Brampton councillors have cancelled an outdated practice of making one-third of their salary tax-exempt — and instead gave themselves a 7 per cent raise.

Under the new formula, Mayor Linda Jeffrey stands to get a 24 per cent boost in pay. However, Jeffrey has told the Star she will not accept the raise.

Council pay has been a contentious issue in Brampton after former mayor Susan Fennell was found to be the highest-paid mayor in the country.

Jeffrey campaigned for the mayor’s job last year promising to cut her salary — which she slashed by $50,000 after taking office. Last week, when a motion to kill the tax-exempt portion and raise salaries came to council, Jeffrey pushed councillors to defer any increases until 2018, when a new council takes over.

But her motion was defeated, making the hikes effective by 2016.

The salary recommendations came from a citizen-run council compensation committee. Brampton is the last large municipality in the GTA to eliminate the one-third tax exemption. Jeffrey’s motion to defer the increases intended to partially compensate for the loss of the tax exemption was defeated in a 6-5 vote.

Councillor salaries will rise to $84,495 from $78,713, Jeffrey’s to $139,374 from $112,307. (Jeffrey and the six councillors who also sit on the Peel Region council get an additional $55,000.) The raises will cost taxpayers $182,000 annually.

In comparison, Toronto councillors will earn a fully taxable $108,032 for 2015, with the mayor earning $181,937.

Local taxpayers will not be happy with the decision, Jeffrey said.

“Brampton residents have been clear; they want us to show discipline and fiscal restraint,” she told the Star on Thursday. “This compensation adjustment will cost our taxpayers an additional $546,000 over the balance of this term of office. In tough economic times, we need to show leadership when it comes to sound fiscal management of the public purse.”

She said deferring would have allowed voters to decide if they want to support a council push for an increase in the next election year.

“It has been common practice in Brampton that compensation changes such as salary structure, car allowances and pension plan contributions that directly benefit elected officials be put forward to take effect in the following term of office.”

She said taking a pay hike now would break a pledge she made during her campaign.

“When I was elected I promised that the mayor’s salary, inclusive of compensation for serving on regional council, should be at the salary of an Ontario cabinet minister. I plan on bringing a motion forward to ensure that I keep that commitment.”

Council’s decision comes shortly after budget discussions began, with a focus on belt-tightening needed at city hall, after a dire financial review early in the year.

For years Brampton councillors have taken advantage of a tax exemption on one-third of their salaries — a legal provision intended to assist councillors who must pay out of pocket for work-related costs in small communities that don’t provide expense accounts.

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Brampton councillors also receive an annual car allowance — set at $14,927 as of 2016 — and have a office-expense budget, which will now be $45,000 over the entire four-year term.

The raise councillors passed for themselves Wednesday also includes a 94 per cent hike in pension contributions, from $5,976 annually to $11,573. Jeffrey’s pension contribution rises from $9,269 to $19,623. But a spokesperson for the mayor told the Star on Monday that her upcoming move to reject the salary increase would also cut the increase in her pension contribution by $6,000. The spokesperson said Jeffrey will leave it up to Brampton taxpayers and voters to judge the hefty pension increase councillors will enjoy.

Councillor Elaine Moore, among those who voted against deferring the pay hike, said the move will “make the salary portion of our compensation package transparent to our taxpayers.”

Councillor Gael Miles also didn’t support Jeffrey’s motion, saying she wanted to follow the recommendations of the citizen-run compensation committee. “I respect the time and consideration they gave, and I supported their recommendation,” Miles said.

Miles said she had supported the one-third tax exemption for years out of the same “respect” for the compensation committee which in the past had not recommended ending it.

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