Kelowna council fixes tax loss with pay raise

KELOWNA – Kelowna’s mayor and councillors voted to give themselves a significant increase in pay today, but they are hoping people understand why and that it isn't actually a "fat raise."

The increase is in response to an accounting change by the federal government. They won’t actually get a raise, but will get more money from local taxpayers to make up for a shortfall.

Until 2019, politicians were able to claim one-third of their remuneration as tax free and that left more money in their pockets. Next year that ends and today, May 28, Kelowna’s politicians agreed to top up their pay to keep remuneration the same. 

An increase from the local level means an additional $44,600 a year to the budget.

Coun. Luke Stack welcomed the change, saying he has always found the system “weird" and would have voted for something like it years ago.

Coun. Gail Given pointed out the raise doesn’t take effect until next year, after the municipal election in October, 2018.

Kelowna Mayor Colin Basran makes $95,695 per year while councillors make $33,493 before taxes. After the election, the city will add $11,380 to the mayor’s position and $3,050 for each of the eight council positions.

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