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Council to vote on proposed eight cent hike to mileage allowance

Posted March 24, 2014

New Tecumseth councillors, Town employees and members of appointed boards and committees are in line to receive a mileage allowance increase from 43 cents a km to 51 cents, effective April 1, upon approval of CAO Terri Caron's recommendation to council on tonight's agenda.

The eight cent per/km hike would be the first since April 2007 when the rate moved from 37 cents to 43. Ms. Caron's recommendation would also incorporate a yearly adjustment to the rate tied to the annual Canada Revenue Agency (CRA) automobile allowance rates.

"Currently the cost of gasoline has risen to $1.30 per litre with speculation that it could continue to rise to $1.40 by the summer of 2014. Licence plate renewal rates have increased and the costs to operate and maintain a vehicle have also risen with inflation," according to Ms. Caron, whose own pay package from the Town includes a vehicle. "The current (CRA) rates are ... for the first 5,000 kilometres driven is 54 per kilometre and 48 for each additional kilometre driven. Staff recommend that Council consider approval of a blended
rate of an average of the two rates. For 2013-2014 the blended rate would be 51 per kilometre."

In 2013, the total mileage paid out was $27,961.60. The increase of 8 per kilometre is estimated to cost an additional $5,528 for the remaining nine months of the year.

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