district of lake country

DISTRICT OF LAKE COUNTRYREQUEST FOR COUNCIL DECISION

MEETING TYPE AND DATE: REGULAR COUNCIL MEETING OCTOBER 19, 2021AUTHOR: TANYA GAROST, CAOSUBJECT: 2021 COUNCIL REMUNERATION TASK FORCE

ESSENTIAL QUESTION:Does Council support the recommendations of the 2021 Council Remuneration Task Force (CRTF)?

OPTIONS:A. THAT Council Remuneration and Expenses Policy 164, 2018 be amended to include the recommendations

of the 2021 Council Remuneration Task Force:a. Annual remuneration not be adjustedb. The basis and timing for annual CPI increases to Council remuneration be includedc. Authority to travel be includedd. Provided technology devices be included

B. THAT Council Remuneration and Expenses Policy 164, 2018 not be amended and;THAT staff be directed to bring back Council Remuneration Task Force Policy 154, 2016 for review.

EXECUTIVE SUMMARY:

Key Information:The 2021 CRTF was appointed by Council in April 2021. The 2021 CRTF met four times. A survey was sent out to 21municipalities with comparable populations and there were 15 responses. As well, the survey was sent tosurrounding municipalities in the region. Two responses were received from those municipalities.

The 2021 CRTF reviewed the current policy, the recommendations of the 2017 CRTF and the data from the surveyrespondents while considering recommendations.

The current Council Remuneration & Expenses Policy 164, 2018 is contained in Attachment B. The policy withhighlighted changes is contained in Attachment C. The updated, clean version of the Draft Council Remuneration &Expenses Policy 164, 2018 is contained in Attachment D.

Relevant Observations:The 2021 CRTF agreed on four main recommendations:

1. Council remuneration did not require any adjustment based on survey data2. The annual CPI increases were appropriate however needed additional clarification in the policy3. The majority of survey respondents required some form of authorization to travel or included specific

limitations on travel. The District’s policy was not clear and requires additional wording to ensure travel isauthorized by the whole of Council.

4. There was nothing in the policy around the provision of electronic devices. All survey respondentsprovided some form of electronic devices so the provision was appropriate however clarity in the policy isrequired for transparency for future elected officials.

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There were no changes recommended to other provisions within the policy. The 2021 CRTF also considered therole of acting Mayor, however no changes were recommended.

Strategic Questions:Do the recommendations of the CRTF support the policy purpose of an independent, unbiased and reasonablereview of Mayor and Council remuneration and expenses?

Strategic Relevance & Community Sustainability:The formation of the task force was done to support transparency and community involvement in the setting ofMayor and Council remuneration and expenses.

Key Result:That the Council Remuneration and Expenses Policy 164, 2018 be reviewed and updated prior to the election of thenext Council in 2022.

Desired Benefit of Key Result:An unbiased review of the remuneration and expenses of the future Council.

Requisites:The 2021 CRTF was formed and members appointed.

Unintended Outcomes:None

BACKGROUND/HISTORY

The Terms of Reference for the CRTF were adopted by resolution 16.10.229 at a regular council meeting onOctober 4, 2016.

The CRTF mandate is to ensure an independent, unbiased and reasonable review of Mayor and Council’sremuneration and expense policy. The CRTF consists of three community members and one staff liaison. Themandate, principles and process of the CRTF is based on a best practice for Council Remuneration from the Unionof British Columbia Municipalities.

The 2021 CRTF met four times since the appointments were made by Council in April 2021. Following feedbackfrom the members of the task force, a survey was sent to 21 municipalities with comparable populations as well asfive other surrounding municipalities. There were 15 respondents from the comparable group and 2 from thesurrounding municipalities.

The following recommendations were made in 2017 and subsequently reviewed by the 2021 CRTF:

2017 2021 That Mayor’s compensation to be benchmarked

at the 60th percentile of comparable BCmunicipalities based on similar population andtaxable land area as reviewed every four years.This is consistent with methodology used for staffcompensation evaluations.

The 60th percentile benchmark wasconsidered by the task force. The2021 CRTF determined that whilethe 60th percentile has been usedfor comparison of staff wages, itmay not be the most appropriate ordefendable for Council for the nextterm. Each new task force coulddetermine the most appropriatebenchmark compensation point and

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therefore it would not be used toset the remuneration for theCouncil elected in 2022.

That Councilor’s remuneration be set to 40percent of Mayor remuneration.

No change

That annual CPI adjustments on January 1st ofeach year be consistent with exempt and have noreductions in years of zero or negative CPI.

Same recommendation with clarityadded in regarding what CPI figureis used and from what time period

That expense reimbursement for out of regiontravel be equivalent to that of staff, including perdiem rates.

No change

That travel mileage be updated annually to matchCRA allowable rates.

No change

That the District of Lake Country will issue eachcouncilor a T2200 whereby council members candeduct individual expenses as set out by the CRAto address the loss of the 1/3 tax free allowance.Council members will be provided with a groupprofessional accounting session at the beginningof each four year term as part of theirorientation.

No change

And that Council Members may opt into theDistrict’s extended health and dental plans on a50/50 cost sharing basis.

No change

Recommendations of the 2021 CRTF:

Mayor & Council Remuneration

Mayor and Council remuneration was adjusted significantly on January 1, 2019 at the recommendation ofthe previous task force in 2017.

All the comparable respondents had reviewed their remuneration in 2018, 2019 or 2020, subsequent to thereview done by the DLC and subsequent to the change in legislation regarding tax free remuneration.

While the previous 2017 CRTF used the 60th percentile to set remuneration, the 2021 CRTF felt it would bedifficult to support using the 60th percentile. A set of municipalities with comparable populations wereused and it was recognized that each municipality has unique services and challenges. Trying tocompensate at an arbitrary rate like the 60th percentile for DLC’s own set of unique services and challengeswould be very difficult to justify to the general public.

The 2021 CRTF is supportive of the use of the 60th percentile for staff recruitment and retention withrecognition that staff can travel and move to neighboring local governments for more compensation orbenefits. However, this is not a similar situation to Mayor and Council as those that run for elected officetend to do so in their own communities and often for reasons beyond compensation and benefits. Thecurrent remuneration, which is above average and median in comparable municipalities, supports a faircompensation package.

The 2021 DLC Mayor remuneration was above both the average and the median for the results of thecomparable municipalities. The 2021 CRTF determined remuneration was adequate and no adjustmentwas necessary.

No specific remuneration target was set and the recommendation to future task forces would be for eachCRTF to determine what level was appropriate.

The average Council remuneration was 41%, consistent with the 40% currently used to set DLC Councilremuneration. No change was recommended.

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All but one of the respondents increased their annual remuneration for Mayor and Council by CPI. Thecurrent policy was not explicit on which CPI was used or when the increase was applicable. The 2021 CRTFsupported the ongoing use of annual CPI increases however recommended changes for clarity in the CPIused, the period of the CPI and when the increase was applied.

Travel Previously there were no restrictions around the authority for Council to travel. While this was not noted

as a current issue, a majority of comparable local governments did have various policies around approvalfor travel such as requiring a resolution of Council, or restricting amounts allocated to each member ofCouncil annually or restricting out of Province travel.

Various policies were considered and the task force determined it would be appropriate for where therewould be a cost incurred, a resolution of Council would be required to approve the travel. Further, wherepossible, travel should be considered by Council ahead of finalizing the budget annually. No otherrestrictions were recommended.

Electronic Devices All of the survey respondents provided some form of electronic device to Mayor and Council. The 2021 CRTF supported continuing to provide electronic devices. There was no mention of electronic devices provided by the District in the previous policy. It was

recommended for clarity for new elected officials that a clause about the electronic devices provided beincluded.

Acting Mayor Six (6) of the 17 respondents provided some form of compensation for the role of acting mayor Those that provided compensation for acting mayor offered a nominal amount, either as a flat amount or

percentage of pay. The 2021 CRTF considered the role of acting mayor and determined that no additional compensation was

recommended. There was recognition by the task force that should extenuating circumstances arise during a Council term

where the Mayor was absent for a long period for illness etc. that the Council of the time would be in thebest position to determine if Acting Mayor compensation would be appropriate for that period of time.The purpose of a policy is to cover most circumstances and the 2021 CRTF felt the continuing the currentprocess was appropriate.

All other expenses and benefits were determined to be appropriate.

DISCUSSION/ANALYSISLegislation & Applicable Policies

Council Remuneration Task Force Policy 154, 2016 (Attachment A)Council Remuneration & Expense Policy 164, 2018 (Attachment B)

Technical Considerations: Impact on Infrastructure and Other Municipal Services

None

Impact on Staff Capacity and Financial Resources (Cost/Benefit Analysis)An annual inflation factor is already considered with each budget that is presented annually. The otherchanges recommended did not have an impact that would result in tax increases.

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Comments from Other Government Agencies, Council Committees and Relevant Stakeholders:The 2021 CRTF is a committee of Council.

Consultation, Public Feedback, and Communication to and from the Public and the Applicant:The task force consists of members of the public, appointed to provide an unbiased review of Council remunerationand expenses.

ANALYSIS OF OPTIONS FOR CONSIDERATION:

Option A: This option supports the independent and unbiased recommendations of the 2021 CRTF based onthe review of comparable municipalities and available information.

Option B: This option would be used to dissolve the CRTF and review the policy for considering CouncilRemuneration and Expenses prior to an election. This option may have consequences with publicopinion as the policy was created to support an unbiased and transparent review of Councilremuneration.

Respectfully Submitted,

2021 Council Remuneration Task ForceEric Sorensen, ChairTerry Lister, MemberAnne Leistner, MemberTanya Garost, CAO, staff liaison

This report has been prepared in consultation with the following departments:

CONCURRENCESDEPARTMENT NAME

Chief Administrative Officer Tanya Garost Director of Corporate Services Reyna Seabrook

ATTACHMENTS:

Attachment A – Council Remuneration Task Force Policy 154, 2016Attachment B – Council Remuneration & Expense Policy 164, 2018Attachment C – Council Remuneration & Expense Policy 164, 2018 with changes highlightedAttachment D – Draft Council Remuneration & Expense Policy 164, 2018

Council Remuneration and Expenses Policy 164, 2018

District of Lake Country

10150 Bottom Wood Lake Road Lake Country, BC V4V 2M1

t: 250-766-5650 f: 250-766-0116 lakecountry.bc.ca

Date The following was adopted at the Regular Council Meeting held December 18, 2018 by Resolution No. 18.12.270 This policy repeals Council Remuneration and Expenses Policy No. 00.02.46 and Travel and Expense Policy 06.03.75. Preamble This policy sets out the guidelines for Mayor and Council remuneration and expenses. Council members may incur out-of-town travel expenses within Council approved budget limits while representing the municipality, engaging in municipal business, or attending meetings, conferences, seminars and other training opportunities. This policy will provide guidelines for consistency and accountability. For the purposes of this policy, the term “Council” and “Council members” shall include the Mayor. Authority to Approve Travel A resolution of Council is required to approve attendance of any person other than a staff or council member at a function where there will be a cost incurred by the municipality. A budget limit to attend the meeting, conference, seminar or other training opportunity must be provided and approved as part of the resolution. Where possible annual planning for Council travel should occur prior to the adoption of the budget each year. However, opportunities can arise throughout the year and be considered at the time by Council subject to the unallocated Annual Budget. Policy 1. REMUNERATION 1.1. Effective January 1, 2019 the Mayor shall receive annual remuneration of $49,237 plus CPI

percentage adjustment equal to exempt staff increases, paid on a monthly basis, for discharge of duties.

1.2. Effective January 1, 2019 the Councillors shall receive annual remuneration of $19,694 plus CPI percentage adjustment equal to exempt staff increases, paid on a monthly basis, for discharge of duties.

Commented [RS1]: Added for clarity

Commented [RS2]: Move section to body of Policy as Item 2

Commented [RS3]: Add for clarity

Commented [RS4]: Delete and replace with updated years and remuneration.

Policy 164, 2018

S:\Council meetings\2021-Council\2021-10-19\CRTF\Attachment C - Policy 164, 2018-summary of changes.docx 2

1.3. The remuneration for the Mayor shall increase on January 1 of each year by the amount of the British Columbia Consumer Price Index (BC CPI) for the prior year. In years where the BC CPI is negative, the remuneration shall remain the same as the prior year.

1.4. The remuneration for each Councillor shall be calculated as forty percent (40%) of the Mayor’s

remuneration as of January 1 of each year.

1.5. Remuneration provided in 1.1 and 1.2 above shall be reviewed as per Council Remuneration Task Force Policy 154, 2016.

1.6. A T2200 will be issued to each Council member annually in addition to the T4. One professional

accounting session will be provided to Council as a group as part of orientation each term.

1.7. The Mayor and each Councillor shall receive accident insurance coverage of $100,000 with the premiums paid for by the District.

1.8. Council members may opt into the District’s extended health and dental plans on a 50/50 cost

sharing basis. 2. AUTHORITY TO APPROVE TRAVEL

2.1. A resolution of Council is required to approve attendance of any person other than a staff or council

member at a function where there will be a cost incurred by the municipality. A budget limit to attend the meeting, conference, seminar or other training opportunity must be provided and approved as part of the resolution.

2.2. Where possible annual planning for Council travel should occur prior to the adoption of the budget

each year. However, opportunities can arise throughout the year and be considered at the time by Council subject to the unallocated Annual Budget.

3. TRAVEL EXPENSES

In addition to the remuneration provided in Section 1 members of Council shall receive the following expenses for attendance at meetings, courses or conventions and when representing the municipality or engaging in municipal business authorized by Council:

3.1. Where attendance requires absence from the District of Lake Country for one day or less: (a) vehicle expenses at the current CRA reasonable per km allowance; and (b) actual cost of meals. Expenses are not eligible if a Council member receives an honorarium, a per diem, or other form of expense reimbursement for attending the meeting or other function from any other source.

3.2. Where attendance requires absence from the District of Lake Country for more than one day or

a one day event requiring overnight travel: (a) return economy air transportation, or (b) where scheduled air transportation is not suitable vehicle expenses will be paid at the

current CRA reasonable per km allowance to a limit of no more than the cost of available air transportation;

(c) a per diem rate of $85 per day without receipts to cover all meals, gratuities, dry cleaning, personal telephone calls and other miscellaneous costs. The per diem rate for the day of

Commented [RS5]: Add new sections 1.3 and 1.4

Commented [RS6]: Move to body of Policy as Item 2 and add section 2.2

Commented [RS7]: Change to “Travel Expenses”

Policy 164, 2018


departure or day of return will be calculated on a prorated basis with one half the per diem payable for any portion of the day prior to 2:00 pm and one half the per diem payable for any portion of the day after 2:00 pm. If meals are included in the event registration fees then the cost of those meals will be deducted from the per diem rate in accordance with the table below:

MEAL PER DIEM ALLOWANCE Breakfast $15.00 Lunch $15.00 Dinner $30.00

(d) the registration fee for such meeting, course or convention; and (e) the actual cost for single room hotel accommodation, not to exceed the event rate or

government rate at the site of the event, subject to availability. Hotel parking, business calls, postage or other business incidentals necessarily incurred and included in the hotel bill will be paid by the District and is not part of the per diem rate.

3.3. The Mayor may incur meal costs for business meetings held locally or out of town involving other persons. The name of the person, company, and nature of the meeting must be indicated on the receipt. A full receipt must accompany and credit card or debit card receipt. Reimbursements will not include alcoholic beverages or cannabis related products.

3.4. Travelers wishing to combine a business trip with personal travel may do so at their own expense. The traveler will be required to pay any additional travel and accommodation expenses that are not associated with the business travel.

3.5. Costs of spousal travel, including transportation, accommodation, registration and meals are an

expense of the individual and not the District.

3.6. Each council member is required to submit a travel expense claim supplied by the finance department within 30 days of the event. The Director of Finance or designate will review and approve the travel expense claim.

3.7. Where the approved travel requires overnight stay(s) and the council member chooses to stay

with friends or relatives in lieu of a hotel, a $25 per night private accommodation allowance is permitted without the submission of receipts. Additional costs incurred as a result of the alternate accommodation (i.e. taxi fare, mileage) will be reimbursed with the submission of receipts although the combined costs of the private accommodation allowance and additional costs shall not exceed the event rate or government rate of the conference hotel.

4. TECHNOLOGY EXPENSES

4.1. It is recognized that Council members perform many of their duties and prepare for meetings away from the Municipal Hall.

4.2. Each Council member will be offered one electronic device (i.e. tablet, tablet computer or

laptop) that meets the needs in fulfilling their duties. Should the offer be declined, no additional allowance will be payable.

4.3. In addition to 4.2, the Mayor will be offered a cellular phone. Should the offer be declined, no

additional allowance will be payable.

Commented [RS8]: Addition of section 4

Policy 164, 2018


Signed: Original signed by James Baker Original signed by Reyna Seabrook Mayor James Baker Reyna Seabrook, Corporate Officer

DISTRICT OF LAKE COUNTRY COUNCIL REMUNERATION SUMMARY

Year Mayor Council CPI Base 2019 $49,237 $19,694 2.5% 2020 $51,729 $20,692 2.3% 2021 $52,143 $20,857 0.8% 2022 2023

Commented [RS9]: Delete table

Council Remuneration and ExpensesPolicy 164, 2018

District of Lake Country10150 BottomWood Lake Road

Lake Country, BC V4V 2M1t: 250 766 5650 f: 250 766 0116

lakecountry.bc.ca

Date

The following was adopted at the Regular Council Meeting held December 18, 2018 by Resolution No.18.12.270.

This policy repeals Council Remuneration and Expenses Policy No. 00.02.46 and Travel and ExpensePolicy 06.03.75.

This policy was amended as follows:Amendment Date Resolution No. Summary of Amendment

Update Authority to Approve Travel and move to body ofpolicy.Adjust remuneration and add section 1.3 and 1.4Add section 4, Technology ExpensesDelete Council remuneration table.

Preamble

This policy sets out the guidelines for Mayor and Council remuneration and expenses. Council membersmay incur out of town travel expenses within Council approved budget limits while representing themunicipality, engaging in municipal business, or attending meetings, conferences, seminars and othertraining opportunities. This policy will provide guidelines for consistency and accountability.

For the purposes of this policy, the term “Council” and “Council members” shall include the Mayor.

Policy

1. REMUNERATION

1.1. Effective January 1, 2021 the Mayor shall receive annual indemnity of $52,143, paid on amonthly basis.

1.2. Effective January 1, 2021 each Councillor shall receive annual indemnity of $20,857 paid on amonthly basis.

1.3. The remuneration for the Mayor shall increase on January 1 of each year by the amount of the

British Columbia Consumer Price Index (BC CPI) for the prior year. In years where the BC CPI isnegative, the remuneration shall remain the same as the prior year.

1.4. The remuneration for each Councillor shall be calculated as forty percent (40%) of the Mayor’s

remuneration as of January 1 of each year.

Council Remuneration and Expenses Policy 164, 2018 2

S:\Council meetings\2021 Council\2021 10 19\CRTF\Attachment D Policy 164 2018 Amendment Clean RS.docx

1.5. Remuneration provided in 1.1 and 1.2 above shall be reviewed as per Council Remuneration

Task Force Policy 154, 2016, as amended from time to time. 1.6. A T2200 will be issued to each Council member annually in addition to the T4. One professional

accounting session will be provided to Council as a group as part of orientation each term. 1.7. Each Council member shall receive accident insurance coverage of $100,000 with the

premiums paid for by the District.

1.8. Council members may opt into the District’s extended health and dental plans on a 50/50 costsharing basis.

2. AUTHORITY TO APPROVE TRAVEL

2.1. A resolution of Council is required to approve attendance of any Council member at a functionwhere there will be a cost incurred by the municipality. A budget limit to attend the meeting,conference, seminar or other training opportunity must be provided and approved as part ofthe resolution.

2.2. Where possible annual planning for Council travel should occur prior to the adoption of thebudget each year. However, opportunities can arise throughout the year and be considered atthe time by Council subject to the unallocated Annual Budget.

3. TRAVEL EXPENSES

3.1. In addition to the remuneration provided in Section 1 Council members shall receive thefollowing expenses for attendance at meetings, courses or conventions and when representingthe municipality or engaging in municipal business authorized by Council:

3.2. Expenses are not eligible if a Council member receives an honorarium, a per diem, or otherform of expense reimbursement for attending the meeting or other function from any othersource.

3.3. Where attendance requires absence from the District of Lake Country for one day or less:(a) vehicle expenses at the current CRA reasonable per km allowance; and(b) actual cost of meals.

3.4. Where attendance requires absence from the District of Lake Country for more than one day

or a one day event requiring overnight travel:(a) return economy air transportation, or(b) where scheduled air transportation is not suitable, vehicle expenses at the current CRA

reasonable per km allowance to a limit of no more than the cost of available airtransportation; and

(c) a per diem rate of $85 per day without receipts to cover all meals, gratuities, dry cleaning,personal telephone calls and other miscellaneous costs. The per diem rate for the day ofdeparture or day of return will be calculated on a prorated basis with one half the perdiem payable for any portion of the day prior to 2:00 pm and one half the per diempayable for any portion of the day after 2:00 pm. If meals are included in the eventregistration fees then the cost of those meals will be deducted from the per diem rate inaccordance with the table below:



MEAL PER DIEM ALLOWANCEBreakfast $15.00Lunch $15.00Dinner $30.00

(d) the registration fee for such meeting, course or convention; and(e) the actual cost for single room hotel accommodation, not to exceed the event rate or

government rate at the site of the event, subject to availability. Hotel parking, businesscalls, postage or other business incidentals necessarily incurred and included in the hotelbill will be paid by the District and is not part of the per diem rate.

3.5. The Mayor may incur meal costs for business meetings held locally or out of town involvingother persons. The name of the person, company, and nature of the meeting must beindicated on the receipt. A full receipt must accompany and credit card or debit card receipt.Reimbursements will not include alcoholic beverages or cannabis related products.

3.6. Travelers wishing to combine a business trip with personal travel may do so at their ownexpense. The traveler will be required to pay any additional travel and accommodationexpenses that are not associated with the business travel.

3.7. Costs of spousal travel, including transportation, accommodation, registration and meals are

an expense of the individual and not the District.

3.8. Each Council member is required to submit a travel expense claim supplied by the financedepartment within 30 days of the event. The Director of Finance or designate will review andapprove the travel expense claim.

3.9. Where the approved travel requires overnight stay(s) and the Council member chooses to stay

with friends or relatives in lieu of a hotel, a $25 per night private accommodation allowance ispermitted without the submission of receipts. Additional costs incurred as a result of thealternate accommodation (i.e. taxi fare, mileage) will be reimbursed with the submission ofreceipts although the combined costs of the private accommodation allowance and additionalcosts shall not exceed the event rate or government rate of the conference hotel.

4. TECHNOLOGY EXPENSES

4.1. It is recognized that Council members perform many of their duties and prepare for meetingsaway from the Municipal Hall.

4.2. Each Council member will be offered one electronic device (i.e. tablet, tablet computer orlaptop) that meets the needs in fulfilling their duties. Should the offer be declined, noadditional allowance will be payable.

4.3. In addition to 4.2, the Mayor will be offered a cellular phone. Should the offer be declined, noadditional allowance will be payable.

Original signed by James Baker Original signed by Reyna SeabrookMayor James Baker Reyna Seabrook, Corporate Officer

Amendment dated xxx



Mayor James Baker Reyna Seabrook, Corporate Officer

district of lake country

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