Benefits Approved For New Vernon Council

107.5 KISSFM Poll Results FINAL

Do you agree with members of Vernon council getting health and dental benefits ?
no
50-	69.4%
yes
16-	22.2%
don't care
6-	8.3%

Number of Voters

:  72

Written by Peter McIntyre  107.5 KISSFM Monday, 08 September 2014 22:15
The new Vernon council won't get a pay hike -- but they will get benefits for the first time. Council has approved several recommendations of a citizen's remuneration committee-- that will take effect after the fall election -- including health and dental benefits for the mayor and councillors. Councillor Juliette Cunningham says it may encourage younger people to run for council. "I don't think it's going to attract a plethora of people, but it's one more thing that might make them consider it," Cunningham tells Kiss FM. Outgoing mayor Rob Sawatzky agrees, saying council members don't get paid much, so this could help attract more good candidates. "And our administration and our community are getting bigger all the time, so the commitment from those that do run, is larger." Councillor Bob Spiers was opposed, saying it could cost the city an extra 40-thousand dollars a year. "It seems like a heck of a change all in one year, and I question whether it shouldn't be part of the base pay or something like that," says Spiers. The committee which include former councillor Buffy Baumbrough, VantageOne CEO Glen Benischek and Kal Tire Director of Human Resources Marlene Higgens, didn't recommended any pay hikes for council, saying the current rates are in line with similar communities. A staff recommendation for the city to provide each committee member with an honorarium of a $150 gift certificate, was rejected by council, as it was felt it could set a precedent for other volunteer committees.

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Should Council accept the recommendations as presented, Council remuneration for the 2014-2018 term would be adjusted by the Consumer Price Index for B.C., August over August, all products in, not seasonally adjusted, each year effective December 1.  Annual costs to extend a benefits program to Council members will be approximately $14,550 - $39,700 per annum (excluding MPP).  http://www.vernon.ca/images/uploads/council/agendas/packages/09_08_2014_Regular_Agenda.pdf (Report P.112-120 of Monday's Agenda Package)--------------------------------------------------

Don Quixote Note: 

• There will be a potential pay hike effective Dec 1, 2014 for the new Council. It will be the August B.C. CPI.  The 2014 B.C. July CPI was at 1.4% and the August 2013 BC CPI was a negative -1%.
• Council members will still be eligible to claim $137 per Vernon Committee meeting that they attend as the appointed Council Rep. 
• The current annual salary for the Councillors is $831.86 biweekly ($21,628 Annually of which 1/3 is tax free.
• The current annual salary for the Mayor is $2,578.67 biweekly ($67,045 Annually of which 1/3 is tax free.
• The new benefits for both Mayor and Council are:

1.  Annual Life insurance coverage of 2x base salary (If over 65 1x base salary until 70 years old)
2. Extended Health Care (Single,Couple of Family Plan) Couple annual Cost =89.20x12 =$1070 
3. Dental Coverage (Single,Couple of Family Plan) Couple annual Cost =93.44x12 =$1121
4. MSP (Medical Service Plan) (Single,Couple of Family Plan)Couple annual Cost =125.50x12 =$1506.
5. $3,697 for couples coverage annually. ($25,879 for all 7 Council members if all were in the couples plan) Additional $815 Annually for life insurance premiums if all eligible.
6. The projected benefits increase of 3,697 over the base salary for a councillor of 21,628 annually represents a 25325/21628 = 17.09% increase. On a taxable basis the calculation would be 18115/14418 = 25.6% increase.

All the above items are 100% City Paid (Taxpayer financed) and are taxable benefits for Mayor or Councillor.