A new federal government rule means mayors and councillors can no longer get a tax break on their pay package – and a public committee reviewing compensation for Banff politicians has recommendations around that.
Currently, Banff’s mayor and council have a tax free allowance with one-third of their remuneration treated as expenses related to carrying out their duties. But the 2017 federal budget eliminates the tax exemption as of 2019.
Banff’s public committee recommends the one-third tax exemption remain for 2018 and be eliminated the following year – and that politicians’ salaries be adjusted to generally reflect a neutral effect in net salary.
“(We’re) of the view that while members of council may not necessarily anticipate a salary increase during their term of office, they do not expect a decrease, nor is a decrease appropriate,” concluded the public committee, made up of David Bayne, Connie MacDonald and Brian Smythe.
Specifically, the mayor’s salary would go from $79,953 to $80,540 for 2018, with one-third of that remaining non-taxable. For council, it would go from $26,478 to $26,900.
In 2009, the mayor’s pay would increase from $80,540 to $93,426 and councillors’ from $26,900 to $30,185. It will be fully taxable, plus the market percentage increased approved in the annual budget for all other Town of Banff employees.
In 2020 and 2021, mayor and council would see an increase in salary by the same market percentage approved in Banff’s annual budget and granted to all other Town of Banff employees.
“I think this is absolutely fair,” said Mayor Karen Sorensen, who is seeking re-election in October.
“Starting in 2019 salaries are going up, but mayor and council will pay more tax on it.”
The group recommends the pay of mayor and council should reflect the average of those in Canmore, Cochrane, Okotoks and Whistler. The mayor doesn’t receive per diems, but councillors do.
Council will consider the recommendations in an upcoming meeting.
