Thursday, December 26, 2013

Vernon Council Getting a Raise in 2014 but not as much as originally planned

Council has been paid the same base rate since 2009. Their first raise will happened on Jan. 1, 2014. It will be as approved by the last remuneration committee's modified formula. Changes in 2013 to make the compounding CPI from CANADA NOVEMBER CPI to B.C. NOVEMBER CPI are included in the calculations below. (That change has saved the taxpayer 238 x 6 + 737 = $2,165 annually) 

Original Formula Canada CPI

New Formula Canada CPI - 2013 B.C. CPI










Under Original formula using(Canada CPI) the Council remuneration will remain at the present 2010 levels ($ 20,474) until 2014 when it will increase to $21,813 (6.54% increase).Under Original  formula (Canada CPI) the Mayor's remuneration will remain at the present 2010 levels ($ 63,466) until 2014 when it will increase to $67,617(6.54%)% increase)
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However the formula for the Council Change in 2013 was to change from November Canada CPI
 ( .9% increase in Nov.) to B.C. CPI . ( minus 0.2 in Nov.).
Using the B.C. CPI figures (.2% Decrease) the increase in 2014 for Council would be 5.38% compounded. Council Salary of $21,575. Mayor Salary of $66,880.
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The difference in changing ongoing formula from Canada CPI to B.C. CPI for the remuneration levels in 2014 are:
Council 21,813-21,575 =  $238.  Mayor    67,617-66,880=  $737.
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Council Remuneration is being increased from 20,474 where it was in 2010 to 21,575 in 2014 an effective annual raise of  $1,101 (5.38% increase)
Mayor's Remuneration is being increased from 63,466 where it was in 2010 to 66,880 in 2014 an effective annual raise of  $3,414 (5.38% increase) 
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2014 Remuneration Budget for Council Remuneration should be an increase of $3414+ 1101 x 6 = $10,020.

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