Regina mayor defends proposed city council pay raise, cites disappearing tax exemption

Regina mayor Michael Fougere says a proposed pay raise for city council is not actually a salary increase.

The proposal, passed in Wednesday's executive committee meeting, would not change city council's take home pay, he said. It's to offset an upcoming change to their federal taxes.

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In 2017, the federal government announced it was removing a tax exemption on one-third of city councillor's salaries starting in 2019. Fougere says council members were not consulted about the federal tax change.

Without the raise, Fougere's 2019 annual salary is set at $112,202.50. It would jump to $144,832.66 to make up for the additional tax, according to city documents.

Councillors' annual salary would go from $37,400.83 to $44,507.07.

"The consequence of not making the change is that salaries drop dramatically," Fougere told reporters after Wednesday's meeting at city hall.

"What we don't have is a one-third tax-free allowance, so the shortfall is covered by city operations in some fashion," he said.

The change would increase the city's operating budget by $108,000.

"Majority of council, save two, believe that we should at least keep our salaries whole, keep them the same level as they were before," Fougere said.

"I think it's fair for anyone who's on council across the country to maintain their salary. I think it is a legitimate issue, not to raise your salary but to maintain your salary."

Fougere says finding the extra $108,000 would be "part of the budget process for 2019."

"How we get to that number I can't say. We haven't really even tabled the budget yet publicly."

He said that budget is expected "very soon."

Salary review

Also on the meeting's agenda was a review of council's salary.

City officials said there hasn't been a review for 16 years.

Several councillors were in favour of the review, including Andrew Stevens and Mike O'Donnell. O'Donnell argued other city staff would never go 16 years without a salary review.

The mayor and councillors' salaries are decided using a formula related to cabinet ministers' salaries. Although salaries have not stayed the same for 16 years, the deciding formula has.

But Fougere said that's part of the job

"That would be a review likely to increase our salary, increase our benefits," he said.

"I suggest that there's never a good time to do that. We came in as councillors knowing what our salary was going to be and I maintain that that's the case today."

The proposals will now move to city council for a final decision. It could be decided during their meeting on Nov. 26.