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Seeking clarity and transparency

City manager to determine salary adjustments for city council

Nov 12, 2019 | 6:41 PM

Members of Red Deer city council will no longer be voting on how much they are paid.

Under a new policy approved by council on Tuesday, council compensation will now only be reviewed and adjusted at the beginning of each new term.

The City says in a release that a salary review led by the City Manager will take place in the year leading up to a municipal election.

The new policy also aims to standardize and make transparent the review and adjustment of exempt staff salaries. Annual adjustments will now take place on March 1 of each year. The City says exempt staff salaries will be adjusted by the lower of either the prior year Alberta CPI (as reported by StatsCan), or based on the lowest settled City of Red Deer collective agreements in the previous year.

“Approval of this policy enables us to remove the subjectivity of annual salary reviews and adjustments for both City Council and exempt staff,” says City Manager Seabrooke. “We are introducing an unbiased, external source, from which to determine compensation changes, all in an effort to be increasingly transparent and avoid any influence by administration and management.”

Seabrooke noted that the need for a new policy was highlighted over the last year following increased debate around what external comparator organizations are doing with their salaries, the need for increased transparency, changing union settlements and agreements and overall shifts in the economy.

“Ultimately, this new policy is about ensuring we remain competitive while simplifying the process and demonstrating our commitment to transparency and equity,” he said.

Red Deer’s mayor currently earns just over $131,000 annually, while councillors make just shy of $69,000.

“Elected officials should not be voting on their own compensation,” said Mayor Tara Veer. “This policy change resolves this longstanding tension.”

Last month, city council voted to freeze their salaries for the upcoming year. At the time Veer said it was important for council to lead by example while asking city administrators to look for $15 million in savings over the next three years.

City council received a lot of heat from the public last year when they voted 5-4 to give themselves a substantial pay raise. The move was made in response to the federal government’s decision to remove a one-third tax exemption on salaries for elected officials in Canada. The end result was larger salaries Red Deer’s mayor and councillors, but essentially no change in their net pay.

(With file from City of Red Deer media release)