Province Provides Reprieve From OPP Billing For Rural Municipalities

Jeff Green | Dec 04, 2024

Early in November, 330 rural municipalities in Ontario received a bit of shocking news: the 2025 bill for policing services came in from the Ontario Provincial Police. Already a major cost for small municipalities, a major increase in the range of 20% this year had an immediate impact on the 2025 budget work that municipal treasury staff was working on.

The three Frontenac County townships were no exception, although some other municipalities were hit even harder.

The increase swallowed up much of the year end surplus that the townships usually make use of to soften the blow from ever increasing costs in the upcoming budget year, and also added up to 2% to the 2025 budget before any of the other fixed increases were accounted for.

They joined together, with the help of the Association of Municipalities of Ontario (AMO) to lobby the province for some relief, or a new way to cover OPP costs.

Later in November, Premier Doug Ford indicated the government would do something to help small rural Ontario out, and last week the government announced a $77 million rebate program.

The money is being allocated in three ways: a 3.75% bill reduction in 2023 reconciliation costs, a 44% reduction in reconciled overtime costs, and a 10% reduction on amounts invoiced for 2025 policing costs.

Of the three allocations, the third one has the greatest impact on 2025 budgeting, and it is the easiest to calculate as well.

When contacted, the treasurers and chief administrators all said that they have not received the details from the province about the specific rebate their township will receive, and if there are any stipulations about where the money can go.

“We have not officially received anything, but my estimate is a reduction of $328,732 on our 2025 billing,” said South Frontenac Chief Administrative Officer Louise Fragnito in an email.

That amount represents 10% of the net billing for 2025, and it would cut the net billing increase for 2025 from 14.9% all the way down to 3.3%, if the entire rebate is applied to the 2025 line item for OPP costs.

Central Frontenac Treasurer Michael McGovern also said he has not received an official document from the province, but was told the rebate will be $228,400. This he said would cover off 85% of the increase, bringing the percentage increase in OPP costs, in Central Frontenac, in 2025 OPP billing from 14% to a little over 2.2%, if the entire rebate is applied to the 2025 line item for OPP costs.

North Frontenac Treasurer Kelly Watkins had to scramble to come up with a recommendation for how North Frontenac Council will incorporate the change into their 2025 budget, because their budget was being presented on Friday, November 29th.

She said that she had been told verbally that the rebate was $147,480, and that she was recommending to Council that about $84,000 out of that money be used to mitigate against the OPP billing increase for 2025, cutting that increase to about 5%.

She proposed that the rest of the money go to a reserve fund for 2026 in order to address an anticipated OPP adjustment that will impact the 2026 North Frontenac budget