ROTHENBURGER – How TNRD directors set up their pay raise to avoid a ‘cheese grater’

WHEN REGIONAL DIRECTORS gave themselves a small raise for the coming year, it was done through a motion that received no debate and a quick vote.

That was in February. When the matter of remuneration for Thompson-Nicola Regional District board members came up for consideration, Chair Barbara Roden quickly proposed a 2.6 per cent increase based on last year’s Consumer Price Index.

In the past, TNRD directors have voted themselves increases of as much as 15 per cent. So, to the casual observer, the modest increase in Roden’s motion, as well as the total lack of debate, were a surprise. One would almost have thought it was a setup.

Turns out, the decision was, indeed, pre-ordained. Documents obtained by ArmchairMayor.ca through a Freedom of Information application show that Roden was concerned about public opinion and pressed ahead of time for the frugal increase.

One director, Clearwater rural director Usoff Tsao, proposed a freeze but wanted the matter discussed in camera.

“In light of the macro economic uncertainty foreign powers are threatening us with and economists’ forecast on the devastation if those threats are carried out,” he said in an email to Roden and chief administrative officer Scott Hildebrand the week before the meeting.

“I want to see the board’s thoughts of a one year remuneration freeze for the board to show solidarity with residents.

“I completely understand how this may put us back in the same spot the previous board did with their freeze and that it will fray board relations depending on how the discussion goes in the public.

“Therefore I wonder if it would be appropriate to have an in camera meeting to discuss?”

Hildebrand had to stress to Tsao that “We can not close a meeting to discuss remuneration for the Board.”

Roden added, “I’m trying to imagine the public outrage if elected official remuneration was discussed/ voted on in camera, and failing.”

She went on to say, “I am not in favour of a ‘freeze’, as it smacks of grandstanding and (as we have seen), has a cumulative effect that just makes things worse down the road.”

Just to refresh ourselves on the board’s options, the board’s own policy states that its annual pay raise will be equal to the average of the previous three years of the Consumer Price Index. If that average is more than 4 per cent, directors must decide on what the increase will be. If lower, it automatically goes into effect.

As I explained in an editorial Feb. 24, “The average of the past three years was 4.5 per cent. So staff recommended the board either give itself four per cent, 4.5 per cent, or some other number. It’s the ability to set a different number that’s a bit of a loophole – the board could have given itself another sizeable increase in the area of, say, 10 or 15 per cent.”

Roden, concerned about perception, wanted a motion approving 2.6 per cent. “At EA director committee meetings a recurring theme is that our residents are facing difficult times, and that we must be sensitive to this. I completely agree, and think that limiting the remuneration increase to the 2024 CPI of 2.6 per cent is a way of showing that we are not trying to ‘profit’ at the expense of taxpayers.”

She pointed out the board was being asked to contribute $6,750 toward an opening night reception at the annual Southern Interior Local Government Association conference in Merritt.

“…I am conscious that the TNRD’s spending on such things was the subject of a forensic audit that produced nearly 100 recommendations on what we should (and should not) be doing. Also, the spending of other local governments (particularly in the Lower Mainland) when it comes to ‘entertaining’ is very much in the news.”

“Thanks for framing it in that light about the in camera,” Tsao responded. “I guess some things just has (sic) to be jumped through like a cheese grater and faced head on in the public.

“Agreed about making things worse down the road; tough as it is to get people interested in participating in local government. Thanks for sharing your motion and look forward to the open meeting discussion.”

Of course, there never was any open discussion in the meeting. Roden’s motion was a slam dunk. So what we have here is a sincere attempt to consider public opinion when it comes to how much directors pay themselves. What’s wrong with it is having behind-the-scenes discussions to set up a done deal.

Something as important as board remuneration should be initiated and debated in public, with explanations of why directors acted the way they did. Though board paycheques are controversial, directors should be willing to take their medicine in public, not hide behind a pre-determined motion and dispense with the issue as fast as possible.

Mel Rothenburger is a former regular contributor to CFJC-TV and CBC radio, publishes the ArmchairMayor.ca opinion website, and is a recipient of the Jack Webster Foundation Lifetime Achievement Award, and a Webster Foundation Commentator of the Year finalist. He has served as mayor of Kamloops, school board chair and TNRD director, and is a retired daily newspaper editor.  He can be reached at mrothenburger@armchairmayor.ca.