2/28/2018 Corporation of the Town of Cobourg Council Remuneration Review Council Remuneration Ad Hoc Committee Meeting Thursday March 1, 2018 Board Room, Victoria Hall, Cobourg Corporation of the Town of Cobourg Corporation of the Town of Cobourg Council Remuneration Review Objective: Review salaries, benefits and expense policies for Cobourg Municipal Council for the positions of Mayor, Deputy Mayor and Councillor and report back to Council for a decision. Guiding Principles- The purpose of the Ad Hoc Committee shall be to review Council Remuneration and make recommendations based on: 1. An understanding of what is asked and expected when an individual is elected to Municipal Council; 2. Responsibility level of the office as elected representatives of the citizens of the Town of Cobourg based upon the position held being Mayor, Deputy Mayor and Councillor; 3. Remuneration compared to other similar Ontario Municipalities having a similar population and having a seven (7) member Council comprised of one (1) mayor, one (1) deputy mayor and five (5) Councillors wherever possible to reflect the current make-up of the Town of Cobourg Municipal Council. Corporation of the Town of Cobourg 1
2/28/2018 Corporation of the Town of Cobourg Council Remuneration Review • Guiding Principles, Mandate from Council Planning • Ad Hoc Committee, information provided by Staff • Benchmarking with Comparators Data Gathering • Council On-line Survey and Discussion • Cornpensation analysis/Comparability Analysis • Expenses and Mileage options analysis • Aligned with Guiding Principles Recommendations • Consideration of proposed changes to Council Corporation of the Town of Cobourg Corporation of the Town of Cobourg Council Remuneration Review By-law No. 078-2015 — Paying of Remuneration including Expenses, Insurance and Benefits to Members of Council. Remuneration and Expenses — Section 283 of the Municipal Act, 2001 283 (1) A municipality may pay any part of the remuneration and expenses of the members of any local board of the municipality and of the officers and employees of the local board. Limitation (2) Despite any Act, a municipality may only pay the expenses of the members of its council or of a local board of the municipality and of the officers and employees of the municipality or local board if the expenses are of those persons in their capacity as members, officers or employees and if, a) the expenses are actually incurred; or b) the expenses are, in lieu of the expenses actually incurred, a reasonable estimate, in the opinion of the council or local board, of the actual expenses that would be incurred. Corporation of the PriV, � Town of Cobourg 2
2/28/2018 Corporation of the Town of Cobourg Council Remuneration Review Highlights of By - law No. 078 - 2015 — Paying of Remuneration including Expenses, Insurance and Benefits to Members of Council. • Council Remuneration amount paid to each elected position office, with an annual adjustment in accordance with the CPI; " Special Note- Remuneration is subject to a reduction in the amount of $250.00 per meeting for absence from Regular Council and Committee of the Whole meetings in excess of five meetings per year. Members of Council are included in the non-union salary group of • Insurance Benefits - eligible insurance benefits, excluding the Ontario Municipal Employment Retirement System. (OMERS). Benefits include; extended health, dental and life insurance. Benefit Premium for Council over 65 = $5,649.12 annually Benefit Premium for Council under 65 = $5,752.80 annually Corporation of the Town of Cobourg Corporation of the Town of Cobourg Council Remuneration Review Highlights of By - law No. 078 - 2015 — Paying of Remuneration including Expenses, Insurance and Benefits to Members of Council. • Council Per Diem — Each Member of Council may be paid remuneration for loss of wages in the amount of $250.00 per day to a maximum of $1,000.00 per year for attendance at conferences, seminars, workshops and other meetings as a member of Council may be required to attend representing a service or function for the Corporation. • Council Expenses — Members of Council are entitled to reimbursement of expenses incurred while attending conferences, conventions or educational seminars as required by their Council position for: Registration Fees, Hotel Accommodation, Attendance at Meetings, Travel/Mileage Allowance, Admission fees. - Members of Council shall be limited to an annual expense allowance of an amount established in the annual Council Operating Budget. Corporation of the Town of Cobourg 3
2/28/2018 Corporation of the Town of Cobourg Council Remuneration Review Highlights of By-law No. 078-2015 — Paying of Remuneration including Expenses, Insurance and Benefits to Members of Council. • Council Memberships: The Town of Cobourg pays the annual fees for on-going memberships in the associations and organizations approved during the Annual budget deliberate on process. • Council Parking — Car Allowance: Members of Council are provided with an annual parking pass each year during their term of office for use in all municipal parking areas. - Mayor is provided with a reserved parking space beside Victoria Hall; - Mayor is provided with a annual car allowance in the amount of $1,000 per year for local travel. Corporation of the Town of Cobourg Council Remuneration Review Elected Office 2 Remuneration 2017 $34,720 Mayor $21,851 Deputy Mayor $17,528 Councillor ***Annual Compensation adjustments made each year in accordance with the Ontario Consumer Price Index (CPI) effective July 1, each year. Corporation of the Town of Cobourg 4
2/28/2018 Corporation of the Town of Cobourg Council Remuneration Review Expense � Budget Cell Phones (includes all Council) � $4,200.00 Memberships/Subscriptions $10,875.00 (AMO, ROMA/OGRA) Conferences/Conventions � Mayor- $4,200.00 Deputy Mayor/ Councillor — 12,000.00 ($2,000.00 per Councillor) Vehicle Allowance � Mayor- $1,000.00 Travel Expense � $3,500.00 TOTAL � $35,775.00 4-9 Corporation of the v . 4;ft . Town of Cobourg Corporation of the Town of Cobourg Council Remuneration Review 1/3 Tax Free Allowance • Municipal elected officials across the country have been able to decide to use a 1/3 tax exemption in lieu of claiming expenses related to their duties. The Town of Cobourg has passed a By-law for the 1/3 Tax Free Allowance. The 2017 Federal Governement Budget introduced the removal of the tax exemptions • for non-accountable expense allowances paid to members of provincial and territorial legislative assemblies and to certain municipal office-holders. This exemption is only available to certain provincial, territorial and municipal office holders, and provides an advantage that other Canadians do not enjoy. (Expert from the Federal Governement) • For 2019 and later tax years, non-accountable allowances paid to elected officers will be included in their income. This change was stated in the 2017 federal budget, which received royal assent on June 22, 2017 (Bill C 44). Corporation of the Town of Cobourg 5
2/28/2018 Corporation of the Town of Cobourg Council Remuneration Review Council Member Survey • Standard compensation practices are based on valuing a position based on a job description. However, since there is no job description for a Mayor or Councillor a survey will be circulated related to Council roles and responsibilities and meeting attendance requirements to gain a better understanding of basic minimum statutory obligations. Members of Council are required to attend meetings during normal workday business • hours which impacts employed and self-employed members of Council. Members of Council must also allocate time during evenings and weekends. Members of Council can, and do, allocate significant time and energy to interacting with constituents, reading background materials, carrying out research in preparation of meetings, and taking other steps to ensure they are fully informed when analyzing, advocating, and voting on issues. Corporation of the Town of Cobourg Council Remuneration Review Committee Considerations • Scope of Position/Responsibility of elected office; • Base Number of Hours required for Council Members as gatherd from Cobourg Municipal Council Survey; • Review Comparable municipalities; • Impact of 1/3 tax-free allowance; • Town-paid group Insurance and benefits; • Technology/ways of conducting business. Corporation of the Town of Cobourg 6
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