Elr\-\ Compensation Rates for the Mayor and Members of Council. Michael Pitoscia, Acting Executive Director, Human Resources
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1 BRAMPTON Elr\-\ Reprt Cmmittee f Cuncil bramptn.ca FlOWef City Cmmittee f the Cuncil f The Crpratin f the City f Bramptn Date: December 9, 2013 COMMITTEE OF COUNCIL File: Subject: Cntact: H20 Cuncil Cmpensatin Cmpensatin Rates fr the Mayr and Members f Cuncil Michael Pitscia, Acting Executive Directr, Human Resurces Margaret McMurdy, Manager, Cmpensatin & Benefits Overview: In respnse t directin frm Cuncil, infrmatin and analysis has been assembled regarding cmpensatin rates fr the Mayr and Members f Cuncil. The infrmatin cntained in this reprt is prepared fr Cuncil fr use as part f the 2014 budget discussins. Infrmatin regarding Cuncil decisins n cmpensatin, and the rle f the Cuncil Cmpensatin Cmmittee is als included in this reprt. Recmmendatins: 1. That the reprt frm M. McMurdy, Manager, Cmpensatin and Benefits, Human Resurces and M. Pitscia, Acting Executive Directr, Human Resurces, dated Nvember 22, 2013, t the Cmmittee f Cuncil - Budget Meeting f December 6, 9 and 10, 2013, re. Cmpensatin Rates fr the Mayr and Members f Cuncil (File H20), be received Backgrund: At its Nvember 6, 2013 meeting, City Cuncil amended and apprved recmmendatin CW , as fllws: CW That staff be requested t prvide an infrmatin reprt, as part f the 2014 budget prcess, n cmpensatin rates fr the Mayr and Members f Cuncil, including cmparisns with ther municipalities based n ttal cmpensatin and cmpensatin rate per resident, and that the reprt include a chrnlgy f Cuncil decisins n cmpensatin, including the rle f the Cuncil Cmpensatin Cmmittee. That staff be directed t nt prcess the December 1, 2013 cmpensatin increase fr the Mayr and Cuncillrs, as part f previusly apprved cmpensatin grid, pending cnsideratin f the 2014 budget prcess; and,
2 EVI -X That the matter f Cuncil Cmpensatin be referred t the Cmmittee f Cuncil - Budget fr cnsideratin. This reprt prvides the infrmatin requested by Cmmittee f Cuncil - Budget fr its use during 2014 budget discussins. Current Situatin: The Rle f the Cuncil Cmpensatin Cmmittee and recent decisins The Cuncil Cmpensatin Cmmittee was first established in The primary purpse f the Cmmittee is t make infrmed and independent recmmendatins t City Cuncil n the cmpensatin and benefits fr the Mayr and Cuncillrs fr the next term f Cuncil, as well as undertake any additinal wrk as Cuncil requests. The current iteratin f the Cmmittee was established by Cuncil in December 2010, and appinted in They met thrughut 2012 and early 2013, and made recmmendatins t Cuncil n Mayr and Cuncillr cmpensatin and benefits fr the next term f Cuncil, and undertake ther wrk as requested by Cuncil. The current term ( ) cmpensatin prgram fr the Mayr and Cuncillrs was recmmended by the Cuncil Cmpensatin Cmmittee, and apprved by Cuncil, in The Cuncil Cmpensatin Cmmittee has cmpleted its mandate and wrk by prviding recmmendatins n cmpensatin and benefits fr the next term f Cuncil ( ). This wrk included the analysis n salary prgressin t ensure reasnable remuneratin and prvide fundatin fr budget planning. Chrnlgy f Cuncil Decisins n Cmpensatin Cuncil's recent histry n cmpensatin decisins, and engaging a Cuncil Cmpensatin Cmmittee, dates back t Appendix 1 t this reprt is the Cmpensatin Cmmittee's Terms f Reference, and Appendix 2 is a chrnlgy f decisin milestnes regarding the Cuncil Cmpensatin Cmmittee, and related City Cuncil decisins. The Cuncil Cmpensatin Cmmittee has been active ver 5 distinct perids since 2001, as fllws: Cuncil Cmpensatin Cmmittee established in The recmmendatins f the Cmmittee were cnsidered by Cuncil in 2002 fr term f Cuncil Cuncil Cmpensatin Cmmittee re-established in 2005; The recmmendatins f the Cmmittee were cnsidered by Cuncil in 2005 fr term Cuncil recalled the Cmmittee in 2006 t re-cnsider cmpensatin matters. The Cmmittee recmmendatins were cnsidered by Cuncil in 2006 fr term.
3 E*-l-2> Cuncil Cmpensatin Cmmittee re-established in The recmmendatins f the Cmmittee were cnsidered by Cuncil in 2009 fr term Cuncil Cmpensatin Cmmittee re-established in The recmmendatins f the Cmmittee were cnsidered by Cuncil in 2013 fr term, and remaining term f current Cuncil Cmpensatin Rates fr the Mayr and Members f Cuncil The table belw prvides cmparative municipal cmpensatin infrmatin fr the Mayr. Ppulatin Mayr/Reginal Chair Cmpensatin rate per resident Regin f Yrk 1,085,588 $207, $0.19 Calgary 1,120,225 $201, $0.18 Ottawa 1,236,324 $168, SO.14 Winnipeg 684,100 $167, $0.25 Trnt 2,773,000 $167, $0.06 Regin f Peel* 1,300,000 $167, $0.13 Edmntn 812,201 $158, $0.20 Regin f Waterl 507,000 $153, $0.30 Bramptn* 523,911 $148, $0.28 Vancuver 603,502 $146, $0.24 Mlssissauga* 738,000 $136, $0.19 Markham* 310,000 $126, $0.41 Hamiltn* 520,000 $124, $0.24 Burlingtn* 175,779 $121, $0.69 Richmnd Hill* 185,500 $117, $0.64 Oakville* 180,000 $114, $0.64 Lndn* 366,151 $104, $0.28 Guelph* 120,000 $93, $0.78 Oshawa 156,826 $87, $0.56 Windsr 210,891 $86, $0.41 Kitchener* 224,000 $76, $0.34 Caledn* 57,050 $63, $1.12 *Salaries have been updated t reflect the 2013 rates **Salary nly - des nt include RSP and 1/3 tax free.
4 a-i-* The table belw prvides cmparative municipal cmpensatin infrmatin fr the Cuncillrs and Reginal Cuncillrs. Ppulatin City Cuncillr Cmpensatin rate per resident Reginal Cuncillr* Cmpensatin rate per resident Calgary 1,120,255 $107,000 $0.10 N/A Regin f Peel* 1,300,000 N/A $51, $0.04 Regin f Yrk 1,085,588 N/A $49, $0.05 Regin f Waterl 507,000 N/A $39, $0.08 Trnt 2,773,000 $99, $0.04 N/A Ottawa 1,236,324 $92, $0.07 N/A Edmntn 812,201 $87, $0.11 N/A Winnipeg 684,100 $84, $0.12 N/A Mississauga* 738,000 $81, $0.11 $81, $0.11 Bramptn* 523,911 $72, $0.14 $72, $0.14 Markham* 310,000 $71, $0.23 $71, $0.23 Hamiltn* 520,000 $71, $0.14 $71, $0.14 Richmnd Hill* 185,500 $70, $0.38 $70, $0.38 Vancuver 603,502 $64, $0.11 N/A Burlingtn* 175,779 $53, $0.30 $53, $0.30 Oakville* 180,000 $46, $0.26 $46, $0.26 Kitchener* 224,000 $38, $0.17 $38, $0.17 Oshawa 156,826 $35, $0.23 $38, $0.25 Lndn* 366,151 $33, $0.09 $33, $0.09 Guelph* 120,000 $31, $0.26 $31, $0.26 Windsr 210,891 $28, $0.14 N/A Caledn* 57,050 $28, $0.50 $28, $0.50 *Salaries have been updated t reflect the 2013 rates 'Salary nly - des nt include RSP and 1/3 tax free The table belw prvides cmparative cmpensatin rate per resident based n the City f Bramptn Wards. Cmpensatin Ppulatin Mayr/Cuncillr rate per Bramptn* Mayr 523,911 $148, resident S0.28 Ward 1 & 5 83,637 $72, SO.87 Ward 2 & 6 155,542 $72, $0.47 Ward 3 & 4 95,905 $72, $0.75 Ward 7 & 8 82,131 $72, SO.88 Ward 9 & ,483 $72, $0.44 'Salaries have been updated t reflect the 2013 rates **Salary nly - des nt include RSP and 1/3 tax free.
5 evi-5 Cnclusin: City Cuncil has apprved the Cuncil Cmpensatin Cmmittee recmmendatin earlier in 2013 fr the term. Recent Cuncil decisin t suspend an increase in remuneratin effective December 1, 2013 affects the previusly apprved prgressin, and staff will be seeking apprpriate directin frm Cuncil during the budget prcess. This infrmatin reprt is prvided t Cmmittee fr its infrmatin as part f the 2014 Budget prcess. Margaret McMurdy / Manager, Cmpensatin & Benefits Michael Pitscia Acting Executive Directr, Human Resurces Attachments: Appendix 1 - Terms f Reference fr the Cuncil Cmpensatin Cmmittee Appendix 2 - Chrnlgy f Cuncil Decisins regarding Mayr and Cuncillr Cmpensatin and the Cuncil Cmpensatin Cmmittee Appendix 3 - Final reprt frm the Cuncil Cmpensatin Cmmittee
6 e^-t-fe Appendix 1 Terms f Reference fr the Cuncil Cmpensatin Cmmittee Cuncil Cmpensatin Cmmittee Cmpsitin: Term f Office: 5 citizens Cncurrent with the term f Cuncil, ending Nvember 30, 2014, r until successrs are appinted Established by: Reslutins C , C (August 15, 2001) and C (January 28, 2002) (GR ) Meetings: Scheduled as required Hnrarium: Vlunteer Mandate: In the year prirt a municipal electin, a vlunteer Cuncil Cmpensatin Cmmittee is established t review cmpensatin fr Members f Cuncil wh will take ffice fllwing the next municipal electin. (Reslutin C ) The Cmmittee's mandate includes: Cmpensatin adjustments requiring plicy change Apprpriateness f Members f Cuncil being included n the nn-unin salary gridfr the next term f Cuncil Review f severance fr Members f Cuncil wh leave r d nt return t ffice Other matters as referred by Cuncil
7 e^-f-"7 Appendix 2 Chrnlgy f Cuncil Decisins regarding Mayr and Cuncillr Cmpensatin and the Cuncil Cmpensatin Cmmittee Recmmendatins Cuncil first established Cmmittee in 2001 Cmmittee Recmmendatins cnsidered by Cuncil in 2002 fr term f Cuncil Summarv f Cuncil Cmpensatin Cmmittee Recmmendatins and Cuncil Decisins: Office f Member f Cuncil in Bramptn is cnsidered full-time Apprval f "rles and respnsibilities" Keep cmpensatin fr all Members f Cuncil n par with nn-unin salary grid Mayr at 90% f jb rate fr Grade 8 City Cuncillrs at jb rate fr Grade 2 Reginal Cuncillrs at entry level Grade 2 (ratinale - 20% f time spent n reginal business and difference between entry-level and jb-rate pay is 20%) Ecnmic increases and fringe benefits t mirrr nn-unin staff Maintain 1/3 tax-free allwance fr term Maintain severance and retirement benefits and RRSP prgram Cuncil City Cuncil Meeting Date Reslutin Cnsideratin/Decisin Reference August 15,2001 C Cnsideratin t establish Citizen's Cmmittee t make recmmendatins n cmpensatin fr City C f Bramptn elected fficials C C C C January 28, 2002 C Cmpsitin f Citizens Cmmittee t the Study f Cmpensatin fr Elected Officials December 18,2002 C Cnsideratin f reprt re: "Final Reprt Frm Cuncil Cmpensatin Cmmittee"
8 e2>-! Cuncil re-established Cmmittee in 2005 Cmmittee Recmmendatins cnsidered by Cuncil in 2005 fr term f Cuncil Summarv f Cuncil Cmpensatin Cmmittee Recmmendatins and Cuncil Decisins: Keep cmpensatin fr all Members f Cuncil n par with nn-unin salary grid Mayr at Grade 9 City Cuncillrs at Grade 4 (recmmendatin that Reginal Cuncillr cmpensatin be at 80% f City Cuncillr cmpensatin referred back t the Cmmittee) Beginning in 2nd year f ffice (starting December 1, 2007), salaries wuld prgress in equal installments thrugh salary range frm entry level t jb rate ver 10 years (ratinale - prjected perid f time that City will experience greatest ppulatin grwth) RRSP cntributins t be n basis f "grssed up" salary (i.e., salary paid t realize same take-hme pay if nt subject t 1/3 tax-free allwance) Cnfirm health cverage, financial plicies applicable t Members and Cuncillr rles and respnsibilities Maintain 1/3 tax-free allwance fr term Recnvene Cmmittee t review severance allwance fr Members f Cuncil taking ffice after the 2006 electin Cuncil City Cuncil Meeting Date Reslutin Cnsideratin/Decisin Reference Octber 24, 2005 C Cnsideratin f reprt re: "Remuneratin fr the Mayr and Members f Cuncil re: Citizen's Cuncil Cmpensatin Cmmittee" December 12,2005 C Cnsideratin f reprt re: "Cmpensatin fr Members f Cuncil fllwing 2006 Municipal C Electin"
9 evi-i 2006 Cuncil recalled Cmmittee in 2006 t re-cnsider cmpensatin matters Cmmittee Recmmendatins cnsidered by Cuncil in 2006 fr term f Cuncil Summary f Cuncil Cmpensatin Cmmittee Recmmendatins and Cuncil Decisins: Keep cmpensatin fr all Members f Cuncil n par with nn-unin salary grid Mayr at Grade 10 City and Reginal Cuncillrs at Grade 4 Beginning in 2nd year f ffice (starting December 1, 2007), salaries wuld prgress in equal installments thrugh salary range frm entry level t jb rate ver 10 years (ratinale - prjected perid f time that City will experience greatest ppulatin grwth) Cnfirm recmmendatins f 2002 Cmmittee re. ecnmic adjustment, retirement and severance benefits, healthcare cverage, etc. Maintain 1/3 tax-free allwance fr term Cntinue ecnmic adjustments fr Members f Cuncil mirrring thse apprved frm time t time fr n-unin staff Cuncil City Cuncil Meeting Date Reslutin Cnsideratin/Decisin Reference March 27,2006 C Re-pen Cuncil Reslutins C and C May 8, 2006 C Cnsideratin f reprt re: "Reprt frm Cuncil Cmpensatin Cmmittee - Review f Cmpensatin fr Elected Officials t take Office Fllwing the 2006 Municipal Electin"
10 ei>-i-i Cuncil re-established Cmmittee in 2007 term Cmmittee Recmmendatins cnsidered by Cuncil in 2009 fr term f Cuncil Summarv f Cuncil Cmpensatin Cmmittee Recmmendatins and Cuncil Decisins: Cnfirm incremental cmpensatin frmula fr Mayr and Cuncillrs, previusly apprved by Cuncil, t achieve jb-rate nn-unin cmpensatin ver 10-year perid f: Mayr at Grade 10 City and Reginal Cuncillrs at Grade 4 Cnfirm current severance prvisins fr elected fficials f 1 mnth's cmpensatin at the "grssed up" salary fr each year f service t a maximum f 12 years (ratinale - similar prvisins in place in ther municipalities, include Peel Regin municipalities) Maintain 1/3 tax-free allwance fr term Cuncil decisin t adjust 2010 salary paid t Mayr and Cuncillrs fr January 1 - December 31, 2010, t be equivalent t a salary freeze fr 2010 nly Referral t Cuncil Cmpensatin Cmmittee fr review the payment f RRSP benefits t Members f Cuncil abve the age f 71. Cuncil City Cuncil Meeting Date Reslutin Cnsideratin/Decisin Reference March 21, 2007 C Amend mandate f Cuncil Cmpensatin Cmmittee t review severance fr Members wh leave r d nt return t ffice May 27, 2009 C Cnsideratin f Minutes f Cuncil Cmpensatin Cmmittee Meeting f April 29, 2009 January 27,2010 C Cnsideratin f reprt re: "2010 Market Adjustment Applied t nn-unin Salary Ranges and Members f Cuncil" May 12, 2010 C Referral f issue f RRSP benefits t Members f Cuncil abve 71 years f age t Cuncil Cmpensatin Cmmittee i 10
11 EVM/ Cuncil re-established Cmmittee in 2010 Cmmittee Recmmendatins cnsidered by Cuncil in 2013 fr term, and current term f Cuncil. Summary f Cuncil Cmpensatin Cmmittee Recmmendatins and Cuncil Decisins: Maintain 1/3 tax-free allwance fr term Cntinue salary prgressin fr elected fficials until jb rate is achieved in 2016 t supprt the gal f cntinuing t attract interested, qualified, experienced and mtivated individuals wh will shape the future f the City; Establish retirement allwance/severance prvisins fr elected fficials, effective with the term, based n the fllwing: ne (1) mnth's cmpensatin at the "grssed up" salary fr each year f service t a maximum f eighteen (18) mnths; fr elected fficials wh have achieved 55 years f age, at time f retirement, and have served three (3) cnsecutive terms f Cuncil, a cntinuatin f the crprate grup benefits prgram until age 65; fr elected fficials wh have achieved 65 years f age, and have served fur (4) cnsecutive terms f Cuncil, a Health Care Spending Accunt administered thrugh the Crpratin's benefits prvider, f up t $5,000 per year (indexed annually based n the Ontari Cnsumer Price Index fr Health and Persnal Care) fr a cverage perid f ne (1) year fr each tw (2) years f service, with such Health Care Spending Accunt prgram t be reviewed by staff every tw years t ensure adequate cverage; except that such prvisins d nt apply where a Member f Cuncil leaves ffice as a result f a judicial determinatin; Replace RRSP prgram and prvide a retirement pensin cash amunt, based n the City's annual OMERS cntributin rate and the current frmula fr determining the incme base, subject t statutry deductins, representing the annual retirement pensin cntributin fr all elected fficials regardless f their circumstances, effective January 1, Cuncil City Cuncil Meeting Date Reslutin Cnsideratin/Decisin Reference December 7,2010 C Re-establish Cuncil Cmpensatin Cmmittee Nvember 30,2011 C Appintment f Members t Cuncil Cmpensatin Cmmittee 11
12 efc-mt- Octber 24,2012 C Referral t Cuncil Cmpensatin Cmmittee fr review and recmmendatins regarding: pensin benefits and severance prvisins fr Members f Cuncil fr the current term f Cuncil; and medical benefits and prvisins fr Members f Cuncil fr the current term f Cuncil. February 27, 2013 C Nvember 6, 2013 C Cnsideratin f Minutes f Cuncil Cmpensatin Cmmittee Meetings f February 8, 2012, May 9, 2012, Octber 4, 2012 and February 11, 2013 Directin t staff t nt prcess December 1, 2013 cmpensatin grid prgressin, pending cnsideratin f 2014 Budget 12
13 EVI-I3. Appendix 3 Final reprt frm the Cuncil Cmpensatin Cmmittee U BRAMPTON Reprt City Cuncil The Crpratin f the City f Bramptn bramptn.ca FlOWer City Reprt frm the Office f the CAP and Senir Management Team Date: February 27, 2013 File: H20 Subject: Transmittal Reprt: Ttal Cmpensatin Package fr Elected Officials Cntact: Jhn Crbett, Chief Administrative Officer The City f Bramptn established a Citizen's Cmmittee in 2001, which is referred t as the Cuncil Cmpensatin Cmmittee, t prvide a public prcess that wuld review ttal cmpensatin packages fr elected fficials. Each term f ffice, vlunteers are appinted after cmpleting an applicatin fr citizen appintment and successful participatin in a panel interview. This cmmittee was appinted n Nvember 30, 2011, which is made up f tw (2) lng servicing members and three (3) new members. They have participated in fur (4) public meetings since the cmmittee was recnvened fr this term f ffice. Attached is the staff reprt entitled "Ttal Cmpensatin Package fr Elected Officials" Appendix A, prepared fr the Cuncil Cmpensatin Cmmittee that was cnsidered n February 11,2013. In preparing its recmmendatins, the Cuncil Cmpensatin Cmmittee cnsidered the fllwing wrklad related matters that are specific t the Bramptn cntext: 9th largest city in Canada; 2nd fastest grwing city in Canada; A ppulatin representing 175 distinct ethnic backgrund; The nature f the rle requiring 24/7 access; 13
14 EVI-I4 Cmplex grwth management, infrastructure, envirnmental, scial and financial issues. As result f this review, the Cuncil Cmpensatin Cmmittee has made sme minr mdificatins as utlined belw. T verify the directin f the Cuncil Cmpensatin Cmmittee, staff engaged the firm f An- Hewitt and the results f this review are attached as Appendix B. It is clear that an apprpriate cmpensatin package fr the Crpratin f the City f Bramptn shuld reflect a highly cmpetitive psitin as identified in the An-Hewitt reprt given the many cmplexity f the Bramptn cntext. The Cuncil Cmpensatin Cmmittee has made the fllwing recmmendatins: 1. That the reprt frm Jhn Crbett, Chief Administrative Officer, n behalf f Senir Management team, dated February 11, 2013, entitled Ttal Cmpensatin Package fr Elected Officials", be received; 2. That the City f Bramptn cntinue salary prgressin fr elected fficials until jb rate is achieved in 2016 t supprt the gal f cntinuing t attract interested, qualified, experienced and mtivated individuals wh will shape the future f the City; 3. That the retirement allwance/severance prvisins fr elected fficials, effective with the term, be established based n the fllwing: a. ne (1) mnth's cmpensatin at the "grssed up" salary fr each year f service t a maximum f eighteen (18) mnths; b. fr elected fficials wh have achieved 55 years f age, at time f retirement, and have served three (3) cnsecutive terms f Cuncil, a cntinuatin f the crprate grup benefits prgram until age 65; c. fr elected fficialswh have achieved 65 years f age, and have served fur (4) cnsecutive terms f Cuncil, a Health Care Spending Accunt administered thrugh the Crpratin's benefits prvider, f up t $5,000 per year (indexed annually based n the Ontari Cnsumer Price Index fr Health and Persnal Care) fr a cverage perid f ne (1) year fr each tw (2) years f service, with such Health Care Spending Accunt prgram t be reviewed by staff every tw years t ensure adequate cverage; except that such prvisins d nt apply where a Member f Cuncil leaves ffice as a result f a judicial determinatin; 14
15 evus 4. That the City f Bramptn replace the RRSP prgram and prvide a retirement pensin cash amunt, based n the City's annual OMERS cntributin rate and the current frmula fr determining the incme base, subject t statutry deductins, representing the annual retirement pensin cntributin fr all elected fficials regardless f their circumstances, effective January 1, The Cuncil Cmpensatin Cmmittee has cmpleted their review and is submitting these recmmendatins fr cnsideratin f the cmpensatin package fr elected fficials. Respectfully Submitted, On behalf f Senir Management Team Jhn Crbett Chief Administrative Officer Appendices: Appendix A - Ttal Cmpensatin Package fr Elected Officials Reprt Appendix B - An-Hewitt letter 15
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