Member Legendre stated that typically Regional Council is asked in September or earlier to give direction to staff in the preparation of budget estimates for the following year. He did not recall that happening this year and wondered if the Board normally has the opportunity to provide such direction to OCRPS staff. Ms. Frazer indicated that it normally happens in the spring.

Member Legendre recalled that at its last meeting the Board passed a motion to conduct an audit and he wondered whether there are resources in the 2000 budget to do so. Ms. W. Fedec, Executive Director, circulated copies of the detailed Board budget, noting it includes $225,000 for Professional Services. Approximately $70,000 of that has been earmarked for audit services. Member Legendre wondered if the motion passed at the 6 December meeting would impact on the amount estimated for that account.

Member Buckingham indicated she had provided the estimate of $225,000. She noted that until the scope of the audit is known, it’s difficult to estimate how much it will cost. She believed that staff of the Region’s Management and Audit Services are currently working on the terms of reference. She explained that the funds in the account are intended for a number of things including audits and the hiring process for a new Chief of Police. She suggested the Board will have to monitor the account over the course of the year.

Member Legendre referenced his earlier comments with regard to the practice of budgeting based on the previous year’s expenditures, and indicated he would be putting forward a motion to restore the board’s "discretionary funding" account to $26,000.

Chair Kreling cautioned that members wishing to put forward motions to add money to certain accounts would have to indicate the accounts from which the funds are to be drawn in order to maintain the total budget envelope. In response to a question from member Legendre with respect to the reasons for the reduction in that account, Chair Kreling explained that in order to increase the "Professional Services" account, it was necessary to reduce other accounts wherever possible.

Member Buckingham noted the costs for overtime were significantly over budget in 1999 and she wondered how staff expect to reduce this to a level more in line with those of the past several years. Ms. Frazer acknowledged the significant overspending in that area. She indicated the Service has recently implemented a program to deal with the problem and its effects were apparent in the last quarter of 1999. In addition, each Deputy Chief addressed the issue with section heads and asked them to outline their plans to control overtime costs.

Deputy Chiefs Bevan and Mackie highlighted some of the pressures that have been driving overtime costs such as: the transition to the new service delivery model and the Service’s commitment to maintain front-line levels through the transition; staffing shortages that occurred at various times throughout the year; a transition period to allow for the recruitment and training of new staff in the communications centre as a result of an increase in its staffing complement; changes in the district configurations and resource allocations due to the new service delivery model; and some critical incidents that occurred over the course of the year. Both deputy chiefs re-iterated the Service is implementing plans to control overspending in this area.

Member Buckingham noted how staffing levels in the CommCentre have contributed to the under run in "Provision for Gapping" and wondered what other pressures have contributed to that. Ms. Frazer acknowledged under spending in that account is in the range of $700,000 and she explained that maternity and parental leaves, leaves without pay and retirements are all contributing to it.

In response to a question from member Buckingham, Ms. Frazer indicated that by the end of 1999 there will have been approximately 60 retirements and resignations, of which 98% are sworn officers.

Member Buckingham noted the budget for "Advertising, Promotions and Publications" was more than 69% over spent and wondered what was driving up costs in that area. Ms. Frazer explained that some of the increase for that expenditure type is due to re-allocations so that the increases are balanced by reductions elsewhere in the budget. However, she stated most of the increase relates to the cost of the red pages in the telephone directory. Also, a small percentage can be attributed to the fact that the Service is doing more external advertising for vacancies.

In response to a question from member Buckingham with regard to an increase in printing costs, Ms. Frazer explained that it relates mostly to a transition of the records management system. The Service is moving from paper to paperless and in the interim has bought into a forms method of delivering that service.

Member Buckingham recalled that in previous years, the Board would reimburse the Region for Legal Services and this would appear under "Internal Cost Redistribution". She wondered where that item is listed in the 2000 Budget Estimates. Ms. Frazer explained the costs for legal services can be found in two places, $75,000 can be found in each of the Board’s and the Executive’s accounts for "Legal Services" for a total of $150,000.

In looking at the budgets from the past several years, Member Buckingham noted legal service costs are significantly overrun every year. She stated that in 1997, the projection for this expenditure was $263,000, in 1998 the projection was $240,00, and in 1999 total costs will be approximately $269,000. She wondered why staff believed it could be projected at $150,000 for the year 2000 without significant overspending. Ms. Frazer indicated the Legal Services budget, under Executive Command, is in fact increasing from $278,000 to $356,000 in 2000 based on receiving services in a different way. She explained this total amount will include services from the Region, the $75,000 listed under "Internal Cost Redistribution", a plan to hire an articling student, as well as drawing on external legal advisors.

Since Mr. Westwick was not present to confirm the explanation, Chair Kreling suggested that the question be passed on to him for a response. Member Buckingham noted the size of the force is increasing and the outside world is becoming more litigious, therefore, she was skeptical about the likelihood of reducing costs in this area.

On the revenue side, Member Buckingham noted the false alarms fines were not as high as expected in 1999 and wondered why staff expected they would increase by 11% in 2000. Ms. Frazer explained staff are just starting to get a handle on the number of unregistered alarms and as the alarm registrations grow, the base upon which the Service can earn revenue increases. She indicated staff were comfortable with the projection of $910,000 for the year 2000 and in fact, the projection might be a little bit low given both the under-reporting of alarms at the outset of the program and the recent growth into Kanata, West Carleton, Goulbourn, Cumberland, Rideau and Osgoode.

Member Buckingham recalled there was a plan to get rid of debt financing by the year 2001 yet she noted that debt financing will continue to be a source of funds for capital projects until at least 2004. Ms. Frazer explained that the Service works cooperatively with the Region on the financing of capital works and the revised funding plan before the Board was developed in conjunction with Regional staff. They suggested that continuing to fund $900,000 worth of capital projects through debt financing would allow the Service to maintain an on-going capital reserve fund balance. The previous plan, to fund 100% of the Service’s capital projects from pay-as-you-go sources, would have exhausted the capital reserve funds.

Member Buckingham noted a caption at the top of the insert which states "Thousands of dollars - adjusted for inflation" and wondered what would be used as a basis for adjustment. Ms. Frazer explained Regional staff have adjusted the figures so that in future years of the forecast, the estimates are adjusted to reflect inflation rates.

Member Buckingham felt such a practice makes it difficult to have a measure of accountability. Ms. Frazer believed the caption was meant to reflect that estimates for the outer years of a capital program have been adjusted for inflation. Because each year the Board approves the following year’s expenditures, they are the important ones in terms of accountability.

Given the level of turn-over in the Board’s membership, member Buckingham felt it would be beneficial to include such information in the annual budget package and to provide some explanation as to the various capital projects and their status.

Member Buckingham recalled that in May there was a presentation to the Board on air services and she wondered whether there are funds in the 2000 budget for acquiring an aircraft. Deputy Chief Bevan indicated staff have not given up on the project. The Service has made applications for funding and will have to make decisions through the year based on the results of those applications. He expected to have more information in the spring but believed there would be some funds forthcoming from the federal and provincial governments. He added the Service has also obtained public sector commitments that would be equal to or greater than the amounts staff had anticipated putting into the 2000 budget. In response to a further question from member Buckingham, Deputy Chief Bevan confirmed there are no plans or funds in the budget for the Service to acquire and operate its own aircraft but there are funds to continue to rent one.

Member Buckingham indicated that at the end of the budget discussions she would be putting forward a motion with respect to the Board’s process with the intent to add to the Board’s Policy Manual, under Section 3.3, Financial Planning and Budgeting, a sixth item that would read: "Accordingly, the Chief shall ensure that budgeting is completed in a timely manner so that a detailed gross expenditure forecast for the next year can be tabled with the Board by its regular meeting in November each year." She appreciated that the process is driven by the Region’s timeframe but believed the Board’s commitment is to ensure the OCRPS Budget is before the Region, in a format that is acceptable to them, within whatever timeframe they put out. She did not feel that should preclude staff’s efforts to put together detailed budget estimates and have them before the Board in advance of the Region’s timeframe.

Vice Chair Baskerville noted the 2000 budget estimates state the Service’s sworn officer strength is 1,040 and he wondered: what the current sworn officer strength is; how many officers the Service is below that figure; and how many sworn officer retirements are anticipated for the year 2001. Ms. Frazer indicated there are currently about 25 vacant sworn positions as a result of resignations and retirements and there will be approximately 20 retirements occurring in 2000. Also, in 2000 staff will be implementing a Sworn Officer Staffing Plan to identify, each quarter, how many recruits will be sent to the Ontario Police College (OPC) and how many direct entry members will be hired. She explained that plan is currently being developed by Human Resources and, matched against the number of vacancies, will give the exact number of positions the Service is short of its complement. She explained that she did not have information pertaining to the Sworn Officer Staffing Plan. Vice Chair Baskerville asked that the information be forthcoming.

In reference to the Draft Capital Estimates, Vice Chair Baskerville wondered if there would be standardized protocols in place with regard to the PKI, an encryption coding system which would allow the Service to share information with other police services. He was concerned that should the OCRPS take the lead on this project, it could end up not being in line with the majority of other police services or organizations. S. Kanellakos, Director General, explained that in 1999, the OCRPS commissioned a study to look at its requirements and he pointed out that the Service has pushed the authority request into 2001 specifically for the purpose of trying to align itself with what its major partners are doing. He noted the Region is also looking at a PKI infrastructure. He re-iterated, the Service is waiting until 2001 before making a commitment, but in anticipation of that, staff would like to get the funding authority on the books so that once many of the police services in Ontario and its other major partners catch up, the OCRPS will be in line with a standard that works.

Vice Chair Baskerville highlighted the fact that no salary costs are identified in the Board’s budget due to a protocol established upon amalgamation in 1995 between the Board and the Region. Staff are provided to the Board from the Regional Clerk’s Department and the costs are not charged to the Police budget. He referenced upcoming changes to the municipal structure and the implementation of a Transition Team responsible for establishing the budget in 2001, and expressed concern that the Board’s 2001 staffing costs be clearly identified and covered. He requested that an annotation be made, either in the Board’s budget or the Regional Clerk’s budget, indicating the amounts paid for salaries and benefits from the Clerk’s Department on behalf of the Police Services Board.

In response to a question from Vice Chair Baskerville with respect to the reduction in spending for Ammunition and Range Supplies, Ms. Frazer explained that the amount reported for that line item reflects the status of the account as of the end of the second quarter. She assured Board members that since that time, a purchase order has been placed to ensure all ammunition planned for in 1999 will be purchased and delivered. In fact, because it hasn’t all been used, it will provide an ample supply for 2000 training. The ammunition budget has been bumped up to reflect the various training needs and the different kinds of ammunition the Service is now using.

Vice Chair Baskerville noted the revenue line for Secondments is up. He wondered if it’s the result of having a greater number of officers on reimbursed secondments or whether it is indicative of a lack of control over the number of secondments that are authorized. He maintained that having too many officers away on secondment impacts on other areas of the Service such as vacancies and overtime.

Chief Ford stated the Service reviews secondments very carefully. He maintained that not only does the OCRPS receive revenue for many of its secondment agreements, but it benefits from work done and the expertise gained by the officers during their secondment assignments.

Deputy Chief Bevan stated the number of secondments has remained fairly constant and the increase in the budget is reflective of demands placed on the OCRPS from the OPC. In order to accommodate the increased number of recruits, the college has asked a number of major police services to provide secondments to them in order to increase their number of teaching staff.

Vice Chair Baskerville concluded by voicing his support of member Buckingham’s suggestion for a more timely process. He indicated he too was concerned with the timeframe and he felt the Board should review it draft budget estimates in November each year.

In response to a question from Chair Kreling with respect to lease agreements, Ms. Frazer explained that the Region leases the required facilities on behalf of the OCRPS, and then charges the Service for those costs through an internal account. She stated the $405,000 in that account for 1999-2000 is primarily reflective of the OPP properties that came into the Service’s portfolio. They include Carp, Kanata, and the OPP community centres. As well, it reflects the costs of the Service changing the location of its off-site drug facility. Chair Kreling believed there are as many as eight community offices included as a result of the OPP transfer. Ms. Frazer stated she would confirm the number.

Member Legendre proposed a motion to increase the amount of money in the Board’s discretionary fund (Grants - #072-507193) by $4,000, to bring it back up to the 1999 level of $26,000. He indicated his reason for doing so was not because he intended to spend it all, but to give staff the message that they do not have to spend all the money each year in a particular area in fear that the amount will be decreased the following year. He did not believe it was a good practice to set a budget based on the previous year’s expenditures.

Chair Kreling indicated he would not be supporting the motion. He acknowledged member Legendre’s concern but re-iterated the importance of identifying an account from which offsetting funds are to be drawn, and he stressed the importance of the funds the Board has set aside in its Professional Services account to fund external reviews.

Moved by J. Legendre

That the Ottawa-Carleton Regional Police Services Board approve an increase in the Board’s discretionary fund (#072-507193 - Grants) of $4,000, to bring it back up to the 1999 level of $26,000.

LOST

(J. Legendre dissented)

The Board then voted on the main motion:

Moved by J. McCombie

On member Buckingham’s motion with respect to financial planning and the budget timeframe, Vice Chair Baskerville expressed his support stating he was very concerned about the current process. He felt there is a tendency to hurry, and though staff have done an excellent job of responding to Board members’ questions, he did not believe it is the proper way to deal with a detailed expenditure budget.

Chair Kreling did not object to the motion but maintained the need to be flexible. He stressed the very close working relationship with the Region. He highlighted the fact that despite the Region’s tax requirements being reduced by more than 2.5%, the OCRPS’s budget is increasing by $5.8M. He believed that was only possible due to the cooperation between senior staff from the Region and the Police Service. He felt the motion provides a good target to work towards but re-iterated the need to be flexible on the date.

Chief Ford appreciated member Buckingham’s intentions but stressed it is essential that the OCRPS Finance Section work "hand in glove" with the municipal Finance Department. It is impossible to do otherwise because Council sets the budget envelope for the Police Service. He noted that if OCRPS staff were to set up a budget in isolation of the municipal Finance Department, they would have to do so without an understanding of the whole budget picture. In preparing budget estimates, staff need to know what the tax requirements are and what the burden will be on the community. He maintained it is not possible to do that within the timeframe suggested by member Buckingham’s motion. He cautioned it will be especially impossible next year because of the upcoming election and the new city structure.

Member Buckingham felt this year’s process was particularly hurried and argued no one can be expected to receive detailed estimates on a Thursday evening and be prepared to discuss and approve the budget on Monday evening. She noted her motion does not direct that the budget be approved in November, it only directs that estimates be tabled with the Board at its regular meeting in November. She believed that would be the first step to putting the accountability back with the Board, where it belongs.

Member Legendre suggested what he hoped would be a friendly amendment to the motion. He supported member Buckingham’s motion but suggested that, in the late spring, the Board should give direction to staff in terms of budget directions for the coming year to guide them in the preparation of the estimates to be tabled in November.

Member Buckingham believed member Legendre’s amendment was unnecessary because it is already stated in the Board’s Policy that in June of each year, the Board should contemplate and debate improvement areas for the coming year. In light of this, member Legendre withdrew his amendment.

Member Adam indicated he would not support member Buckingham’s motion. He felt it would be a waste of time. He agreed with Chief Ford’s comments and contended it would be putting the cart before the horse.

Member McCombie believed that member Buckingham’s motion would be tying hands. He re-iterated Chief Ford’s comments with respect to the Service’s budget being contingent upon staff working in conjunction with the Region’s Finance Department.

Moved by E. Buckingham

That the Ottawa-Carleton Regional Police Services Board amend its Policy Manual by adding a new sub-section (6) to section 3.3 - Financial Planning and Budgeting - that states, "Accordingly, the Chief shall ensure that budgeting…is completed in a timely manner so that a detailed gross expenditure forecast for the next year can be tabled with the Board by its regular meeting in November each year".