Grey Highlands council has set the staff cost-of-living pay increase at three per cent for 2023.
At its committee of the whole budget meeting on Jan. 25, council voted 7-0 in favour of keeping the increase at the recommended level of three per cent.
The cost-of-living increase alone represents a 1.4 per cent increase to the local property tax bill in Grey Highlands. The total dollar amount for the increase is $220,320, however, of that total, $36,640 is for employees of the user-pay water and wastewater departments. That leaves $183,680 to be collected from local taxation.
Before approving the increase, deputy mayor Dane Nielsen asked staff what the budget impact would be with the increase reduced to 2.5 per cent. Staff confirmed such a reduction would mean a 1.2 per cent increase to the property tax levy.
Mayor Paul McQueen followed Nielsen’s inquiry by moving a motion to set the increase at 2.5 per cent, however, the mayor’s amendment was not seconded by another member of council and there was no vote on the suggestion. McQueen said he suggested 2.5 per cent because that was the same level as the proposed staff increase in the draft budget for Grey County.
Coun. Nadia Dubyk said the municipality’s data shows that staff in Grey Highlands are “middle of the road” in terms of salaries when compared to other municipalities. Dubyk noted that Grey Highlands experienced 31 per cent staff turnover in 2022. She also noted that, across the municipal sector, there is increased competition for staff talent.
“We are powered by our people. Three per cent is very reasonable given where we’re at,” said Dubyk.
Coun. Paul Allen also supported the increase. Allen noted that advertising, interviewing and training new staff consumed significant resources and time.
“That cost is huge,” said Allen.
The decision made on the cost-of-living increase by council in committee of the whole still must be formally ratified by council when the budget is adopted and approved. Council will continue budget deliberations as committee of the whole on Jan. 30.
