Councillor pay rise defended

By Melissa Meehan
THE CITY OF Greater Dandenong is setting the record straight.
After much public debate, Corporate Services Director Mick Jaensch said some residents who were writing to Star, as part of letters to the editor, had misunderstood the councillor pay rise.
“Councillors did not vote themselves an increase,” he said.
“The Victorian Local Governance Association and the State Government did.”
He said the State Government indexed councillor allowances across the state by 34 per cent following the November 2008 elections.
“The increase applies until the council conducts its own review,” he said.
“It is required by legislation and must include the opportunity for public comment.”
The City of Greater Dandenong will conduct its own review in the coming months, in conjunction with the Annual Budget.
He said that members of the public had got it wrong in relation to the pay packets of councillors.
“Councillors’ current allowances are $24,400 per annum plus a nine per cent contribution in lieu of superannuation,” he said.
“For the mayor, the current allowance is $77,300 per annum plus a nine percent contribution in lieu of superannuation.
“These are the maximum pay levels that can be paid under the Local Government Act.”
Mr Jaensch gave the Star an insight into the discussion paper set to be discussed at council’s 11 May meeting.
The State Government provided for allowances paid to the previous council to be adjusted by 34.38 per cent plus 9 per cent superannuation contributions.
The allowances, which are a direct adjustment of the previous allowances, are at the highest limit for the category and cannot be further increased.
Councillors will have three options.
1. To retain the existing allowances being paid to them,
2. To retain the existing allowances being paid with an optional provision made for discretionary councillor donations of part of their allowance to community organisations within the council boundaries, or
3. To decrease the existing allowances being paid.
An opportunity for residents to make a submission will be available and will be advertised along with the 2009/10 budget.