TO THE COUNCIL OF THE CITY OF OTTAWA
26 SEPTEMBRE 2007
The POLICE SERVICES BOARD met on 10 and 24 SEPTEMBER 2007 and submits the items
contained in this Report for the information and/or approval of Council at its
meeting of 26 SEPTEMBER 2007.
La COMMISSION
DE SERVICES POLICIERS s’est réuni le 10 et 24 SEPTEMBRE 2007 et
soumet les articles du présent rapport au Conseil pour information et/ou
approbation lors de sa réunion du 26
SEPTEMBRE 2007.
Present
/ Présences:
10
Sep. 07 24
Sep. 07
Chair / président: H. Jensen H.
Jensen
Vice Chair /
vice-président: M. McRae
Members / Membres: D. Doran D. Doran
E. El-Chantiry D.
Guilmet-Harris
J.
MacEwen E.
El-Chantiry
B. Monette J. MacEwen
B. Monette
INDEX |
|||
NO./NO |
ITEM |
PAGE |
ARTICLE |
|
Police Services Board |
|
Commission de Services
Policiers |
1. |
2008 OTTAWA POLICE
SERVICE BUDGET DIRECTIONS AND TIMETABLE ACS2007-CCS-PSB-0010 |
01 |
ORIENTATIONS ET
CALENDRIER BUDGÉTAIRES 2008 DU SERVICE DE POLICE D’OTTAWA |
1. 2008 OTTAWA POLICE SERVICE BUDGET DIRECTIONS AND
TIMETABLE ORIENTATIONS ET CALENDRIER BUDGÉTAIRES 2008 DU SERVICE DE POLICE
D’OTTAWA |
BOARD RECOMMENDATION
That Council receive this report for information.
RECOMMANDATION DE LA
COMMISSION
Que le Conseil prenne
connaissance du présent rapport à titre d’information.
The Board
approved the following Motions in conjunction with the report:
That the 2008 Budget
Directions be amended to eliminate the provision for an Operational Contingency
Fund, and that the issue be referred to the Board’s Finance and Audit Committee
for further review prior to the submission of the 2009 Budget Directions.
That the Ottawa Police Services Board consider and approve
the Ottawa Police 2008 Budget Timetable and Directions for an incremental
increase not greater than $14.1 million net of assessment growth,
equivalent to a 1.44% increase on the citywide tax bill.
La
Commission a approuvé les motions suivantes conjointement avec le rapport:
Que les
orientations budgétaires de 2008 soient modifiées afin d’éliminer la
disposition concernant un fonds de prévoyance opérationnelle, et de référer la
question au comité des finances et de la vérification de la Commission aux fins
d’examen approfondi avant la soumission des orientations budgétaires de 2009.
Que la Commission de services policiers d’Ottawa examine et approuve,
lors de la réunion du 24 septembre 2007, les orientations et le calendrier
budgétaires 2008 du Service de police d’Ottawa, en faveur d’une augmentation
d’échelon qui ne soit pas supérieure à 14,1 millions de dollars nets de
croissance de l'assiette de l'impôt foncier, équivalant à une hausse de 1,44
pour cent de la facture d’impôts municipaux.
DOCUMENTATION
1. Director
of Finance and Materiel Management’s report dated 10 September 2007.
2.
Extract of Minute,
10 September 2007 is attached.
3. Extract of Draft Minute, 24 September 2007 is
attached.
|
REPORT RAPPORT |
DATE: |
September
10, 2007 |
TO: |
Executive
Director, Ottawa Police Services Board |
FROM: |
Director
and Finance and Materiel Management, Ottawa Police Service |
SUBJECT: |
2008 OTTAWA POLICE SERVICE BUDGET
DIRECTIONS AND TIMETABLE |
RECOMMENDATIONS
That the Ottawa Police Services Board:
1)
Receive
and table the Ottawa Police 2008 Budget Timetable and Directions, and 2008 to
2010 Financial Framework at the meeting on 10 September 2007.
2)
Consider
and approve the Ottawa Police 2008 Budget Timetable and Directions for an
incremental increase not greater than $15.1 million net of assessment growth,
equivalent to a 1.54% increase on the citywide tax bill, at the meeting on 24
September 2007.
3)
Forward
its decision to City Council for information.
Section 39 of the Police Services Act
requires the Ottawa Police Services Board to approve annual budget allocations
for the Ottawa Police Service to maintain the police service and provide it
with equipment and facilities. In
conjunction with the OPS Business Plan and other strategic planning documents,
the annual budget enables to Board to set its priorities and provide direction
to management. It supports service
levels, provides the authority to proceed with key operational projects, and
confirms the necessary funding to carry out the 2008 work plan.
Consideration and approval of this report
provides OPS management with the funding directions and timetable for
preparation of the detailed 2008 Budget to be considered and approved by the
Board later this year. A sustainable
financial framework for the 2008 – 2010 term of the Board is also provided for
consideration. This framework is the logical
update and amendment to the OPS Long Range Financial Plan approved by the Board
in December 2006.
As per City Council policy implemented in
2006, the operations of the Ottawa Police Service are primarily funded by a
separate municipal tax rate that is distinct from citywide operations. This funding model provides transparency to
the public of the cost of police services, and provides the OPS with the direct
benefit of a proportional share of City assessment growth revenue. For 2007, the Board approved a net spending
increase for the Ottawa Police of 3.1%, which equated to a police tax rate
increase of 1.7% after assessment growth was applied. In terms of the citywide tax rate, this equated to a 0.3% increase
or approximately $7.00 per year for the average urban residence.
The approved 2007 increase was lower than
originally forecast, as documented in the Ottawa Police Service Long Rang
Financial Plan (LRFP) approved by the Board in December 2006. The LRFP recommended annual police increases
equivalent to citywide tax increases of between 1.1% and 1.4% for each year of
the term of the current Board in order to maintain current services, keep pace
with City growth, and provide for substantial capital requirements on the short
term planning horizon.
The Board reduced the 2007 incremental
net increase through the adoption of six principles:
1)
Growth
needs for staff were deferred
2)
Capital
funding was reduced
3)
All
new initiatives were deferred
4)
The
annual efficiency target was doubled
5)
User
fees were increased
6)
The
Board accepted financial risk, including freezing of funding levels for fuel,
fleet repairs, and overtime.
As will be reviewed in the Discussion
section of this report, certain of these principles have created additional
budget pressure for 2007 and beyond, and cannot be repeated. As reviewed at the time of the 2007 Budget
approval, the deferral strategy was projected to have an impact on future tax
increases. In the analysis presented
with the budget the tax requirement forecasts for 2008 and 2009 were increased
to deal with the deferral issues as shown in Table 1 below.
In 2007, City Council
embarked on a visioning and transformation process that culminated with the
City’s Long Range Financial Planning Subcommittee reviewing and recommending
2008 Budget Directions for the City as a whole. On August 14, that Committee received an updated presentation
from the Ottawa Police Services Board and Police management outlining the need
for a 2008 citywide tax increase equivalent to approximately 1.6% for police
services. In a report tabled with the
Corporate Services Committee on September 4, the Long Range Financial Planning
Subcommittee endorsed the OPS forecast.
The balance of this report provides the
updated Financial Framework underlying the rationale for that requirement, and
the timetable for Board consideration and approval.
DISCUSSION
The Ottawa Police Service amalgamated in
1995. Since that time, there has been a
progression towards financial sustainability and independence from the Regional
Municipality and subsequently the amalgamated City of Ottawa. Over most of those years, the Board has
increased funding for capital replacement, and approved numerous principles to
fully fund police operations and maintain service reliability in times of City
growth. The three-year Business Plans,
annual budgets and forecasts, and Long Range Financial Plan updates of 2002 and
2006 have provided the guide for Board priorities and available funding
scenarios.
Resulting from Board approved initiatives
since amalgamation, the following financial elements currently exist within the
Ottawa Police Services Budget:
·
Operations
are fully funded from sustainable revenue sources, primarily the municipal tax
base. No one-time funding sources are
in use for ongoing base operational requirements
·
Efficiency
targets have been set by the Board, and achieved. Efficiency reviews are implemented service wide each year, and
specific areas for achievement are listed prior to budget approval. Many of these ideas grew out of the
Opportunity Log exercise launched as part of the Police Program Review (PPR) in
2004. All previously identified
efficiencies to date will be achieved by end of 2007. See Annex 1 for a listing of $5.2 million efficiencies achieved
since 2004.
·
A
User Fee policy was approved with the 2006 LRFP that will ensure the
proportional cost of providing services is maintained between the citywide
taxpayer and the benefiting user.
·
New
revenue sources have been identified and achieved. Some of these ideas had their germination in the Opportunity Log
produced for the 2004 Police Program Review.
See Annex 2 for a listing of $5.7 million new revenues achieved to date.
·
The
police service has no capital infrastructure deficit at this time. Sufficient funding has been approved for
adequate lifecycle replacement of fleet, facilities, and IT infrastructure.
·
Capital
growth projects are funded from development charges and debt. Wherever possible, the benefiting user
pays, to minimize the tax rate impact.
2008
to 2010 Financial Framework
To move forward with financial
sustainability and independence, five recurring elements need to be added to
the Board’s proposed financial framework for the remainder of the current
term.
As with all Police Services in Ontario, the majority of the operating budget goes directly to compensation for the labour force. The Ottawa Police Service complement of 1,779 sworn officer and civilian full time equivalents (FTE) provide the wide range of safety and security programs through three patrol divisions on 24/7 duty, emergency operations and major events, criminal investigative services, and operational support. With 83% of the annual operating budget dedicated to direct staffing costs, the single largest budget pressure in any year emanates from collectively bargained or arbitrated economic increases, the progression of staff through compensation and responsibility pay increments, and provisions for retirement and other benefits. In addition for 2008, the full year impact of the deferred hiring from 2007 is also a requirement. In total, the direct staffing increase cost for 2008 is estimated at $9.4 million.
Beyond staffing costs, the Ottawa Police
faces inflationary pressures for materials, utilities, and supplies similar to
any other organization. Such pressures
are compounded in 2008 by the need to correct for the level of risk accepted by
the Board with the approval of the 2007 Budget. Most notably, fuel prices have risen beyond the budgeted 2007
price of 90 cents per litre. The
average price per litre for the year to date is approximately $1.00. As has been reported in the 2nd
Quarter Financial Status Report, should that average price be maintained, a
deficit of up to $300,000 could be incurred.
Fuel price and volume forecasts will be fully reviewed prior to tabling
of the 2008 estimates.
The Board also accepted risk in 2007 by
increasing the vacancy allowance provision by $1.0 million or 20%, and by
maintaining the overtime budget at 2006 levels. Management continues to monitor the compensation and overtime
budget very closely.
Beyond the potential requirement for base budget corrections emanating from 2007, inflationary increases are individually forecast for utilities, property leases, IT maintenance contracts, fleet maintenance costs, and clothing and equipment costs. In total, the non-compensation increase to maintain existing service levels is forecast at $1.1 million.
Offsetting the annual budget pressures is
the impact of the Board approved user fee policy and efficiencies target. User fee increases are forecast to garner an
additional $150,000 from benefiting users in 2008, and the efficiency target to
be achieved is $500,000. Full review
for efficiency is ongoing across the organization, and the 2008 plan will be
completed for tabling with the draft budget estimates in November.
The 2008 incremental net taxation
increase forecast to keep pace with funding for quality policing services is
approximately 0.9% citywide, net of assessment growth, as summarized in Annex
3.
Framework Element 2: Provide for Growth
Needs – 0%
The growth of the City of Ottawa has a
significant impact on the demand for police services. In 2006, the Ottawa Police Service completed the Strategic
Staffing Initiative (SSI). The
cornerstone of the multi-year plan was the City’s growth forecast contained in
the 2004 Development Charge Study. The
annual estimate from that study was a requirement for thirty additional sworn
officers per year.
The Strategic Growth Initiative (SGI
2013) Project, which began in 2006, has the goal of ensuring that OPS keeps
pace with growth in the areas of staff complement, divisional boundaries,
buildings and other assets and infrastructure.
While the City of Ottawa growth forecast is under review, OPS has
identified the need for thirty additional sworn officers to maintain existing
service levels for 2008. (The request
for 30 in 2007 was reduced to 20.)
The Service will be undertaking a full
deployment review in 2008, culminating in the development of a Strategic
Deployment Plan for existing and future sworn and civilian staff. The review is expected to garner
efficiencies, not economies, and therefore no change in the projected sworn
officer levels for 2008 is expected.
Civilian complement levels will be frozen in 2008 pending the outcome of
the deployment review.
The final component required for
continued delivery of quality policing service and growth is funding for
initiatives contained within the Ottawa Police Service Business Plan. These initiatives include technological advancements
and community centred programs, and forecast base operating needs of $650,000
per year for each of the plans three-year horizon. An additional $250,000 is provided for increased funding for
special projects in Criminal Investigative Services. This is step three of a four- year plan to achieve a $1.0 million
base budget for recurring project needs.
No increase was provided in 2007 for this initiative. A provision for facility leases has also
been included. This interim strategy
will be used to meet the accommodation needs spurred by growth, until end-state
facility solutions can be put in place.
In general growth needs will finance
themselves through the revenue generated as the assessment base grows. The 2008 incremental operating costs for
growth of $3.0 m will be offset by the $3.2 of revenue expected from growth in
the assessment base as summarized in Annex 3.
As noted above, the Ottawa Police Service does not currently suffer from an infrastructure deficit. Historically, The Board has provided adequate annual increases to capital formation funding and assets such as fleet and facilities have been adequately maintained. Table 3 demonstrates this support. Over 70% of OPS capital spending is for renewal of existing assets. As such, the available funding sources (76% of the total) are focussed on tax supported capital contributions, or “pay-as-you-go”.
Table 2: 10 Year Capital Needs Summary and Funding
($Millions)
|
|
Funding |
|||
Category |
Gross Need |
Tax |
Revenue |
DC |
Debt |
|
|
|
|
|
|
Renewal of Assets |
137.3 |
133.7 |
3.6 |
|
|
|
|
|
|
|
|
Growth |
33.3 |
|
|
19.1 |
14.2 |
|
|
|
|
|
|
Strategic Initiatives |
25.2 |
15.6 |
|
|
9.6 |
|
|
|
|
|
|
TOTAL |
195.8 |
149.3 |
3.6 |
19.1 |
23.8 |
There are several key operational infrastructure needs that require replacement in the 2008 to 2010 horizon.
Furthermore, the debt-servicing cost for
the non-development charge portion of the new West Divisional Building will
begin in the same timeframe.
These needs have been forecast in this
timeframe for several years, including with the LRFP approved in December
2006. The LRFP also recommended a plan
for steady increases in the OPS capital formation envelope, both contributions
to capital and debt servicing, to prepare for the imminent needs. The 2007 Budget did not proceed with the
LRFP plan. Capital funding was reduced $2.3 million.
Element 4: Build an Operational Contingency Fund – 0.1%
The Ottawa Police Service faces
operational and financial pressures, many of which are unforeseen in
nature. The Board is kept informed of
these pressures through quarterly status reports, but funding options and flexibility
is limited. Deficits are often the
result and/or the City of Ottawa is approached to assist with funding
shortfalls. A 2007 example is the
safety and security operations for the NHL playoffs. Recurring costs are incurred each year as a result of the over
350 events that are unique to policing the nation’s capital. The most significant of major crime
investigations can also push resources beyond the available funding
envelope.
The events do not all occur individually
each year, but in aggregate some combination of such pressures is experienced. It is recommended that the Ottawa Police
Service establish a $1.0 million operating base contingency for such
events. If approved for 2008, Board
policy will be crafted for the approval and reporting on uses of the funds, as
well as the retention of annual allocations should a surplus be achieved in any
given year. This constitutes the final
step towards financial sustainability and independence.
The $1.0 million fund equates to a 0.1% increase on the citywide tax bill in 2008, as summarized in Annex 3.
The final element of the OPS Financial
Framework is a reiteration of previous Board practice for reducing the cost of
police services to the Ottawa taxpayers.
As document in Annex 2, several significant new funding sources have
been confirmed in the past several years, and that effort will continue.
Specifically, the Federal government has
been approached to assist with base operational funding for the additional
costs incurred in Ottawa for being the nations capital. Provincial grant programs will also be
explored and confirmed for continuation.
As per the Board approved User Fee policy, the proportional cost of the
service to the benefiting user will be maintained to avoid additional cost to
the general taxpayer.
No new revenue from the upper levels of
government will be included in the 2008 budget estimates until confirmed. Any success in securing such funding for
2008 will directly reduce the incremental forecast tax increase requirement for
2009.
2008 to 2010 Financial Framework Summary
A preliminary term of Board forecast is summarized in Table 4. The recommended increase for 2008 totals $15.1 million net of assessment growth, or 1.54% on the citywide tax bill. With the capital funding levels and operational contingencies provided at that level in 2008, the remaining years in the forecast can be limited to 1.0% on the citywide bill to ensure delivery of quality policing services and to provide for growth.
|
2008 |
2009 |
2010 |
Incremental Requirement |
($000) |
($000) |
($000) |
|
|
|
|
Ensuring Quality Policing |
9,250 |
9,550 |
10,050 |
Growth and Business Plan Priorities |
3,050 |
3,600 |
3,650 |
Capital Formation |
5,000 |
0 |
(1,250) |
Contingency Planning |
1,000 |
0 |
0 |
Less Assessment Growth at 2% |
(3,200) |
(3,200) |
(3,200) |
|
|
|
|
Net Taxation Increase Requirement |
15,100 |
9,950 |
9,250 |
|
|
|
|
Police Tax Rate Increase Forecast |
9.40% |
5.70% |
5.00% |
|
|
|
|
City Tax Rate Increase Forecast |
1.54% |
1.00% |
0.91% |
Subject to approval of the 2008 Budget
Directions, the Board’s Finance and Audit Committee will work closely with OPS
management and the City Treasurer to develop financial policy to ensure the
goals of financial sustainability and independence are attainable. Such policy deliberation can include:
All policy considerations will be
supplied for Board approval with the tabling of the 2008 Budget.
The schedule below provides the key dates
for the Board’s 2008 budget directions, public consultation, and budget
consideration and approval. The
equivalent City Council dates are also provided for information. Internal OPS management review, policy
discussion, and final budget preparation will occur through October.
Milestone |
Date |
OPS Board: Tabling of 2008 Budget
Directions |
September 10, 2007 |
OPS Board: Public Delegations and Approval of 2008 Budget Directions |
September 24, 2007 |
City Council: Receipt of OPS 2008 Budget Directions |
September 26, 2007 |
OPS Board: Public Delegations on 2008 Budget |
October 22, 2007 |
OPS Board and City Council: Tabling of Draft 2008 Budget |
November 14, 2007 |
Public Consultation |
November 15 – 23 |
OPS Board: Public Delegations and
Approval of 2008 Budget |
November 26, 2007 |
City Council Committee of the Whole:
Approval of 2008 Budget |
December 10 to 14, 2007 |
Public consultation is an integral part
of the Board’s annual budget process.
As noted in the 2008 budget timetable above, public delegations are
welcome at the September 24 meeting when the Board considers the 2008 Budget
Directions, and at the Board’s regular meeting on October 22.
Once the draft budget proposal is tabled
in November, staff will hold public consultation sessions in key areas of the
City. The City’s consultation process
will also provide an opportunity to garner public input on the 2008
proposals. Public delegations are
welcome at the November 26 meeting as part of the Board’s consideration and
approval of the 2008 Budget.
The financial implications are detailed in the body of the report.
As is the case with all police services
in Ontario, the Ottawa Police Service operating budget is driven by staffing
costs, and to a lesser degree providing for service growth and capital replacement. With the consideration and approval of this
report, the Ottawa Police Services Board provides direction for the 2008
Operating Budget and a three-year financial framework. If approved, these directions will
constitute a 2008 citywide tax impact of not greater than 1.54%, and forecast
increases of 1.0% or less for both 2009 and 2010.
This framework will also enable financial
sustainability and flexibility for the Ottawa Police. Financial Policy will be reviewed and updated for approval with
the 2008 Budget in December.
Geoff Simpson
Director of Finance and Materiel
Management
Debra Frazer
Director General
Vernon
White
Chief
ANNEX 1
|
|
|
Ottawa Police Service Efficiency Achievements |
|
|
|
|
|
Item |
$ Amount (000’s) |
Year Introduced |
Complement and deployment opportunities |
$1,523 |
2004 |
10
%-20% Police Program Review reductions |
$1,200 |
2004 |
Court
overtime |
$696 |
2005 |
Community
Police Centre consolidation |
$422 |
2005 |
Reductions
in procurement for materials, services, & supplies |
$465 |
2005 |
Other
efficiencies & Recoveries |
$892 |
2004 - 2007 |
|
|
|
Total
|
$5,198 |
|
ANNEX 2
|
|
|
Ottawa
Police Service New
Revenue Achievements |
|
|
|
|
|
Item |
$ Amount (000’s) |
Year Introduced |
Provincial
funding - "SCOOP" |
$3,325 |
2006 |
False
Alarm By-law |
$1,260 |
1997 |
Community
Partnership Program |
$960 |
1995 |
Crime
free multi-housing background checks |
$150 |
2003 |
|
|
|
Total
|
$5,695 |
|
ANNEX
3
Ottawa
Police Service 2008 Budget Pressures Summary |
|||||
|
|
|
|
|
|
|
|
|
Police Tax |
Citywide |
Average |
|
|
2008 |
Rate |
Tax rate |
Residence * |
|
|
($000) |
% |
% |
$ |
Delivery
of Quality Policing Services |
|
|
|
|
|
|
Compensation
Costs |
8,800 |
|
|
|
|
Includes
estimated economic increases, increments, responsibility pay, and provisions
for benefits |
|
|
|
|
|
|
|
|
|
|
|
Base
Materials and Supplies |
1,100 |
|
|
|
|
Offset
by: User Fee Policy |
(150) |
|
|
|
|
Offset
by: Efficiency Target |
(500) |
|
|
|
|
|
9,250 |
|
|
|
Growth |
|
|
|
|
|
|
30
Sworn Officers Hired Fall 2008 |
850 |
|
|
|
|
Full
Year Impact of Previous Years Hiring |
700 |
|
|
|
|
Business
Plan Initiatives |
900 |
|
|
|
|
Facility
Leases |
600 |
|
|
|
|
|
3,050 |
|
|
|
Less: Assessment Growth assumed 2% |
(3,200) |
|
|
|
|
Net
Tax Increase Requirement |
9,100 |
5.7% |
0.93% |
$23.00 |
|
|
|
|
|
|
|
Capital
Formation Costs |
5,000 |
3.1% |
0.51% |
$13.00 |
|
|
|
|
|
|
|
Contingency
Fund |
1,000 |
0.6% |
0.10% |
$2.50 |
|
|
|
|
|
|
|
Total |
15,100 |
9.4% |
1.54% |
$38.50 |
*
Average urban residence assessed at $276,000
1. 2008
OTTAWA POLICE SERVICE BUDGET DIRECTIONS AND TIMETABLE
Presentation by the Director General and
the Director of Finance and Materiel Management
Documents tabled at the meeting
Chief White introduced
Director General D. Frazer and Mr. G. Simpson, Director of Finance and Materiel
Management. The presentation would
include reviewing the budget directions and timetable as well as the 2009 –
2010 financial framework recommendations.
(A copy of the presentation is on file with the Board’s Executive
Director.)
Following the presentation
staff was commended for all the work that went into their excellent
presentation. A discussion ensued and
the following points of clarification were made:
·
Vice
Chair McRae advised Board members that after having spoken with the Chief and
the Mayor she was prepared to move a motion that would reduce the contingency
fund to $250,000. She recognized a
contingency fund was necessary; however, by reducing it the citywide tax rate
could be brought down to 1.465%. She
didn’t believe this reduction would impact the safety of residents.
·
Chief
White explained that the plan for 2008 was to hire 15 new civilians, positions
that have been satisfied as a necessity.
The current ratio of civilians to sworn is 1:2. At the City’s Long Range Financial Plan
(LRFP) meeting there was a discussion about the utilization of civilians within
the organization and whether or not opportunities were fully utilized within
the City. The OPS feels it would be
strategically sensible to look at the deployment of civilians during the next
strategic deployment planning session, which is scheduled to run from late
September to mid 2008. At the end of
the review staff will be in a better position to speak to the ratio and the new
growth.
·
Reference
was made to Councillor Dean’s motion at City Council that it “request it’s representatives on the Police
Services Board to implement City Council’s position” about reducing
administrative costs and “that City
Council endorse the merger of administrative services related to the Police
administrative functions.” Member McRae undertook to bring this to
the Board’s attention and asked what the procedure would be to implement the
motion.
·
A
review of administrative positions within the Police Service has been done on
at least two occasions since amalgamation.
The reports are available and can be shared with Board members and City
Council. The scheduled strategic
deployment plan will review the areas where the OPS could possibly utilize City
resources either pro bono or at a reduced rate and determine whether or not
there is a duplication of services.
·
The
deployment review will look at the right people in the right place doing the
right things. Some challenges include
having the right number of people on patrol versus neighbourhood officers and
specialized units. The review will deal
with being more efficient and providing a better level of service delivery than
it does economies. An increased level
of service may be seen in a certain area based on demand. It is not realistic
to put a dollar amount on the deployment review, as there may not be any economies.
·
Vice
Chair McRae indicated she has heard comments from several members of Council
that they would like the opportunity to meet with the Chief and Ms. Frazer to
discuss the budget in a forum other than the Police Services Board
meetings. As this is an operational
matter the Vice Chair left the matter with Chief White. The Chief had no concerns about these
meetings so long as it was understood that this is the Board’s budget and Board
members may wish to participate. He
noted he has made an offer to every councillor that he is available to meet
with him or her either personally or in a semi public form to discuss any
issues related to policing.
·
There
was no cost attached to the “New Divisional Buildings West & South” on page
8 of the slides because of debt servicing costs. The costs already approved by the Board for the new West Division
building are $12.1 million for land acquisition and construction. In 2007, $2 million was approved for the
south division building specifically for land acquisition. The forecast of $10 million for design and
construction is to be added to the 2009 budget as forecasted in 2007. These figures will be available when budget
debates begin.
·
Ms.
Frazer advised the Board there will be a presentation in October or November
that will provide a detailed analysis of the factors that come into play from
operational, real estate and development option perspectives to identify the
proposals to develop the west division first.
Statistics show that approximately 70% of growth is in place and is
being handled out of Abbeyhill (West) and Greenbank (South) stations. Deployment from Greenbank is currently very
difficult given the way transportation routes have developed. The situation is different for the south as
they are still able to handle calls for service from Greenbank.
·
The
Police Tax Increase of 9.40%, as shown on page 4 of the slides, compares
favorably with the Big 12 police services in Ontario.
·
A
significant portion, 63%, of the West Division building will be funded through
development charges. A smaller portion
will be funded by other debt. This also
involves the consolidation of two buildings Greenbank and Abbeyhill.
·
Chief
White met with the Minister of Public Safety, Stockwell Day, last week to
specifically discuss Ottawa’s unique position and the possibility of receiving
direct or indirect financial support through the funding of resource
officers. The Chief suggested that
Ottawa be in line with funding arrangements similar to the United States and
Scotland. The formal proposal contained
the percentage of the budget that could be appropriately funded, or a
percentage of the 2,500 officers that could be allocated to the City and be
partially funded by the Federal Government.
Mayor O’Brien also attended the meeting and made a plea for assistance
on behalf of the City.
·
Chief
White explained that the request to the Federal Government is more than
contingency funding; it is for direct line funding. The vast majority of events that require the OPS’ participation
would not fit within the exigent circumstance required by City Council. Secondly, at year-end, either a cheque or a
bill is presented to the City depending if the year closes out in a deficit or
surplus. The contingency fund would
allow the OPS to sustain such exigent circumstances, such as the NHL playoffs
or increased homicides, without having to turn to City Council for more
funding.
·
Subject
to the approval of the budget directions, a discussion will have to be had to
determine what level of reserve fund balance should be kept.
·
Councillor
El-Chantiry indicated he would not be supporting any funding for the proposed
motion on the contingency fund. He
would, however, support staff’s direction and the financial policy
considerations as a best practice.
·
Annex
1 of the report provides the Board with an idea of where efficiencies have been
achieved since 2004. The total amount
was not fully achieved by one specific review in 2004, but categorized over a
four-year budget period.
·
Fuel
costs are currently 10 cents over the budgeted number for 2007. Should this increase continue through to
year-end, there could be a possible $270,000 to $300,000 pressure. An analysis has not been completed yet for
the 2008 budget.
·
A
report by the Auditor General pertaining to efficiencies within the City and
Police fleets has not yet been completed.
The versions of the report seen to date have given staff some ideas of
areas where savings could be achieved, such as a review of fuel cards and other
ways of negotiating fuel changes. The
Director General does not think the report will be completed in time for budget
considerations; therefore, staff will be using high level results. The delay in the completion of the report is
due to additional requests for information by the Auditor General and the
consultant as they continue to build on the preliminary report.
·
The
budget directions as presented include an efficiency target of $.5
million. In the past the Board has
increased the figure and staff have done their best to achieve the targets set.
·
The
spike projected for 2008 is not forecast again as capital formation costs will
be gradually increased.
·
Councillor
Monette stated he would not support a $0 contingency fund, but would support
the $250,000 plan suggested by the Vice Chair.
·
From
an operational perspective, the contingency fund as presented would have
allowed staff to cover off about half of the year’s exigent circumstances. Building a strong framework around the use
of the contingency fund is as important as having one. The contingency fund is specifically for
events that will not be covered by federal funding. The intent of the contingency fund is that it be added to the
operating budget base once in 2008 and incrementally thereafter. The funds would be available on a go forward
basis and subject to the policy approval would be reported to the Board if and
when used in any given year. The
reserve fund is currently available primarily and only for capital
requirements.
·
Member
MacEwen voiced his support for a contingency fund and does not want to see the budget
process delayed due to the ongoing discussions and motions. Member Doran echoed the comments.
Chair Jensen indicated he
would also be supportive of the contingency fund. He felt that over time the appropriate levels could be determined
and the amount could then be increased.
At this time Vice Chair McRae
moved her motion, however, Member El-Chantiry wished to move an amendment to
bring the contingency fund balance to zero.
Chair Jensen sought legal advice with respect to the appropriateness of the
first motion and the proposed amendment.
Mr. D. White, Solicitor,
stated that the matter before the Board today is to have the budget directions
and timetable presented and tabled for consideration and approval at the 24
September meeting. Section 20 of the
Board’s Procedural By-Law No. 2 of 2001 states “A motion to lay on the table is
debatable but cannot be amended.”
Therefore, it would be appropriate to take this as a notice of motion
for consideration and discussion when the matter comes back to the Board for
its approval at the 24 September 2007 meeting.
That the Ottawa Police Services Board
receive and table the Ottawa Police 2008 Budget Directions and 2008 to 2010
Financial Framework at its meeting on 10 September 2007.
CARRIED
NOTICE OF MOTION (FOR CONSIDERATION AT SUBSEQUENT MEETING)
Moved by M. McRae
That the Ottawa Police
Services Board reduce the operational contingency fund from $1 million to
$250,000 for the 2008 budget, thereby reducing the citywide tax increase by
.075% to 1.465% citywide.
2. 2008
OTTAWA POLICE SERVICE BUDGET DIRECTIONS AND TIMETABLE
Presentation by the Director General and the
Director of Finance and Materiel Management
Director of Finance & Materiel Management’s
report dated 10 September 2007
Ms. D. Frazer explained that the purpose of the
evening’s presentation was to clarify the rationale for the $1 million
contingency fund and the Board’s role in the usage of the account. During the presentation Mr. G. Simpson, Director
of Finance & Materiel Management, reviewed the rationale, recommendations
and the financial policy considerations surrounding the Contingency Fund. (A
copy of the presentation is on file with the Board’s Executive Director.)
Chair Jensen referred to the slide that
provided seven years of historical data for unforeseen events and the
corresponding financial impact, and said if this was a precedent then a
sizeable contingency fund would be required.
In theory he felt this to be a good idea, however, establishing such a
fund would involve a great deal of risk.
He thought Board members should bear this in mind when considering the
issue.
Member El-Chantiry agreed with the Chair’s
comments. He noted that in the past,
the City has paid off any OPS year-end deficits and surpluses have also gone to
the City. He felt that from an
operational perspective the current process should continue, as it is
impossible to predict and plan for unforeseen events. For these reasons Member El Chantiry proposed the following
motion:
That the 2008 Budget Directions be amended to eliminate the
provision for an Operational Contingency Fund, and that the issue be referred
to the Board’s Finance and Audit Committee for further review prior to the
submission of the 2009 Budget Directions.
Member Monette noted that while he had originally suggested the idea of a contingency fund, he was prepared to support the motion as it would allow for a more in depth study of a contingency fund.
The Board then dealt with the motions that were before them.
That the 2008 Budget
Directions be amended to eliminate the provision for an Operational Contingency
Fund, and that the issue be referred to the Board’s Finance and Audit Committee
for further review prior to the submission of the 2009 Budget Directions.
CARRIED
That the Ottawa Police
Services Board:
4)
Consider
and approve the Ottawa Police 2008 Budget Timetable and Directions for an
incremental increase not greater than $14.1 million net of assessment
growth, equivalent to a 1.44% increase on the citywide tax bill.
CARRIED
as amended
5)
Forward
its decision to City Council for information.
CARRIED