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HomeMy WebLinkAboutCOD-005-04 '. ~- . Cl~-!lJgron REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Ho'::-;, Resolution #: G~ -077 -o<Y February 9, 2004 Report #: COD-005-Q4 File#: By-law #: .:0001.1- ()tf5 Subject: Single Stream Payment for Regional Compensation Recommendations: It is respectfully recommended to Council the following: 1. THAT the Municipality of Clarington. based on confirmation of the Region of Durham's approval of the transfer of responsibility for processing payroll, will process compensation for the Mayor and Regional Councillors at the local level. 2. THAT Participation in the single stream payment process for both local and Regional responsibilities will be optional for the Mayor and Individual Members of Regional Council. 3. THAT the Municipality of Clarington will invoice the Region of Durham for all expense incurred in relation to processing the Regional payroll for the Municipality of Clarington Mayor and the Municipality of Clarington Regional Councillors' salaries. 4. THAT the attached by-law providing for the payment of Regional payroll at the local level with appropriate invoicing to the Region for related costs be approved; and THAT the Region of Durham be notified and provided a copy of the approved by- law. S"bm_ by. ~~ ne arano Director of Corporate Services 5. u~ /7f)-/ n Reviewed .. ~ ~LAJ L..... Franklin Wu Chief Administrative Officer MM*ca \ 'f 'J '\ c REPORT NO.: COD-DOS-D4 PAGE 2 BACKGROUND 1. Over the past few years there has been a growing trend by Regional Municipalities to structure the payment of Regional compensation, including OMERS contribution through the local level. The local level then invoices the Region for all associated costs related to the process. The Region of Durham is proposing to bring this recommendation forward, pennitting the area Municipalities to individually choose this option. 2. There is no impact to the local level since all costs and contributions made on behalf of the Region are invoiced back to them. 3. The individual Regional Council member can elect to participate or remain on the separate payment stream. The only advantage for the Mayor and Regional Councillors is to permit them, through employee deductions, to contribute a higher value to their retirement plan over time. The employer contribution will be invoiced to the Region. The OMERS plan related to the local level should not be impacted, according to OMERS. 4. The single stream process has been investigated with OMERS, who advise that since the Municipality currently participates in the OMERS plan for the Mayor and Council at the local level, this option is permitted. Canada Customs and Revenue Agency have also been consulted, and they have advised that this option is pennitted. Staff at the Region of York and the Town of Newmarket have been consulted regarding their experience, and both have advised that they have not had any significant issues either from the Regional or local levels. 5. It is recommended, that with the Region approval of the processing of Region compensation at the local level, the municipality of Clarington participate at the option of the individual Council Member. Approval of the attached by-law will put into effect, the opportunity. Attachment #1: By-law CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOW MANVILLE, ONTARIO L 1 C 3A6 T (905)623-3379 F (905)623-6506 1 ') LjL Report COD-005-004 Attachment # 1 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2004- Being a by-law to permit the processing of Regional Payroll, associated deductions and remittances, including OMERS, for the Municipality of Clarington Mayor and councillors serving on the Region of Durham Council. WHEREAS the Region of Durham intends to approve the processing of Regional Compensation to the Mayor and Regional Council Members through the Local Municipal payroll; NOW THEREFORE THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1. THAT the Municipality of Clarington will process at the lower tier, payment for the Regional responsibilities, the approved Regional compensation value, without the 1/3 tax free allowance; 2. THAT the Municipality will deduct the appropriate statutory deductions and remit to the applicable agencies, including OMERS, in accordance with the governing regulations and legislation; 3. THAT the Region of Durham will be invoiced for any processed Regional compensation, including appropriate charges related to OMERS and any other legislated requirement or cost; and 4. THAT the Municipality of Clarington will not incur any additional costs associated with the processing of the Regional payroll; and 5. THAT the processing of the payroll as described herein becomes effective upon approval of the process by lIhe Region of Durham. By-law read a first and second time this day of ,2004. By-law read a third time and finally passed this day of ,2004. John Mutton, Mayor Patti L. Barrie, Municipal Clerk 11..))