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City to explore potential transition to Ward system, while Finance Committee approves adjustment of council salaries for 2019

Nov 22, 2018 | 12:30 PM

LETHBRIDGE – The city’s Finance Committee has voted to refer recommendations for funding to potentially transition to a Ward system like those in Calgary and Edmonton, to the Open and Effective Government Committee (OEG), while also voting unanimously to top up salaries in anticipation of Canada Revenue fully taxing their take-home pay beginning January 1, 2019.

During day four of the week-long four-year Operating Budget deliberations, two initiatives, called the Citizen Assembly on a Ward System, and Transition to a Ward System were introduced that would give one-time funding of $75,000 from the MRSR (Municipal Revenue Stabilization Reserve) to determine the feasibility of a new electoral ward system, while the second initiative would also give one-time funding of $125,000 from the MRSR only if there was a recommendation from the first initiative to move forward.

Councillor Jeff Coffrey Coffman explained that a Citizen Assembly was an educational process made up of a few dozen selected individuals in the community that would look at all options and report back to Lethbridge citizens with a complete picture of how councillors could be selected. Residents would then choose what kind of system they wanted.

“Why wouldn’t we go the referendum route rather than assembly?” Asked Mayor Chris Spearman.

“Citizen Assembly is about an educated approach to an issue. It’s about presenting a group of people with what do we currently do, what are our options out there. When you go to a referendum, it becomes a yes, no. It becomes very easy to assume ‘I like it, I don’t like it’ without the information,” replied Coffman.

The Finance Committee ultimately voted to refer the matter to the Open and Effective Government Committee for recommendations first, by a 5-4 vote. Funding for the transition to a ward system subsequently was defeated by a 5-4 vote.

The Finance Committee then debated two other resolutions aimed at adjusting the salaries of Mayor and Council from 2019-2022 by adding $101,000 in 2019, $103,000 in 20202, $106,000 in 2021 and $109,000 in 2022 to make up for a Revenue Canada rule that will take effect Jan. 1, 2019.

Essentially, one-third of Mayor and Council salaries are tax- free. That was considered an unvouchered expense allowance. However, as of 2019, Mayor and Council salaries will be fully taxed. The current initiative is meant to make up for the lost monies.

Similar initiatives have been completed in at least six other cities across the province.

“So, what has to happen is their gross pay has to be increased, so that their net pay remains the same,” explained Mayor Chris Spearman. “The non-taxable allowance was designed to off-set expenses that normally can’t be deducted for tax purposes. In our jobs, there’s a lot of things that we do that incur additional expenses that we have to take out of our personal incomes.”

Each councillor also receives a yearly per diem and travel allowance of $10,500 while the Mayor receives an allowance of $28,000.

The Finance Committee voted unanimously for the initiative to be approved and forwarded to Council Monday Nov. 26. Money for the initiative would come from taxation and from the Utilities, Fleet and Land overhead charges.

Another initiative to transition to four full-time city councillors was also referred to the Open and Effective Government committee by a narrow 5-4 vote. Councillor Rob Miyashiro says before the budget for full-time councillors is approved, several questions must first be answered.

“We actually don’t know what their role would be. All that was discussed was four people going full-time and what their remuneration would be. It doesn’t really talk anything about what their role change would be, how do we do that. How do you pick the four? What if six want to do it full-time? So, I think the referral back to OEG is a good one.”

If OEG ultimately recommends the initiative, according to budget documents it would cost $54,000 in 2019, $216,300 in 2020, $216,700 in 2021 and $217,000 in 2022. The money could come from both taxation and Utilities, Fleet and Land.

All the initiatives passed by the Finance Committee must be formally approved at council’s regular meeting Monday, Nov. 26.