Casavecchia-Somers From:Corrina Giles To:Alex Maxwell;Krista Royal Cc:council;SMT;Sarah Merrifield;Krista Royal Subject:RE: Report Date:Monday, October 7, 2019 9:15:58 AM Attachments:image001.png image002.png CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. On Sunday, October 6, 2019, 09:19:25 p.m. EDT, Alex Maxwell wrote: Perhaps I'm too late to submit this for the council meeting - To the Mayor / Council and our Municipal Clerk Corrina Giles of the Town Of The Blue Mountains Re: Committee Report " Council Compensation Committee Oct 7/ 2019 FAF. 19.18" What is most troublesome in this report is the suggestion to reduce our level of elected representation .This will most likely result in the erosion of overall democratic principal's. Since a municipality is merely a group of individuals who got together to govern themselves using corner stone principals such as public consensus and public participation. Is it not the role of those who hold public office to promote democratic principal's, seek out new ideas and to encourage greater public participation in the election process. Therefore should we as a community not maintain what we all ready have and ideally increase our level of elected officials? Alex Maxwell Corporation of the Municipality of Brockton Report to Council Report Title: Council Remuneration 2019to 2022Term Trish Serratore, CFO Prepared By: Department: Finance Date:May 14, 2018 Report Number: FIN2018-19 File Number: C11FIN ReportFIN 2018-03- Council Remuneration 2019-2022 Attachments: Recommendation: That the Council of the Municipality of Brocktonherebyreceives Report Number FIN2018-19 prepared by Trish Serratore, CFOand approves thefollowing Council remuneration for the 2019 to 2022Council Term: PositionYear 1-2019Year 2 -2020Year 3 -2021Year 4 -2022 Mayor$27,537$28,225$28,931$29,654 Deputy Mayor$16,529$16,942$17,366$17,800 Councillor (5)$13,777$14,118$14,471$14,833 Plus “cost of living,”should it exceed the 1.5% In addition, Council approves Option _______________ for the upcoming remuneration and direct staff to bring forward the appropriate by-law. Report: Background: With the impending election, Council felt that it was important for them to set the upcoming remuneration rates to befair and consistent in comparison with other local municipalities. With that in mind, a Council Remuneration Review Committee was established. The chair of the Council Remuneration Review Committee, Tim Mancell, presented the Committee’s recommendations to Council on December 11, 2017. On January 22, 2018, Council reviewed Report FIN 2018-03 - Council Remuneration 2019-2022and approved Resolution and directed staff to bring back an updated Council Reimbursement Policy and Council Conventions: Resolution 18-02-017 Moved by B. Bell Seconded by C. Peabody That the Council of the Municipality of Brockton hereby receives for information Report # CFO 2018- 03-Council Remuneration 2019-2022 prepared by Trish Serratore, CFO and approves Option #2 in setting Council remuneration for 2019 –2022 and authorizes a By-Law coming forward; And further that the companion program registration fee for conferences and that mileage for meeting attendance within the municipality be excluded from the current policies related to Council Remuneration and that the appropriate by-laws be brought forward for consideration. Carried. Analysis: Section 255 of the former Municipal Act, R.S.O. 1990 provided that one-third of the salary paid to an elected member of council was deemed to be for expenses incurred in the discharge of the member’s duties. As such, this portion of a Councillor’s salary is not subject to income tax. Section 283(7) of the Municipal Act requires that each Council review the option to exempt one-third of the salary at least once during each four-year term of Council after a regular election. Currently,theCouncilof the Municipality of Brocktonareunder theprovision with one-third of their remuneration being treatedas expenses related to carrying out their duties (a tax-freeallowance), andtwo-thirds of their council remuneration remains taxable. In March2017 the Federal Government announced through its budget that it would be removing the tax exemptions for expense allowances paid to municipal councillors effective January 1, 2019. The measure affects elected members of provincial and territorial legislatures, as well as municipalities. Elected officials of municipal utilityboards, commissions and corporates will also be subject to the rule, as well as members of school boards. The 2017 Federal Budget eliminatesthe councillor tax exemption: “Remove the tax exemptions for non-accountable expense allowances paid to members of provincial and territorial legislative assemblies and tocertain municipal office-holders. This exemption is only available to certain provincial, territorial and municipal officeholders, and provides an advantage that other Canadians do not enjoy.” Further detail in the 2017 Federal Budget states: “The reimbursement of expenses incurred in the course of carrying out the duties of an office or employment is generallynot a taxable benefit to the recipient. By contrast, a non- accountable allowance for which an individual does not have to provide details or submit receipts to justify amounts paid is generallya taxable benefit. Municipal officials may, however, receive non-accountable allowances for work expenses that are not includedin computing income for tax purposes. Budget 2017 proposes to require that non-accountable allowances paid to these officials be includedin income. The reimbursement of employment expenses will remain a non-taxable benefit to the recipient. To provide affected organizations more time to adjust their compensation schemes, this measure will apply to the 2019 and subsequent taxation years.” This federal tax exemption has been in place since 1947 under the Income Tax Act. The Association of Municipalities of Ontario is lobbying the federal government to reconsider removing this exemption. There will be an increased cost to municipalities whether elected officials maintain their same net or gross pay through mandated employer contributions to the Canada Pension Planand Employer Health Tax.Also, the Municipalityis currently eligible to receive a GST/HST rebate on one-third of the remuneration paid as these are considered expenses and not salaries. This rebate willno longer be available to the Municipality and would be an increased cost due to theloss of GST/HST rebate. Staff have prepared an analysis on the financial impacts of the changes toCouncil remuneration.We felt it prudent to bring forward the following options before adopting the 2019 –2022 remuneration schedule based on the removal of the 1/3 tax-free allowance. To be able to compare the effectsof these changes, we have thecurrent,(2018) Council net remuneration followed by the 2019 remuneration with two options. Option one being fully taxable, no change in gross pay and option two fully taxable and adjust gross pay to maintain the same net pay. Current, 2018 net remuneration: The following illustrates what the net compensation would be for Council, based on thecurrent 1/3 tax-freeallowanceand the recommendation of the committee: As illustrated above, without upcoming legislative changes to council’s remuneration, there would be a net increase for all council members. However, with the changes being madein 2019, Council of the Municipality of Brockton have the following two options: 1.Fully Taxable -No change in gross payproposed for 2019 Option 1 would have the following effectson Council’s net pay: And also, there would be thefollowing increased costs to the Municipality: As indicated, Option 1 illustrates a reduction in the council member’s remuneration for 2019 with an operationalincrease inthe municipality’s expensesof $6,249. 2.Fully Taxable –Grossed up As illustrated, there is no effecton Council’s net pay. Howeveras noted below there is an increased cost to the municipality. Which has the following budgetary impact: As illustrated, option 2 allows Council to receive the same net pay. However, there is an operational increase inthe municipal expenses of $13,295 using 2019 ratesthat would be included in the 2019 budget. Sustainability Checklist: What aspect of the Brockton Sustainable Strategic Plan does the content/recommendations in this report help advance? Do the recommendations help move the Municipality closer to its Vision? N/A Do the recommendations contribute to achieving Cultural Vibrancy?N/A Do the recommendations contribute to achieving Economic Prosperity? N/A Do the recommendations contribute to Environmental Integrity? N/A Do the recommendations contribute to the Social Equity? N/A Financial Impacts/Source of Funding: Do the recommendations represent a sound financial investment from a sustainability perspective?Yes Based on the options presented above, the municipality would be looking at increased costs from approximately $6,249 - $13,295 for 2019 depending on which option council chooses. Respectfully Submitted by: Trish Serratore, CFO Reviewed By: CAO/Clerk Corporation of the Municipality of Brockton Report to Council Report Title: Council Remuneration 2019-2022 Trish Serratore, CFO Prepared By: Department: Finance Date:January 18, 2018 Report Number: F2018-03 FileNumber:C11-F Attachments:Council Remuneration Review Committee Recommendations - December 11, 2017; Policy A04-99-01 - Council Conventions;Policy F09-2010-11 - Council Expense Reimbursement Recommendation: That the Council of the Municipality of Brocktonhereby receives for information Report #CFO2018-03 prepared by Trish Serratore, CFOand approves Option #________ in setting Council remuneration for 2019 – 2022and authorizes a By-Law coming forward. Report: Background: With the impending municipal election, Council felt that it was important for them to set the upcoming remuneration rates for Council in a fair and consistent manner with other local municipalities. With that in mind, a Council Remuneration Review Committee was established. On December 11, 2017, Tim Mancell presented to Council the recommendations from the Council Remuneration Review Committee. In that report which is attached their recommendations to Council wereas follows: Meal Allowance:Make no changes to the policy as it was set at a reasonable rate and allowances were in line with Bruce County guidelines. Mileage Allowance: The committee also recommended that there be no change with this policy or the rate. However, they had expressed some concerns with compensating members of council for their travel from home to meetings within the municipality. Travel, Conference and Training: The committee felt that the current budget was significantly below the comparators used for their analysis. They strongly encouraged council to take the opportunity to advance their professional development within Government/Politics. They recommend increasing the budget to $10,000for conference and training attendance. The Committee also recommendedthat the following policies be updated to include a statement that “if an employee combines business travel with personal travel, only expenses related to the direct travel to the business event are reimbursable”. Benefitssuch as Group Life, Extended Health, and OMERS:The committee recommended that Brockton continues with their current practice and no changes be made. Salary: The committee felt that the Municipality is now in a “catch up” situation given the salary freeze for this current term. Due to this set back the committee was recommending an increase of a minimum 2.5% over the next four year term. In addition they recommend a variation of the “cost of living”, should it exceed the 1.5%. Lastly they also recommended that on a go forward (after 2022), Council tie their annual increases to those given to the staff each year. 2018Year 1-2019Year 2 -2020Year 3 -2021Year 4 -2022 Mayor$26,865$27,537$28,225$28,931$29,654 Deputy Mayor$16,125$16,529$16,942$17,366$17,800 Councillor (5)$13,438$13,777$14,118$14,471$14,833 Total$110,180$112,951$115,757$118,652$121,619 IncreasePer Year$2,771$2,806$2,895$2,967 Total increase over the four years: $11,439 Analysis: Based on the summary provided by the Council Remuneration Review Committee. Staff recommend Council consider one of the following options: Option 1:Do not adopt the recommendations outlined by the committee and all council remuneration is frozen at the following rates: a. Mayor $26,865 b.Deputy Mayor $16,125 c. Councillors $13,438 Option 2:Adopt all recommendations from the committee as outlined above. Option 3:Adopt all the recommendations with the exception that Councillors continue to receive mileage to attend meetings as this is a standard across the County. Option 4:Adopt all the recommendations with the exception that Councillors continue to receive mileage to attend meetings as this is a standard across the County, as well as keeping the current convention policy unchanged, as it is consistent with the common policies andpractice within Bruce County. Sustainability Checklist: What aspect of the Brockton Sustainable Strategic Plan does the content/recommendations in this report help advance? Do the recommendations help move the Municipality closer to its Vision? N/A Do the recommendations contribute to achieving Cultural Vibrancy?N/A Do the recommendations contribute to achieving Economic Prosperity? N/A Do the recommendations contribute to Environmental Integrity? N/A Do the recommendations contribute to the Social Equity? N/A Financial Impacts/Source of Funding: Do the recommendations represent a sound financial investment from a sustainability perspective?Yes Reviewed By: CFO Respectfully Submitted by: TrishSerratore, CFO Reviewed By: CAO/Clerk Corporation of the Municipality of Brockton Report to Council Report Title: Council Remuneration Review CommitteeRecommendations Prepared By: Council Remuneration Review Committee Department: Administration Date:December 11, 2017 Report Number: 2017-01File Number: C11 Committees Attachments:\[click to enter text here\] Recommendation: That Brockton Council adopt the recommendations of the Council Remuneration Review Committee as outlined below. Mandate: Our ad hoc committee of 3 independent citizen volunteers was appointed by resolution of Council to make recommendations related to future Council remuneration as set forth in the Terms of Reference provided (see attachment). Any resulting changes are to take effect with the next elected Council. Over 5 meetings we reviewed existing policies and practices and made comparisons with similar sized peer and neighbouring rural municipalities. Members: Chair Tim Mancell, Secretary Ken Wiese and Member Linda Anderson with the extremely helpful assistance of CFO Trish Serratore. Statement of Guiding Principles (With acknowledgement to the wording from a similar document from the Town of Banff, Alberta) Our committee recognized the importance of considering the unique circumstances of public office while reviewing comparable compensation as it relates to municipal public office in a manner that reflects the associated duties, responsibilities, skills, effort, authority and decision making duties. We feel that our residents believe that the Mayor, Deputy Mayor and Councillors bring value to the community and should be remunerated appropriately in accordance with their contributions and in comparison with neighbouring as well as peer municipalities. Such compensation should be on a realistic scale and should reflect the demanding nature and responsibilities of public office in a rural community so as to attract capable potential candidates. At the same time this remuneration policy must be transparent, fiscally responsible, easily understood and acceptable to the citizens / taxpayers of Brockton who expect their representatives to be accountable, competent, motivated, and community minded citizens who are well qualified for their respective offices. Issue: Brockton's previous Council did notrecommend any changes to the remuneration policies during its term of office which has resulted in remuneration for the current Mayor, Deputy Mayor and Councillors falling behind the majority of both 'Peer Municipalities' and 'County Neighbours' as identified in the data provided to us by CFOSerratore (see attachments). Because of this, Brockton is now is a position where it must catch up to the norm. Without an upgrade, the current remuneration policy could be perceived as a deterrent to potential future candidates. Assumptions: (1)Our recommendations are based on the current remuneration policy that uses an inclusive basic annual wage for each position as opposed to the practice of many comparable councils who utilize a system with an often lower annual wage that is supplemented by a 'per diem' compensation for meetings attended. For clarification, themedian per diem appears to be $143 for a full day or $77 for a half day. The associated time frame appears to normally be a 'half day' being defined as a meeting which is up to 3 hours and a 'fully day' being one that exceeds 3 hours. Accordingly, this Council must first confirm thatthe continuation of one basic wage is the preferred approach for the future. (2)This basic salary approach is complicatedby the practice of some elected representatives being paid externally for service on certain assigned committees which results in a certain inequity. Such was deemed not to be part of the committee's mandate although we did perceive this practice to be somewhat unfair. The standard pay hierarchy relates to the expected differentiation of performance expected from 3 levels of administration, ie. Mayor, Deputy Mayor and Councillor, for which the duties and responsibilities normally increase with each level of authority. (3)Consistent with our assigned terms of reference we have gone on the assumption that any recommended policy changes or Council approved versions of same, will take place when the newly electedCouncil takes office in 2019. (4)Our committee has not made any allowances for the proposed Canada Revenue elimination of the one-third tax-free provision for council remuneration. If such does come into effect as of January 2019, further study would be required to determine the impact. This must be addressed by the current Council later in 2018 when and if such Revenue Canada decisions are confirmed. Recommendations: 1)Meal Allowance:Compensation for incurred expenses appears somewhat below the norm. Brockton allows up to $15 for breakfast, $20 for lunch, and $45 for dinner. The medians are $19, $24 and $43. Our committee ultimately concluded that Brockton should remain with these Bruce County guidelines while permitting reasonable flexibility within the $80 maximum. Existing policy related to inclusions and exclusions should also not be altered. 2)Mileage Allowances: The recommended Bruce County standard of 50 cents per kilometre should remain unchanged. While the norm for our comparable municipalities appears to be about 49 cents, we noted that the Private Transportation Index as related to the CPI does recommend 54 cents per kilometre for Ontario. Wording in the existing mileage policy should remain unchanged other than Council should note that there were concerns expressed by our committee with respect to the policy of compensating members for the distance they travel from their homes to meetings within the municipality. Such practice may incorporate additional municipal liability while employees are communing to work. Plus our own experiences indicated that compensation to get from home to work is quite unusual so we recommend that this practice be discontinued. (3) Travel, Conference and Training: The current budget of $8,500 is significantly below the comparable municipalities' median of $14,000 whichincluded a somewhat excessive high of $30,000. While some councillors fail to see the value of this professional development avenue and do not take advantage of the many opportunities provided, the committee recommends an increase to $10,000 in the fund as well as greater encouragement, especially to new councillors, to take advantage of Brockton's limit of 1 conference per year. Our committee also questioned the value of the municipality paying a spouse's conference registration although the provision of accommodation and meals was deemed to be appropriate. Plus a standard clause in many policies is that “íf an employee combines business travel with personal travel, only expenses related to the direct travel to the business event are reimbursable”. Thusthe municipality would reimburse the claimant only for accommodations and costs as per policies A04-99-01 and F09-2010-11 for business travel days. We recommend a policy statement to include a similar expectation. (4)Benefits such as Group Life, Extended Health, OMERS:Such are provided by some municipalities who cover up to 100% of the cost. We recommend Brockton continues to refrain from this practice. This would be a different matter if our elected representatives were perceived to be full time employees, which is not the case. 5)Salary: Lastly, but probably most important, wages must be addressed as unfortunately we are now in a 'catch up' situation. Our Mayor at $26,865 is below the median of $28,000. Our Deputy Mayor at $16,125 is similarly below the median of $16,916, as are our 5 Councillors at $13,438, below the median of $14,500. 'No big deal' might be the normal reaction but these median figures are somewhat meaningless when one considers the common practice of 'per diems' which can increase one's wage by 25 to 100% thereby leaving our elected representatives actually much farther behind. We took the liberty to alter total comparable compensation figures so that we would have councils with the exact same makeup, that is, if each comparable had 5councillors instead of the present 3 to 7 range in addition to a mayor and deputy mayor. Our comparable statistics were compiled from peer and neighbouring small rural communities for which we had access to per diem data. The result is a comparison of the total estimated remuneration in the same year (2016) from South Bruce, the lowest, at $84,230, North Bruce Peninsula at $93,377, Brockton at $110,180, Hanover at $114,814, Minto at $119,800, Huron Kinloss at $130,363, Central Huron at $136,722, West Grey at $139,800, Meaford at $151,771, and Kincardine at $152,062. Figures were not available for Arran Elderslie or Saugeen Shores. With Brockton sitting at thirdlowest of these 10 identified municipalities, the committee decided on 3 recommendations. First, we propose a modest minimum 2.5% increase in each year of the 4 year term of office which would put Brockton closer to, although still below the median. Second, we propose a variation of a `cost of living` which itself is fairly standard practice in mostmunicipalities. However, instead of a direct COLA implementation, we suggest a variance that would take affect only after the Consumer Price Index exceeds 1.5%. Thirdly, after this next 4 year term, we propose that the outgoing Council recommend to its successor, that Council remuneration increases be at the same percentage as that received by non-unionized municipal employees. This initial proposed increase of approximately 2.5% per year (see appendix) would still leave us in thirdplace as it would require a 10% increase in one year to even approach the median. The 2019-22 Brockton Council should be encouraged to address the remuneration issue in the final year of their term. Our recommendation to tie future wage increases tothe negotiated contract ofnon-unionized municipal employees would prevent Brockton from being faced in the future with the severity of this current problem. Proposed Council Remuneration Based on 2.5% increase per year but not including a COLA variance if the CPI exceeds 1.5% CurrentYear 1Year 2Year 3Year 4Total 2019202020212022 Mayor2686527537282252893129654 Deputy1612516529169421736617800 Councillor1343813777141181447114833(x5) Total110180112951115757118652121619 Increase/yr.277128062895296711439 Conclusion: It would appear that according to the data provided, the facts clearly indicate that certain increases are warranted. However our committee looked at balancing the fair compensation of council with the interests of the taxpayer, so, not wanting our recommended increases to be the cause of a tax increase, we respectfully recommend that Council find a means of saving money elsewhere in the budget in order to compensate for any remuneration increases. References: •Council Remuneration Review Committee (Brockton) Terms of References •Queen’s University `Travel and Expense Reimbursement Policy` •Government of Canada `Meal and vehicle rates used to calculate travel expenses of 2016 and previous years` •Brockton Policy F09-2010-11 'Expense Reimbursement` •Brockton Policy A04-99-01 'Council Conventions' •Town of Banff 'Council Remuneration Review Committee Report' •Council Remuneration – 2016 Bruce County •Brockton Report to Council 5/19/17 Council Remuneration Review prepared by Trish Serratore •Report to Council, Council Remuneration Review, Report Number 2017-09 • October24, 2017 e-mail fromTrish Serratore, Minutes of October 18,2017 including attachment: Council Remuneration Comparison – Brockton Review andCouncil Compensation Survey Results •Schedule A – Remuneration Options regarding 1/3 Tax Exempt Options •November 8, 2017 e-mail from Trish Serratore regarding financial implication to municipality and tax payers Respectfully Submitted by: Council Remuneration Review Committee Reviewed By: CAO/Clerk CFO MUNICIPALITYOFBROCKTON POLICY #99-01 Page 1 of 2 A04-99-01 Policy F09-2010-11 Expense Reimbursement Department:Finance and AccountingPolicy Number:F09-2010-11 Section:Effective Date: January1, 2010 Subject:Expense ReimbursementRevised Date: Authority:Applies to MunicipalCouncil Purpose: The Municipality of Brockton allows for expenses for Brockton Council. This policy is being established for the purpose of outlining a policy for allowable expenses while on Municipal business and a system for the submission of expense claims for re-imbursement.For the purpose of this policy Councillor shall mean Mayor, Deputy/Mayor or Councillor. Meal Allowance: Councillors attending conferences or meetings on behalf of the Municipality are allowed to submit claims for meal reimbursement to the maximum as established fromtime to time by Municipal Council.Claims are allowed for the meal and the appropriate gratuity. Claims are not allowed for alcoholic beverages. Claims for reimbursement must be accompanied by the appropriate receipt (with the exception of the gratuity). Accommodations/Parking: Councillors will be reimbursed for accommodation and parking expenses incurred while attending Conferences and Meetings on behalf of the Municipality. Receipts must accompany the claim submission. Mileage: Mileage will be paid at the rate established from time to time by Municipal Council for mileage expenses as allowed under this policy. Councillors will be paid mileage while attending Meetings and Conferences on behalf of the Municipality as sanctioned by Council.Mileage will be paid to Councillors to and from their residence to Counciland Committee Meetings. Mileage to Committee Meetings isonly applicable for the Councillor appointed to that Committee by By-Law or Council Resolution. Mileage will be paid to Councillors to and from their residence to attend an event to bring greetings on behalf of the Municipality. This function is usually the duty of the Mayor however on occasion other members of Council will be requestedto fulfill this role.The delegation of this role is customarily assigned by the Mayor however from time to time situations may arise in the absence of the Mayor and with no prior notification where Councillors are required to fulfill this role.Mileage will also be paid to Councillors to attend Municipal functions e.g. New January 2010Page 1 of 2 F09-2010-11 Municipality of BrocktonExpense Reimbursement Policy F09-2010-11 Years Levy etc. Mileage will not be paid to Councillors for travel involved to volunteer at an event. Submission of Expense Claims: Claims for expense reimbursement must be submitted on a quarterly basis or earlier ifthe claim reaches five hundred ($500)dollars. All claims must be submitted on the appropriate forms supplied by the Municipality and must be signed by the Claimant and the Mayor as indicated on the Claim Form. Receipts where requiredmust be attached. January 2010Page 2of 2 F09-2010-11 MUNICIPALITY OF PORT HOPE RESOLUTION Date: 19 Sep 2017 62/2017 MOVED BY:__________________________________ SECONDED BY:__________________________________ WHEREAS Committee of the Whole at their meeting held on September 5, 2017 considered a Staff Report regarding Council Member Remuneration Policy Update; NOW THEREFORE BE IT RESOLVED THAT Council authorize: 1) The Council Member Remuneration Policy effective December 1, 2018 attached hereto; and 2) The administration of a payment of seventy-five dollars ($75) per month for a Travel Allowance to six (6) Council members, excluding the Mayor, for each month beginning December 2014, through to November 2018 inclusive. __________________________________ Mayor R.J. Sanderson REFERENCE #: POLICY: Council Member Remuneration RESOLUTION #: APPLICATION(S): Mayor, Deputy Mayor and Councillors EXCLUSION(S): All Municipal Employees SUPERCEDES: Council Member Remuneration and Reimbursement Policy, effective date December 1, 2014 (Ref. # 2014_01) EFFECTIVE DATE: December 1, 2018 APPROVED DATE: PURPOSE To establish fair and equitable remuneration, reimbursement and benefit guidelines for the Council members of the Municipality of Port Hope. SCOPE The ‘Council Member Remuneration’ Committee members were selected by Council based on their cross representation of the Municipality, experience in business and some members previous experience on Committees. The objective of the Committee was to review the Administration Policy entitled Council Member Remuneration, Reference # 2014_01, effective date December 1, 2014 and revise the Policy to address the remuneration and benefits for the upcoming term of Council. The revised Policy herein, shall be in effect for the period of December 1, 2018 to November 30, 2022. Moreover, it is recommended that a Council Member Remuneration Committee be established in 2022 to review this Policy and provide an updated Policy for approval by June 1 of the Municipal Election year 2022. 1.0REMUNERATION -SALARY 1.1The salaries outlined below represent compensation for: 1.1.1attending Council Meetings; 1.1.2attending Standing Committees; 1.1.3attending Advisory Committee Meetings; 1.1.4attending associated and related business functions; 1.1.5attending Ad Hoc Committee meetings; and 1.1.6representing the Municipality of Port Hope at official functions. 1.2The Council member remuneration stated herein is exclusive of any additional remuneration which may be paid for participation in other Boards, Committees or County Council e.g. Police Services Board, Ganaraska Region Conservation Authority or similar. REFERENCE #: POLICY: Council Member Remuneration RESOLUTION #: APPLICATION(S): Mayor, Deputy Mayor and Councillors EXCLUSION(S): All Municipal Employees SUPERCEDES: Council Member Remuneration and Reimbursement Policy, effective date December 1, 2014 (Ref. # 2014_01) EFFECTIVE DATE: December 1, 2018 APPROVED DATE: 1.3It is understood that the position of Mayor of the Municipality of Port Hope is considered a full-time position and as such is compensated accordingly. 1.4The annual salary for the 2018 incoming Council is as follows: Position2018 Mayor$48,400 or as may be adjusted after any cost of living wage increase is administered in January 2018 Deputy Mayor$26,000 Councillor$20,000 1.5For the remaining years of the Council member’s term of office, a salary increase shall be administered annually retroactively to January st 1of that year equal to the Cost of Living Adjustment approved by Council for the Non-Union employees. 1.6Where a percent increase has been applied as outlined in 1.5 above, the Council member’s salary shall be administered by rounding the amount tothe nearest hundred dollars. 2.0OTHER REMUNERATION 2.1Should a member of Council be required to attend a full or half day: labour conciliation, mediation, negotiation or arbitration session; annual budget meeting (excludes monthly budget meetings) or Municipal obligation, not included in the duties outlined in 1.1 above, the member of Council shall be compensated $200 for a full day and $100 for a half day attendance, where approved by the Mayor. 2.2Requests for participation in conferences, workshops or trainingwhich the Council member deems to be of benefit to the performance of their duties, shall be approved by the Mayor and administered through the budget and expense process. REFERENCE #: POLICY: Council Member Remuneration RESOLUTION #: APPLICATION(S): Mayor, Deputy Mayor and Councillors EXCLUSION(S): All Municipal Employees SUPERCEDES: Council Member Remuneration and Reimbursement Policy, effective date December 1, 2014 (Ref. # 2014_01) EFFECTIVE DATE: December 1, 2018 APPROVED DATE: 2.3A travel allowance of $75 per month for all members of Council shall be paid as compensation for the distance traveled to fulfill the duties outlined in 1.1 above. 2.4Meals, expenses and kilometers driven by a member of Council on official business for the Municipality other than the duties outlined in 1.1 above (e.g. attending a Conference), shall be reimbursed in accordance with the Expense and Reimbursement Policy for Non- Union employees and Council. 2.5The cost of attending a special event (e.g. fundraiser, social events, charity events and the like) shall be paid by the Municipality of Port Hope, where a request from the community has been brought forward to Council and Council has decided by Resolution of Council that a Council representative or delegation should attend. Participation in special events other than those designated by Resolution of Council as requiring Council representation is a personal decision and as such shall not be reimbursed. 2.6Municipal cell phones shall be provided to all members of Council for their business use. The monthly charge for the municipal cell phone plan will be paid by the Municipality and any additional costs incurred for personal use on the municipal cell phone shall be paid by the Council member. Should a Council member use their personal cell phone for business use, only the value of the municipal cell phone plan will be reimbursed to the Council member, after submitting an expense claim form authorized by the Mayor. 3.0BENEFITS 3.1Group health and dental benefit coverage, equivalent to and in accordance with the Non-Union benefit plan, excluding Life Insurance, Accidental Death and Dismemberment and Long Term Disability shall be available to the Mayor at no cost. The Mayor may elect to decline this benefit coverage. 3.2All other Council members may receive group health and dental benefit coverage, equivalent to and in accordance with the Non-Union benefit plan, excluding Life Insurance, Accidental Death and Dismemberment and Long Term Disability, by paying one-third of the benefit cost and two-thirds of the benefit cost shall be paid by the Municipality of Port REFERENCE #: POLICY: Council Member Remuneration RESOLUTION #: APPLICATION(S): Mayor, Deputy Mayor and Councillors EXCLUSION(S): All Municipal Employees SUPERCEDES: Council Member Remuneration and Reimbursement Policy, effective date December 1, 2014 (Ref. # 2014_01) EFFECTIVE DATE: December 1, 2018 APPROVED DATE: Hope. Council members must elect to receive the benefit at the beginning of their term. 3.3The group health and dental benefit coverage terminates at age sixty- five (65). 4.0PROCEDURES/GUIDELINES 4.1The member of Council shall communicate with the Mayor inadvance of the event that requires approval of costs incurred under items 2.1 and 2.2 noted above. Where approval is given to participate in the event, the member of Council shall proceed with registering/scheduling the event. 4.2All costs for business meetings, conferences, training and the like; related travel and meal expenses shall be summarized on expense forms with receipts attached and the reason for re-imbursement noted. Expense forms shall be submitted on a timely basis to the Mayor for review and approval of payment. The Mayor shall submit her/his expenses to the Director of Finance/Treasurer or designate for approval. 4.3In accordance with the Municipal Act the remuneration and expenses paid by the Municipality to each member of Council shall be reported annually. 4.4Accommodation, travel (other than own vehicle) and registration for business related events (e.g. training and conferences) may be arranged through the Executive Assistant to the Mayor or designate. The Council member shall evaluate andselect the most economical and practical means of transportation, be that bus, rail, air or otherwise. Council members shall consider the use of car pools when traveling. MunicipalityCouncil Council Council Committee Mileage Per Diem Rate Action taken Remuneration Remuneration Remuneration Pay (if any) Reimbursement(meetings/regarding loss Base Pay -Base Pay –Base Pay –outside base per kmconferences)of 1/3 tax free MAYORDEUPTY MAYORCOUNCILLORpay rateallowance Lucan Biddulph $17,297.50$13,736.25$12,718.75$100.00.45$150.00pending Twp.Per ½ daycompensation review analysis from Marianne Love Consulting Services Mun. of $31,469.04$24,851.26$21,543.02$0.00.58$0.00$5,000 annual Middlesex salary increase Centre Mun. of North $23,068.00$11,504.43$10,161.17$0.45$85.11 To be reviewed MiddlesexPer ½ Dayafter budget $170.22 Per Full day Mun. of $16,980.94$9,433.86$5,660.34$113.21/mtg$0.55/km$238.29Earlier this year, Southwest council Middlesexapproved a 1/3 increase in compensation to these amounts. Adelaide-20,000.0012,000.0010,000.00150.00150.00 per full To be reviewed Metcalfedaywith budget Strathroy-$44,694.33$22,965.23$17,921.12n/a$0.48n/aAdjusted Rates Caradocto provide same net pay Mun. of Thames $24,681.63$18,156.48$15,036.16PSB -$150.00 .55$150.00Previouscouncil Centreper mtgPer ½ dayset rates from 2018 –2022 Indexed by CPIincrease by same amount as non-unionized employees (1.5% in 2019) Mun. of Grey $16,546.80$11268.36$8288.40$179.48 full $.0455 may $179.48 full approved an Highlandsdaychange as new dayincrease in $96.15 ½ dayemployee $96.15 ½ daycompensation to handbook is compensate for recommending the 1/3 CRA rate.additional tax Malahide Twp.$20,697.96$15,924.12$11,150.52$0.45$165.00No action taken/ adjustments were made to base salary Bayham Twp.$19,463.08$14,595.62$11,352.90.45Gross up 22% to provide the same after tax amount. Mun. of South $31,389.48$22,730.70$18,408n/a$0.58Meal Remuneration Bruce Peninsulaallowance onlywas increased by approximately 30% Tay Twp.$30,178$21,483$16,572.58 updated $87.01/dayAdjusted Rates annually to CRA to provide same ratesnet pay. Mun. of South 17,55011,736 –include 3 11,736 –include More than 3 .58/km<4 hrs -$82 Added 8.7% to BruceIncludes 3 meetings per month3 meetings per meetings/mo >4hrs-$153honorarium meetings/momonthadd 82 < 4 hrs or $153 > 4hrs MunicipalityCouncil Council Council Committee Mileage Per Diem Rate Action taken Remuneration Remuneration Remuneration Pay (if any) Reimbursement(meetings/regarding loss Base Pay -Base Pay –Base Pay –outside base per kmconferences)of 1/3 tax free MAYORDEUPTY MAYORCOUNCILLORpay rateallowance Mun. of West 18,829.9110,633.368,861.13$88.62 for $0.465/km Same as No change but Greymeeting 4 adjusted each Committee may be hours or lessquarter based on Meeting ratesreviewed this a scale using year with the $160.62 for average Southern new Council meeting over 4 Ontario Gasoline hours rates in the previous quarter Twp. Ashfield-10,682.007,531.006,902.00134.88.50154.88No change made Colborne-+134.88 for+134.88 for each +134.88 for each Wawanosheach meetingmeetingmeeting Town of Aylmer$17,600$13,200$10,300n/aSet rate of n/aAdjustment to $0.45/kmbase salary Twp. Blandford-22,011.8514,750.5214,750.52n/aCurrent CRA n/aNo change Blenheimrates Twp. North $10,814.27$8,646.00$7,398.78$65.01 –0.45/kmSame as Council Huronmeetings two Committee increased base hours or lessMeeting ratespay to reflect loss of 1/3 tax $108.35 – free allowance meetings two – four hours $130.02 – meetings over four hours Town of $8,617.44$6,463.06$4,308.71Mayor-$0.58 updated Same as Adjusted Rates Plympton-$198.43/mtgannually to CRA Committee to provide same WyomingratesMeeting rates net pay Deputy Mayor- $180.06/mtg Councillor- $161.68/mtg