The Newfoundland and Labrador Councillor Remuneration and Reimbursement Regulations under the Towns and Local Service Districts Act (Regulation 70/24), filed on October 24, 2024, establishes guidelines on the remuneration and expense reimbursements for councillors in towns and local service districts within Newfoundland and Labrador. Enacted under section 299 of the Act, these regulations define key terms, set limits on compensation, and stipulate the methods and conditions for payment. Key definitions include terms such as “fixed revenue,” meaning income from local taxes, fees, and operating grants (excluding certain subsidies), “leave of absence” as approved time off from council duties, “quarter” as a three-month period, and “town council meetings” to refer to monthly meetings, public sessions, and special gatherings.

According to section 3, councillors may receive remuneration if approved by a two-thirds majority of the council, with the amount based on the town’s fixed revenue. Section 4 sets caps on this remuneration, such as limiting it to the lesser of 5% of revenue or $10,000 for towns with less than $250,000 in fixed revenue, with larger budgets having lower percentage caps; if revenue exceeds $1,000,000, the limit drops to 2% of fixed revenue. Eligibility requirements for remuneration in section 5 state that councillors must attend more than half of council meetings each quarter to qualify. Provisions for paid and unpaid leave allow councillors to receive proportional compensation if they only partially attend meetings within a quarter.

Section 6 stipulates that remuneration is to be paid quarterly, either by cheque or direct deposit, with applicable provincial and federal deductions. The town clerk is responsible for maintaining records and issuing payment statements to councillors. For reimbursement of work-related expenses, sections 7 and 8 require pre-approval by a two-thirds majority vote, with eligible expenses including accommodations, vehicle expenses, meals, and lost income. There are limits on these reimbursements, with loss of income capped at $300 per day and miscellaneous expenses at $20 per day. Documentation is required, and councillors may not vote on their own reimbursement claims, which must be paid within 60 days.

Section 9 mandates transparency by requiring that remuneration and reimbursement rates be publicly accessible, both at the town office and on the town’s website, if available. Section 10 clarifies that councillors voting on remuneration or reimbursement are not considered to be in a conflict of interest, exempting them from the usual conflict-of-interest provisions under the Municipal Conduct Act. The new regulations repeal the previous 2001 guidelines under section 11, and section 12 specifies that the updated regulations will take effect on January 1, 2025.

These regulations strive to provide a structured, transparent framework for councillor compensation, ensuring accountability to the towns and their constituents.

Newfoundland and Labrador (70/24) October 25, 2024