Mayor and council in Centre Wellington will soon be up for a pay increase.
But staff opted out of any sort of retirement savings plan contributions from their pay. The decision capped off a lengthy debate Monday at 1 MacDonald Square in Elora.
Councillors will see their salaries rise from $23,716 to nearly $29,000. The mayor’s salary will eclipse $53,000; previously, that salary was $47,286. All of these new figures will begin to take effect on the first day of 2024.
Council's decision came on the heels of an extensive market review from Rashid Hasan, township chief human resources officer. Hasan, who was before council to break down his findings, stated several factors were considered when creating the two options that came before council during the meeting.
"This is slightly above inflation because when you do a market review, you are comparing yourself to what's happening around you," Hasan explained.
"Other municipalities' data, information you collect. If you fall behind of your market competitors, you can't attract the right people to become leaders of this community and members of council," he added.
Hasan said in regards to the opt-out of RRSP funds, he believes council was tightening the belt when it comes to the township's budget.
"There's no benefit of opting out. I think they are very cautious about their budget impacts, so they (were) being very prudent about not spending extra money," Hassan said.
"It's a hats off to our council but I think it's not a negative thing to do the RRSP," he stated.
Mayor Shawn Watters said this is a hardworking council, adding that the numbers presented aren't "crazy."
Council also discussed the option of a pension plan known as Ontario Municipal Employees’ Retirement System. Ultimately, not tying future councils into the plan was a goal, so council decided against it.
Per the report presented, "Compensation for Elected Officials at Centre Wellington was reviewed in 2018 using a public consultation process and an external consultant. Base pay rates for the Mayor and Councillor positions were identified as being below the defined pay target; Council decided to go against the recommended rate increases and set their own rates."
"Council determined not to undertake a Compensation Review in 2022."
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