• CTF applauds transparency of salary reform
  
• Raises red flag for increased benefits to already generous pension package
  
• CTF recommends compensation should be voted on by arms length body
  
• City Council's priorities questioned

WINNIPEG: The Canadian Taxpayers Federation (CTF) today responded to reports of potential changes to Winnipeg City Councilor's annual salaries and pension plans. Under the proposed new system, the non-taxable portion of councilor's income will be removed thereby quietly enhancing their pension plans.

"We commend this proposal for the transparency on the non-taxable portions of the salary being removed, however, these changes will pad an already generous pension plan - when all is said and done these changes will cost taxpayers $460,000 annually," stated Provincial Director Adrienne Batra. " Even though councilors are not benefiting directly with an increase in their take-home pay, they will profit once out of public office and start collecting a pension," continued Batra, "it is also somewhat questionable why this move is on the radar screen." The CTF believes that it is a conflict of interest to vote on your own compensation. Whenever possible, compensation should be determined by an arms length body then voted on by the politicians to take effect after the next election.

The City's budget estimates did not include property tax relief or a reduction in business taxes, yet there was plenty of money to be thrown around for arts groups and business subsidies. "This is simply a matter of priorities, homeowners are crippled by high property taxes, businesses are pulling up stakes, our streets look blown up, but some councilors are more worried about their own future, it is somewhat disconcerting they need to be reminded they were not elected with a mandate to inflate their pensions," stated Batra.

In light of this new proposal, the question has once again been raised whether councilors should receive long-term benefits for their service. In November of 2000, council reinstated a pension plan they had gone without for almost eight years. They receive a pension based on 2% of their salary during their five highest paid years and is based on a fully taxable salary. With the current proposal it is estimated that to payout pensions based on full years of credited service, there is an additional liability of $745,144.

"Rather than patting themselves on the back for a 'job not done' councilors should be focussed on rewarding the taxpayers in Winnipeg who pay their salaries. At a time when property and business taxes are frozen, the only thing that will be thawing out in Winnipeg are the pensions for City Councilors," concluded Batra.