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Council Remuneration Review Committee Agenda - September 15 2020 1 The Corporation of the Township of Malahide COUNCIL REMUNERATION REVIEWCOMMITTEE September 15, 202010:00a.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 Orderand Roll Call (B)Disclosure of Pecuniary Interest (C)Approval of Minutes August 25, 2020 (Pages 2-4) (D)Review of Draft Reportto Council -Recommendations of the Committee (Pages 5-9) (E)Next Committee Meeting (F)Adjournment **VIDEOCONFERENCE MEETING Note for Members of the Public: In order to respect the State of Emergency declared by the County of Elgin and Township of Malahide and not hold large public gatherings, please note that the Council Remuneration Review Committeemeetingscheduled to be held on September 15, 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/83716153468?pwd=NFh2V0xDYU1JN3BEcVRCSFlk MkhMZz09 Written comments regarding the Agenda items are welcome please forward such to the Clerk atmcasavecchia@malahide.ca 2 3 4 5 Report toCouncil REPORT FROM:COUNCIL REMUNERATION REVIEW COMMITTEE DATE: September ??, 2020 ATTACHMENT:None SUBJECT:PROPOSED COUNCIL REMUNERATION 2020-2022 Recommendation: THAT the Reportof the Council Remuneration Review Committee entitled Proposed Council Remuneration 2020-2022; AND THAT,effective January 1, 2020,the annual salary for all Members of Council be established as follows: Mayor $23,947.43 ($300.00 increase) Deputy Mayor $17,679.48 ($400.00 increase) Councillor$12,020.78 ($500.00 increase); AND THATthe preceding remuneration shall cover all regular Council and the Committee of the Whole Meetings conducted within the boundaries of the Township; AND THAT, as an inflationary safeguard, the Council's annual salary be automatically adjusted annually, commencing January 1, 2021; it being pointed out that such amounts will be adjusted by the percentage increase granted to the Municipal Staff Salary Grid once determined; AND THAT, effective January 1, 2020, the Council per diem rate be increased from $165.00 to $180.00 per day for participation in work-related conferences and workshops as approved by Council Resolution; AND THAT, effective January 1, 2020, the annual mileage allowance for all Council Members beestablished as follows: Mayor$900.00($50.00 increase) Deputy Mayor$900.00($50.00 increase) Councillor$600.00($30.00 increase); 6 AND THAT, effective January 1, 2020, the mileage rate for the use of personal vehicles for attendance at conferences and workshops be increased from $0.45 per km to $0.52 per km; AND THAT, on or about May 1, 2022, theCouncilbe requested to consider increasing all annual Council salaries by an additional $500.00 to come into effect on January 1, 2023; it being pointed out that the intent of such salary increase is to provide additional incentive for candidates to run for Council in the Fall of 2022; AND THAT the Council Remuneration Review Committee, having fulfilled its mandate, be disbanded. Background: In late 2019, the Council established the Council Remuneration Review Committee. The purpose of which is to review the remunerationand benefits to be paid to the MalahideCouncil Members and, if necessary, recommend changes to be implemented for this term of office.Suchremuneration to be based on realistic standards so that the Elected Officials of Malahidemay be compensated according to their roles and responsibilities. In February, 2020, the Council appointed the following persons to the Committee: Susan Morrell (Chair), Martin Baelde (Vice-Chair), Kevin Morrell, and Richard Robilliard. The Committee Members wereselected based on their expertise and experience in business, management, government,or community organizations. Comments/Analysis: In formulating its recommendations, the Committee focused on developing a compensation plan that: Is fair and reasonable and will attract a diverse and representative pool of candidates from residents wishing to seek election to Council but also be seen as fair by taxpayers; Recognizes that the work of the Mayor and Council is demanding and important and as such they should be appropriately compensated; Recognizes the complexity, responsibilities, time commitments and accountabilities associated with the role of Mayor and Council; Is appropriate for the average full-time earnings within the community; Must demonstrate fiscal responsibility. In addition, the Committee agreed that: Members of Council should not be out-of-pocket to perform the duties of their office. The level of compensation must reflect both the public expectations of the jobs of Mayor, Deputy Mayor,and Councillor, as well as the statutory responsibilities and other duties of thepublic office. 7 The amount of compensation for Members of Council, as well as the method to determine the same, can influence the ability to attract good candidates to local government. The Committee met on five occasions. Some meetings focused on comparator municipalities and other meetings focused on the current roles and responsibilities of Members of Council, amount of time spent by incumbent Council Members on Council business, and what would a fair level of compensation for an individual in that role be? The Committee made the followingobservations and conclusions: 1.Council remuneration is difficult to analyze given the vast differences in scope and size of municipalities in Ontario as well as the impacting economic, demographic and financial variables. Work performed by elected officials also varies significantly given jurisdiction (county, single-tier, upper and lower-tier). 2.That each role: Mayor, Deputy Mayor and Councilor had grown in complexity based on the issues brought before them and the committee structures that have been put in place and the required preparation. Hours often extendinto weeknight meetings and weekend consultations. 2.The Council compensation has not been adjusted since 2012. The Committee noted that since that time, the cost of living has increased significantly andthat the buying power ofa dollar would have also diminished over that period of time. 3.The Committee is aware of the legislative revisions regarding the one third tax much guidance on the financial impact of the removal of this provision. The Committee has made recommendations that take this into consideration. 4.The Committee also noted that currently the Mayor is paidmore than twice that of a Council Member (Mayor ($23,647.43) and Councilors($11,520.78).If annual salary increases are applied only as a percentage, that gap will only widen. 5.Remuneration is not the main appeal or enticement in running for Council remuneration is a factor considered by those putting their names forward for doable only by those with independent financial means to a four-year commitment with a measurable impact on one's life. To appeal to the broadest segment of interested candidates, remuneration must be seen as acceptable by individuals at varied stages of their income earning years. After considering all of the above, the Committee is proposing 6 recommendations based on the following rationale: Increase AnnualSalaries 8 The Review Committee believes that current salaries are somewhat in line with pay rates in other Municipalities. Consideration was given to average wages in Malahide, as well as a percentage of the Good WageOntario. However, there is recognition that annual salaries were not increased from 2012to 2019, and therefore should not be maintained as is considering the increased complexity and demands of the Mayor, Deputy Mayor and Councilmember positions. The Committee determined that annual inflationary increaseswould continue to widen the gap between Mayor and Council member salaries. While there is recognition that these positions should require different pay levels, we also wanted to avoid a situation that would require further compensation adjustments in the future. The adjustments to base salaries are modest, and will not create a financial burden for the Municipality, or subsequently, the taxpayers of Malahide. AnnualInflationary Increase (%) In order to keepsalaries current with other comparable Municipalitiesand with inflationary increases, the Review Committee believes that a flat rate increase alone does not adequately sustain a reasonable wage;therefore, we are recommending the inclusion ofan annual inflationary increase comparable to that of Malahide Municipal staff. NoMeeting Pay With additional increases to base salaries, and ongoing inflationary increasessalaries will be adequate to compensate forCouncil meetings, as well as other meetings. This requires no change. Increase Per DiemRate An increase to the per diem rate putsthe Malahide Mayor, Deputy Mayor and Councillors in a comparable position to other Municipalities, and current rates beingoffered. NoAdditional Benefits The Review Committee considered various options for benefits to be included. After discussion and costing analysis, it was determined that these options would be too expensive for the Municipality to consider at this time. Increase MileageStipend and Mileage Rate Annual Mileage Stipend: consideration was given to how many kmsper year would have been covered forMayor, Deputy Mayor and Council positions, based on the amount paid in 2000. Then amounts were adjusted, according to more current mileage rates. Mileage reimbursement per kilometre: increase to $0.52 per km, which brings it closer to the CRA rate of $0.58 per km. The Committee felt that increased repair and maintenance costs,and increased cost of purchasing 9 vehicles should be considered, and that the rate should be updated. Being mindful of monetary considerations for the Municipalityresulted in the rate recommended. IncreaseAnnual Salaries for Next Council (flat rate) The Review Committee believes that it is important to keep salaries current, and that a reasonable salary may stimulate interest in running for office. We recognize that it is difficult for Council to recommend increases for themselves, but in stipulating that the annual increasecome into effect for the next Council, we hope that this pro-active measure will result in continuing interest in the work of Malahide Council, thus encouraging ratepayers to participate. Financial Implications to Budget: Increase to:2020202120222023 Base Pay*$3,200$3,248$3,297$3,346 Increase for next Council term$3,500 Benefits$480$487$495$1,027 Mileage Allowance$250$250$250$250 Per Diem$105$105$105$105 Mileage Per km$100$100$100$100 Total$4,135$4,190$4,247$8,328 (*Note: Base Pay includes 1.5% Inflationary increase for future years) During 2020 budget deliberations, the Council had approved $12,000 as a placeholder in the multi-year budget to absorb potential increases that may be recommended by the Remuneration Review Committee.As a result, theabove increases willnot impact the approved multi-year budget2020-2022. The 2023 Budget has not been developed yet. The Municipal Staff will ensure that the additional increaseof $3,500 for the next Council is brought forward in May 2022 for Council approval and that all increases are included in the draft budget presented to the Budget Committee and Council. Conclusion: The Committee has reviewed a variety of aspects of Council compensation, keeping in mind the work profiles and peer comparisons. It has recommended increases to match current times and responsibilities. Submitted by: Chair Susan Morrell, on behalf of the Council Remuneration Review Committee