1. Call to Order The Presiding Officer calls the meeting to order and leads those present in a moment of contemplation.

Transcription

1 Special Council Meeting Tuesday, June 25, :00 PM Zima Room, BWG Public Library & Cultural Centre, 425 Holland Street West, Bradford Agenda Pages A Special Meeting of Council of the Corporation of the Town of Bradford West Gwillimbury has been called for Tuesday, June 25, 2013 at 7:00 PM, in Zima Room, BWG Public Library & Cultural Centre, 425 Holland Street West, Bradford. The purpose of the meeting is to make a final decision on the police costing discussion. 1. Call to Order The Presiding Officer calls the meeting to order and leads those present in a moment of contemplation. 2. Adoption of Agenda Recommendation: That the Council Agenda dated June 25, 2013 be adopted as amended to include Section 4.1 Emergency Appointment of an Engineer for the Horlings Drain, and Section Analysis of Estimated Future Cost Sharing - Bradford West Gwillimbury/Innisfil Police Services Board Budgets. 3. Declarations of Pecuniary Interest and the General Nature 4. Staff Reports 4.1 Emergency Appointment of Engineer Horlings Drain Recommendation: That after consideration of the petitions filed under Section 4 of the Drainage Act, Council agrees to proceed with the drainage works known as the Horlings Drain; and That Council appoint K. Smart Associates Limited as the engineer under Section 8 of the Drainage Act. 5. Police Costing Decision Timeline of Events Page 1 of 22

2 Special Council Agenda June 25, Updated Summary of Public Comments Recommendation: That the Updated Summary of Public Comments dated June 25, 2013 be received Update on Final Numbers - Task Force/BWG Recommendation: That the update on the final numbers from the Task Force dated June 25, 2013 be received Analysis of Estimated Future Cost Sharing - Bradford West Gwillimbury/Innisfil Police Services Board Budgets Recommendation: That Report FIN regarding an Analysis of Estimated Future Cost Sharing for the Bradford West Gwillimbury/Innisfil Police Services Board Budgets be received for information. 5.5 Decision of Council 6. Confirm Proceedings Confirm proceedings by-law 7. Adjourn Recommendation: That By-law A By-law to Confirm Proceedings of the Council Meeting dated June 25, 2013 be enacted. Recommendation: That the meeting is hereby adjourned at. Page 2 of 22

3 Police Costing Exercise Timeline Sept. 20, 2011 Request for Staff Report: Councillor Hordyk requests that staff look into what steps are required for the Town to obtain costing from the OPP. Nov.15, 2011 Notice of Motion: Councillor Hordyk announces that he would be bringing a motion forward at the following Council meeting with regards to OPP costing. Dec. 6, 2011 Resolution 2001/62-005: 1) Send a letter to the Minister of Community Safety and Correctional Services, requesting that the Minister direct the Ontario Provincial Police to work with BWG in order to establish cost estimates for OPP services to the Town; 2) Council for the Town of Innisfil and the South Simcoe Police Service Board be advised of the intention of BWG Council respecting costing for OPP services; 3) Council for the Town of Innisfil be invited to partner with BWG in seeking cost estimates for OPP services if they so wish; 4) Council request the full cooperation of the South Simcoe Police Services Board during the process of obtaining police costing data from the OPP. Jan 10, 2012 Letter from Town Manager to Minister requesting a police costing from the OPP. Jan. 17, 2012 Request for Staff Report: Councillor Lamb requests that staff look into the possibility of receiving costing from York Regional Police and Barrie City Police, as well as shared services between South Simcoe Police Services and other police services. Feb. 22, 2012 Joint Special Meeting of Councils: Town of Innisfil & Town of Bradford West Gwillimbury: Resolution 2012/ Decision was made by the Town of Bradford West Gwillimbury and the Town of Innisfil to evaluate their police costing options March 09, 2012 Letter from Deputy Minister notifying that approval has been granted to the OPP to prepare a costing. Mar. 14, 2012 Letter sent to City of Barrie Police Service & Region of York Police Service Apr. 26, 2012 Letter from Region of York Police Services notifying Council of the decision not to partake in the costing exercise. October 16, 2012 Town of Innisfil: The Police Services Review Ad Hoc Committee accepts it s Terms of Reference. Feb. 11, 2013 Special Meeting of Council: Presentation OPP Costing Proposal Mar. 7, 2013 Special Meeting of Council: Question and Answer with OPP Mar. 19, 2013 Report of the Town Manager OPP Next Steps Resolution and Appoint Consultant and Taskforce Apr. 16, 2013 Correspondence for Action: Resolution Town of Innisfil Invitation to Participate in Joint OPP Costing. Apr. 18, 2013 Special Meeting of Council: Question and Answer with South Simcoe Police Services & Chief Apr. 30, 2013 Special Meeting of Council: Question and Answer with Representatives from New Tecumseth, Adjala-Tosorontio and Essa Timeline of Events Page 3 of 22

4 Police Costing Exercise Timeline May 8, 2013 May 22, 2013 May 29, 2013 June 12, 2013 June 18, 2013 June 25, 2013 Special Meeting of Council(s): Joint Costing Proposal Ontario Provincial Police (Innisfil Chambers) Special Meeting of Council: Capital/Operating Transition Cost Estimates and Consultant Presentation Taskforce Addendum OPP Transition Cost Analysis Special Meeting of Council: Public meeting to receive public comments Regular Council: Brief summary of written and public comments presented to Council Special Meeting of Council: Final Decision Timeline of Events Updated Summary of Public Comments Update on Final Numbers Task Force Timeline of Events Page 4 of 22

5 Updated Summary of Public Comments Page 5 of 22 Topic Collaborating with neighboring municipalities Community Impact (Business) Bradford West Gwillimbury Policing Costs Exercise: Summary of Public Comments as of June 18, 2013 Comments Consider partnering with York Region for services that are not currently offered by SSPS (Services that the OPP offer). Will the change harm the relationship between Innisfil and Bradford West Gwillimbury? SSPS has long-standing relationships with local businesses. OPP may go outside of community for products and services because of lower costs. Costing OPP does not mean any less service but would offer a much needed tax relief. Salary projections for 2014 are too unknown to justify a switch. Would like to see a detailed breakdown of the operating fees for the OPP including the unknowns, such as the marine unit. The cost estimates by the OPP are unrealistic Cost is exactly what this exercise should be about. The OPP will provide the same service at a lower cost. How much would the local taxes go up after first year of OPP? Number of Comments Jobs/Staffing Concern over losing local civilian staff 4 Long-Term Surveys The Town should be looking into reports from other communities who switched to the OPP over the past 15+ rather than just recent switches. Orillia is a poor situation in which crime rates increased and the number of officers decreased. Misc. There are many benefits and resources that will be brought to the community with the switch to OPP

6 Updated Summary of Public Comments Page 6 of 22 Topic Allow the police Chief the opportunity to make change happen at SSPS. It is unfair to remove him from his position when there has been no chance to implement his vision of the SSPS. There is a Pride of ownership with SSPS. The professionalism of the Police Board has been compromised during this process The current force knows our community better than anyone else. No police service is perfect, so stay with SSPS. It would be a terrible loss and mismanagement of taxpayers money to switch from South Simcoe Police to OPP. There has already been enough money wasted in the study. There appears to be a significant amount of misinformation being shed against the OPP. Recorded Vote The final vote on the police costing exercise should be recorded. 4 Referendum Hold a municipal referendum on the issue. 3 Service to Communities Comments The SSPS offers a great sense of community and security and provide a presence at community events, such as Canada Day, Carrot Fest, etc. The services/knowledge and sense of community that the Town will receive from OPP will be the same as SSPS as the same officers would transition over to OPP. The service is more important than the savings. SSPS provide a sense of community. Service to Schools One local school noted the excellent service that the SSPS has provided over the years and is in favor of keeping the existing service. Number of Comments

7 Updated Summary of Public Comments Page 7 of 22 Police Costing Exercise: Public Comments Breakdown as of June 21, 2013 Total written comments: 17 o In favor of OPP: 4 s: 3 Letters: 1 o In favor of SSPS: 13 s: 4 Letters: 4 Civic Web: 1 Public Open House Comment Forms: 4 Total verbal comments from the June 12, 2013 public meeting and June 18, 2013 meeting: 19 o In favor of OPP: 5 o In favor of SSPS: 14 Total Public Comments: 36 o In favor of OPP: 9 o In favor of SSPS: 27

8 SCHEDULE A Bradford West Gwillimbury Share of Joint "Stand-Alone" Contract Policing Proposal Forecast Existing 2013 Cost Sharing Split of 45.06% South Simcoe Police Net Annual Budget (Note 1) $ 6,963,202 $ 7,137,282 $ 7,315,714 $ 7,498,607 $ 7,686,072 $ 7,878,224 $ 8,075,180 OPP Annual Contract Costs (Note 2) $ 6,279,838 $ 6,436,834 $ 6,597,755 $ 6,762,699 $ 6,931,767 $ 7,105,061 $ 7,282,687 SSPS Disbandment Costs (Note 3) 5,260,306 52, Building Detachment and SSPS "Surviving" Costs (Note 4) 281, , , , , , ,613 OPP Start-up Costs (Note 5) 609, Net Total OPP $ 12,431,653 $ 6,778,040 $ 6,893,651 $ 7,065,992 $ 7,242,642 $ 7,423,708 $ 7,609,301 Net Annual Savings (Cost) $ (5,468,451) $ 359,242 $ 422,063 $ 432,615 $ 443,430 $ 454,516 $ 465,879 Cumulative Net Savings (Cost) $ (5,468,451) $ (5,109,209) $ (4,687,146) $ (4,254,531) $ (3,811,101) $ (3,356,585) $ (2,890,706) Note 1 Revised 2015 Budget as provided by the SSPS, subsequent years have been inflated by 2.5% with BWG funding 45.06% Note Budget as provided by OPP plus Uniform & Equipment costs used as a base and subsequent years have been inflated by 2.5% with BWG funding 49.65% Note Actual Cost Share of 45.06% utilized Note 4 Estimated South Detachment costs plus 49.65% of Estimated Board Costs Note % Factor Utilized which is the BWG portion of the total independent Stand-Alone Models SCHEDULE B Potential Future Cost Sharing Split of 49.65% South Simcoe Police Net Annual Budget (Note 1) $ 7,672,503 $ 7,864,315 $ 8,060,923 $ 8,262,446 $ 8,469,008 $ 8,680,733 $ 8,897,751 OPP Annual Contract Costs (Note 2) $ 6,279,838 $ 6,436,834 $ 6,597,755 $ 6,762,699 $ 6,931,767 $ 7,105,061 $ 7,282,687 SSPS Disbandment Costs (Note 3) 5,796,143 57, Building Detachment and SSPS "Surviving" Costs (Note 4) 281, , , , , , ,613 OPP Start-up Costs (Note 3) 609, Net Total OPP $ 12,967,490 $ 6,783,391 $ 6,893,651 $ 7,065,992 $ 7,242,642 $ 7,423,708 $ 7,609,301 Net Annual Savings (Cost) $ (5,294,987) $ 1,080,925 $ 1,167,272 $ 1,196,454 $ 1,226,366 $ 1,257,025 $ 1,288,450 Cumulative Net Savings (Cost) $ (5,294,987) $ (4,214,062) $ (3,046,790) $ (1,850,336) $ (623,970) $ 633,055 $ 1,921,505 Note 1 Revised 2015 Budget as provided by the SSPS, subsequent years have been inflated by 2.5% with BWG funding 49.65% Note Budget as provided by OPP plus Uniform & Equipment costs used as a base and subsequent years have been inflated by 2.5% with BWG funding 49.65% Note % Factor Utilized which is the BWG portion of the total independent Stand-Alone Models Note 4 Estimated South Detachment costs plus 49.65% of Estimated Board Costs Update on Final Numbers - Task Force/BWG Page 8 of 22

9 SCHEDULE C Bradford West Gwillimbury "Only" Integrated Model Contract Policing Proposal Forecast Existing 2013 Cost Sharing Split of 45.06% South Simcoe Police Net Annual Budget (Note 1) $ 6,963,202 $ 7,137,282 $ 7,315,714 $ 7,498,607 $ 7,686,072 $ 7,878,224 $ 8,075,180 OPP Annual Contract Costs (Note 2) $ 6,190,361 $ 6,345,120 $ 6,503,748 $ 6,666,341 $ 6,833,000 $ 7,003,825 $ 7,178,920 SSPS Disbandment Costs (Note 3) 5,260,306 52, Building Detachment and SSPS "Surviving" Costs (Note 4) 281, , , , , , ,613 OPP Start-up Costs (Note 5) 566, Net Total OPP $ 12,298,765 $ 6,686,325 $ 6,799,643 $ 6,969,634 $ 7,143,875 $ 7,322,472 $ 7,505,534 Net Annual Savings (Cost) $ (5,335,563) $ 450,957 $ 516,071 $ 528,973 $ 542,197 $ 555,752 $ 569,646 Cumulative Net Savings (Cost) $ (5,335,563) $ (4,884,606) $ (4,368,535) $ (3,839,563) $ (3,297,366) $ (2,741,614) $ (2,171,968) Note 1 Revised 2015 Budget as provided by the SSPS, subsequent years have been inflated by 2.5% with BWG funding 45.06% Note Budget as provided by OPP increased by 7.7% for 2014, plus Uniform & Equipment costs used as a base and subsequent years have been inflated by 2.5% Note Actual Cost Share of 45.06% utilized Note 4 Estimated South Detachment costs plus 49.65% of Estimated Board Costs Note 5 As Provided by OPP plus estimated costs to retrofit South Detachment Facility SCHEDULE D Potential Future Cost Sharing Split of 49.65% South Simcoe Police Net Annual Budget (Note 1) $ 7,672,503 $ 7,864,315 $ 8,060,923 $ 8,262,446 $ 8,469,008 $ 8,680,733 $ 8,897,751 OPP Annual Contract Costs (Note 2) $ 6,190,361 $ 6,345,120 $ 6,503,748 $ 6,666,341 $ 6,833,000 $ 7,003,825 $ 7,178,920 SSPS Disbandment Costs (Note 3) 5,796,143 57, Building Detachment and SSPS "Surviving" Costs (Note 4) 281, , , , , , ,613 OPP Start-up Costs (Note 5) 566, Net Total OPP $ 12,834,601 $ 6,691,676 $ 6,799,643 $ 6,969,634 $ 7,143,875 $ 7,322,472 $ 7,505,534 Net Annual Savings (Cost) $ (5,162,098) $ 1,172,639 $ 1,261,280 $ 1,292,812 $ 1,325,132 $ 1,358,261 $ 1,392,217 Cumulative Net Savings (Cost) $ (5,162,098) $ (3,989,459) $ (2,728,179) $ (1,435,367) $ (110,235) $ 1,248,026 $ 2,640,243 Note 1 Revised 2015 Budget as provided by the SSPS, subsequent years have been inflated by 2.5% with BWG funding 49.65% Note Budget as provided by OPP increased by 7.7% for 2014, plus Uniform & Equipment costs used as a base and subsequent years have been inflated by 2.5% Note % Factor Utilized which is the BWG portion of the total independent Stand-Alone Models Note 4 Estimated South Detachment costs plus 49.65% of Estimated Board Costs Note 5 As Provided by OPP plus estimated costs to retrofit South Detachment Facility Update on Final Numbers - Task Force/BWG Page 9 of 22

10 TOWN OF INNISFIL AND TOWN OF BRADFORD WEST GWILLIMBURY ADDENDUM # 2 OPP Transition Cost Analysis Addendum #2 to the Report of the Joint Staff Task Force on Monetary Costs For Transition to OPP Police Services 6/19/2013 Update on Final Numbers - Task Force/BWG Page 10 of 22

11 Addendum # 2 to OPP Transition Cost Analysis (May 22, 2013) 1. PREAMBLE This document comprises Addendum # 2 to the Report of the Joint Staff Task Force on Monetary Costs for Transition to OPP Police Services (the Task Force Report). This addendum is intended to serve three purposes, as follows: It responds to three comments submitted by the public respecting the methodologies used in calculating transition costs; It provides a new cost calculation table (Table (1)) which incorporates updated financial data for the Joint Stand-Alone Policing Proposal, and: It provides a new cost calculation table (Table (2)) which disaggregates costs so that the financial impacts are shown individually for Bradford West Gwillimbury and Innisfil. 2. COMMENTS FROM THE PUBLIC ON THE REPORT OF MAY 22, 2013 Three comments were received from the public respecting the way in which certain costs were treated in the May 22, 2013 Task Force Report. A summary of each of the comments and the response of the Task Force are noted below. The resulting effects on cost calculations are then shown in Tables (1) and (2) of this addendum report. BORROWING FOR COSTS ASSOCIATED WITH DISSOLUTION OF THE SSPS An observation was made to the effect that allowances had not been included for the cost of borrowing funds that will be needed in the event of dissolution of the South Simcoe Police Service. The Task Force points out that the way in which such costs are to be accounted for is subject to the decision of each municipal Council and may vary between BWG and Innisfil. The Task Force did not prescribe or estimate costs that may be particular to one Town or the other. Furthermore, such costs in certain circumstances may be considered normal operating costs, similar to other charges where income and expenses do not occur simultaneously. Again, such policies may not be consistent within the two Towns. PROVINCIAL SERVICES USAGE (PSU) CREDIT A comment from the public indicted that it is inappropriate for the OPP to include an annual Provincial Services Usage credit of 5 percent in its projected cost calculations. The task Force disagrees with the observer s comments for two reasons. First, the five year average for Nottawasaga Detachment PSU credits is 6.2 percent, well in excess of the 5 percent credit that was used in the OPP annual estimates. The Nottawasaga Detachment has been used as a benchmark for BWG and 1 P a g e Update on Final Numbers - Task Force/BWG Page 11 of 22

12 Innisfil. Second, it is not appropriate to select one line in the OPP budget and question its validity without considering where other offsets might occur in the budget. For example, the OPP budgets for officer salaries at 100 percent of the first class constable rate even though many officers will be paid at a lesser rate. Technically, this will result in an under expenditure of the annual budget so this amount should be deducted from the annual cost estimates. As with any budget, there will be line items which are over or under expended at year end and careful financial management results in a balance of these amounts such that overall budget objectives are achieved. UNIFORM AND EQUIPMENT COSTS It was pointed out that the Task Force neglected to include the annual costs for OPP uniform and related gear replacement. The Task Force agrees with this observation. Annual costs in the amount of $97,931 have been verified with the OPP as previously excluded from the forecasted amounts and they have now been added to the OPP Annual Contract Cost. 3. REVISED FINANCIAL ANALYSIS The Task Force has prepared revised cost and benefit calculations which account for minor changes to estimates that were included in first Addendum (May 29, 2013) to the Task Force Report. TABLE (1) below sets out the projected combined cost, annual benefit (cost), and cumulative benefit (cost) of moving from the SSPS to the Joint Stand-Alone OPP Detachment model. TABLE (2) below distributes aggregate costs and benefits to BWG and Innisfil individually. The distribution of costs and benefits is based on the 2013 BWG / Innisfil police cost sharing formula where BWG contributes percent and Innisfil contributes percent. It is noted that Innisfil has requested an opportunity to renegotiate these cost sharing terms with BWG. Table (2) will be helpful for each Town Council in determining the preferred alternative going forward. 2 P a g e Update on Final Numbers - Task Force/BWG Page 12 of 22

13 TABLE (1) The Towns of Bradford West Gwillimbury & Innisfil Joint "Stand-Alone" Contract Policing Proposal Forecast South Simcoe Police Net Annual Budget (Note 1) $ 15,453,178 $ 15,839,507 $ 16,235,495 $ 16,641,383 $ 17,057,417 $ 17,483,853 $ 17,920,949 OPP Annual Contract Costs (Note 2) $ 12,648,214 $ 12,964,420 $ 13,288,530 $ 13,620,743 $ 13,961,262 $ 14,310,294 $ 14,668,051 SSPS Disbandment Costs (Note 3) 11,674, , Building Detachment and SSPS "Surviving" Costs (Note 4) 510, , , , , , ,475 OPP Start-up Costs (Note 5) 1,237, Net Total OPP $ 26,070,162 $ 13,603,769 $ 13,824,377 $ 14,169,987 $ 14,524,236 $ 14,887,342 $ 15,259,526 Net Annual Savings (Cost) $ (10,616,984) $ 2,235,738 $ 2,411,118 $ 2,471,396 $ 2,533,181 $ 2,596,510 $ 2,661,423 Cumulative Net Savings (Cost) $ (10,616,984) $ (8,381,246) $ (5,970,128) $ (3,498,733) $ (965,552) $ 1,630,958 $ 4,292,381 Note 1 Revised 2015 Budget as provided by the SSPS, subsequent years have been inflated by 2.5% Note Budget as provided by OPP plus Uniform & Equipment costs used as a base and subsequent years have been inflated by 2.5% Note 3 Includes Human Resources Costs and Commitments for Current Leases, excludes any salvage value of Vehicles & Equipment Note 4 Includes Annual Operating Costs for Detachment Facilities and Board Note 5 As Provided by OPP plus estimated costs to retrofit existing Detachment Facilities 3 P a g e Update on Final Numbers - Task Force/BWG Page 13 of 22

14 TABLE (2) Bradford West Gwillimbury Share of Joint "Stand-Alone" Contract Policing Proposal Forecast South Simcoe Police Net Annual Budget (Note 1) $ 6,963,202 $ 7,137,282 $ 7,315,714 $ 7,498,607 $ 7,686,072 $ 7,878,224 $ 8,075,180 OPP Annual Contract Costs (Note 2) $ 6,279,838 $ 6,436,834 $ 6,597,755 $ 6,762,699 $ 6,931,767 $ 7,105,061 $ 7,282,687 SSPS Disbandment Costs (Note 1) 5,260,306 52, Building Detachment and SSPS "Surviving" Costs (Note 3) 281, , , , , , ,614 OPP Start-up Costs (Note 2) 609, Net Total OPP $ 12,431,654 $ 6,778,041 $ 6,893,651 $ 7,065,992 $ 7,242,642 $ 7,423,708 $ 7,609,301 Net Annual Savings (Cost) $ (5,468,452) $ 359,241 $ 422,063 $ 432,615 $ 443,430 $ 454,516 $ 465,879 Cumulative Net Savings (Cost) $ (5,468,452) $ (5,109,210) $ (4,687,147) $ (4,254,533) $ (3,811,103) $ (3,356,587) $ (2,890,709) Note 1 Note 2 Note Actual Cost Share of 45.06% utilized 49.65% Factor Utilized which is the BWG portion of the total independent Stand-Alone Models Estimated South Detachment costs plus 49.65% of Estimated Board Costs Innisfil Share of Joint "Stand-Alone" Contract Policing Proposal Forecast South Simcoe Police Net Annual Budget (Note 1) $ 8,489,976 $ 8,702,225 $ 8,919,781 $ 9,142,776 $ 9,371,345 $ 9,605,629 $ 9,845,769 OPP Annual Contract Costs (Note 2) $ 6,368,376 $ 6,527,585 $ 6,690,775 $ 6,858,044 $ 7,029,495 $ 7,205,233 $ 7,385,364 SSPS Disbandment Costs (Note 1) 6,413,698 64, Building Detachment and SSPS "Surviving" Costs (Note 3) 228, , , , , , ,861 OPP Start-up Costs (Note 2) 628, Net Total OPP $ 13,638,509 $ 6,825,729 $ 6,930,726 $ 7,103,994 $ 7,281,594 $ 7,463,634 $ 7,650,225 Net Annual Savings (Cost) $ (5,148,533) $ 1,876,497 $ 1,989,055 $ 2,038,781 $ 2,089,751 $ 2,141,995 $ 2,195,544 Cumulative Net Savings (Cost) $ (5,148,533) $ (3,272,036) $ (1,282,981) $ 755,800 $ 2,845,551 $ 4,987,545 $ 7,183,090 Note Actual Cost Share of 54.94% utilized Note % Factor Utilized which is the Innisfil portion of the total independent Stand-Alone Models Note 3 Estimated North Detachment costs plus 50.35% of Estimated Board Costs 4 P a g e Update on Final Numbers - Task Force/BWG Page 14 of 22

15 RESPECTFULLY SUBMITTED, Jay Currier, Town Manager, Town of Bradford West Gwillimbury John Skorobohacz, CAO Town of Innisfil Jason Reynar, Director of Legal Services & Town Clerk Town of Innisfil Ian Goodfellow, Treasurer and Director of Financial Services Town of Bradford West Gwillimbury Kelly Losak, Director of Human Resources Town of Bradford West Gwillimbury 5 P a g e Update on Final Numbers - Task Force/BWG Page 15 of 22

16 Update on Final Numbers - Task Force/BWG Page 16 of 22

17 Bradford t G WI *11- Irrluury ~es ;d... REPORT OF THE FINANCE DEPARTMENT REPORT #: DATE: TO: SUBJECT: SUBMITTED BY: FIN June 25, 2013 Mayor White & Members of Council Analysis of Estimated Future Cost Sharing for the Bradford West GwillimburyjInnisfil Police Services Board Budgets Ian Goodfellow, Director of Finance/Treasurer 1. RECOMMENDATIONS: That Report FIN regarding an Analysis of Estimated Future Cost Sharing for the Bradford West GwillimburyjInnisfil Police Services Board Budgets be received for information. 2. PREAMBLE: This report is being provided to Council in light of the Town of Innisfil's request for an opportunity to renegotiate the cost sharing terms related to the Bradford West GwillimburyjInnisfil Police Services Board budgets and also to further assist Council in determining the future provider of policing services to the municipality. 3. BASIC DATA PERTAINING TO THE MATTER: The 1996 agreement (as amended) that amalgamated the police services of the Towns of Innisfil and Bradford West Gwillimbury (BWG) prescribed a cost sharing formula that is based upon each municipality's population, total assessment value and number of households. Initially the agreement required these calculations be updated every three years, but an Analysis of Estimated Future Cost Sharing - Bradford West Gw... Page 17 of 22

18 amending agreement in 2007 required these calculations to be updated on an annual basis. A history of the actual cost sharing splits between BWG and Innisfil is presented below: Period Town of Bradford To From West Gwillimbury Town of Innisfil Total January 1, 1997 December 31, % 58.82% % January 1, 2001 December 31, % 59.53% % January 1, 2004 December 31, % 59.84% % January 1, 2007 December 31, % 58.97% % January 1, 2010 December 31, % 57.99% % January 1, 2011 December 31, % 56.83% % January 1, 2012 December 31, % 56.00% % January 1, 2013 December 31, % 54.94% % As you can see by this chart, the municipality with the larger combined assessment, populations and households will fund the larger share of the police services budgets. Also, as the municipalities grow, the funding burden shifts to the faster growing municipality. A look at the history of these percentages suggests that Innisfil's rate of growth outpaced that of BWG's from 1997 through to and including However, subsequent to 2006 through to today, that trend reversed and the pace of growth in BWG is now greater than that of Innisfil. Furthermore, in the years when Innisfil had a greater pace of growth, the then terms of the amalgamation agreement provided financial benefit to the growing municipality through a three year deferral in recognizing their growth due to the timing of when the calculations were updated. In contrast, for most of the recent years where BWG has grown faster, BWG has been contributing a greater share towards policing costs on an annual basis. To demonstrate this, under the old terms of the agreement BWG would have paid 42.01% of the policing costs for the years 2010, 2011 and However, the amended agreement with the annual calculation updates required BWG to pay 42.01% in 2010 and increasing shares of 43.17% and 44.00% in each of 2011 and 2012 respectively. While no one could have predicted the future patterns of growth and their impact on the calculations, it is clear that Innisfil has received a historical financial benefit from the timing of the calculation updates. One could also conclude that the current cost sharing calculations are performing as desired as history is showing that the growing municipality is consistently contributing more to police services in a very timely (annual) fashion. With the assistance of Excel and some polynomial calculations, staff have forecasted what the potential future cost sharing rates may look like, based upon the historical trends since The line graph below presents the historical contributions from BWG and Innisfil (as noted by the solid lines) from 2007 through to and including 2013 along with the forecasted contribution rates (as noted by the dotted lines). Based upon the assumption that historical patterns of growth can predict future patterns of growth, it is anticipated that BWG's contribution rate will continue to increase by about 1% per year and likewise, Innisfil's will decline by about 1% per Page 2 of 4 Analysis of Estimated Future Cost Sharing - Bradford West Gw... Page 18 of 22

19 year. This trend shows that by about 2018, each municipality will be contributing approximately equally to the cost of police services. Furthermore, BWG will be paying approximated 55% of the cost of police services in 2023, which is the inverse of the 2013 percentages wherein Innisfil is paying 55%. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ N N N N N N N N N N --Btadford West Gwillimbury Actual ~."""""",,,, Innisfil Actual - - Bradford West Gwillimbury Forecasted - - -lnnishi Forecasted Finally, staff have attempted to calculate the financial impacts of the forecasted municipal contribution rates wherein BWG continues to be responsible for a greater and greater share of police service costs. This analysis as contained in Attachment 5.1 looks to the short term of 2018 when it is estimated that BWG and Innisfil will be contributing equally towards the cost of police services. The future estimated police service budgets used in these calculations are the same estimates as used in the Task Force's Addendum Report #2. The calculations shown on the attachment essentially represent cost accounting variances based upon "price and quantity" changes. On an annual basis, BWG is estimated to be contributing $150,000 to $160,000 more towards police services by virtue of the "quantity variance" that reflects BWG growing at a pace greater than that of Innisfil. Furthermore, the "price variance" that is derived from the Board's total budget changes does vary between Page 3 of 4 Analysis of Estimated Future Cost Sharing - Bradford West Gw... Page 19 of 22

20 decreases and increases and that is as a result of the Board and Chief's commitment of budgetary reductions over the next couple of years. The last set of figures on the right hand side of the attachment represents the cumulative changes over the 2014 to 2018 period. When using 2013 as a base year, BWG will have paid $2.362M more due to BWG's continued greater pace of growth and this increase is partially mitigated through the police budget reductions totaling some $0.567M. BWG's net cumulative increase from 2014 through to and including 2018 with 2013 is estimated at $1.795M. 4. EFFECT ON TOWN FINANCES: 4.1 CURRENT YEAR: None. 4.2 FUTURE YEARS: All impacts of future changes to the cost sharing calculations will be presented to Council during the annual budget deliberations. 5. AlTACHMENTS: 5.1- Estimated Future Municipal Contributions APPROVALS: Prepared by Ian Goodfellow ~~ Treasurer Ian Goodfellow ~~ Town Manager Jay Currier ~ Page 4 of4 Analysis of Estimated Future Cost Sharing - Bradford West Gw... Page 20 of 22

21 Analysis of Estimated Future Cost Sharing - Bradford West Gw... Page 21 of 22 Town of Bradford West Gwillimbury - Staff Report FIN South Simcoe Police Services Estimated Future Municipal Contributions Total Budget Annual BWG Increase (Decrease) Cumulative Increase (Decrease) (Note 1) $ Total Split Change Budget Change Total Split Change 2013 $ 16,272, % $ 8,940, % $ 7,332, $ 15,863, % $ 8,558, % $ 7,304,596 $ (27,941) $ 160,776 $ (188,717) $ (27,941) $ 160, $ 15,453, % $ 8,184, % $ 7,268,557 (36,040) 156,726 (192,766) (63,981) 317, $ 15,839, % $ 8,232, % $ 7,606, , , , , , $ 16,235, % $ 8,278, % $ 7,957, , , , , , $ 16,641, % $ 8,320, % $ 8,320, , , , , ,080 Note 1 Total $ 1,795,262 Estimated annual future net operating budgets of the Bradford West Gwillimbury Police Services Board as per the Joint Task Force report. Note 2 Assumes that future rates of growth are consistent, with historical growth rates since $ 2,362,211 Budget Change $ (188,717) (381,483) (195,952) (1,871) 201,073 $ (566,949)

22 The Corporation of the Town of Bradford West Gwillimbury By-law Confirm Proceedings By-law A By-Law to Confirm the Proceedings of Council of The Corporation of the Town of Bradford West Gwillimbury at its Meeting held on June 25, WHEREAS pursuant to Section 5 of the Municipal Act, 2001, S.O. 2001, c. 25, as amended ( Municipal Act, 2001 ) the powers of a municipality are to be exercised by its council by by-law; AND WHEREAS it is deemed expedient that the proceedings of the Council of The Corporation of the Town of Bradford West Gwillimbury at this meeting be confirmed and adopted by by-law. NOW THEREFORE the Council of The Corporation of the Town of Bradford West Gwillimbury hereby enacts as follows: 1. The actions of the Council of The Corporation of the Town of Bradford West Gwillimbury at its meeting held on June 25, 2013 with respect to each recommendation contained in the reports of the Committee of the Whole as adopted or amended and adopted and each resolution passed and other action taken by the Council of The Corporation of the Town of Bradford West Gwillimbury at this meeting is hereby adopted and confirmed as if all such proceedings were expressly embodied in this by-law. 2. The Mayor and Clerk and the appropriate other officials of the Town of Bradford West Gwillimbury are hereby authorized and directed to do all things necessary to give effect to the actions of the Council of The Town of Bradford West Gwillimbury referred to in the preceding section. 3. The Mayor and Clerk are authorized and directed to execute all documents necessary in that behalf and to affix thereto the seal of the corporation of the Town of Bradford West Gwillimbury. 4. This By-Law shall come into force and take effect on the date it is enacted. Enacted this 25 th day of June, Rebecca Murphy, Clerk Doug White, Mayor Confirm proceedings by-law Page 22 of 22