Council Remuneration Review Report

Council Remuneration Review Report

Conducted on Behalf of the Town of View Royal

Jo MacDonald B.A., M.Sc.B.A.(WOT), G.C.P.L August 2, 2022

Table of Contents

Table of Contents ..................................................................................................... 2 Context and purpose of Survey .................................................................................... 3 Methodology .......................................................................................................... 3 Definitions ............................................................................................................. 4 Results ................................................................................................................. 4 Comments and Recommendations ................................................................................. 5 Final Comments ...................................................................................................... 6 Consultant Profile .................................................................................................... 7

I CONTEXT AND PURPOSE OF SURVEY

The Town of View Royal (the Town) is a relatively small local government in the Greater Victoria area, with a population (in 2021) of 11,575 and expenditures (in 2020) of $17M. Town Council is comprised of a Mayor and four Councillors, as required by legislation. It is interesting to note that three towns in the current survey have six (6) councillors, and that cities or districts with a population of 50,000 or less must have six councillors. The result is that four (4) City or District governments in this comparison, who have either a population or annual expenditures lower than those of the Town, have one Mayor and six (6) Councillors to perform the required duties. In addition to the three Towns with six Councillors, seven (7) local governments very close in size to the Town have two additional Councillors. This will necessarily increase the span of work involved by Town Councillors.

In every election year, the Town has had a survey conducted for the purpose of establishing remuneration for the following year, in this case for 2023. Practices for establishing annual increases between election years, and for compensating Councillors who act for a Mayor for any period of time were also identified as topics for this survey.

A market review to obtain this information was conducted with twenty (20) identified comparator local governments in July of 2022.

II METHODOLOGY

A customized survey seeking the following information was sent to the local governments who were approved by the District as comparators:

1. 2022 annual remuneration for Mayor and Councillors
2. Anticipated 2023 remuneration or action planned to determine rates
3. Determination of annual increases by bylaw or indexed (and if so to what source)
4. Provision of an Acting allowance to Councillors acting for the Mayor.

The twenty local governments listed below responded to the survey:

• Central Saanich (District of)
• Colwood (City of)
• Comox (Town of)
• Cumberland (Village of)
• Duncan (City of)
• Esquimalt (Township of)
• Gibsons (Town of)
• Highlands (District of)
• Lake Cowichan (Town of)
• Langford (City of)
• Metchosin (District of)
• North Saanich (District of)
• Oak Bay (District of)
• Parksville (City of)
• Port Alberni (City of)
• Saanich (District of)
• Sidney (Town of)
• Sooke (District of)
• Tofino (District of)
• Victoria (City of)

The data from all comparators was included in the analysis since, as noted in Section I, some smaller and all larger local governments spread the duties required between six (6) Councillors while the Town has only four (4).

III DEFINITIONS

Mean The average of all the data (salary information) divided by the number of observations (reports).

Median The median is the mid-point rate of all rates reported.

Observation The number of observations is the number of organizations whose salaries were considered for each elected position.

Percentiles The 50th (P50) percentile means that 50% of the reported salaries are at or below it; and The 75th percentile (P75) means that 75% of the reported salaries are at or below it.

It is important to note that a minimum number of observations is required in order to report data and maintain confidentiality. A minimum of three observations is required to report the average, four to report the median, and five to report the quartiles.

IV RESULTS

All results were analyzed in accordance with the foregoing methodology. The objective results for each elected position are noted below. The recommended application of these results for the Town are discussed in the Recommendations section of this report.

1. Mayor

The Town rate is $ 33,691.

2. Council

The current Town rate is $ 16,153.

VI COMMENTS AND RECOMMENDATIONS

a) Remuneration

The current rates for the Town’s Mayor and Councillors are below both the median and the mean for the reported 2022 rates. To raise the Mayor to the 50th percentile, an annual increase of $724 (2.14%) is needed. To raise the Mayor to the 75th percentile, an annual increase of $10,996 (32.6%) would be required. Both the 50th and 75th percentile rates are for local governments with populations and expenditures close to that of the Town, and both have six (6) councillors rather than four (4).

As a result of the above, it is my recommendation that the Town move the 2022 rate of Mayor to the 75th percentile, to maintain the local government hierarchy and to reflect the scope of duties.

For Councillors, it is encouraging to see that both the median and the mean for percentage of the Mayor’s remuneration were 50%. As a result, it is my recommendation that the Town move the 2022 rate for Councillors to $22,343.50 (50% of $44,687). This would be an increase of $6,190.50, or 38.3%.

Once the base rates for 2022 are adopted, it is recommended that 2023 rates be set with an increase to the adjusted 2022 rates by the amount of the 2022 Victoria Consumer Price Index (CPI).

The survey revealed that three of twenty Councils determine their remuneration by bylaw, 15 index it, 9 index by Bylaw, and 2 (for 2023) are awaiting results of a consultant report prior to making that determination. Further:

• Fourteen of the twenty comparator governments plan to increase 2022 rates by a CPI, even if they have already been adjusted upward as a result of a report. Of those fourteen, three chose the BC CPI, with the remainder the Victoria CPI.
• Two Councils will be setting 2023 rates at the P50 level based on their own annual market survey.
• One Council will adjust their already increased rates with an amount equal to 10% of the CPI and 90% of the average of the comparators increases.
• One Council will increase their rates by the percentage negotiated by CUPE for 2023.

b) Acting Pay

Seven of the twenty local governments consulted compensate Councillors when acting for the Mayor, and one does so on a discretionary basis. Of that group, two have no minimum period for acting, one requires acting for at least one full month, one requires acting for at least 2 full months, and one requires acting for a full year. Remuneration varies with two governments compensating at 100% of the Mayor’s rate, and four compensating between $100 and $828 per month.

Given that less than 50% of the governments surveyed provide Acting Pay, it is recommended that the Council of View Royal consider doing so on a discretionary basis if it is required for a period greater than one month.

FINAL COMMENTS

I am pleased to present the above recommendations to assist the Town to maintain its relative position vis-à-vis comparable local governments.

If you have any questions about this report or would like to discuss any aspects of it, please contact me as I am happy to help. Thank you so much for the opportunity.

CONSULTANT PROFILE

Jo MacDonald is a Human Resources professional with forty years of experience as a practitioner for both management and union, in the federal, provincial and municipal legislative jurisdictions.

For the 15 years ending 2020 she was a Senior Human Resources Manager in both health care and in the municipal sector in the Capital Regional District. In these roles she was responsible for strategic human resources including labour relations, job evaluation, work design and compensation, policy development, talent acquisition, performance management, respectful workplace issues, and training.

She has been the chief negotiator in collective bargaining; responsible for grievances, arbitrations, respectful workplace and Human Rights complaints; and responsible for writing, updating and implementing policy and job evaluation plans. She was also a sessional instructor of Labour Relations at the University of British Columbia prior to moving to Vancouver Island.

She retired from her full-time position as Senior Manager of Human Resources at the District of Saanich in 2020, after ten years in that position, and now enjoys consulting on HR related projects on a part time basis in her retirement.

Mayor Remuneration Comparison

Mayor Remuneration Summary

Council Remuneration Comparison

Council Remuneration Summary

The Town rate for 2022 is $ 16,153.