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HomeMy WebLinkAboutADM-003-02 .:' , ."C!fJ!illgron REPORT ADMINISTRATION Meeting: General Purpose and Administration Committee Date: February 4, 2002 File #!2P1 . CI;1-tY/3 -cJ.:( By-law # 1.tJoJ- - /7 . Report #: ADM-03-02 Subject: REMUNERATION AND TRAVEL ALLOWANCE FOR ALL MEMBERS OF COUNCIL Recommendations: 1. That Report ADM-03-02 be received. 2. That the annual adjustment to the remuneration and travel allowance for all members of Council be in accordance with the current and future collective agreement settlements applicable to the Canadian Union of Public Employees Local 74. 3. That all members of Council within their current term of office until November 30, 2003 shall not be entitled to any increase as a result of the annual adjustment in recommendation #2. 4. That an "OMERS equivalent" Retirement Pension contribution of 7.5% of the portion of the current remunerations that is not eligible for OMERS contribution be established for all members of Council effective January 1, 2002. 5. That the budget allocation for years 2002 and 2003 for members of Council to attend conferences, seminars and educational/training courses be adjusted as follows with future adjustments to be dealt with through the budget process at the beginning of each new term of Council: Mayor: Members of Council: $10,000.00 $4,000.00 6. That the attached by-law establishing the rate of remuneration and travel allowance for the Mayor and members of Council be approved. Respectfully submitted, o hf..--12JL::::::C~ Franklin Wu, Chief Administrative Officer 1401 . REPORT NO.: ADM-03-02 PAGE 2 BACKGROUND AND COMMENT 1. Remuneration Many of the Area Municipalities, including the Region of Durham, have recently made adjustments to the remuneration for the Mayor and Members of Council recognizing their contribution and the increasing workload and demands of their respective positions. This is particularly true in Clarington where the work of the Mayor is more than a full time job and other Members of Council have to devote increasing hours in the municipal office to deal with the ever increasing workload of a fast growing municipality. As such, it is incumbent on the Administration of the Municipality of Clarington to recommend reasonable adjustments that would adequately and appropriately reflects the mandate and responsibilities of various Council positions. The current rate of remuneration was established by By-law 98-173, passed on November 23, 1998, which set the year 2000 rate at $50,000 for the Mayor and $20,000 for each member of Council. These rates have not been adjusted and remain in effect today. The Administrator has examined various options to effect adjustments to the current rate and believe that the following guiding principles should be adhered to: a) Current members of Council should not be placed in a position to raise his/her own rate of remuneration and benefit directly from such action. This is prudent to ensure integrity in the process as well as to address any negative criticism, perceived or otherwise, from the public. 1402 . REPORT NO.: ADM-03-02 PAGE 3 b) Rate of adjustment must be reasonable. In consideration of these principles, the Administrator recommends the current rate of remuneration and travel allowance remain unchanged for the current term of Council to November 30, 2003. However, the current Council should determine the rates of remuneration for the next Council as of January 1, 2004. This is necessary so that all candidates vying for a Council position will know well in advance of the remunerations. With regard to the rate of adjustment, it seems reasonable to consider the same rate of adjustment awarded to the Canadian Union of Public Employees Local 74, that being 3% for each of years 2002, 2003 and 2004. Based on the foregoing, the new rate of remuneration and travel allowance for the Mayor and members of Council are as follows: Remuneration Current January 1, 2002* January 1, 2003 January 1, 2004 (3%) (3%) (3%) Mayor $50,000 $51,500 $53,050 $54,640 Councillor $20,000 $20,600 $21,220 $21,860 Travel Allowance Current January 1, 2002 January 1, 2003 January 1, 2004 (3%) (3%) (3%) Mayor $6,000 $6,180 $6,365 $6,556 Councillor $2,400 $2,472** $2,546 $2,623 'Adjustment not applicable to current Council Members "Amount to be increased by $50.00 per month for the two Regional Councillors effective January 1, 2002 during their rotating term as Deputy Mayor Further, to ensure the whole issue of remuneration is addressed consistently for all future Council, the Administrator is of the opinion that Council should, by policy, set all future rate adjustments for remuneration and travel allowance beyond year 2004 to be the same rates as those resulting from future collective agreement settlements with CUPE Local 74. 14'J3 .. REPORT NO.: ADM-03-02 PAGE 4 2. OMERS Equivalent Retirement Pension Contribution Under OMERS regulations, the Municipality is required to contribute an employer's portion (current maximum rate 7.5%) towards OMERS pensions. Despite members of Council being OMERS members, the Regulations do not permit the employer to make the matching contribution on the one-third tax free portion of a Council member's salary. This is a serious disadvantage to Council members whose pension earnings in the future will be reduced. In order to ensure equitable treatment is provided to all OMERS members, the Administrator recommends the employer to contribute to an "OMERS equivalent" type pension plan on behalf of all members of Council for that tax-free salary portion that is not covered by OMERS. 3. Conference/Seminar/Education/Traininq Courses Municipal staff are permitted full reimbursement for attending conferences, seminars, educational and training courses to upgrade their skills and each year Council approves the appropriate funds for this purpose. The Municipality had traditionally provided limited funds at $2,500.00 for the Mayor and $1,000.00 for each Councillor for the same purpose. These amounts, which were introduced in the late 1980's, are no longer sufficient. Today, on average, a single conference would cost more than $2,000.00 and an educational course/seminar in between $750.00 to $1,500.00. In addition, the amounts provided for never took into account those special and unexpected occasions where the Mayor would have to be out of town to conduct municipal business such as the recent trip to Ottawa on Bill C-27. Further, any unused portion is not transferrable to subsequent years. As a result, the Administrator respectfully recommends the amounts be adjusted to $15,000.00 for the Mayor and $6,000.00 for each Councillor for their entire 3 year term of office. It should be noted that these amounts represent the available maximum limits and it is at the discretion of each member of Council to decide on when and on the type of conference, seminar, educational/training courses he/she 1404 . REPORT NO.: ADM-03-02 PAGE 5 may wish to take. Recognizing there are only two years left in their current term of office, the above figures would be pro-rated to $10,000.00 and $4,000.00 for the Mayor and Councillors respectively for the balance of their term of office, being 2002 and 2003. The current practice of pre-approval by the Mayor of each Councillor's request will remain. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-5717 1405 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 02-_ Being a by-law respecting the annual allowances paid to the Mayor and Members of Council and to repeal By-law 98-173 as amended WHEREAS the recommendations contained in Report ADMIN-03-02 was approved by Council to effect certain adjustments to the remuneration and travei allowance for members of Council; NOW THEREFORE BE IT RESOLVED THAT: 1. The rate of remuneration for members of Council be approved at the following rates: January 1. 2004 Mayor Councillor $54,640 $21,860 2. The travel allowance for members of Council be approved at the following rates: January 1, 2004 Mayor Councillor $6,556 $2,623 3. That the travel allowance for those members of Council serving as Deputy Mayor be reimbursed $50.00 per month. 4. That future adjustments to remunerations and travel allowances be set in accordance with future settlements approved for the employees of the Canadian Union of Public Employees Local 74. 5. By-law 98-173, as amended, is hereby repealed. By-law read a first and second time this By-law read a third time this day of day of 2002. 2002. John Mutton, Mayor 14 r) 6 Patti L. Barrie, Municipal Clerk