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1. 2009 OTTAWA POLICE SERVICE BUDGET
DIRECTIONS AND TIMETABLE
ORIENTATIONS
ET CALENDRIER BUDGÉTAIRES 2009 DU SERVICE DE POLICE D’OTTAWA
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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.
For the information of Council
The
Board approved the following Motions in conjunction with the report:
a)
That
the Ottawa Police Services Board Chair, the Mayor of Ottawa and the Chief of
Police pressure the Federal Government to provide funding to offset the cost of
the 200-plus unplanned events held in the City of Ottawa each year.
b)
WHEREAS
the costs of Court Security are growing at an extraordinary rate;
THEREFORE BE IT RESOLVED that the
Province of Ontario assume responsibility for delivering the function of Court
Security and related functions.
Pour la
gouverne du Conseil
La
Commission a approuvé les motions suivantes conjointement avec le rapport:
a) Que le président de la Commission de
services policiers, le maire et le chef de police d’Ottawa exhortent le
gouvernement fédéral à fournir des fonds destinés à couvrir le coût des quelque
200 événements et plus non planifiés tenus dans la ville d’Ottawa chaque
année.
b) ATTENDU QUE le coût de la
sécurité des tribunaux augmente à un rythme effréné,
IL EST
DÉCIDÉ QUE la province de l’Ontario sera priée de prendre en charge les
services de sécurité des tribunaux et les services connexes.
DOCUMENTATION
1. Directorate
Leader’s report dated 04 September 2008.
2.
Extract of Minute, 04 September 2008
is attached.
3. Extract of Draft Minute, 22 September 2008 is attached.
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REPORT
RAPPORT
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DATE:
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4
September 2008
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TO:
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Executive
Director, Ottawa Police Services Board
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FROM:
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Directorate
Leader, Ottawa Police Service
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SUBJECT:
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2009 OTTAWA POLICE
SERVICE BUDGET DIRECTIONS AND TIMETABLE
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RECOMMENDATION
That
the Ottawa Police Services Board:
1)
Receive
and table the Ottawa Police 2009 Budget Timetable and Directions at the meeting
on 4 September 2008.
2)
Consider
and approve the Ottawa Police 2009 Budget Timetable and Directions for an
incremental increase not greater than $9.95 million net of assessment growth,
equivalent to a 5.7% increase to the police tax rate, at the meeting on 22
September 2008.
3)
Forward
its decision to City Council for information.
BACKGROUND
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 2009 work plan.
Consideration
and approval of this report provides OPS management with the funding directions
and timetable for preparation of the detailed 2009 Budget to be considered and
approved by the Board later this year.
A sustainable financial framework for the 2008–2010 term of the Board
was approved with the 2008 Budget Process.
This framework provided a logical update and amendment to the OPS Long
Range Financial Plan approved by the Board in December 2006. The key framework elements as approved by
the Board were as follows:
1)
Ensure
budget bases keep pace with the pressure of delivering quality policing
services;
2)
Provide for
growth needs;
3)
Provide for
imminent large scale capital projects; and
4)
Seek out
more new funding sources.
A
fifth element, to build an operational contingency fund, was presented to the
Board with the 2008 Budget Directions but not approved. The matter was referred to the Board’s
Finance and Audit Committee in 2008, and is not recommended for reconsideration
with the 2009 Budget due to affordability constraints.
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
2008, the Board approved a net spending increase for the Ottawa Police of 9.1%,
which equated to a police tax rate increase of 8.8% after assessment growth was
applied. In dollar terms, this equated
to approximately $36.00 per year for the average urban residence.
As
was documented in the 2008 Budget approval process, the 2008 police tax rate
increase was significantly higher than in 2007 and higher than the forecast for
the remaining term of the Police Services Board through 2010. The 2008 rate was elevated in accordance
with the approved Finance Framework and due to the deferral of growth, capital
funding needs, and new operational initiatives from the 2007 Budget. With that correction completed, the
remaining term of the Board forecast limited projected tax increases to 5.7% or
less on the police tax rate.
Table
1: Term of Board Impact on Police Tax Rate
The
balance of this report provides rationale for continued sustainable funding,
and commits to the previously approved forecast as the ceiling for the 2009
budget increase.
DISCUSSION
Current
Financial Status
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. All previously identified efficiencies to
date will be achieved by the end of 2008.
See Annex 1 for a listing of $5.8 million of efficiencies achieved since
2004.
·
A User Fee
policy was approved with the 2006 Long Range Financial Plan that ensures the
proportional cost of providing services is maintained between the citywide
taxpayer and the benefiting user.
·
New revenue
sources have been identified and achieved.
Ensuring appropriate funding levels for municipal policing in the
Nation’s Capital is a key initiative for the 2009 Budget.
·
The Police
Service has no capital infrastructure deficit at this time. Sufficient funding has been allocated for
adequate lifecycle replacement of facilities, fleet, 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.
A
Staffing, Overtime, and Expenditure Control Plan has been implemented in 2008
to mitigate a forecast operating deficit of $1.5 to $2.5 million arising
primarily from fuel prices and overtime earnings. A component of the plan is a comprehensive review of overtime
practices and policy under the lead of Superintendent Ralph Erfle. With the approval of the 2nd
Quarter Financial Status Report in July 2008, the Board has committed to a
break-even financial position in 2008, even if that requires the cancellation
of specific previously approved initiatives and capital projects.
Operational
Priorities and Performance Measures
With the upcoming implementation of the 2008
Strategic Deployment Review (SDR), Chief White has committed to ensuring that
the Ottawa Police has the right people in the right place at the right
time. The goals of the SDR
recommendations are to provide improved service at times of peak need, to
reduce crime without making more arrests, to increase visibility, and to
continue to attack serious crime trends through targeted specialty units such
as the Street Crime Unit, Guns and Gangs, and the Direct Action Response Team
(DART).
Key performance indicators reviewed for 2007 data
offer measures of success and highlight areas for improvement within the
OPS. The total crime rate in Ottawa
mirrors the national trend of overall reduction. Total criminal code offences are down, while violent youth
crimes, drug related violence and gang activity is on the rise. Overall safety has increased, but fear of
crime is still prevalent as the vulnerable sectors of our society are
susceptible to more frequent and more violent crimes. The recent introduction
of targeted enforcement in Ottawa through the Street Crime Unit and the Guns
and Gangs Unit has served to curb these major crime trends, but such
enforcement must continue in future years to secure the gains made to date.
Total calls for service were up 3% in 2007, from
priority 1/emergency calls to less urgent requests. All such calls require police attention, and resource increases
and deployment decisions must be appropriate for the increased demand.
Context and Financial Challenges
Ottawa,
as the nation’s capital, faces a unique challenge in Canadian municipal
policing, as an average of 185 planned events, and over 200 unplanned events,
occur annually that require intelligence gathering, threat assessment, and
policing or public safety strategy. In
2008, the Federation of Canadian Municipalities (FCM) published a report
entitled “Towards Equity and Efficiency
in Policing”. The thrust of the FCM analysis is
that municipal police forces often assume responsibility for enforcing laws
that fall within Federal jurisdiction, and that municipalities should be
compensated the equivalent of 10% of annual municipal police budgets. This recommendation for direct Federal
funding for policing is complementary to the efforts of the Police Services
Board since 2006 to highlight the costs attributable to policing the Nation’s
Capital.
Ottawa’s
size and geography also impose unique resourcing and financial challenges on
the Ottawa Police Service. Ottawa is
2,796 square kilometres, and 90 kilometres from East to West. That area is greater than Toronto, Montreal,
Calgary, Edmonton, and Vancouver combined.
Furthermore, that area is almost 80% rural, with more farmland than any
other city in Canada. This creates
needs for differential service models, increased vehicle costs and specialized
equipment.
2009 Cost Drivers
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Labour Costs
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$(000)
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Existing Labour
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9,000
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Includes estimated economic increases,
increments, responsibility pay, and provisions for benefits
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SGI 2013: 30 Sworn Officers and 15 Civilians part
year 2009
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1,300
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Full Year Impact of 2008 Sworn Hiring
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1,100
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Subtotal Labour Costs
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11,400
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2009
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2010
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($000)
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($000)
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Labour Costs
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11,400
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12,200
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Inflation and Cost Escalation
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1,800
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1,700
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Operational Improvements
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900
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650
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Capital Formation
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0
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0
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Efficiencies and User Fees
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-650
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-650
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Less Assessment Growth at 2%
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-3,500
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-3,700
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Net Taxation Increase Requirement
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9,950
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10,200
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Police Tax Rate Increase
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5.7%
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5.4%
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2009
Budget Schedule
The
schedule below provides the key dates for the Board’s 2009 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.
Table 6: Ottawa Police Service Budget
Review and Approval Timetable
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Milestone
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Date
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OPS Board:
Tabling of 2009 Budget Directions
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4 September
2008
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OPS Board:
Public Delegations and Approval of 2009 Budget Directions
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22 September
2008
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City Council:
Receipt of OPS 2009 Budget Directions
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24 September
2008
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OPS Board:
Public Delegations on 2009 Budget
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27 October
2008
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OPS Board and
City Council: Tabling of Draft 2009 Budget
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4 November
2008
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Public
Consultation
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10-20 November
2008
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OPS Board: Public
Delegations and Approval of 2009 Budget
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24 November
2008
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City Council
Committee of the Whole: Approval of 2009 Budget
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1-5 December
2008
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CONSULTATION
Public
consultation is an integral part of the Board’s annual budget process. As noted in the 2009 budget timetable above,
public delegations are welcome at the 22 September 2008 meeting when the Board
considers the 2009 Budget Directions, and at the Board’s regular meeting on 27
October 2008.
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 2009
proposals. Public delegations are
welcome at the 24 November 2008 meeting as part of the Board’s consideration
and approval of the 2009 Budget.
FINANCIAL
IMPLICATIONS
The financial
implications are detailed in the body of the report.
CONCLUSION
Approval
of the recommendations contained in this report will provide management with
the direction to complete year 2 of a three-year term of Board forecast
approved in 2008. The Ottawa Police
Service has benefitted from sustainable investment in operations. That benefit is manifested in critical
success factors, and must continue. The
recommended police tax rate increase for 2009 will be no greater than 5.7% net
of assessment growth.
(Original
signed by)
Geoff Simpson
Directorate
Leader, Corporate Services
(Original
signed by)
Debra Frazer
Director General
(Original
signed by)
Vern White
Chief of Police
Attachment:
Annex 1: Ottawa
Police Service Efficiency Achievements Since 2004
Annex 2: Ottawa
Police Service 2009 Budget Pressures Summary
ANNEX 1
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Ottawa Police
Service Efficiency Achievements
Since 2004
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Item
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$ Amount (000’s)
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Year Introduced
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$1,523
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2004
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10 %-20% Police Program Review reductions
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$1,200
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2004
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Court overtime
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$886
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2005 – 2008
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Community
Police Centre consolidation
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$422
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2005 – 2007
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Reductions in
procurement for materials, services, & supplies
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$705
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2005 – 2008
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Other
efficiencies & Recoveries
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$1,065
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2004 – 2008
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Total
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$5,801
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ANNEX 2
OTTAWA POLICE SERVICE 2009 BUDGET
PRESSURES SUMMARY
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2009
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($000)
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Labour Costs
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Existing Labour
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9,000
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Includes estimated economic increases,
increments, responsibility pay, and provisions for benefits
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SGI 2013: 30 Sworn Officers and 15 Civilians part
year 2009
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1,300
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Full Year Impact of 2008 Sworn Hiring
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1,100
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Subtotal Labour Costs
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11,400
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Inflation and Cost Escalation on Materials
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1,800
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Operational Improvements (Business Plan)
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900
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Capital Formation Costs
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0
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Offset by:
User Fee Policy
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-150
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Offset by:
Efficiency Target
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-500
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Incremental Net Spending Increase
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13,450
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Less:
Assessment Growth assumed 2%
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-3,500
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Net Tax Increase Requirement
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9,950
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Police Tax Rate % Impact
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5.7%
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Average Urban Residence $ Impact
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$27.00
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1. TABLING OF
2009 OTTAWA POLICE SERVICE BUDGET DIRECTIONS AND TIMETABLE
Presentation
by the Chief of Police, Director General and Directorate Leader, Corporate
Services
Documents tabled at the meeting
Chief White began the presentation by
noting that the title of the 2009 Budget, “Safer Tomorrow than Yesterday”, is
simple and to the point about what the community demands from the Ottawa Police
Service. He introduced the Director
General, Ms. D. Frazer and the Directorate Leader, Corporate Services, Mr. G.
Simpson who took part in the presentation.
(A copy of the presentation is on file with the Board’s Executive
Director.)
Following the presentation, staff was
commended for the work that went into it and their report. A discussion ensued and the following points
of clarification were made:
·
The purpose
of this meeting is to deal only with Recommendation #1, which is to “Receive
and table the Ottawa Police 2009 Budget Timetable and Directions at the meeting
on 4 September 2008”. No motions
will be debated or considered at this meeting.
·
From a
Federal perspective, the costs involved in policing planned and unplanned
events held in the Nation’s Capital are in the range of $2 to 3 million per
year. The Chief believes that if the
OPS performs national services, it should be reimbursed and the Federal
Government should take ownership for a portion of the costs. The Federal Government supplements municipal
Royal Canadian Mounted Police (RCMP) contracts at a rate of 10% and it has been
suggested that municipal police services should be supplemented at the same
level.
·
Chief White
has been named a Co-Chair of the Ontario Association of Chiefs of Police (OACP)
working group that will work with the Province of Ontario on the options
available for the funding or taking over of court security from
municipalities. Ontario is the only
province in Canada where municipalities fund court security.
·
Costs in
the amount of $6-8 million are currently included in the OPS budget for funding
that should be derived from sources other than the municipality.
·
As a
Director of the Ontario Association of Police Services Boards (OAPSB), Chair
Jensen stated that the upload of the court security function was on the agenda
at their joint meeting with Provincial Ministers last year. This year the item is the Association’s
first priority.
·
The impact
court security costs have on front line police services is extensive. The Police Services Act (PSA) is
clear that the municipal police service is responsible for the costs; however,
it was never intended that costs would grow to the level they have
achieved. The costs funded by the OPS
means that 50-60 officers are not on the street that could be if the function
was funded by the Province.
·
The federal
funding for the 2,500 officer program has already been allocated to the
provinces. Some provinces have already
distributed the funds, however, the Province of Ontario has not yet distributed
their portion of the funds. There have
been ongoing discussions that 50% of the funding go directly to the Ontario
Provincial Police (OPP), who represent approximately 33% of police in the
province, and $20 million to First Nations Policing. Many services view this split as inequitable.
At this point in the discussion Member
El-Chantiry acknowledged the difficulty the OPS faces with court security costs
and unplanned events. Due to the fact
that motions cannot be debated at this meeting, he put forward the following
Notice of Motion for consideration at the next Board meeting:
That the Ottawa Police Services Board
Chair, the Mayor of Ottawa and the Chief of Police pressure the Federal
Government to provide funding to offset the cost of the 200-plus unplanned
events held in the City of Ottawa each year, and pressure the Provincial
Government to upload the Court Security function to the Province.
Discussion then continued, with the following points being made:
·
Staff will
continue to review fuel prices to determine a proper fuel forecast in
2009. A number of adjustments were made
to the procurement process in 2008, but with $1.00/litre budgeted in 2008, the
2008 fuel deficit is estimated to be $1 million. While there is much speculation in the industry it has been
suggested that $1.30/litre might be a conservative estimate of the real cost of
fuel.
·
The slide
on “Seeking More New Funding Sources” lists possible funding opportunities,
however, none of the sources are guaranteed.
For that reason they have not been included in the budget. The purpose of the slide was to identify the
opportunities that exist to reduce the increase in the annual budget.
At this point in the discussion Member
McRae put forward the following Notice of Motion to be considered at the next
Board meeting:
WHEREAS the costs of Court Security are growing at an
extraordinary rate;
THEREFORE BE IT RESOLVED that the Province of Ontario
assume responsibility for delivering the function of Court Security and related
functions.
She wished the Chief to send a strong
message to the Province for future funding and that the Mayor also deliver the
same message to his counterpart at the Province. She wanted her very assertive stance on the funding issue
noted. She indicated that she was not
prepared to support the budget as it is; she thinks a better job can be done
and she will spend the next few weeks finding efficiencies and identifying
pending projects that can be moved to future years.
·
The 2009
budget directions contain an assumption of 2% assessment growth. With 2009 being a re-assessment year, the
split between residential and commercial properties will have an impact on the
estimate; therefore, this is the best assumption that can be made at this time
with the variables that are expected in 2009.
Member McRae wanted to see a realistic figure for assessment growth,
noting changes and there is a shortfall, the police service will have to cover
it.
·
Member
McRae wondered if there are opportunities for savings in the Strategic
Initiatives section of the Capital Budget.
Ms. Frazer indicated that items contained in the Strategic Initiatives
category form part of the Business Plan.
The Communication Centre falls under the Strategic Initiative category
because there is an opportunity to merge comm centres across the City. The initiative will look at combining the
various dispatch centres within a common facility to create a truly
interoperable communication centre and function, while at the same time
replacing and upgrading the OPS radio system.
·
The
Communications Centre initiative will be interesting in that the City will be
providing the radio system (towers & infrastructure), and as users each
operation will be responsible for maintaining their own equipment. The senior levels of management must
determine if there is a willingness to move forward to create an
interoperability strategic plan that connects the various operations.
·
There is no
growth planned for 2009 as there was a significant amount of work allocated in
2008 including the West Division Facility.
The focus for 2009 is to complete that project rather than ask for
additional funds to commence another.
Additional growth will be coming forward in the 2011 – 2012 forecast.
Member McRae stated that she would like
members of the OPS outfitted with the best equipment available to ensure their
safety and the safety of the community, however, she reiterated her intention
to rigorously review the budget over the next few weeks to find
efficiencies.
That
the Ottawa Police Services Board receive and table the Ottawa Police 2009
Budget Timetable and Directions at the meeting on 4 September 2008.
CARRIED
