Incoming Sunshine Coast Regional District directors could be getting an increase in compensation – but only enough to offset losses incurred by the removal of a tax break.
Directors decided to move forward with a proposal to implement a “gross up” to compensate for the repeal of a special tax exemption for elected officials that saw them taxed on two-thirds of their income rather than the full amount.
Without the tax exemption and without raising their stipend, directors would see a decrease in their pay. The “gross up” means the chair’s stipend of $37,257 would increase by approximately $2,500 to $39,800. A director’s baseline stipend would increase by $113 from $ 9,326 to 9,438. Rural directors receive a supplement, as do alternate directors and directors who chair committees.
The pay adjustments were recommended at a June 28 committee meeting and directors voted in favour of the changes with little debate – however, the issue of pay adjustment has been a long-standing one at the board. Roberts Creek director Mark Lebbell has advocated increasing compensation since 2016, citing concerns over “director sustainability.” He argues director pay is so low it could prevent those who are less financially secure from seeking election, leading to a lack of diversity on the board. He raised the concern again at the committee, calling remuneration “a barrier to broader representation,” before stating his support of the staff’s recommendation for the gross up.
Frank Mauro, director of Area A, noted that the Sunshine Coast is “amongst the top” in terms of director pay compared to the 17 other comparable regional districts included in the staff’s remuneration analysis.
The pay adjustment will require an amendment to the remuneration bylaw, which could come to the board in October, prior to the local government election, with an effective date of Jan. 1, 2019. Staff and directors will also be working on a policy to guide director remuneration, which would be drafted in 2019.
