The City of Richmond still has $32,000 in gift cards in its possession – the bulk of them for the Keg and Cactus Club – but city council has directed staff to stop using them.
At Tuesday’s committee meeting, a motion from Coun. Kash Heed asked for the discontinuation of using gift cards, some of which were given for long service, retirement or employee rewards.
A Global News freedom-of-information request revealed the city bought about $450,000 worth of gift cards in the past three years, from 2022 to 2024.
“While giving gift cards to employees can be a thoughtful gesture, several problematic practices have emerged that challenge the fairness and integrity of this approach,” Heed’s motion reads.
City chief administrative officer Serena Lusk told council gift cards were also bought for 2025, but their use has now been discontinued.
Lusk explained that sometimes the gift cards were given to city employees who volunteered their time at events such as the Public Works Open House. Other examples of uses she cited were as a prize to an employee who was the first to donate to a certain charity drive or who participated in a survey.
Mike Ching, the city’s director of finance, said there are separate limits set by the Canada Revenue Agency on the value of taxable long-service gifts and gifts and awards for special occasions.
“Without getting into the details, the fact is whatever you need to do for the CRA, you’re doing?” Mayor Malcolm Brodie asked Ching, who answered in the affirmative.
According to the CRA, any non-cash gifts and awards over $500 are considered employee income.
Meanwhile, Coun. Carol Day said she didn’t recall approving a budget for gift cards, but Lusk explained the money to buy them came from programming budgets.
The city hasn’t received “firm answers” yet on whether the gift cards can be returned, Lusk said. Some, however, could be used by the city, for example, for catering events, she added.
According to the CRA, a "gift" must be for a special occasion such as a birthday or wedding.
An "award" is for an "employee-related accomplishment," but not for an employee's "overall contribution to the workplace." Furthermore, a non-taxable award has "clearly defined criteria, a nomination and evaluation process, and a limited number of recipients."
Meanwhile, a "reward" is for "performance-related reasons" and is a taxable benefit.
The gift card motion was supported by all of city council and is expected to be back on the agenda at next week’s city council meeting for a final vote.
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