The current city council will not have a hand in determining what its future pay will be, and instead, will leave the decision in the hands of an arms-length panel.
The creation of such a panel is in response to the federal government eliminating the tax exemption on one-third of all remuneration for elected officials. This move has resulted in a net pay cut for all mayors and councillors; mayors have been affected the most since that position is usually full-time.
During its recent executive committee meeting, Moose Jaw council voted 6-1 on a recommendation to appoint a three-member panel to make recommendations on council’s remuneration and expenses. These recommendations would go into effect for members elected during the November 2020 municipal election.
The three-member panel would consist of the city clerk/solicitor as chair, a representative as nominated by the Moose Jaw and District Chamber of Commerce, and a representative nominated by the Moose Jaw and District Labour Council.
Formal appointment of the two recommended members would be made by June. The panel would seek public input through written submissions and a public hearing. Any new remuneration and expense structure would go into effect Jan. 1, 2021.
Coun. Brian Swanson was opposed to the recommendation.
The recommendation only becomes official when passed during the April 22 regular council meeting.
Background
In response to the federal government’s decision, many large cities in Saskatchewan adjusted their 2019 remuneration rates so their elected officials continued to receive about the same net pay, explained a city administration report.
Before adjusting their rates, the pay formula for the mayor of Saskatoon was 85 per cent of a provincial cabinet minister; 77.3 per cent for Regina’s mayor; 50 per cent for Prince Albert’s mayor; and 47 per cent for Moose Jaw’s mayor.
The remuneration of councillors, considered part-time, was generally set at 35 per cent of what a mayor makes.
A provincial cabinet minister’s annual indemnity and allowance is $145,152.
As of 2018, the salary of Moose Jaw’s mayor was $68,221, while the salary of a city councilor was $22,740. With the removal of the tax exemption, the mayor now receives $53,475 while councillors receive $20,819.
During the 2019 budget discussions, a city administration report recommended that — to offset the elimination of the tax exemption — the mayor receive salary of $79,108 before taxes and councillors receive $24,918 before taxes. That adjustment was approved in January.
The amendments that Saskatchewan cities have made in 2019 to retain net incomes have now distorted the relationship to the cabinet minister benchmark, the administrative report said.
Saskatoon and Regina have set their mayor’s salary to that of a minister. Lloyminster, which has about the same population as Moose Jaw, set its mayoral salary at $15,000 above Moose Jaw’s. Yorkton, with half the population of The Friendly City and whose mayor is part-time, now pays its mayor more than Moose Jaw.
To handle council remuneration and expenses of elected officials, administration recommended that a panel be created due to the “given self-interest of members currently in elected positions, as well as their general reluctance to setting their own pay.”
The next executive committee meeting is Monday, April 22.
