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New remuneration policy adopted for Castlegar’s next council

Changes made to offset federal removal of tax-free expense allowance.
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Castlegar city council has decided to accept the recommendations of the council remuneration select committee and make some changes to the way the next council will be paid.

The select committee was appointed in the spring to look at council remuneration. Three community members — Dale Donaldson, Louise Scott and Chris Bell — sat on the committee. Castlegar has a bylaw requiring remuneration be assessed six months prior to each municipal election.

When making their recommendations the committee took into account a change that the federal government made to how municipal officers are paid. Previously, they could receive up to one-third of their pay as a non-taxable expense allowance to compensate for the costs of doing their job. Beginning in 2019, those tax-exempt amounts will not be allowed.

According to Angie Spencer, CPA with BDO Canada LLP, finance managers across the country are looking at various ways to help mitigate the new tax impact on municipal officers including increasing remuneration so that net take-home pay would remain approximately the same and increasing direct reimbursements.

Last year councillors were each paid $9,333 plus $4,667 in tax-free officers expenses for a total of $14,000. After the election, the new council will be paid $16,000.

The mayor’s pay will increase from $28,000 to $32,000.

Reimbursements

The new policy also allows for more direct reimbursements.

A once per term $1,500 expense grant will be provided.

Lost wage compensation for attending conferences, workshops or meetings was set at $300 per day, for a maximum of five days per year (a statement is required).

Reimbursement for childcare costs for children under 12 during regular council or committee meetings was set at $10 per hour to a maximum of $100 per month (receipts are required).

The committee said the intent of this expense is to remove barriers for those who hesitate to run for council due to family obligations. The committee suggested this expense could go a long way in supporting single parent families or shift workers that may have previously hesitated to run for council due to the out-of-pocket expense of childcare.

When meals are not provided at conferences or similar events, meal allowances will be $20 for breakfast, $25 for lunch and $40 for dinner.

Per diem for incidentals for travel days or conferences was set at $20 per day.

Mileage will not be paid for travel within the Castlegar area.



Betsy Kline

About the Author: Betsy Kline

After spending several years as a freelance writer for the Castlegar News, Betsy joined the editorial staff as a reporter in March of 2015. In 2020, she moved into the editor's position.
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