Steinbach city council has not yet decided whether to adjust its pay rate now that a federal tax break is being taken away. Until now, one-third of a council member's pay has been tax-free. That perk ends this year. A number of municipal councils in the province have already increased pay rates to adjust for the difference.

Mayor Earl Funk says Steinbach city council has not yet decided how to proceed. He notes the tax break has been worth about $2,500 a year for council members and about $5,000 thousand a year for the mayor. Funk says city council did have some discussions at its weekend study session about how to proceed. He notes it would cost the city an additional $30,000 per year if councillors raised their salaries to keep their take-home pay the same. Funk says council will have further discussions on the matter at upcoming committee meetings.