Written By David Gomez, Local Journalism Initiative Reporter
ADELAIDE METCALFE - At the November 18 council meeting, Treasurer Johnny Pereira presented a report recommending a 2% cost of living adjustment (COLA) for the township’s three compensation programs in 2025. The recommendation was approved unanimously, following a detailed analysis of local economic indicators and comparator practices.
The COLA adjustment applies to the staff compensation program, council honorariums, and the volunteer firefighter program. Pereira explained that these annual adjustments ensure the township’s compensation framework remains competitive and aligned with market conditions. The process uses two primary data sources: COLA adjustments approved by comparator municipalities and the Consumer Price Index (CPI) for Ontario. This year, the CPI increase from September 2023 to September 2024 was 1.9%, while comparator municipalities reported COLA increases ranging from 2% to 3.13%.
Pereira noted that maintaining competitive compensation practices is critical for attracting and retaining talent in the municipal sector, particularly in a tight job market. The recommended 2% adjustment aligns with the township’s goal of maintaining its position within the 50th and 55th percentiles of defined market comparators for council and staff programs, respectively.
The financial impact of the adjustment is estimated at $25,096 across all three compensation programs. Pereira also sought pre-budget approval to incorporate the adjustment into the township’s payroll system, ensuring a seamless transition for the January 1, 2025, implementation. This approach eliminates the need for retroactive payroll adjustments, reducing administrative workload and increasing efficiency.
The recommendation was moved by councillor MacKinnon and seconded by councillor Kingma. The approved adjustment ensures that Adelaide Metcalfe remains a competitive employer in the municipal sector while supporting the township’s operational efficiency and workforce stability.
