STAFF REPORT
January 4, 2000
To: Administration Committee
From: Executive Director, Human Resources
Subject: Establishment of a Remuneration Review Committee
Purpose:
The purpose of this report is to outline options for determining future increases in remuneration for the Members of City
Council. Information is provided concerning the processes of other municipal jurisdictions, the Parliament of Canada and
the Legislative Assembly of Ontario.
Financial Implications and Impact Statement:
Not applicable
Recommendations:
The information contained in this report is for the consideration of Committee.
Background:
At it's meetings held in November 1999, the Administration Committee had before it a Notice of Motion from Councillor
Gloria Lindsay Luby, seconded by Councillor Bill Saundercook proposing that a Remuneration Review Committee be
struck in the final year of every term of Council to make recommendations for incoming Council; such committee will
consist of compensation experts, business representatives, members of the public and several City Councillors (in an
advisory capacity), with staff assistance as required. Committee deferred consideration and requested the City Clerk to
submit a report respecting other municipal jurisdictions that have established similar compensation or remuneration
processes. The request was also to identify other ways that this issue can be handled.
Comments:
Attached as Appendix "A" are details related to the determination of and adjustment to compensation levels for the Mayor
and Members of Council of ten towns, cities and regional municipalities across Ontario. The former municipalities of
Etobicoke and Metropolitan Toronto are also included. In addition, we have provided similar information concerning the
process of the Federal and Ontario Provincial Governments.
Alternative Approaches
(1) the establishment of a Remuneration/Compensation Review Committee with representation from various sectors is the
process of a number of municipalities and other jurisdictions. Considerations include:
· the number of Committee members (generally small)
· the method for identifying members
· the extent of resources/information available to the Committee
· the frequency of salary adjustments e.g. prior to an election, annually.
· compensation or not for members of the Committee
(2) the salary of the Mayor and Members of Council to be increased based on increases to staff salaries approved or
established through collective bargaining.
(3) salary increases based on economic indicator(s) e.g. increases in the Consumer Price Index (per Hamilton-Wentworth),
increases in population (per Mississauga), Average Household Income (per Newmarket).
(4) salary increases based on a combination of the above.
Conclusions:
The matter of determining appropriate salary increases for the Members of Municipal Councils and similar positions in
other government jurisdictions has been variously addressed. The information contained herein is submitted at the request
of the Administration Committee.
Brenda Glover
Executive Director of Human Resources
List of Attachments:
Appendix "A" (Determination of Remuneration for Mayor and Members of Council)
APPENDIX "A"
DETERMINATION OF REMUNERATION FOR MAYOR AND MEMBERS OF COUNCIL
MUNICIPALITIES
Hamilton-Wentworth
Current:
· Citizens committee comprised of 3 members representing labour,
business and academic community
· proposed a formula of 5% increase or the cost of living increase
calculated November over November whichever is the lesser amount
· staff administer the program
Proposed Amalgamation:
· short term-same annual increases awarded to the staff as part of the collective bargaining process.
· Future-before the 2003 municipal election, Council appoint an independent citizens committee to review the salary of the
Mayor and Council. That the citizens committee be given the necessary financial and human resources to properly conduct
its research and make an informed recommendation.
· the process of changing the salary of the Mayor and Councillors be fully transparent and that all decisions be made in
public and that the necessary resolutions and by-laws be passed in public.
Mississauga
Ÿ Citizens Task Force-3 members appointed by the Mayor.
Ÿ salaries increased effective January 1, 1999 and April 1, 1999.
Ÿ commencing the year 2000, adjusted annually to reflect any increase in the
population of the City in existence as of January 1 in each year i.e. 10 cents per
capita and divided by the number of Councillors.
Ÿ in addition, if a cost of living increase is awarded in any year to full time non-
union staff, the salaries for the Mayor and Members of Council shall also
receive the same increase.
Newmarket
Ÿ Citizens Committee proposed a formula that the remuneration for the positions
on Council be a percentage of the Average Household Incomes taken from the
latest information from the Canadian Census. A base figure is determined and
the remuneration of the Mayor, Regional Councillors and Councillors is a
percentage of the base figure.
Ÿ during the period between the publishing of the Canadian Census data, the
remuneration will be adjusted at the same rate and frequency as the staff of the
municipality. For 1999 and 2000, the amount is 3% in each year paid out at 1%
in January, 1% in June and 1% in October.
Ÿ when the Census date is available, the rates will be recalculated and adjusted.
Durham Region
Ÿ Community Advisory Committee (CAC) report dated June 1998 was adopted
including increases effective April 1, 1998 - 3.7%, April 1, 1999 - 2.5% and
April 1, 2000 - 2.5%.
Ÿ that there be an ongoing role for the CAC in establishing fair and equitable
levels of remuneration for the members of Regional Council.
Ÿ that Members of Council not be able to decline all or part of the remuneration
provided.
Richmond Hill
Ÿ Council Compensation Review Committee to be formed by December of each
year prior to an election year.
Ÿ members identified through a public advertisement for residents of Richmond
Hill- 4, selected from the applications plus 1 to serve as the Chair, selection by
the Mayor at his discretion.
Ÿ responsible for recommending a revised salary no later than June 30 of each
election year.
Ÿ the Committee members shall serve pro bono.
Ÿ Council acceptance of the recommendation will result in revised salaries taking
effect after the new Council is elected. Rejection will result in maintaining the
existing salary package for a further three years.
Ÿ if adjustments to staff salaries exceed 3% per year, there will be an interim
adjustment to Council salaries equal to 50% of the average staff adjustment.
Vaughan
Ÿ Citizens Committee on Council Remuneration comprised of representatives
from the business communities and the rate payers associations to be appointed
by the City Manager. The Committee consists of 5 volunteer Vaughan citizens.
Markham
Ÿ Members of Council receive same salary increase as exempt staff.
Ottawa-Carleton Region
Ÿ Citizens Committee comprised of 3 members: an actuary, a truck driver and a
land developer established through a newspaper advertisement.
Ÿ the panel held public consultations and interviewed Members of Council;
undertook research and was provided with data by staff. Staff also provided
administrative support.
Chatham-Kent
Ÿ Citizens Committee comprised of 6 members from a cross section of industries
within the region.
Ÿ undertook surveys and recommended salary for Mayor and Councillors.
Thunder Bay
Ÿ Citizens Group
Former Etobicoke
Ÿ Citizens' Committee constituted on a regular basis, not later than April 1st of
each Municipal election year, to review the Mayor's and Councillors' salaries
under the guidance of the Personnel Commissioner.
Former Metropolitan Toronto
Ÿ Independent Salary Review Committee constituted during the last year of the
term of Council for the purpose of recommending the remuneration for
members and the Chairman of the incoming Council.
Ÿ Membership comprised of a member from the Board of Trade, a citizen
representative and non-employee representatives from the Labour Council of
Metro Toronto and York Region (the latter two requested but not appointed).
Ÿ the Committee recommended that it reconvene annually to review the salary
structure of Members of Council and recommend alternatives.
Ÿ recommended a salary level for the Chairman based on a review conducted by
an external management consultant.
Ÿ identified a number of factors to be considered when recommending salary
adjustments.
Ÿ recognised that it is a Council member's right to draw a salary less than that
approved by Council.
OTHER LEVELS OF GOVERNMENT
Federal
Ÿ Commission to Review Allowances of Members of Parliament appointed by the
Governor General at the end of every parliament.
Ÿ to inquire into the adequacy of the annual variations of sessional and other
allowances payable to members and report within six months.
Ÿ salaries and allowances payable shall be adjusted for each twelve month period
commencing January 1.
Provincial
Ÿ Commission on Members' Compensation established by the Speaker.
Ÿ Members of the Assembly are not eligible for appointment.
Ÿ to make recommendations concerning the amount, if any, by which annual
salary should be increased.
Ÿ the Speaker may request recommendations only during a fiscal year in which
the Minister of Finance presents a balanced budget to the legislature
