Council approves COLA increase for Town staff, funds in contingency

New Tec Free Press January 8, 2013

One of the first concrete decisions made by council as part of the 2013 municipal budget package is approval of a 1.5 per cent Cost of Living Allowance (COLA) increase for Town staff.

As has been the case for the past few years now, money is set aside in the budget as a “contingency” which has turned out to be earmarked for salary increases. This year, it’s about $184,000 which appears to be in addition to a $289,737 unfavourable expenditure related to salaries and wages, including “impact of new staff, step increases etc.” As well,  there’s an unfavourable variance of $121,508 for “significant OMERS increase and other benefit impacts.”

It’s also anticipated that council will be discussing raising its own honorariums, which if approved would likely fall in line with the 1.5 per cent. New Tecumseth has 13 members of senior staff who earn more than $100,000.

“The draft 2013 budget included the opportunity to support a cost of living allowance amount of 1.5 percent which was announced to those in attendance last evening,” explained Mayor Mike MacEachern via email this afternoon. “The 1.5 percent increase for staff was unanimously recommended by Council for inclusion in the final budget.”

The first draft of the budget would increase the average property tax bill by $132, or 8.8 per cent over last year. Of that, about three per cent is to pay for a $607,000 increase in OPP costs.

Council meets again Wednesday night at the Alliston Fire Hall starting at 7 pm for its next budget working session. It is open to the public, but only as spectators.