Ontario proposes $77M relief for municipalities to offset rising OPP costs

Viewed by many Ontario communities as an untenable financial burden, OPP costs continue to rise. Though often justified in the name of “public safety,” these escalating expenses raise a critical question: Who will rein in these costs, and at what price?
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Ontario proposes $77M relief for municipalities to offset rising OPP costs

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The Ontario government plans to provide over $77 million in financial relief to municipalities to address the rising costs of Ontario Provincial Police (OPP) services.

The investment, targeting predominantly small and rural communities, aims to address the budget impacts resulting from the collective bargaining agreement reached with the Ontario Provincial Police Association (OPPA) in July 2024.

Solicitor General Michael Kerzner emphasized the importance of balancing budgets while maintaining community safety, stating, “ This financial relief we are proposing will help municipal leaders balance their budgets and invest in their communities while ensuring no change to the policing provided by the OPP that keeps families and businesses safe.”

The proposal includes:

- A 3.75% bill reduction on 2023 reconciled costs,
- A 44% reduction on 2023 reconciled overtime costs, and
- A 10% bill reduction for 2025 invoiced policing costs.

Additionally, the province continues its $125 million annual Court Security & Prisoner Transportation Transfer Payment Program.

The Ontario government is also exploring revisions to the OPP billing model to better serve communities.

Written by: K. Freeman

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Ontario offers municipalities $77M to offset skyrocketing OPP costs

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The Ontario government is offering $77 million to help municipalities that rely on provincial police deal with skyrocketing law enforcement costs.

Several municipalities have reported double-digit increases in their Ontario Provincial Police bills for 2025, with at least one municipality facing more than double the previous tally.

That's left local leaders looking at additional tax increases -- or spending cuts -- to cover the unexpected expenses.

The province says the funding announced today will help communities address the financial impact of a new contract agreement with the Ontario Provincial Police Association that was ratified this summer.

The union said at the time that the four-year deal made OPP officers the highest paid in the province. It spans from 2023 to 2026 and includes retroactive raises of 4.75 per cent for the first year and 4.5 per cent for the second, as well as 2.75 per cent raises for the final two years.

The government says it's also taking a look at the OPP billing model "to ensure that it meets the needs of communities across the province."

Provincial police provide their services to about 330 municipalities that don't have their own police forces.

OPP recover the cost of policing those municipalities through a billing model put in place in 2015. It includes a base cost per property as well as variable costs related to the number of calls for service and other factors, according to a document on the force's website.

This report by The Canadian Press was first published Nov. 29, 2024.

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Ford government giving $77M to municipalities to help offset increases in new OPP contract

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The Ford government will provide $77 million to help offset recent increases in police services provided by the Ontario Provincial Police (OPP) to more than 300 municipalities across the province.

In a statement released Friday, the government says the money will help small and rural communities address the budget impacts of the new collective bargaining agreement reached between the province and the Ontario Provincial Police Association in July 2024.

The new four-year deal includes a 14.75 per cent increase in salaries over the length of the deal, making OPP officers the highest-paid police force in Ontario. The agreement includes retroactive salary increases of 4.75 per cent in 2023, 4.5 per cent in 2024, and 2.75 per cent in 2025 and 2026.

The government’s contribution will see a 3.75 per cent bill reduction for municipalities on 2023 total reconciled costs, a 44 per cent bill reduction on 2023 reconciled overtime costs, and a 10 per cent bill reduction on amounts invoiced for 2025 policing costs.

Several municipalities have reported double-digit increases in their OPP bills for 2025, with at least one municipality facing more than double the previous tally.

That’s left local leaders looking at additional tax increases — or spending cuts — to cover the unexpected expenses.

“Without the provincial action, the rise in OPP costs would have significantly impacted small, rural, and northern communities serviced by the OPP. Municipal fiscal sustainability is under pressure across Ontario, and municipalities struggle to balance their budgets,” said Robin Jones, president of the Association of Municipalities of Ontario.

The chair of the Rural Ontario Municipal Association also welcomed the provincial investment.

“In the context of inflation, infrastructure pressures, and a growing homelessness crisis, rural municipalities simply cannot afford a 20 per cent increase in OPP costs. This provincial investment acknowledges the escalating fiscal challenges municipalities face,” said Christa Lowry.

The OPP provides policing services to 330 municipalities across Ontario that don’t have their own police forces.

OPP recovers the cost of policing those municipalities through a billing model put in place in 2015. It includes a base cost per property as well as variable costs related to the number of calls for service and other factors, according to a document on the force’s website.

The government says it’s also taking a look at the OPP billing model “to ensure that it meets the needs of communities across the province.”

Files from The Canadian Press were used in this report

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Ontario offers municipalities $77M to offset skyrocketing OPP costs

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The Ontario government is offering $77 million to municipalities that rely on provincial police after some of them sounded the alarm over a sudden and unforeseen surge in law enforcement costs.

Several municipalities have reported double-digit increases in their Ontario Provincial Police bills for 2025, with at least one municipality facing more than double the previous tally.

That’s left local leaders looking at additional tax increases _ or spending cuts — to cover the unexpected expenses.

The province said the funding announced Friday will help communities address the financial impact of a new contract agreement with the Ontario Provincial Police Association that was ratified this summer.

The union said at the time that the four-year deal made OPP officers the highest paid in the province. It spans from 2023 to 2026 and includes retroactive raises of 4.75 per cent for the first year and 4.5 per cent for the second, as well as 2.75 per cent raises for the final two years.

The provincial plan includes a 3.75 per cent bill reduction on reconciled costs for 2023, a 44 per cent drop in reconciled overtime costs for that same year and a 10 per cent cut in the amount invoiced for 2025 policing costs, according to a release.

A spokesperson for the Ministry of the Solicitor General, which is responsible for OPP, said municipalities will receive a letter outlining what that represents for them, to be followed by an updated OPP bill.

The government said it’s also taking a look at the OPP billing model “to ensure that it meets the needs of communities across the province.”

Provincial police provide their services to about 330 municipalities that don’t have their own police forces.

OPP recover the cost of policing those municipalities through a billing model put in place in 2015. It includes a base cost per property as well as variable costs related to the number of calls for service and other factors, according to a document on the force’s website.

Sherry Bondy, mayor of the Town of Essex, said she’s encouraged to see the province is listening to municipalities’ concerns on the issue but doesn’t yet know how much relief is heading their way.

“Now we really have to crunch the numbers and see what kind of savings that really does mean for municipalities,” she said.

“Any savings that we receive from the province will be a direct savings to our taxpayers.”

Essex is facing a nearly 20 per cent hike in OPP costs next year and the town’s current budget proposal includes a seven per cent property tax increase as a result of that, Bondy said.

It would be helpful to receive updated numbers in time for the town’s next budget meeting on Dec. 9, she added.

This report by The Canadian Press was first published Nov. 29, 2024.

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Ontario government offers municipalities $77-million to help offset skyrocketing OPP costs

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The Ontario government is offering $77-million to help municipalities that rely on provincial police deal with skyrocketing law enforcement costs.

Several municipalities have reported double-digit increases in their Ontario Provincial Police bills for 2025, with at least one municipality facing more than double the previous tally.

That’s left local leaders looking at additional tax increases – or spending cuts – to cover the unexpected expenses.

The province says the funding announced today will help communities address the financial impact of a new contract agreement with the Ontario Provincial Police Association that was ratified this summer.

The union said at the time that the four-year deal made OPP officers the highest paid in the province. It spans from 2023 to 2026 and includes retroactive raises of 4.75 per cent for the first year and 4.5 per cent for the second, as well as 2.75 per cent raises for the final two years.

The government says it’s also taking a look at the OPP billing model “to ensure that it meets the needs of communities across the province.”

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Province to offer $77 million to offset rising OPP costs

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‘ROMA welcomes provincial action to reduce the impact of increasing Ontario Provincial Police costs on rural municipalities,’ the Chair of the Rural Ontario Municipal Association says.

Help could be on the way to ease the sting of rising OPP service costs for municipalities.

The province is proposing to provide over $77 million to help small and rural municipalities offset the rising costs of policing.

“This investment will help these predominantly small and rural communities address the budget impacts resulting from the collective bargaining agreement that was reached between the province and the Ontario Provincial Police Association (OPPA) in July 2024,” the Ministry of the Attorney General noted in a release this morning.

If passed, the $77 million will be most welcomed. Mattawa’s 2025 OPP bill went up just over $113,000, an increase of 21 per cent. East Ferris was also facing a similar rise.

“I spoke with the Mattawa mayor last night and to the Powassan, East Ferris, Callander, and Chisholm mayors and a few others,” Nipissing MPP Vic Fedeli says Friday. “This was a huge relief to them that the increases for the OPP will be completely covered by the province of Ontario. For Nipissing District alone this is almost $600,000, so the mayor of Mattawa, the mayor of Callander, both were looking at $100,000 OPP increases, so they were very relieved that this will be covered.”

Yesterday, before this announcement, in speaking with with Mattawa’s mayor, Raymond Bélanger about the policing costs. He noted he was working with his neighbouring municipalities to convince the government to help cover these costs. Mattawa, and many other municipalities, want the province to foot the entire OPP bill for smaller communities, which Bélanger estimated would be around $428 million.

Bélanger also noted that at one time, before Mike Harris became premier, the province did cover these costs.

As for today’s announcement that the province is proposing to contribute $77 million, Solicitor General Michael Kerner said, “Our government is working closely with our municipal partners and our women and men in uniform to keep communities across Ontario safe.” If the proposal becomes a reality, the province anticipates municipalities will see:

- A 3.75 per cent bill reduction on 2023 total reconciled costs,
- A 44 per cent bill reduction in 2023 reconciled overtime costs, and
- A 10 per cent bill reduction on amounts invoiced for 2025 policing costs.

Kerner continued, “The financial relief we are proposing will help municipal leaders balance their budgets and invest in their communities while ensuring no change to the policing provided by the OPP that keeps families and businesses safe.”

(David Briggs is a Local Journalism Initiative reporter covering civic and diversity issues for BayToday. The Local Journalism Initiative is funded by the Government of Canada)

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