Task Force: Big pay raise for councillors, no pay raise for mayor, and maybe severance pay
And the four-member task force remains divided over the issue of providing severance pay to a politician when they exit their seat on council following an election loss or choosing not to run again.
The task force is awaiting data from Statistics Canada about full-time income in London, which will form the basis of their recommendation about council compensation, resourcing, and expenses.
Currently, councillors receive the median (50th percentile) full-time income in London as measured by Statistics Canada.
In 2025 that's equal to $67,420.
On Friday, task force members discussed paying councillors somewhere between the 65th and 75th percentile— an amount that could be in the ballpark of $90,000.
They'd receive an additional 4 per cent for chairing a standing committee, or an extra eight per cent if chosen to be the deputy mayor or budget chair.
'It's not a typical job, and so it probably shouldn't have a typical salary,' explained Task Force Chair Martin Horak after the meeting. 'A councillor in this city, with its $1 billion-plus budget, is a major responsibility. It's a complex, very demanding job. Councillors who do this job well are often working way over 40 hours a week.'
'With respect to mayoral pay, we think it's already there,' Horak added about the task force's decision not to discuss changing the mayor's compensation model.
The mayor's base pay in 2025 is $163,188.
The province added Strong Mayor Powers to the mayor's role this term.
Those additional responsibilities include preparing a draft municipal budget, propose by-laws, and appoint or dismiss the City Manager and other senior managers.
'In some ways, [Strong Mayor Powers] can lessen their workload because it makes them more able to make quick decisions,' argued Horak. 'There's less of that need when you're using your strong mayor powers to spend all the time working behind the scenes building coalitions.'
The question of compensating council members leaving their seat on council divided the task force.
Horak told colleagues that many similar cities offer severance pay, averaging about one month of pay for every year of service on council.
It's intended to smooth the transition back to regular employment after a period of public service.
Horak argued against the practice.
'I don't really think it's appropriate,' he told colleagues on the task force. 'It sort of smacks of paying you if you lose.'
He argued that London should continue to view a seat on council as a full-time role, not full-time employment, so traditional expectations of severance wouldn't apply.
Horak added he wouldn't be comfortable with former politicians, 'remaining on the public dime when you are not elected.'
In January 2024, council boosted the deputy mayor and budget chair positions by 12.5 per cent to recognize the additional workload.
Those positions each earn $75,847 this year.
Total benefits collected by each councillor add more than $20,000 annually to each member's compensation, including the option of receiving a vehicle allowance/reimbursement (up to $2,124).
Councillors were also reimbursed for eligible expenses up to a maximum $13,500 in 2025.
Fees to attend certain municipal conferences were also paid by city hall.
The task force expects to have the StatsCan data in time for its next meeting in September.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
21 minutes ago
- CTV News
Bank of Canada widely expected to hold key rate steady amid trade uncertainty
The Bank of Canada is set to deliver an interest rate decision on Wednesday. Bank of Canada Governor Tiff Macklem is seen during a news conference, in Ottawa, Wednesday, June 4, 2025. THE CANADIAN PRESS/Adrian Wyld OTTAWA — Avery Shenfeld doesn't think the Bank of Canada will cut its benchmark interest rate at its decision on Wednesday, but if it does, he said it will be a 'pleasant surprise.' 'There's always a chance that they'll surprise with the rate cut,' the chief economist of CIBC said. 'But I'm not holding out that much hope.' Most economists are also expecting the Bank of Canada will hold its policy rate steady at 2.75 per cent for a third consecutive decision later this week. As of Friday afternoon, financial markets were placing odds of a quarter-point rate cut on Wednesday at just seven per cent, according to LSEG Data & Analytics. Stubbornness on the inflation front and surprise strength in the labour market have quashed arguments for further easing since the central bank's June decision. The Canadian economy gained an unexpected 83,000 jobs in June, Statistics Canada reported earlier this month, driving the unemployment rate lower for the first time since January. A few days later, StatCan reported annual inflation ticked up to 1.9 per cent last month while the Bank of Canada's closely watched core inflation figures held stubbornly around three per cent. 'Overall, sticky inflation readings, a weakening but relatively resilient economic backdrop and prospects for larger fiscal spending are reasons why we do not expect the BoC will cut again in this cycle,' RBC economists Claire Fan and Abbey Xu wrote in a note Friday. But Shenfeld's call for a lower policy rate — CIBC expects two more quarter-point drops before the Bank of Canada is done — isn't based on what's happened in the economy, it's about what's on the horizon. Outside of the June jobs jump, the labour market is still broadly weak with the unemployment rate at 6.9 per cent, Shenfeld noted. He also expects Canada's tariff dispute with the United States led to an economic contraction in the second quarter of the year. All told, there's enough 'slack' building in the economy to take steam out of inflation in the months to come, Shenfeld said. The Bank of Canada's own second-quarter business outlook survey released last week suggests that many firms are opting to absorb higher costs from tariffs, rather than pass them on to consumers who may be reining in spending amid economic uncertainty. Shenfeld said that's a sign that tariff impacts 'won't extend into a more persistent inflation issue.' He said that once the central bank gains enough confidence that any tariff-induced inflation pressures will be short-lived, monetary policymakers should feel confident enough to lower interest rates. 'I think at this point they know enough to rule out the worst-case scenario on trade,' Shenfeld said. Bank of Canada governor Tiff Macklem has explicitly said monetary policymakers are being less forward-looking than usual in the trade war. The central bank didn't publish a traditional forecast for the economy in its April monetary policy report, instead offering two scenarios for how tariffs could hit the economy. Jimmy Jean, chief economist at Desjardins, said he believes the Bank of Canada will have gathered enough clarity on the trade front to return to formal forecasts in this week's MPR. 'The uncertainty is there for everyone to recognize. But there's a point where you've got to sort of, stick your neck out and make the proper caveats,' Jean said. Tariff deadlines continue to hover over the Bank of Canada's head — U.S. President Donald Trump has threatened to levy tariffs of 35 per cent on Canadian imports starting Friday if a trade deal isn't reached before then, though CUSMA-compliant goods are expected to be exempt from the duties. Some forecasters, including RBC, expect the Bank of Canada is already done rate cuts and will turn the job of stimulating the economy through the trade war over to federal and provincial governments. While Jean also believes the central bank will opt to hold rates again on Wednesday, he said the bank's next decision in September is an 'open possibility' for a cut. Trump's sectoral tariffs targetting Canada's steel, aluminum and copper industries are of particular concern for Ontario and Quebec, Jean said. If those tariffs are sustained, he argued more rate cuts from the Bank of Canada will be warranted to cushion the economic hit. In addition to some sector-specific relief, the federal government has moved in recent months to ramp up Canada's defence and infrastructure funding — spending that could offer fiscal, rather than monetary, support for the economy. But Jean said Desjardins is expecting that lift to come over the ensuing years, not months, opening a window for the Bank of Canada to lower rates in the near-term. 'We think, despite those measures being in the pipeline, the Bank of Canada will still in September have a valid reason to cut interest rates,' he said. This report by The Canadian Press was first published July 28, 2025. Craig Lord, The Canadian Press
CTV News
21 minutes ago
- CTV News
N.S. reform of care of people with disabilities behind in housing ‘complex' cases
HALIFAX — There's been a surge in the number of Nova Scotians with complex disabilities stuck in temporary housing, according to recent figures released by the province. This rise in what are called 'temporary shelter arrangements,' or TSAs, operated by for-profit and non-profit agencies has occurred despite a plan by the province to decrease their use over the past two years. The Department of Social Development describes the temporary housing as being needed whenever a person with a complex disability is in urgent need of housing, and options for a permanent home have been 'explored and exhausted.' Usually, the person is placed in an apartment, with one-on-one care, but without a long-term plan to improve their lives. 'The infrastructure to shift away from the temporary model is slow. It's not happening as quickly as anticipated,' said Harman Singh, director of Breton Ability Centre — a non-profit agency in Sydney, N.S. that houses people with disabilities, which has been asked to oversee eight people in temporary shelters. The province introduced a sweeping, five-year reform plan for the care and housing of people with disabilities in 2023. It was the result of a landmark court decision that found there was systemic discrimination against people with disabilities. The plan called for a sharp decrease in the number of people with disabilities in temporary housing arrangements by 2025 but the opposite has occurred. The recent government update on the plan, referred to as 'The Remedy,' indicated there were 89 people in the temporary arrangements in early 2024, but as of April 1 this year, there was a 49 per cent increase to 146 people. This contrasts with the plan's target of reducing the number of people in temporary housing by 40. Singh said Breton Ability is gradually closing down its larger facility with 68 residents but has been asked to increase temporary shelter arrangements. Some of the arrangements are lasting for years, she added. The lack of permanent solutions isn't working well, as it makes it difficult to attract staff or to spend money needed to ensure the housing arrangements are suitable, she said. For example, Singh said in one case her agency has been housing a person in a temporary apartment since 2021, but it has been unable to invest in much-needed upgrades due to uncertainty about whether they are expected to stay there permanently. If the arrangement were permanent, 'we could look at long-term renovations to the house, seek grants from different departments and we would look to raise funds to make the backyard more suitable ... we would look at all these different factors and make it better,' said Singh. Data released to The Canadian Press through the Freedom of Information Act from January 2024 to last month show the majority of temporary shelter arrangements were provided by five private-sector agencies for 94 people. They received $34 million in 2024, and $20 million for half of 2025, according to the documents. Some people in TSAs cost about $150,000 to up to about $500,000 annually, the records say. However, a separate freedom of information response from the Department of Social Development to The Canadian Press for the same period says there were no records of 'audits or reports on safety and quality of care' done on these private agencies. They also said they wouldn't provide estimates of how long people are remaining in the TSAs. In its recent annual report on the plan, the province said it wasn't meeting deadlines for decreasing the numbers because there had been delays in hiring and training staff to oversee the conversion of the system. The department said in an email Friday that so far 24 of the 146 people in the temporary shelter arrangements — about 16 per cent of the total — have been assigned staff to plan their future care and placements in the community. Maria Medioli, director of the provincial disability support program, said in an interview Thursday that the five-year plan — which has committed over $200 million in spending over the first two years — is the first major effort to deal with the TSA issue. Medioli said some of the growth in TSA numbers has been the result of people with 'deeply complex issues' being discharged by a care home or a hospital without any destination, and the alternative is homelessness. Asked about oversight of service providers, Medioli said the department receives financial statements from the private-sector service providers but doesn't 'generally audit providers unless there is a reason.' She added there has been one complaint of financial irregularities by a private-sector provider that is being investigated, but no complaints of safety or quality problems. 'I don't like them (TSAs). They are temporary. ... It was done in an emergency and we didn't have the infrastructure to make it anything but temporary. Through the (plan) we're building that infrastructure,' she said. However, Kim Long, vice chair of the Disability Rights Coalition, said in an interview Thursday that her group is concerned by the growing numbers. 'I'd like to know where (the government) is in the process of establishing a baseline of health and safety. ... The thing that we're most concerned about is what is that experience (of living in a temporary shelter arrangement) like?' Long said her advocacy organization wants to hear directly from families and people in temporary shelter arrangements, to learn how the arrangements work and 'what they are experiencing.' 'We need to hear in order to get the full story behind the numbers,' she said. This report by The Canadian Press was first published July 28, 2025. By Michael Tutton
Globe and Mail
21 minutes ago
- Globe and Mail
The state of Canadian tourism in the ‘elbows up' moment
Travel to the U.S. has plummeted ever since President Donald Trump started talking about annexing Canada and imposing tariffs on us. Politicians on this side of the border are embracing the moment, encouraging people to take trips closer to home. So how is it all working out for Canadian tourism? The Globe's Jason Kirby, who writes for the Report on Business, joins us to talk about what this summer looks like for Canada's travel sector. Questions? Comments? Ideas? Email us at thedecibel@
