Monday, January 26, 2009

Council rejects call for raise rollback

A council and its raise aren’t easily parted. Given the troubled economy, Coun. Rosalind Neis recommended council show taxpayers that local government officials are willing to make some sacrifices, however small. After a first look at the 2009 budget this week, Neis proposed the mayor and councillors start by refusing their pay raises this year. “I know it’s a miniscule amount, somewhere in the area of $10,000 on a budget of $46 million to $48 million,” said Neis. “But it does set a tone in my mind.” She said the gesture would “fare well” with taxpayers, should council have to make some hard choices during budget deliberations this year.Neis added she still opposes the method by which council established its pay increases in the first place. Staff opted to take the median salary of mayors and councillors in six similar-sized municipalities. But Neis favors Kelowna council’s method of appointing a citizen committee to review remuneration. The Central Okanagan Regional District board also uses a citizen committee.

Council dismissed Neis’ recommendation—no other councillor would second her motion to reject the raise. At least two other members of council, including Mayor Doug Findlater, were visibly uneasy at Neis’ recommendation. As mayor, Findlater will make $56,325 this year. One third is considered a tax-free allowance to compensate for costs of doing municipal business. When Neis served as mayor last year, she made $52,140. The job now pays 7.4 per cent more. West Kelowna’s six councillors received raises of 4.6 per cent this year bringing their pay to $20,101. Last year, a councillor position paid $19,166. Like the mayor’s salary, one-third is tax free. To determine the pay rates for council members, West Kelowna staff researched mayor and councillor remuneration in three smaller communities Langley, City North Cowichan and Port Moody—and three larger cities— Campbell River, Penticton and Vernon. The highest and lowest salaries were disregarded and an average of the remaining four was used.

Meanwhile, the fledgling municipality’s provisional budget is calling for a five per cent tax increase, primarily to bolster its tiny reserves. Chief financial officer Jim Zaffino said if council wants to reduce the amount of the increase, it will have to lower contributions to reserves .Council has requested Zaffino come back with a report showing what reserves would look like in five to 10 years if council approved anything less than a five per cent tax increase this year. West Kelowna council hopes to adopt its budget by April 28. Before then, it will hold at least two public input sessions, tentatively set for Feb. 17 and March 17.

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