Town of Osoyoos council has submitted an appeal on the latest census results that declared the town’s population has officially exceeded 5,000, which has resulted in serious ramifications for council and local taxpayers when it comes to a significant increase in policing costs.
However, they were given a reprieve in relation to an April 1 deadline relating to how to handle the massive increase in policing costs caused by the population increase.
During Monday’s regular meeting of council, Mayor Sue McKortoff announced that council would appeal the official census results, but noted a decision by Census Canada doesn’t have to be rendered on the appeal until July of 2018.
This means council is going to have to address a budget shortfall estimated at between $500,000 and $600,000 in the pending 2017 budget.
Every indication was the council have to address the funding shortfall before April 1, but McKortoff announced Monday that deadline had been extended as negotiations between the Town and RCMP relating to its current policing contract continue.
Under provincial regulations, municipalities that surpass 5,000 in population are on the hook for 70 per cent of policing costs instead of the 30 per cent tab that has been paid by the Town of Osoyoos for the past several decades.
Considering local taxpayers paid just under $390,000 in policing costs in 2016, it’s expected the new bill will be between $850,000 to $900,000 based on the 70-30 funding formula.
McKortoff said the Town will continue current negotiations with the RCMP to continue providing police services to the community, while trying to work out the best financial settlement possible.
“On Friday, all of council met with representatives from the Ministry of Public Safety and Solicitor General to receive a total council orientation to the development of a municipal RCMP service contract,” said McKortoff, reading from a prepared statement.
As a result of this meeting, McKortoff said she could provide the following update, noting full disclosure is not yet possible because we are in contract negotiations:
• Provincial representative assured us that the April 1 deadline date for a contract is not a firm date and that policing services will continue to be provided until a mutually agreed to contract is signed.
• Council sees areas of the proposed contract that need to be negotiated to better reflect the cost sharing of community policing services.
• The Province will be provided a letter that reflects Council’s perspective on the policing contract and the areas that need to be readdressed.
• The contract as currently proposed by the Province would result in a policing bill as follows (worst case scenario) for property and businesses assessed at $400,000.
– 2016- A single family home would have paid $99.60 for police servicing costs and in 2018, the policing requisition would be $271.96 ($67.99/$100,000 of assessment).
– 2016 – A business owner would have paid $244.04 and in 2018 would pay a police requisition fee of $435.12 ($108.78/$100,000 in assessment).
“Council considers this expenditure as an increase in the policing cost to the community and not as an increase in municipal taxes to fund services that are directly supplied by the municipality,” said McKortoff. “Council will continue to explore all of its options and to negotiate a decrease in the costs to the community.”
Council was nearing the end of its 2017 budget process when the census results were unveiled in early February and it became clear there would be major ramifications on the overall budget.
Council had announced a planned tax increase of 1.98 per cent early on in the budget process as well as minor increases to user fees for such things as water and sewer services and garbage collection.
The final impact on the 2017 budget due to the massive increase in policing costs still isn’t known and council will continue to look at all options over the next several weeks.
Council did manage to put aside more than $230,000 over the past three years into a special reserve fund should the Town’s population exceed 5,000.
Council has the option of increasing taxes, borrowing money or taking money from reserves to pay for the increase in policing costs in 2017.
If council were successful in its appeal and the Town’s population were deemed to still be under 5,000, this would mean no significant increase in policing costs would take place until the next census in five years.
If the appeal is unsuccessful, the significant increase in policing costs will become part of the annual budget process in perpetuity.
Two weeks ago, council voted to delay spending significant dollars on a couple of infrastructure projects they would likely have approved before the census results were revealed and policing costs went through the ceiling.
Coun. C.J. Rhodes asked for and received support from the majority of council when he stated he couldn’t support any significant spending expenditures until the full impact of increased policing costs is discussed and addressed as part of the 2017 budget process.
KEITH LACEY
Osoyoos Times
