A majority of the valley’s councillors have voted in favour of accepting the maximum compensation available under Clarence Valley Council’s new ‘Regional Centre’ rating.
The decision was taken at last week’s July 27 Clarence Valley Council (CVC) meeting.
Historically, councillors have rejected increases each year (under the rate-pegging system) since the adoption of the 2013/14 year’s allowances.
Due to the COVID-19 pandemic, the Independent Pricing and Regulatory Tribunal (IPART) “determined that there will be no increase in the minimum and maximum fees applicable to each existing category”, the report to council stated.
However, councils that have been re-categorised are required to make a decision regarding the amount of remuneration they feel is commensurate with their councillor role.
“Councillors may elect to set their fees at either the maximum rate prescribed for the category or at a lesser rate above the minimum for the category,” the report to council advised councillors.
From July 1, 2020, councillors’ pay will increase from $17,490 to the maximum fee, $24,320; the mayor’s pay will increase from $52,715 ($35,225 mayoral allowance plus $17,490 councillor allowance) to $77,400 (consisting of $24,320 fee plus the mayoral maximum fee $60,080 minus $7,000 (as decided by councillors); and the deputy mayor’s remuneration increases from $20,045 to $31,320 ($24,320 plus $7,000) – councillors decided to pay the deputy mayor an extra $7,000, which is taken from the mayor’s maximum allowance of $60,080.
At the CVC meeting, a motion put by Cr Greg Clancy (seconded, Cr Deborah Novak), to have the fees “remain the same as for the 2019-2020 year for the period 1 July 2020 to 30 June 2021”, was defeated six votes to two (Cr Jason Kingsley was absent).
Only councillors Clancy and Novak opposed taking the higher rate because “now was not the right time” due to the pandemic, however, both councillors indicated that “there is a really strong case to adopt the [maximum] fees”.
The decision adds $88,012 to CVC’s 2020/21 budget, which will be reported to “the August 2020 Ordinary Council meeting as part of the 2020/21 budget adjustment report”.
The Independent asked the mayor whether or not councillors had considered maintaining the status quo until next year, which would have saved ratepayers the $88,012.
At the CVC meeting, several councillors said that they were preparing the way for the new council to be elected in September 2021 – the subject of councillor remuneration is addressed on an annual basis and is due for consideration following IPART’s determination, no later than May, 2021.
Mayor Jim Simmons said: “The local government elections were meant to be held in September 2020; I don’t see that they were deferred for 12 months as a reason for council to defer the increase.”
A full report on each of the councillor’s reasoning is covered in Unpacking the $88k question: how much is a councillor worth?
Correction
In last week’s newspaper in the story – Councillors adopt maximum allowances – the calculation regarding what the mayor and deputy mayor are being paid was incorrect. The story stated that “the mayor will receive $60,080, up from $35,225; and the deputy mayor’s remuneration increases from $20,045 to $28,492.”
The entire corrected paragraph reads: “From July 1, 2020, councillors’ pay will increase from $17,490 to the maximum fee, $24,320; the mayor’s pay will increase from $52,715 ($35,225 mayoral allowance plus $17,490 councillor allowance) to $77,400 (consisting of $24,320 fee plus the mayoral maximum fee $60,080 minus $7,000 (as decided by councillors); and the deputy mayor’s remuneration increases from $20,045 to $31,320 ($24,320 plus $7,000) – councillors decided to pay the deputy mayor an extra $7,000, which is taken from the mayor’s maximum allowance of $60,080.”