Ottawa Police Service Ottawa Police Service

2008 Budget Directions, 2008 Budget Directions,

2009 and 2010 Financial 2009 and 2010 Financial FrameworkFramework

Police Services BoardSeptember 10, 2007

Presentation Topics

1. Citizen Satisfaction with Police Services

2. Issues Arising from 2007 Budget

3. Proposed Police Services Board Financial Framework 2008 – 2010

4. Financial Policy Considerations

5. 2008 Budget Directions Summary and Timetable

Citizen Satisfaction with Police Services

May 2007 Decima Research Public Opinion Survey

– 75% of respondents satisfied with police services

2006 OPS Commissioned Priora Research Survey

– 84% of respondents satisfied with police services

Current OPS Business Plan – 4 community consultation sessions – support for strategic direction

Issues Arising from 2007 Budget Inflationary tax increase achieved by adopting

six principles:1. Growth needs for staff were deferred2. Capital funding was reduced by $2.3 m3. The Board accepted financial risk

– Freezing of funding levels for fuel, fleet repairs, overtime

– Increased vacancy allowance by 20%

4. All new initiatives were deferred5. Efficiency target was doubled6. User fees were increased

Issues Arising from 2007 BudgetImpact on Future Years:1. Capital needs pushed out into future years.

– Funding increases of $5m required over 2008/ 2009

2. Staffing growth may fall behind demand in certain areas of the City

– Will have to play “catch-up” at some time – Need to provide basic, front-line service and meet

response times for P1, P2 calls

3. Fuel prices are rising– 2008 budget pressure of up to $300,000

Repeated inflationary increases are not possible

2007 Approved OPS ForecastImpact on Citywide Taxes

Presentation Topics

1. Citizen Satisfaction with Police Services

2. Issues Arising from 2007 Budget

3. Proposed Police Services Board Financial Framework 2008 – 2010

4. Financial Policy Considerations

5. 2008 Budget Directions Summary and Timetable

Ottawa Police Services BoardFinancial FrameworkExisting Elements Taxes fully fund operating and capital requirements

– No one time funding User fee policy and efficiency targets in place

– All efficiencies achieved New revenue streams created

– Grants, alarm revenue No capital infrastructure deficit

– Taxes maintain existing assets Capital funded by development charges and debt

when possible– Benefiting user pays, minimizes tax rate impact

Ottawa Police Services BoardFinancial Framework

New Elements for 2008 – 20101. 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

4. Build an operational contingency fund

5. Seek out more new funding sources

1. Delivering Quality Policing ServiceService delivery model of sworn and civilian members and

associated equipment, supplies, and training for: Three Patrol Divisions

– 24/7 platoon emergency response– Neighbourhood and School Resources

Emergency Operations– Tactical, Traffic, Canine, Major Events, etc.

Criminal Investigative Services– Major Crime, Assault, Guns & Gangs, Drugs

Operational Support– Communications Centre, etc.

Impact: Approx. 1.0% citywide tax increase per year

Policing is a people businessLabour costs historically require greater than

inflationary spending increase

Capital Formation

6%

Staffing83%

Equipment & Supplies

11%

Delivering Quality Policing Service2008 Budget PressuresStaffing Costs $8.8 M

– Estimated economic increases, increments, responsibility pay, benefits

Material & Supplies 1.1 M– Utilities, leases, fuel, contract services

Offset by: User Fee Policy Impact (0.15 M)Offset by: Efficiency Target (0.5 M)Subtotal $9.1 M

2008 Citywide Tax Impact = 0.93%

Policing has changed, and costs are increasing

“A 30 Year Analysis of Police Service Delivery and Standards”

(International Centre for Urban Research Studies, British Columbia 2005)

Conclusions: Police time and resources spent responding, processing,

and clearing criminal events has increased disproportionately to police budgets and staffing

Strain on police resources resulting from:– Upward trend in reported crimes is disproportionate to population– Property & nuisance crimes incurring disproportionate costs – Need for technology and training– Administrative loads and procedural complexity on the rise

2. Provide for Growth Needs Growth in the City has a significant impact on

demand for police services SGI 2013 Project identifying what OPS needs to do to

keep pace with growth in the areas of:– Staffing– Divisional boundaries– Buildings– Assets and infrastructure

2008 Growth needs fund themselves - through city assessment growth estimated at 2% or $3.2 million

2008 Recommendation: – 30 new sworn officers– No new civilian positions pending Strategic Deployment Plan

3. Imminent Large Scale Capital Projects

Mobile Data Terminals $2.1 M

Portable Radio System $5.0 M

New Divisional Buildings

West & South

Capital FormationFunding Envelope

• Needs projected to increase $5.0 million by 2009• 2008 Impact: 0.5% citywide tax increase

0

5

10

15

20

2005 2006 2007 2008Forecast

2009Forecast

2010Forecast

Mill

ion

s

General Capital Fleet Replacement Debt Servicing

$ 11.4 M

$ 16.4 M

4. Operational Contingency FundThe Ottawa Police Service faces operational and

financial pressures each year, such as:– Unforeseen major events – Security costs of being the nation’s capital– Significant crime investigations– Unfunded liabilities; sick leave and retiree benefits– Insurance claims

Recommendation for $1.0 million base funding

2008 Impact: 0.1% citywide tax increase

5. Seek Out More New Funding Sources1. Federal Funding for the security costs related to

the Nation’s Capital

2. Development Charge by-law update 2009 Petition for funding for service vehicles and IT

infrastructure In practice in GTA

3. New grants from Province

4. Federal 2,500 Officer Program

5. User Fee increases as per approved policy

Presentation Topics

1. Citizen Satisfaction with Police Services

2. Issues Arising from 2007 Budget

3. Proposed Police Services Board Financial Framework 2008 – 2010

4. Financial Policy Considerations

5. 2008 Budget Directions Summary and Timetable

Financial Policy Considerations

Subject to Approval of Budget Directions

1. Disposition of year end surplus or deficit Satisfy final outstanding recommendation from

Auditor General’s Review of OPS Budget Process Considered “Best Practice” by OACP Budget

Committee

2. Authority for usage of operational contingency fund

3. Minimum Reserve Fund balance(s)

4. Contributions towards Unfunded Liabilities

Presentation Topics

1. Citizen Satisfaction with Police Services

2. Issues Arising from 2007 Budget

3. Proposed Police Services Board Financial Framework 2008 – 2010

4. Financial Policy Considerations

5. 2008 Budget Directions Summary and Timetable

2008 Budget Directions Recommendation - SummaryIncremental Requirement $ Millions

Delivering Quality Policing 9.1

Growth and Business Plan Priorities 3.2

Capital Formation Costs 5.0

Contingency Planning 1.0

Less: Assessment Growth (3.2)

Net Tax Increase Requirement 15.1

Police Tax Rate Increase 9.40 %

Citywide Tax Rate Increase 1.54 %

Impact to Average Residence $38.50

OPS Budget DirectionsTerm of Board Impact on Citywide Taxes

2008 Budget Timetable for ApprovalOPS Board: Tabling of 2008 Budget Directions Sept. 10

OPS Board: Public Delegations and Approval of 2008 Budget Directions

Sept. 24

City Council: Receipt of 2008 Budget Directions Sept. 26

OPS Board: Public Delegations on 2008 Budget Oct. 22

OPS Board: Tabling of Draft 2008 Budget Nov. 14

OPS Public Consultation Town Hall Meetings November

OPS Board: Public Delegations and Approval of 2008 Budget

Nov. 26

City Council: Approval of 2008 Budget Dec. 14

Conclusion

Maintaining policing services requires approximately 1.0% citywide tax increase annually, as police labour costs in Ontario are expected to exceed inflation

Capital needs require an additional 0.5% citywide increase over two years due to imminent capital projects

Introducing an operational contingency fund will require an 0.1% citywide increase

Growth will fund itself Financial policies will be formulated and adopted to

manage these new funds and tools

Recommendations

For Deliberation and Approval September 24: 2008 Budget Direction for incremental tax

increase of no greater than $15.1 million, or 1.54% on citywide bill

2008 Budget Timetable as listed in Table 4 of report

Forward report to Council for information

Thank youThank you