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Council meeting 27 June 2012 - WorkBoot dig #1

Motion Date: 2012-06-27
Issue: Austerity
Motion Summary: Elected members to refund after tax salaries
Outcome: Lost

Motion

That the Mayor, Deputy Mayor and Councillors refund to Council their after-tax salaries for the remainder of the term of office from 1 July 2012 onwards.

Reasons

Council through its own unlawful and incompetent actions and inactions has placed the district in a precarious financial position with an untenable level of debt.

Council is now expecting the ratepayers to pay the resultant debt through ongoing substantial rates increases.

Council has again asked the executive to try to make deep cuts into expenditure and find efficiencies within any possible budgets.

As elected members Council cannot refuse to receive their salary, but can receive the salary and pay back to Council the salary less withholding tax.

To start to build trust with the community elected Council needs to take responsibility for the dire situation it has created for the district and start leading the way in making cuts to expenditure.

The indicative savings to Council for the period 1 July 2012 to 1 October 2013 are $252,782 (at $120,000 per 1% of rates this equates to 15% of the proposed average rate increase) as follows  –

 

Annual salary

Less 33% tax

After-tax salary (12 mths)

After-tax salary (15 mths)

Mayor

           $81,000

    $27,000

              $54,000

              $67,500

Deputy Mayor

           $36,301

    $12,100

              $24,201

              $30,251

Councillors x7

          $192,038 [1]           

    $64,012

            $128,025

            $160,031

Total

          $303,339

  $101,113

            $202,226

                $252,782

1 $27,434 x7

Voted For:

Voted Against: