Iqaluit city councillors vote to top up their pay

On Sept. 25, Iqaluit city councillors voted unanimously to increase their salaries to $20,000 a year, starting in January 2019. The pay increase is partly in response to higher income taxes that municipal politicians will soon be paying. (FILE PHOTO)

Iqaluit city councillors plan to boost their salaries to about $20,000 a year, starting in January.

The pay raise, which councillors unanimously approved on Sept. 25, is partly meant to compensate for higher taxes that municipal politicians will soon pay.

Presently, 30 per cent of the income received by municipal councillors in Canada is tax-free. But, starting in January, the Canada Revenue Agency will begin taxing all their income. That means less take-home pay.

The pay increase is also meant to bring Iqaluit in line with Canada’s other territorial capitals.

City councillors in Whitehorse receive $20,500 per year, and Yellowknife councillors earn about $26,500 per year, Iqaluit city councillors presently receive about $10,000, said Coun. Kyle Sheppard, who serves as chair of the city’s finance committee.

Iqaluit city council last received a pay increase in 2004, said Sheppard. Since that time, “the size of the community has grown and the number of meetings has increased dramatically,” he said.

Sheppard put forward the motion to increase city council’s pay, which received unanimous support.

City council will also change how the pay of city councillors is determined, by moving towards paying salaries, based on a percentage of the mayor’s salary, like other northern jurisdictions do. Presently, Iqaluit city councillors are paid a base rate of $6,000 annually, with additional payments made for meetings they attend.

“The current system for councillors is $500 per month plus $100 per meeting,” Sheppard said in an interview. “A meeting only counts if it is an actual council or committee meeting with an agenda. If you chair the meeting it is $120 instead of $100.”

“This means that the average total compensation in the last few years has been about $10,000 for councillors.”

Payment by salary will better reflect the work city councillors do outside council chambers, like attending public events, said Sheppard.

City council also voted to increase the deputy mayor’s pay to a salary of $30,000 per year, and to increase the alternate deputy mayor’s pay to a salary of $22,000 per year.

Additionally, city council voted to have the mayor’s pay remain the same until the next election, and that if the mayor is unable to complete her term, the deputy mayor or a councillor replacing her must do so full-time in order to receive that full-time pay and benefits.

The city will now draft a bylaw amendment in order to reflect these changes.