By Sheldon Spackman

Sylvan Lake latest to increase council salaries ahead of tax changes

Nov 30, 2018 | 4:03 PM

The Town of Sylvan Lake is the latest central Alberta community joining others across the country in increasing mayor and council pay rates.

The adjustments are being made in light of upcoming changes to federal tax laws that will remove long-standing tax exemptions for elected officials for one-third of their salaries.

Sylvan Lake is increasing the mayor’s monthly honorarium from $4,069.21 to $4,675.23 ($48,830.52 to 56,102.76 for the year), while council remuneration will increase from $1,932.40 to $2,218.38 monthly ($23,188.80 to $26,620.56 annually) effective January 1.

Communications Coordinator Joanne Gaudet says the changes will ensure take-home pay remains the same for the mayor and councillors, but adds there was general disappointment expressed during council’s regular meeting this week that the changes are coming mid-term.

“It is fair, we did have a volunteer Council Remuneration Committee actually review the proposed adjustment, as well as the circumstances around it and their recommendation to council was to ensure that council take home pay remains the same.”

project will take one year

Construction activity to start on hospital parkade expansion

21m ago

Red Deer man charged after police locate stolen vehicle

39m ago

City and County to collaborate on regional economic development with NRED grant

3h ago

Starting January 1, all compensation for mayors and councillors across Canada will be taxed as full income and be subject to deductions for Canada Pension Plan (CPP) contributions, thereby decreasing after-tax compensation for elected municipal and provincial officials.

The Federation of Canadian Municipalities (FCM) says municipalities that take no action may risk discouraging participation in municipal administration, especially among youth.

In the City of Red Deer, council voted 5-4 vote this week to increase the mayor’s yearly salary from $112,198.94 to $131,940.43 and city councillor salaries from $60,466.44 to $68,618.16. The net pay difference will be an additional $1.94 annually for the mayor and $2.86 for councillors.

In the City of Lacombe, remuneration adjustments have been approved in the City’s operational budget for next year.

“Here in Lacombe, we are similar to the majority of communities,” says Mayor Grant Creasey. “We have chosen to increase the salaries for elected officials to an amount that keeps the take home pay exactly the same as it was prior to these changes which I think is a fair direction to take.”

The mayor’s yearly salary in Lacombe is rising from $56,313 to $66,886 in 2019, while councillors will go from making $24,671 annually to $28,037.

In Lacombe County, increases have been approved for the mayor (from $64,999.92 yearly to $78,999.96) and councillors ($57,999.96 to $69,999.96).

The Town of Blackfalds is increasing the mayor’s yearly salary to $40,920 from $22,440, and councillor salaries to $37,140 from $20,316.

In Innisfail, the mayor’s current base honorarium of $2,700/month stands to rise only slightly, with a cost of living adjustment of 1.5 per cent proposed for 2019 that would bring it to $2,740.50. Councillors would go from making $1,300/month to $1,319.50.

Innisfail CAO Todd Becker points out council has not readjusted their remuneration at this time as the 2019 budget, which is scheduled to be reviewed on December 10, has yet to be approved. Also, the remuneration policy is expected to be reviewed by a public committee sometime in 2019.

In the Town of Penhold, base pay for the mayor and council will remain the same for 2019 as the Town has already passed its budget for 2019. The mayor currently receives $1,385.25 monthly while councillors receive $ 1,033.05.

Red Deer County so far stands alone as officials confirm there are currently no plans to discuss changing the remuneration rate for mayor and council. The mayor’s base pay is currently $85,439.77 per year with a per diem rate of $105 per half day (up to 4 hours) and $210 per day. County councillors currently receive a base pay of $59,967.04 and the same per diem rate as the mayor. Any pay increases for Red Deer County elected officials are tied to the Alberta Consumer Price Index.