MidCoast councillors voted in favour of giving themselves a two per cent pay increase when the item was debated at this week's July monthly ordinary meeting.
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Councillors agreed to take the maximum fee, backdated from July 1, which would see the mayor take home $62,510, up from $61,280 in addition to the councillor fee of $25,310, a $500 increase on the previous year.
Mayor and councillor fees are determined annually by the Local Government Remuneration Tribunal.
MidCoast Council fees are selected from the general purpose, non-metropolitan councils, regional centre category.
Council last year also voted to adopt the maximum fees for 2021-22.
However, not every councillor agreed with the two per cent fee increase.
For a third consecutive year Katheryn Smith voted against the motion saying it was a bad look that councillors were once again getting a pay increase when fees and charges had increased.
"We have applied a blanket fee of roughly five per cent on most fees and charges; everything we have done with council is actually going up," Cr Smith said.
She believed by not taking the fee increase it was a signal councillors were working and supporting their struggling community.
"Let's not take the increase (this year), let's allocate that back to the community.
Let's not take the increase (this year), let's allocate that back to the community.
- Katheryn Smith
"I don't believe we need the maximum for us to do our job."
Troy Fowler acknowledged Cr Smith had struggled with fee rises previously and suggested she donate the additional $500 to a charity.
"According to the Bureau of Statistics the CPI has risen in the last 12 months by 6.1 per cent, so the two per cent is much smaller than this and it is appropriate, " Peter Howard said.
According to Jeremy Miller, a report from Local Government NSW argued for a 2.5 per cent increase, but countered even that amount was inadequate to addressed the historical undervaluation of work performed by mayors and councillors.
Cr Miller said the report stated there had been a substantial expansion of accountability in recent times for councillors compared with directors and chairs of comparable government bodies.
"None of us is here for the money, staff under the award are receiving a two per cent increase and I believe this amount is fair," Cr Miller said.
Dheera Smith said she had an issue with equity.
However, Cr Smith believed councillors who serve their community should receive some remuneration.
"When salaries are made lower and lower it means there is less participation, particularly by women and those who have a lower income and might be representative of our communities," she said.
"In this case this a fair rise."