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REPORT RAPPORT |
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REPORT RAPPORT |
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DATE:
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24 June 2013 |
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TO:
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Executive Director, Ottawa Police Services Board |
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FROM:
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Chief of Police, Ottawa Police Service |
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SUBJECT: |
2014 BUDGET DIRECTIONS AND TIMETABLE
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RECOMMENDATIONS
That the Ottawa Police Services Board:
1. Direct staff to prepare the 2014 Draft Operating and Capital Budgets with a tax rate increase of less than 2%.
2. Approve the 2014 Budget Review and Approval Timetable.
Section 39 of the Police Services Act requires the Ottawa Police Services Board (Board) to approve annual budget allocations for the Ottawa Police Service (OPS) 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 the 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 2014 work plan.
Council has provided a request to the Board on both the target and the timetable for the 2014 budget.
On May 8, 2013, Council approved the recommendation from the City of Ottawa that Council:
1. Approve that the 2014 budget guideline be amended so that the 2014 Draft Operating and Capital Budgets be developed to result in a recommended tax increase of less than 2%;
2. Communicate this direction to the Boards of Police Services, Library and Health for their information and consideration
On June 4, 2013, Council established the timelines for the review and approval process for the 2014 budget. Council approval of the 2014 Operating and Capital Budget is set for its regular scheduled meeting November 27, 2013. The recommendations in this report conform to Council’s requests to the Board.
DISCUSSION
The schedule in Table 1 provides the key dates for the tabling, public consultation, consideration and approval of the Board’s 2014 budget in accordance with Council’s direction. Staff will table the draft budget document with the Board at a special meeting on October 23, 2013. Staff will attend the consultation sessions sponsored by the City in late October and early November to gain feedback on the budget proposal. Public delegations, Board consideration, review and approval is scheduled for the Board’s regular meeting in November.
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Milestone |
Date |
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Finance and Audit Committee: 2014 Budget Framework- update |
11 June |
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OPS Board Regular Meeting: Approval of Budget Directions and Timetable |
24 June |
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OPS Board Regular Meeting: 2014 Budget – Progress Report |
23 September |
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OPS Board Special Meeting, City Council Special Meeting: Tabling of Draft 2014 Budget |
23 October |
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Public Consultation Sessions |
Week of 28 Oct – Nov 1 (TBD) |
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OPS Board Regular Meeting: Public Delegations and Review. Consideration and Approval of 2014 Budget |
25 November |
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City Council Regular: Approval of 2014 Budget |
27 November |
2014 Operating Budget Forecast
The Operating Budget Forecast for 2014 as was tabled during the 2013 budget process is summarized in Table 2. The increase for 2014 was estimated at $5.5 million, net of assessment growth, or a 2.5% Police Tax Rate increase.
Table 2
2014 Operating Forecast
As tabled during the 2013 Budget Process ($ Millions)
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Incremental Requirement |
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2014 |
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Maintain Services |
$10.0 |
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Growth |
0.0 |
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New Services and Needs |
1.0 |
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Service Initiatives and Efficiencies |
(1.0) |
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User Fees and Charges |
(0.2) |
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Incremental Requirement |
$ 9.8 |
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Less Assessment Growth at 2% |
($4.1) |
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Net Taxation Increase Requirement |
$5.7 |
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Police Tax Rate Increase |
2.5% |
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A Notice of Motion was presented to the PSB on 27 May 2013 that requests:
That the Ottawa Police Services Board approve that the 2014 Ottawa Police Service Operating and Capital Budgets be developed to result in a recommended tax increase of no more than 2%.
In order to determine the impact of this motion, Staff began preparing a high-level 2014 Operating Budget scenario in accordance with the City’s request. As a result, there is an additional $2.6 million impact to the operating budget, including other new pressures that have been identified in the budget development process. In total, the OPS will have an efficiency challenge of $3.6 million in 2014 which is summarized in Table 3.
Table 3
2014 Operating Budget Challenges
($ Millions)
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Item |
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2014 |
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Existing Requirement (prior to updates) |
$(1.0) |
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Impact of no more than 2% Tax Guideline |
(1.4) |
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Impact of 1.7% assessment base growth |
(0.2) |
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Reduction in Supplemental Tax Revenue |
(0.7) |
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Facilities Strategic Plan Funding |
(0.3) |
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Total Challenge |
$ (3.6) |
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To meet this challenge, staff has begun a process to identify savings, efficiencies and cost recovery opportunities in line with the recommendation. The list of potential solutions includes vacant civilian positions, fuel and storage savings, discretionary spending like printing and advertising, a reduction in the professional services budget, increased gapping targets and several cost-recovery and revenue opportunities. These solutions have been identified to have minimal impact on front line service.
Staff is confident that the target can be met and the budget processes scheduled for the summer will further identify and clarify the validity of these solutions.
The corresponding 2014 Operating Forecast is outlined in Table 4.
Table 4
2014 Operating Forecast – Updated
($ Millions)
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Incremental Requirement |
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2014 |
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Maintain Services |
$10.5 |
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Growth |
0.0 |
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New Services and Needs |
1.0 |
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Service Initiatives and Efficiencies |
(3.6) |
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User Fees and Charges |
(0.2) |
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Incremental Requirement |
$ 7.7 |
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Less: Assessment Growth at 1.7% |
($3.9) |
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Add: Adjustment for Supplementary Revenue |
0.7 |
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Net Taxation Increase Requirement |
$4.5 |
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Police Tax Rate Increase |
1.99% |
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Horizon Issues
As the Board is aware, negotiations with the Ottawa Police Association have begun and are expected to conclude in 2014. Any settlement above the amount the Board has budgeted would result in the need for further reductions in the 2014 budget.
Public consultation is an integral part of the Board’s annual budget process. The public will have opportunities to attend public consultation meetings to be scheduled during the week of October 28, 2013. These meetings are part of the City’s budget consultation process and will be held in various locations throughout the City. Staff from the Finance Section and the operational areas of OPS will be in attendance to answer questions about the Board’s budget.
Public delegations are also welcome at the 25 November 2013 meeting of the Board when it considers, reviews and approves the 2014 Police Budget.
The financial implications of the 2014 budget and forecast are detailed in the body of the report.
The Police Tax Rate increase and timetable outlined in the report confirms to City Council’s direction and will allow the 2014 Operating and Capital Budget to be approved before the start of 2014.
(Original signed by)
Charles Bordeleau
Chief of Police
Responsible for Report: Director General Debra Frazer
