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REPORT RAPPORT |
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REPORT RAPPORT |
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DATE:
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15 December 2014 |
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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: |
2015 BUDGET DIRECTIONS AND TIMETABLE
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RECOMMENDATIONS
That the Ottawa Police Services Board:
a. the municipal portion of the property tax bill will not increase by more than 2.0%, and
b. the taxation revenues generated from new properties (assessment growth) be valued at 1.75% of current taxation for 2015.
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 2015 work plan.
City Council has set the budget guideline and timetable for the 2015 process. On December 10, 2014, it gave direction to all City entities to prepare the budget on the basis that:
a. The municipal portion of the property tax bill will not increase by more than 2.0%. It is important to note that a 2% increase on the residential tax bill requires that the total municipal tax increase must be set at 1.75%.
b. The taxation revenues generated from new properties (assessment growth) be valued at 1.75% of current taxation for 2015.
Council approval of the 2015 Operating and Capital Budget is set for March 11, 2015.
The recommendations in this report will align the Police Services Board with Council’s direction with respect to both the 1.75% budget increase target and the timetable for review and approval.
DISCUSSION
2015 Operating Budget Target
As discussed with the Board’s Finance and Audit Committee in November, since the summer months staff has been working towards a 2% budget target in accordance with the direction issued by the Chief for the 2015 process. In an election year, staff proceed based on internal guidance, recognizing that budget direction from the governing bodies will be provided later than usual, given the legislative matters to be conducted following the election of the new Council.
The first iteration of the draft budget tabled at the staff level in September reflected a 4.2% budget increase. A total of $5.1 million of new revenue, expenditure reductions and efficiencies were identified to meet the 2% goal. They will be detailed when the budget documents are tabled on February 4, 2015.
The change this month to a 1.75% budget target would normally mean that staff would need to search for an additional $0.6 million of savings to reduce the budget from 2% and achieve the lower target. That is not the case in light of favourable data regarding assessment base growth. City officials have advised the Board that the police tax rate share of assessment base growth is $0.6 million higher than the estimate that staff had been working with throughout the fall. It is now expected to be an increase of 1.75% over last year.
As a result the impact of the tax rate reduction ($0.6 million) is directly offset by the increase in the assessment base growth ($0.6 million). There is no requirement to make any further changes to the draft budget.
A high level summary of the draft budget is provided in Table 1 below, to illustrate where changes have been made and savings achieved during the review process.
Table 1
2015 Operating Draft Operating Budget Increase ($ Millions)
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Incremental Requirement |
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First Iteration 4.2% |
Draft Budget 1.75% |
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Maintain Services |
$10.0 |
$8.7 |
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Growth |
0.7 |
- |
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New Services and Needs |
3.6 |
2.2 |
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SMC Directed Funds |
0.2 |
- |
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Service Initiatives and Efficiencies |
(1.0) |
(2.7) |
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User Fees and Charges |
(0.2) |
(0.2) |
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Incremental Requirement |
$ 13.3 |
$ 8.0 |
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Less: Assessment Growth |
($3.5) |
($4.0) |
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Net Taxation Increase Requirement |
$9.8 |
$4.0 |
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Police Tax Rate Increase |
4.2% |
1.75% |
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The schedule in Table 2 provides the key dates for the tabling, public consultation, consideration and approval of the Board’s 2015 budget, aligning with Council’s direction. The process is more extended than is normally the case, in recognition of the steps which must be followed to commence governance under the newly elected Council.
Staff will table the draft budget document with the Board at a special meeting on February 4, 2015. Staff will attend the consultation sessions sponsored by the City in February to gain feedback on the budget proposal. Public delegations, Board consideration and approval is scheduled for the Board’s regular meeting on February 23, 2015. Council’s approval of the budget will occur on March 11, 2015.
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Milestone |
Date |
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OPS Board Regular Meeting: 2015 Budget Directions and Timetable Report |
15 December |
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OPS Board Special Meeting, City Council Special Meeting: Tabling of Draft 2015 Budget |
4 February 2015 |
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Public Consultation Sessions |
February 2015 |
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OPS Board Regular Meeting: Public Delegations, Consideration and Approval of 2015 Budget |
February 23, 2015 |
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City Council Review / Adoption of 2015 Budget |
March 11, 2015 |
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 February 2015. 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 23 February 2015 meeting of the Board when the it considers and approves the 2015 Police Budget.
The financial implications of the 2015 budget and forecast are detailed in the body of the report.
The recommendations outlined in this report will ensure that the Board is aligned with Council’s budget directions for 2015 that the total municipal tax rate be set at 1.75%. Staff have identified $5.1 million of new revenue, expenditure reductions and efficiencies to achieve the target, which also includes assessment base growth of 1.75%. Following the timetable outlined in the report will enable the Board to table, review and approve the budget so that it is ready for consideration by Council on March 11, 2015.
(Original signed by)
Charles Bordeleau
Chief of Police
Responsible for report: Director General Debra Frazer
