ottawa police service 2008 budget directions, 2009 and 2010 financial framework
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Ottawa Police Service 2008 Budget Directions, 2009 and 2010 Financial Framework. Police Services Board September 10, 2007. Presentation Topics. Citizen Satisfaction with Police Services Issues Arising from 2007 Budget Proposed Police Services Board Financial Framework 2008 – 2010 - PowerPoint PPT PresentationTRANSCRIPT
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