Don Quixite Budget Rant 2008 (RCMP Reserve Fund Diverted)

Below is my budget rant from last year about the RCMP reserve fund. Well, they did come in with a $1.8 million fund and drew it down for RCMP costs to have an opening balance at Jan. 01/07 of $990,550. In 2007 calender year the RCMP positive expenditure variance totaled $787,483 that normally would have gone directly into the reserve account and be available for draw down for the 2008 Tax year. (Total would be $1,778,003). Moreover the Provincial Fine Revenue of $495,253 in 2007 was scheduled to go into the reserve account to provide the required audit trail to justify this grant from the Province. The reserve account would thus total $2,273,256 that would be available for draw down to offset RCMP additional costs in 2008 if needed.

Neither of these two transfers were made. It appears that the money was needed to provide the funding for the Middleton Way Road Project. The balance at start of 2008 in the Police Reserve account started at the same balance as in 2007 of $990,550.

The plan in 2008 is to draw down this reserve to pay for the cost of the addition RCMP manpower approved by Council in the projected amount of $928,943 leaving us with a projected reserve balance of $61,607.Now $61 thousand is a long way from $1,000,000 that was the RCMP Reserve policy cap and it was accomplished without following the policy of placing the money into the RCMP reserve account and then in an open vote and by Council resolution using these monies for another purpose.

It will be interesting to see if Council will acknowledge the correct procedure and ratify this diversion of funds from the RCMP reserve account on a retroactive basis.

On a related note the budget for the 2008 expected fine revenue is $402,635 which is an increase of 2% over last years budgeted figure but well short of last year's actual of $495,253. (Conservative budgeting of revenue I guess?)
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Don Quixote Budget Rant Nov 22/06

It took several years of bitching and complaining to have a formalized policing reserve set up (2006 starting balance $1,493,000) and it is important that this reserve be detailed to the public so we can see that the expenditures and allocations made from this reserve are justified. It is also important that this reserve be used to smooth out yearly policing costs and the draw downs for this purpose are maximized. This reserve should never grow to the point where it just becomes another "slush fund" to be raided when some council member comes up with a new idea.

The RCMP contract calls for 53 officers and the financial plan budgets for 49 because traditionally the RCMP has never been able to fully staff its authorized manpower. In fact in 2006 the RCMP level has averaged around 44. (5 under budget or 9 under authorized.) If an RCMP officer cost $120,000 per year (salary and overhead - a conservative calculation ) then our 2006 starting balance of $1,493,000 would allow us 12.44 RCMP officers of "wiggle room". As we have budgeted for 49 positions in 2007 we have more than 2 years of cushion in this fund (2.48 years) in case the RCMP can hire the required bodies to come up to full strength.

This is also before the savings from the 2006 budget, the RCMP contract upward billings and the decision to remove $311,409 from this reserve for five new bylaw enforcement officers -( two full-time and three-part time). Even with these uses I predict the fund will go up and be in excess of $1,600,000 when finally calculated at year end.

I do not know yet what the Treasurer has recommended this reserve be drawn down to for the purposes of reducing taxable Policing costs but it should be a minimum of $600,000 used to reduce this reserve to a balance of $1,000,000 or 7.142 officers worth of wiggle room.