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Committee of the Whole Agenda 2015-09-08

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Committee of the Whole Agenda 2015-09-08 TOWN OF CANMORE AGENDA Committee of the Whole Council Chamber at the Canmore Civic Centre, 902 – 7 Avenue Tuesday, September 8, 2015 at 1:00 p.m. A. CALL TO ORDER AND APPROVAL OF AGENDA 1:00 1. Agenda for the September 8, 2015 Committee of the Whole Meeting B. DELEGATIONS 1:00 – 1:05 1. Larry Gale, CBT – ATB Alberta Cup (verbal) 1:05 – 2:05 2. Michel Haener, Haener Consulting Services: Living Wage 2:05 – 3:05 3. Bruce Gleig, Biosphere Institute – Community Monitoring Report 3:05 – 3:15 BREAK 3:15 – 4:15 4. Bow Valley Regional Transit – Consideration of Local Transit C. MINUTES 4:15 1. Minutes of the June 9, 2015 Committee of the Whole Meeting D. STAFF REPORTS 4:15 – 4:20 1. Wayfinding Signage Update (verbal) 4:20 – 5:20 2. Options for Taxing Tourist Homes Purpose: To share options for taxing Tourist Home-classified properties in preparation for the development of a draft Tax Policy for council consideration. E. COUNCILLOR UPDATES 5:20 – 5:30 1. September 2015 Councillor Updates F. SERVICE AREA REPORTS 5:30 – 5:40 1. September 2015 Service Area Reports 2. Capital Updates as of July 31, 2015 G. COUNCIL RESOLUTION ACTION LIST 5:40 1. Council Resolution Action List as of September 3, 2015 H. BOARD AND COMMITTEE UPDATES 5:40 1. Bow Valley Regional Housing Bulletin – August and September 2015 5:40 I. ADJOURNMENT Agenda prepared by: Cheryl Hyde, Municipal Clerk Page 1 of 1 September 8, 2015 Committee of the Whole 1 p.m. Page 1 of 318 2015 LIVING WAGE Prepared by M. Haener Consulting Services [email protected] September 2015 September 8, 2015 Committee of the Whole 1 p.m. Page 2 of 318 TABLE OF CONTENTS Overview .................................................................................................................. 1 Canmore’s Living Wage Calculation ............................................................................ 3 What is the Living Wage in Canmore? ..................................................................... 5 Family Expenses .................................................................................................... 6 Employment Income ............................................................................................ 15 Income from Government Transfers ...................................................................... 16 Taxes .................................................................................................................. 17 References ............................................................................................................. 18 September 8, 2015 Committee of the Whole 1 p.m. Page 3 of 318 OVERVIEW Living Wage is The amount of income an individual or family requires to meet their basic needs, to maintain a safe, decent standard of living in their communities and to save for future needs and goals (Vibrant Communities Calgary, 2012). The potential role of Living Wage initiatives in poverty reduction is recognized in recent poverty publications including Poverty Policy, From Words to Action, Poverty Costs and Poverty Costs 2.0 reports. Local Living Wage rates have been estimated for several Alberta communities in recent years. For these communities, the calculation of Living Wage has improved understanding of local living costs and the impact of government programs which target low income households. Although, two municipalities in British Columbia have passed bylaws which commit local government to pay a Living Wage to all municipal and contracted service staff, to date, similar initiatives have not been pursued in Alberta. Calgary has developed a voluntary Living Wage employer program and the Central Alberta Poverty Reduction Alliance (Red Deer and area) has worked with community stakeholders to consider the possibility of developing a similar employer program. This report provides Living Wage estimates for Canmore using the most recent data available. As has been found to be the case in other Alberta communities, the Canmore Living Wage is highest for the lone parent family followed by the couple family. $23.40 $24.25 2015 $20.03 Canmore Living Wage Couple, 2 Lone Parent, 1 Single Adult Children Child September 8, 2015 Committee of the Whole 1 p.m. Page 4 of 318 One of the most interesting findings was that although the family expenses are based on conservative spending assumptions, the wage rate and associated income levels needed to cover expenses are sufficiently high that the households do not qualify for several subsidies and credits meant to target the working poor. This suggests that there are households in Canmore struggling to get by, in part, because they are not eligible to access government assistance intended to help the working poor. September 8, 2015 Committee of the Whole 1 p.m. Page 5 of 318 CANMORE’S LIVING WAGE CALCULATION In May 2013, Vibrant Communities Canada (VCC) formally released the Canadian Living Wage Framework (CLWF) which provides a consistent Living Wage definition, principles, and calculation methodology. The CLWF is used as a guide for Canmore’s 2015 Living Wage calculation. The approach is summarized below. Calculation Method - Living Wage is the hourly wage rate that allows this formula to balance: Annual Family = Employment + Income from - Taxes Expenses Income Government Transfers Reference Households • Female parent age 34 & male parent age 36, both working fulltime1 Couple, 2 Children • 1 female child age 4 & 1 male child age 9 • Single Mom age 31 works fulltime Lone Parent, 1 child • 1 male child age 3 Single Adult • Male age 25 works fulltime Annual Family Expenses Budget Inclusions Budget Exclusions Food Special dietary needs Shelter (rental housing) Owning a home Clothing & footwear Credit card, loan or other debt/interest Transportation payments Other household costs Savings for retirement - Bank Fees RRSP, RESP, or RDSP contributions - Personal Care Items Costs of caring for a disabled, seriously ill, or - Household operation, maintenance, furnishings,& equipment elderly family member Child care Hobbies Health care Pet ownership Social inclusion Parking - Basic Cell Phone, TV & Internet Alcohol or tobacco costs - Recreation, Entertainment, & Gifts Personal life or disability insurance - Vacation Remittances to family members living abroad Contingency funds 1 The CLWF recommends that the number of hours used to reflect a full-time work week in a Living Wage calculation is determined based on what typically reflects full-time hours in the province/territory. Statistics Canada data indicates that 40 hours or more per week is typical of Albertans employed fulltime; therefore a 40 hour work week is used in the calculation. September 8, 2015 Committee of the Whole 1 p.m. Page 6 of 318 Although the CLWF recommends that the reference household(s) include a couple with two children, the framework also indicates that it is good practice to keep track of the variation in expenses faced by different family types. The formula above is a simplified representation of the Living Wage calculation. In reality, many government transfers are dependent on income levels. Therefore, there is interdependence between variables. For this reason, the calculation of the Living Wage rate, net income levels, taxes, and government transfers are linked. The Canadian Centre for Policy Alternatives (CCPA) has developed a Living Wage Calculation Spreadsheet (Canadian Centre for Policy Alternatives, 2014) to accompany its estimation of Living Wage rates for BC communities. The spreadsheet has been used by the Consultant to create a similar spreadsheet for estimation of Living Wage rates in Alberta. All tax, benefit, subsidy, and benefit formulas are updated annually to reflect the most recent information available from government websites. For a specific community, the spreadsheet is customized to reflect the local context. The Living Wage calculation is based on the defined household composition and specific assumptions respecting budget expenditures. In reality, there is considerable variation in household compositions as well as their budget choices and corresponding expenditures. It is not possible to account for this variation in the calculation. The assumptions made are intended to reflect a reasonable set of conservative spending choices for the specified household composition2. 2 It is important to keep in mind the implications that conservative spending assumptions and budget exclusions might have on some households. These include, but are not limited to: • Hampering the ability to care for elderly or disabled family members at home • Difficulty accommodating special dietary needs • Decreased quality of life due to a restricted ability to partake in hobbies, athletic programs, social and culture programs • Inability to retire early or retire without support • Settling for living arrangements that are not preferred (i.e. single adults sharing accommodation despite a desire to live alone, lack of safe outdoor play space for children, limited private space for older children) September 8, 2015 Committee of the Whole 1 p.m. Page 7 of 318 What is the Living Wage in Canmore? Applying the above approach results in the following 2015 Living Wage estimates. Annual Living Employment Income from Family = Income + Government - Taxes Wage Expenses* Transfers $23.40 $82,012 $97,344 $3,836 $19,166 Couple, 2 (each parent) children $24.25 $56,436 $50,440 $13,863 $7,866 Lone Parent, 1 child $33,161 $41,662 $69 $8,568 $20.03 Single Adult *Due to rounding up to the nearest cent when determining LW, each equation may
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