- Base salary not increasing until October 2007, but so-called "allowances" increase today
- 7% raise works out to an extra $6,187 for councillors, $12,170 for mayor
- CTF petition to put raises to a public plebiscite receiving strong support
Backgrounder
EDMONTON: The Canadian Taxpayers Federation (CTF) is reminding Edmontonians that a portion of the pay raises Edmonton city council fast-tracked last month will be kicking-in today, July 10, 2006, with the remainder coming into effect on October 23, 2007.
"Comments from the compensation committee and some council members may have led the public to believe that the council pay raise is not coming into effect until after the next election. That's only half the truth," charged CTF-Alberta director Scott Hennig.
"The so-called 'car allowance' is jumping by 30 per cent and the so-called 'RRSP allowance' is rocketing up by 87 per cent, not next year, but today," continued Hennig.
The CTF has maintained that these "allowances" are no more than salary, and as such should be eliminated and rolled into one honest and transparent lump-sum base salary.
"Both of these allowances are one-third tax-free just like council's salaries, and are simply paid out as cash compensation on their regular paycheques," explained Hennig. "Unlike expense allowances in the real world, council members don't have to turn in any receipts or prove they incurred any out-of-pocket expenses."
"In fact, they don't have to own or even know how to drive a car to get the car allowance, nor do they have to put their RRSP allowance into an RRSP," continued Hennig.
"It's an underhanded, non-transparent, backdoor way of increasing the cash in their pockets," concluded Hennig.
Prior to today, city councillors earned the equivalent of $85,014 and the mayor earned $167,774. As of today, city councillors will be earning the equivalent of $91,201 and the mayor will be earning $179,914. Today's increase represents a 7 per cent bump in cash compensation to city council members.
On October 23, 2007, city councillor's compensation will increase again, then to an equivalent of $102,984, and the mayor's compensation will increase to an equivalent of $192,045.
In reaction to city council refusing to allow public debate on these raises, and fast-tracking them through in five days, the CTF launched a petition to get council to take these raises to a plebiscite in connection with the 2007 civic election. Response to the CTF's on-line petition at
www.taxpayer.com and the fax and print versions has been very strong with hundreds of Edmonton ratepayers signing-on in less than three weeks.