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Home My WebLink AboutCAO-2026-065 - Council Compensation ReviewStaff Report J IKgc.;i' r� R Chief Administrator's Office www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: February 2, 2026 SUBMITTED BY: Dan Chapman, Chief Administrative Officer PREPARED BY: Justin Watkins, Manager of Corporate Planning Sloane Sweazey, Senior Policy Advisor WARD(S) INVOLVED: ALL DATE OF REPORT: January 28, 2026 REPORT NO.: CAO -2026-065 SUBJECT: Council Compensation Review RECOMMENDATION: That staff be directed to engage a consultant to undertake a scoped review of council remuneration with any changes to be effective for the 2026-2030 council term; and That policy GOV-COU-020 (Council Compensation) be updated by as part of this review. REPORT HIGHLIGHTS: • The purpose of this report is to seek direction to complete a review of council remuneration for the 2026-2030 term of council, and to update council's current compensation policy (GOV-COU-020). • The review is anticipated to cost $15,000 to $25,000 and will be funded from the 2026 budget. • Community engagement included posting this report to the City's website with the agenda in advance of the council meeting. A future meeting at which any potential compensation adjustments or compensation policy changes are to be considered will be advertised and open to the public. • This report supports the delivery of core services. BACKGROUND: As prescribed by the Municipal Act, 2001, council has the authority to establish its own compensation structure. Council's current compensation policy (GOV-COU-020 - Council Compensation) was approved in 2002 and established a rate of pay for mayor and councillors, along with an annual salary adjustment for the mayor and council equal to the lesser of the annual adjustment received by City staff classified as M -band or classified as non-union employees. In September 2017, council remuneration tax exemptions were eliminated, and *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 5 of 9 councillors were included in the OMERS pension program. This replaced the prior practice of contributing to RRSP accounts for members of council. Several municipalities, including municipalities within Waterloo region, are reviewing council compensation to evaluate the competitiveness of their remuneration and benefits packages in advance of the 2026-2030 term of council. Through these reviews, market analyses have identified Kitchener's council compensation as an outlier in certain respects relative to other comparable communities. Ensuring fair and competitive compensation for members of council is an important consideration in attracting candidates to run for elected office. For these reasons, it is recommended that Kitchener undertake a scoped council compensation review in advance of the next term of council. REPORT: Based on the current council compensation policy there is no automatic timeline for a council compensation review, which is different than the practice of many other municipalities. Considering findings from recent council compensation reviews and the fact that other Waterloo Region municipalities are undertaking them at the end of this council term, it is recommended that staff be directed to engage an external consultant to review compensation for elected officials in advance of the 2026 municipal elections. Like market salary reviews which are undertaken for staff roles, this will help to ensure that compensation for council remains appropriate to the requirements of the role and in step with municipal comparators. To ensure that the review is focused both in terms of scope, time and cost, it is proposed that base remuneration be the primary focus of this review. Topics such as ward boundary revisions and considerations related to part-time vs. full-time councillors would be better addressed through the ward boundary review which is already planned for the next term of council. Any changes arising from that review would be effective for the 2030-2034 council term. As part of this review, policy GOV-COU-020 (Council Compensation) will be updated. The consultant may identify policy enhancements to align the policy with leading practice and other current compensation standards, and these recommendations would be brought forward for Council consideration. In accordance with the requirements of the current policy, the meeting at which any compensation adjustments or compensation policy changes are to be considered will be advertised and open to the public. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget — The recommendation has no impact on the Capital Budget. Operating Budget — The cost of a consultant review of council remuneration is anticipated to be between $15,000-$25,000 based on the experience of other municipalities and will be funded through the general expense portion of the council -approved budget. Page 6 of 9 COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council meeting. Additionally, the meeting at which any compensation adjustments or compensation policy changes are to be considered will be advertised and open to the public. PREVIOUS REPORTS/AUTHORITIES: • FCS -17-164 Council Remuneration — Elimination of 1/3 Tax Free Portion & OMERS Enrolment APPROVED BY: Dan Chapman, CAO ATTACHMENTS: Attachment A: GOV-COU-020 (Council Compensation) Page 7 of 9 1. POLICY PURPOSE: To be included at next review. 2. DEFINITIONS: To be included at next review. 3. SCOPE: POLICY APPLIES TO THE FOLLOWING: KITO WIM,'R POLICY I Policy No: GOV-COU-020 I Policy Title: COUNCIL Approval Date: December 9, 2002 El COMPENSATION El C.U.P.E. 68 Civic El Non Union Reviewed Date: June 2016 PolicV TVpe: COUNCIL Next Review Date: July 2021 Category: Governance Reviewed Date: Sub -Category: Council El K.P.F.F.A. Last Amended: Author: Author Unknown X Council Dept/Di Office of the Mayor & Council Replaces: 1-020 - Council Compensation Repealed: Replaced by: Related Policies, Procedures and/or Guidelines: I To be included next review. 1. POLICY PURPOSE: To be included at next review. 2. DEFINITIONS: To be included at next review. 3. SCOPE: 1 of 2 Page 8 of 9 POLICY APPLIES TO THE FOLLOWING: El All Employees El All Full -Time Employees El All Union El Management El C.U.P.E. 68 Civic El Non Union El C.U.P.E. 68 Mechanics El Temporary El C.U.P.E. 791 El Student El I.B.E.W. 636 El Part -Time Employees El K.P.F.F.A. El Specified Positions only: El Other: X Council El Local Boards & Advisory Committees 1 of 2 Page 8 of 9 Policy No: GOV-COU-020 Policy Title: COUNCIL COMPENSATION 4. POLICY CONTENT: a. As of January 1, 2003 the Mayor's and Councillor's current base salary shall be $62,200 and $32,000 respectively. b. Effective December 1, 2003, the base salary of the Mayor and Councillors be set at $63,444 and $32,640 respectively. c. Effective with the election of City Council in 2003, the Mayor and Councillors receive an annual salary adjustment equal to the lesser of the annual adjustment received by City staff classified as M -band or classified as non- union employees, which shall take effect on the same date as the staff adjustment. d. Effective December 1, 2003, Councillors will have the option of receiving matching contributions to their individual RRSP up to the regular rate OMERS contribution. It is recognized that the Mayor currently receives contributions to his RRSP in lieu of the regular rate of OMERS contribution. e. Any amendment to this policy, other than for housekeeping purposes where the intent of the policy does not change, shall require at least one public meeting of which sufficient notice shall be given. 5. HISTORY OF POLICY CHANGES Administrative Updates 2016-06-01 - 1-020 policy template re -formatted to new numbering system and given number GOV-COU-020. Formal Amendments No amendment history to date. Page 9 of 9