The Corporation of the TOWN OF MILTON

Transcription

1 The Corporation of the TOWN OF MILTON Report to: From: Mayor G.A. Krantz & Members of Council Linda Leeds, Director, Corporate Services and Treasurer Date: June 25, 2012 Report No. CORS Subject: Council Compensation Review RECOMMENDATION: THAT the 2012 annual salary be established for the Mayor at $77,850 and for Councillors at $32,120; EXECUTIVE SUMMARY AND THAT the increase between the current salaries and the 2012 annual salary be phased in by one-third in each of 2012, 2013, 2014 effective January 1st of each year; AND THAT the one-third tax free allowance be retained for the 2010 to 2014 Term of Council; AND THAT the recommendations outlined in this report regarding Professional Development, Mileage, Benefits and future Council Compensation reviews be approved; AND THAT the Council Compensation Committee be thanked for their time and service in completing the review. The Council Compensation Committee was appointed to determine appropriate remuneration for Council members. The mandate of the Committee has now been fulfilled through this report to Council. REPORT Background In November 2011, Council approved the creation of a citizen committee to review the market data survey to determine if the Mayor and Councillors remuneration is appropriate.

2 The Corporation of the TOWN OF MILTON Report No.CORS Page No. 2 The committee was comprised of the four members of the Municipal Election Compliance Audit Committee (Ryan Carson, Desmond Chin, Josh Morgan, Michael O Gorman) with the President of the Chamber of Commerce (Melissa Coulson) as Chair of the Committee. Discussion The Committee met three times through December 2011 and January 2012 and the recommendations contained in this report are those of the Committee. The minutes from the committee meetings are attached as appendix A to this report. In completing its mandate, the Committee reviewed: Market data survey regarding annual salary, benefit plans, mileage and professional development allowances; The 2007 Council compensation report; and, The processes utilized by the benchmark municipalities in determining Council compensation As part of the 2007 Council Compensation Review, Council approved that any recommended increases applied to Council member s salaries be determined using an average based on the actual annual salaries of benchmarked municipalities excluding the highest and the lowest. The committee endorsed this methodology for the determination of the Mayor s and Council s compensation. The following is a summary of the salary comparisons with the benchmark municipalities: Municipality Population # Council Members Mayor's Salary Councillor's Salary 1/3 Salary Tax Free Town of 88,000 $65,128 $27,025 Milton 11 Y Town of Newmarket 82,000 9 $86,396 $44,615 Y Clarington 80,590 7 $80,820 $32,328 Y Town of Caledon 60,000 9 $60,516 $26,767 Y *City of Burlington 165,000 7 N/A N/A N

3 The Corporation of the TOWN OF MILTON Report No.CORS Page No. 3 Municipality Population # Council Members Mayor's Salary Councillor's Salary 1/3 Salary Tax Free Town of Halton Hills 55, $53,523 $22,776 Y Town of Ajax 100,000 7 $78,052 $33,205 Y ***Town Of Oakville 175, $104,738 $42,353 N City of Guelph 122, $89,874 $30,003 Y **City of Waterloo 122,200 7 N/A N/A Y County of Wellington 93, $81,603 $29,997 Y Average $77,850 $32,119 Town of Whitby No Response * Highest salary-city of Burlington not included in calculation ** Lowest salary-city of Waterloo not included in calculation *** Town of Oakville salaries restated to be comparable to the other municipalities who have retained the 1/3 tax free allowance The committee is recommending the annual salaries be established based on the above data. The impact is as follows: Current Salary Recommended Salary Increase Mayor $ 65, $ 77, $ 12, Councillor $ 27, $ 32, $ 5, /3 Tax Free Allowance With the introduction of The Municipal Act 2001, Municipal Councils were allowed the option of choosing to continue to receive one-third of their remuneration as a tax-free allowance or remove the tax-free allowance, making all remuneration taxable. On September 23, 2002 Council passed Resolution # to continue the 1/3 tax free allowance. Currently Members of Council remain under the provisions of the above

4 The Corporation of the TOWN OF MILTON Report No.CORS Page No. 4 resolution, with one-third of their remuneration being treated as expenses related to carry out their duties, (a tax-free allowance), two-thirds of Councils remuneration remains taxable. The Municipal Act 2001 requires Council to review this by-law at a public meeting at least once during each term of Council. If, following the review, Council chooses to terminate the 1/3 tax free allowance; it may do so by passing a repealing by-law. This repealing by-law shall be effective on January 1 st of the year after the year in which it was passed. Once a repealing by-law has been passed, there are no means available to reinstate the allowance. Each term of Council has passed a resolution to retain the 1/3 tax free allowance. The recommended salaries for the Mayor and Council are based on the continuation of the 1/3 tax free allowance and it is the recommendation of the council compensation committee to retain the allowance. Non-Salary Compensation Matters The survey conducted by staff also addressed other components of Council s compensation, (mileage, benefits, personal expenses and conferences). Based on the survey results, the Town is competitive in these areas. The Council Compensation Committee reviewed other elements of Councils total compensation package. Outlined below are the Committees comments Professional Development: The committee felt that the professional development budget should be left to Council to determine based on the needs of the members. The committee was unable to adequately determine these needs. The needs could also vary from year to year depending on outside factors such as if there were major legislative changes or large turnover of Council members that warranted additional training in any one year. Mileage and Car Allowance: Currently, only Councillor Lunau receives mileage due to serving the rural Ward 3. The committee specifically made no recommendation with respect to the Mayor s car allowance which is currently $5,000 per year. Further the committee recommended that mileage rates be tied to staff mileage rates. Benefits: The committee recommended that the existing benefits, including pension, remain unchanged.

5 The Corporation of the TOWN OF MILTON Report No.CORS Page No. 5 Implementation: The Committee did not specify the time frame for the phasing-in of the salary adjustments, only that the recommended salary adjustments are to be fully implemented prior to the 2014 election, ensuring that Council Members salaries are established to the average of the comparator group from this market study, prior to the end of this term of Council. Staff are recommending that the revised 2012 salaries be phased in over a three (3) year period (2012, 2013, 2014) effective January 1 st of each year. The implementation would be as follows: Phase - in Mayor Councillors Salary Effective - January 1, 2012 $ 69, $ 28, January 1, 2013 $ 73, $ 30, January 1, 2014 $ 77, $ 32, This results in an annual salary adjustment of $4,240 per annum for the Mayor and $1,699 for Councillors for each of 2012, 2013 and Future Reviews: Upon conclusion of discussions, the Committee recognized that the process could be improved for the future in order to accomplish a more in-depth review. To that end the committee has made the following recommendations. If these are approved as is, a committee would be struck prior to 2014 and make recommendations regarding the process and a Council compensation policy. This would be the subject of a further staff report. THAT a committee be established to recommend to Council a Made-in-Milton Council compensation policy and process prior to the next Council compensation review THAT the committee strongly consider a self-sustaining policy and process to depoliticize the issue of Council compensation as much as possible THAT Council give consideration to the inclusion of one retired member of Council on any future committee

6 The Corporation of the TOWN OF MILTON Report No.CORS Page No. 6 THAT any future recommendations regarding Council compensation through this process be presented to and approved by Council in the final year of the term of that Council THAT any future salary adjustments recommended through this process take effect with the incoming Council Relationship to the Strategic Plan A responsible, cost effective and accountable local government Financial Impact The 2012 annual impact, including benefits, for the phase-in of the recommended salary increases for the Mayor and Councillors is $31,278 which will result in a negative variance on the 2012 operating budget. The subsequent phase-in of salary increases for 2013 and 2014 will be included with the annual operating budgets. Respectfully submitted, Linda Leeds, C.G.A. Director, Corporate Services and Treasurer LL:ml If you have any questions on the content of this report: Marilyn Lembke, Attachments: Minutes from Council Compensation Committee CAO Approval:

7 Appendix A THE CORPORATION OF THE TOWN OF MILTON COUNCIL COMPENSATION COMMITTEE MINUTES Report No. 01 DECEMBER 12, 2011 PAGE 1 The Council Compensation Committee met this morning at 10:00 a.m. in the Milton Room at Town Hall, with Melissa Coulson in the Chair. THOSE PRESENT: Chair: M. Coulson Members: Staff: R. Carson (arrived at 10:15 a.m.) D. Chin J. Morgan M. O Gorman M. Lembke, Senior Manager, Human Resources T. McHarg, Town Clerk I. INTRODUCTIONS Committee members introduced themselves and provided their background information. II. AGENDA ANNOUNCEMENTS/AMENDMENTS None III. DISCLOSURE OF CONFLICT OF INTEREST None IV. PRESENTATIONS/DELEGATIONS 1 Committee Terms of Reference Name Troy McHarg, Town Clerk T. McHarg addressed Committee with respect to the following: Overview of Terms of Reference including: Goal, Scope and Purpose, Roles and Responsibilities of Members, Support Staff and Public Communications.

8 Appendix A Town of Milton Date: December 12, 2011 Page 2 of 2 Council Compensation Committee 2 Compensation Overview X. NEXT MEETING Name Marilyn Lembke, Senior Manager, Human Resources M. Lembke addressed Committee with respect to the following: History of the Council Compensation Committee. Current Compensation Practices. Scope of Citizens Committee. The committee discussed issues and considerations related to the scope, deliverables and process of the committee. Date: January 4, 2012 Time: 10:00am Place: Town Hall West, Milton Room Date: January 18, 2012 Time: 10:00am Place: Town Hall West, Milton Room (If necessary) XI. ADJOURNMENT There being no further business to discuss, the Council Compensation Committee adjourned at 11:10 a.m.

9 Appendix A THE CORPORATION OF THE TOWN OF MILTON COUNCIL COMPENSATION COMMITTEE MINUTES Report No. 02 JANAURY 04, 2012 PAGE 1 The Council Compensation Committee met this morning at 10:10 a.m. in the Milton Room at Town Hall, with Melissa Coulson in the Chair. THOSE PRESENT: Chair: M. Coulson Members: Staff: R. Carson D. Chin J. Morgan M. O Gorman M. Lembke, Senior Manager, Human Resources S. van Empel, Acting Deputy Clerk I. AGENDA ANNOUNCEMENTS/AMENDMENTS None II. DISCLOSURE OF CONFLICT OF INTEREST None III. RATIFICATION OF PREVIOUS MINUTES Rec. CCC : THAT the Minutes from the Council Compensation Committee Meeting held on December 12, 2011 be approved. IV. ITEMS FOR CONSIDERATION 1 Professional Development Allowance Recommendations Rec. CCC : THAT Council determine its own professional development budget annually based on recommendations of staff and the needs of Council for the corresponding year. Committee discussed the base salary recommendation and considered the process, scope, compiled data and future considerations. Having further business to discuss, Council recessed the meeting at 11:17 a.m. and reconvened at 11:26 a.m. for continuation of this meeting.

10 Appendix A Town of Milton Date: January 4, 2012 Page 2 of 2 Council Compensation Committee Committee continued discussions and subsequent to discussions, passed the following recommendations: Item 4 under Section IV Items for Consideration was moved to this point in the Agenda as Item # /3 Tax Free Recommendations Rec. CCC : THAT the one-third tax free allowance be retained. Item 2 under Section IV Items for Consideration was moved to this point in the Agenda as Item # 3. 3 Automobile Expense Rec. CCC : THAT the mileage amounts for Council members be tied to staff mileage amounts; AND THAT committee makes no recommendation with respect to the Mayor s car allowance. Item 3 under Section IV Items for Consideration was moved to this point in the Agenda as Item # 4. 4 Benefits and Retirement Plan Recommendations Rec. CCC : THAT the benefits and retirement percentages remain the same. Having further business to discuss, the Interview Committee recessed the meeting at 12:38 p.m. on January 04, 2012, to reconvene at 10:00 a.m. on January 17, 2012 for continuation of this meeting. V. NEXT MEETING January 17, :00am Town Hall West, Milton Room

11 Appendix A THE CORPORATION OF THE TOWN OF MILTON COUNCIL COMPENSATION COMMITTEE MINUTES Report No. 03 JANUARY 17, 2012 PAGE 1 The Council Compensation Committee met this morning at 10:13 a.m. in the Milton Room at Town Hall, with Melissa Coulson in the Chair. THOSE PRESENT: Chair: M. Coulson Members: Regrets: Staff: R. Carson J. Morgan M. O Gorman D. Chin M. Lembke, Senior Manager, Human Resources T. McHarg, Town Clerk I. AGENDA ANNOUNCEMENTS/AMENDMENTS None II. DISCLOSURE OF CONFLICT OF INTEREST None III. RATIFICATION OF PREVIOUS MINUTES Rec. CCC : THAT the Minutes from the Council Compensation Committee Meeting held on January 4, 2012 be approved. IV. ITEMS FOR CONSIDERATION 5 Base Salary Recommendations Rec. CCC : THAT using the same process as applied in 2007 to calculate the median amount, an annual salary of $77, for the Mayor and an annual salary of $32, for Council members be recommended. Item 7 under Section IV Items for Consideration was moved to this point in the Agenda as Item # 6.

12 Appendix A Town of Milton Date: January 17, 2012 Page 2 of 2 Council Compensation Committee 6 Implementation Recommendations Rec. CCC : THAT the base salary increase be phased in to get Milton Council to market rate prior to the 2014 election. Items 6 and 8 under Section IV Items for Consideration were moved to this point in the Agenda as Item # 7. 7 Remuneration Increase Formula and Future Process Recommendations Rec. CCC : THAT a committee be established to recommend to Council a made-in-milton Council compensation policy and process prior to the next Council compensation review. Rec. CCC : THAT the committee strongly consider a self-sustaining policy and process to de-politicize the issue of Council compensation as much as possible. Rec. CCC : THAT Council give consideration to the inclusion of one retired member of Council on any future committee. Rec. CCC : THAT any future recommendations regarding Council compensation through this process be presented to and approved by Council in the final year of the term of that Council; AND FURTHER THAT any future salary adjustments recommended through this process take effect with the incoming Council. V. FINAL ADJOURNMENT Rec. CCC : THAT, having fulfilled its mandate, the Council Compensation Committee now adjourn.