Inflation is a local government reality. That is on display in the Sunshine Coast Regional District’s (SCRD) audited 2024 financial statements, made public on the agenda for its April 24 board meeting.
SCRD spending came in at $57.7 million last year, up over the $53.9 million in 2023, according to the auditing firm MNP.
Revenues collected also went up, totalling $81.4 million in 2024, higher than the $69.6 million for the year before.
The result: a growing annual surplus that reached $23 million as of the end of last fiscal year, with operating and capital reserves higher.
Pay to staff and directors rises
Of that $57.7 million in spending, $27.7 million went to “salaries, wages and benefits."
The schedule of remuneration and expenses for 2024 showed 113 employees earned over $75,000. The number of those earning at or above that threshold is growing at an accelerated rate. It was 95 in 2023 and 83 in 2022.
With about 255 full-time equivalent positions in the organization, those 113 top earners claimed about 43 per cent of the salary kitty; over $12.3 million. The remaining majority of the workforce made less than $75,000. That group’s total wages were $9.45 million.
Thirty staffers had annual pay rates above $125,000; over double the remuneration provided to the highest-paid elected official. Of the board members, Area A director and former chair Leonard Lee earned the most at just over $62,000 in 2024. He was also compensated for $25,809 in expenses. (Board directors and alternates received a total of $372,455 in remuneration last year and $73,477 in expenses. Those numbers for 2023 were $356,924 and $60,390, respectively.)
SCRD chief executive officer (CEO) and former chief financial officer Tina Perreault was the local government’s 2024 compensation leader at just over $214,000. As she took on the role in an acting capacity mid-year, her annual compensation was lower than that provided to the CEO the year before. The former top staffer, Dean McKinley, earned $251,837 in 2023 and $214,161 the year before. Before leaving the employment of the SCRD in mid-2024, McKinley was paid $112,814.
McKinley, who formally resigned last August, received the highest level of 2024 staff expense payments at $11,983. The only other five-digit expense account for staffers last year went to Perreault at $10,524.
Local governments are required by provincial legislation to disclose pay provided to employees of $75,000 or more. In discussion of the SCRD’s listing for 2023, Perreault pointed out that despite wage inflation, the reporting salary baseline has not increased for “20 years."
Administration of compensation clashes with rules, as written
In the meeting’s documentation, the sole observation put forward by the auditors related to “procedures and business processes with respect to employment and compensation, benefits administration and delegation of authority." Those, the auditors wrote “are not always aligned with current Bylaws and/or operational policies."
“This situation was identified in previous years and continues in 2024,” MNP wrote.
SCRD management's response to those comments, also included in the agenda material, stated that the bylaw and procedure updating work is “underway” but is “restrained due to staff capacity and other competing priorities." A commitment to carry on with the updating effort in 2025 was made.
Other audit and financial highlights
When it came to payments made to “supplies of goods and services," 2024’s top recipient was the Receiver General of Canada at $6.6 million (i.e. submission of income tax withholding from compensation provided). Coming in second was Neptune Technologies, the firm engaged in water meter installation. Last year, that entity was paid $4.99 million by the SCRD.
The SCRD is also building its reserve funds, with more than $67 million accumulated for major projects, up over $55.9 million saved in those accounts as of the start of 2024. The biggest reserve, ending last year at $13.8 million was “Regional Water Capital." Reserves for all of the SCRD’s water systems sat at $25.2 million at 2024's end.
MNP stated the SCRD’s 2024 financial statements “fairly” present the financial position and results of the operations and cash flows of the regional district.
In the staff report that accompanied the auditor’s paperwork, manager of financial services Brad Wing stated, “This is the highest level of assurance that can be provided by an independent auditor.
“The SCRD ended the year in a strong financial position.”
