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Home My Public Portal About2018-12-20_COW_Public Agenda PackagePage 1 of 2 of Agenda Cover Page(s) Committee of the W hole AGENDA Thursday,December 20, 2018 Chester Municipal Council Chambers 151 King Street, Chester, NS 1.MEETING CALLED TO ORDER. 2.APPROVAL OF AGENDA/ORDER OF BUSINESS. 3.PUBLIC INPUT SESSION (8:45 A.M.–9:00 A.M.) 4.MINUTES OF PREVIOUS MEETING: 4.1.Committee of the Whole –December 6, 2018 5.MATTERS ARISING: 5.1 Municipal Employees Service Award Presentations –Warden Webber (appointment at 9:00 a.m.) 5.2 Request for Decision prepared by Finance Department regarding Council Salary Bands. 6.POLICY DEVELOPMENT/REVIEW. 7.CORRESPONDENCE: 7.1 Letter from Region 6 Solid Waste-Resource Management dated December 3, 2018 regarding approval of the 2019-20 Region 6 Inter-Municipal Committee Budget for the upcoming fiscal April 1, 2019 –March 31, 2020. 7.2 Email from Nova Scotia Federation of Municipalities (NSFM) dated December 11, 2018 regarding Municipal interest in being considered for a Pilot Program to remove or phase out the CAP. Replies and comments can be sent to wbrooke@nsfm.ca.Responses will be tallied Friday, December 21, 2018. 7.3 Letter from Nova Scotia Municipal Affairs dated December 5, 2018 regarding Water Shortage Challenges in the South Shore and South West Nova Scotia. 7.4 Letter from Nova Scotia Power dated December 4, 2018 regarding a briefing on the facts on what happened,and the information Councillors need to answer any questions your constituents may have of the exceptional and unforeseen Page 2 of 2 circumstances that led to half of Nova Scotians being without electricity on the November 29 storm and what actions are underway to learn for the future. 8.NEW BUSINESS: 8.1 Request for Decision prepared by Community Development Department dated December 5, 2018 regarding District Fire Risk Assessment. 10.ADJOURNMENT. APPOINTMENT 9:00 a.m.Municipal Employees Service Award Presentations. 9.IN CAMERA: 9.1 Section 22(2)(c) of the MGA – Personnel Matters – Kaizer Meadow REQUEST FOR DECISION Prepared By:Malcolm Pitman, CPA, CA, Director of Finance Date December 11, 2018 Reviewed By:Date Authorized By:Malcolm Pitman, Acting CAO Date December 11, 2018 CURRENT SITUATION 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).To maintain the same net income for the warden, deputy warden and councillors their salary would have to be increased to offset the additional tax liability. RECOMMENDATION That Municipal Council approve changes to policy P-09 to increase salaries to maintain the same net income after elimination of the one-third tax free allowance, as follows: A. The Warden shall be paid a salary of $47,077.64 per annum, B. The Deputy Warden shall be paid a salary of $24,636.66 per annum, C. All remaining Councillors shall be paid a salary of $21,557.70 per annum, and references to the tax-free allowance shall be removed from the policy. BACKGROUND For 2018 and prior the salary paid to elected officials,included one-third that was paid as a non- accountable expenses allowance that was not included in taxable income.This was intended to represent an expense allowance to perform the duties of their office.In the 2018-19 budget, Council included an additional expense budget for increasing the salary paid to elected officers to offset their increase d tax liability starting in 2019. DISCUSSION A survey was done on the AMA listserv and the results accumulated (attached) by Ginette Cheff, Director Finance at the Municipality of Clare. The results show that the majority of respondents have chosen to increase salaries to maintain net income. This was also the method that was used to calculate MOC’s additional expense budget for 2018-19. Using the objective of maintaining the same net pay, payroll calculations determined th e following: The deputy warden and councillors would need an increase of 12.7%to maintain the same net income. For any councillors with no CPP deductions, the net pay would increase with a 12.7% increase. The warden would need an increase of 16.8%to maintain the same net income. This is because the higher income has tax deducted at a higher rate. REPORT TO:Municipal Council SUBMITTED BY:Finance Department DATE:December 20, 2018 SUBJECT:Amend Policy P-09 Remuneration Warden, Deputy Warden and Councillors ORIGIN: 2 Request For Decision The rates of 16.8% and 12.7% were used to calculate the amounts in the recommendations . For example, a councillor’s calculations are as follows: 2018 2019 Annual salary Add 12.7% for 2019 19,128.40 21,557.7 Less: tax free portion (6,376.13 Taxable 12,752.27 21,557.70 Monthly taxable salary Divide by 12 1,062.69 1,796.47 Monthly tax free salary 531.34 Tax deduction (12.02)(177.89) CPP deduction (38.17)(74.48) Net monthly pay 1,543.84 1,544.10 Actual monthly amounts for individual councillors in 2018 will vary with the above calculation as they often have voluntary extra tax deductions and payments included for travel costs. IMPLICATIONS Policy –n/a Financial/Budgetary –The 2018-19 budget included a $5,662 increase for the three months Jan to Mar/2019.It is estimated that the recommended increase will cost $6,234, which is $572 over the budget. Environmental –n/a Strategic Plan –n/a Work Program Implications -n/a OPTIONS Options for the policy amendment: 1.Approve the recommendation. 2.Select different amounts or percentages for salary increases 3.Refer back to Director of Finance to use an alternative method to calculate the increase. ATTACHMENTS Amended Policy P-09 Remuneration Warden, Deputy Warden and Councillors Council Honorarium List Serve Question Results COMMUNICATIONS (INTE RNAL/EXTERNAL) Internal –n/a External-n/a Municipality of the District of Chester Remuneration of Warden, Deputy Warden and Councillors Policy P-09 Amended Effective:January 1, 2019 April 1, 2018 Remuneration of Warden, Deputy Warden and Councillors Policy P-09 First Notice –Committee of the Whole –March 1, 2018 (2018-105) Second Notice –Council –March 8, 2018 (2018-105/111) Effective Date –April 1, 2018 MUNICIPALITY OF THE DISTRICT OF CHESTER POLICY P-09 REMUNERATION WARDEN, DEPUTY WARDEN AND COUNCILLORS 2018/19 BE IT RESOLVED that the remuneration of the Warden and Councillors shall be as follows: A.The Warden shall be paid a base salary of $47,077.64 $40,306.20 per annum,$26,870.78 as a taxable stipend and $13,435.39 as an elected official’s tax-free allowance,payable monthly. B.The Deputy Warden shall be paid a base salary of $24,636.66 $21,860.39 per annum, $14,573.58 as a taxable stipend and $7,286.79 as an elected official’s tax-free allowance, payable monthly. C.All remaining Councillors shall be paid a base salary of $21,557.70 $19,128.40 per annum, $12,752.26 as a taxable stipend and $6,676.13 as an elected official’s tax-free allowance, payable monthly. D.Annually the Municipal Council considers the cost of living increase which has taken place over the previous year and will approve an increase in the level of compensation which is to be payable to all employees of the Municipality under Section 5.3.1. The percentage increase approved for staff will also apply to the remuneration paid to the Warden, Deputy Warden and Councillors. E.As provided by the Income Tax Act (Canada)as amended, the amounts provided for payments to Warden, Deputy Warden and Councillors in paragraphs A, B, C and D shall be paid as follows: Two-thirds as a taxable stipend; and One-third as an elected official’s tax-free allowance. E F.All Councillors, including the Warden and Deputy Warden, in addition to the paym ents set forth above, shall be paid an allowance for travel for kilometres travelled once each day for going to and returning from every daily session of the Council or a Committee or attendance at every Board Meeting or other function if this attendance i s as a representative of Council. The allowance for travel will be a per km rate reimbursed at the provincial rate. Remuneration of Warden, Deputy Warden and Councillors Policy P-09 First Notice –Committee of the Whole –March 1, 2018 (2018-105) Second Notice –Council –March 8, 2018 (2018-105/111) Effective Date –April 1, 2018 F G.A Warden or Deputy Warden and Councillors who miss more than three (3) Council or Committee meetings in any year without leave of Council shall have the sum of $55.00 per missed meeting deducted from any salary paid to such individual. H.This Resolution shall take effect on the 1st day of January 2019 April 2018. Remuneration of Warden, Deputy Warden and Councillors Policy P-09 First Notice –Committee of the Whole –March 1, 2018 (2018-105) Second Notice –Council –March 8, 2018 (2018-105/111) Effective Date –April 1, 2018 RECORD OF ADOPTION/AMENDMENTS Effective Date Reason for Adoption/Amendment March 16, 2017 2017-135 –Approval of Cost of Living (CPI) of 1.2% approved by Council on March 16, 2017. July 31, 2017 Amendment to change all policies with mileage references to reflect use of provincial mileage rate. April 1, 2018 2018-105/111 -Approval of Cost of Living (CPI)of 1.1% approved by Council on March 8, 2018. January 1, 2019 -Approval of increase to maintain same net income after elimination of the one-third tax free allowance. Annotation for Official Policy Book Date of First Notice March 1, 2018 (2018-105) December 20, 2018 Date of Second Notice March 8, 2018 (2018-105/111) January 10, 2019 Effective Date April 1, 2018 January 1, 2019 I certify that this Policy was adopted by Council as indicated above. _______________________________________March 12, 2018 Pamela M. Myra, Municipal Clerk Date