- Log in to post comments
In late November, the Province announced they will provide over $77 million in financial relief to municipalities to help offset the increased cost of municipal police services provided by the Ontario Provincial Police (OPP). The investment addresses budget impacts resulting from the collective bargaining agreement that was reached between the Province and the Ontario Provincial Police Association (OPPA) in July 2024. Municipalities can expect to receive a letter with further details of the financial relief provided to their municipality. The Province will also look at reviewing the OPP billing model to ensure that it meets the needs of communities across the Province.
Increases in OPP billing recovery, some as high as 20-30% or more, has been a budget pressure concern for many of the 330 municipalities, largely small and rural communities, serviced by the OPP. This financial relief reduces the pressure on municipal budgets and taxpayers, but also highlights the need to review and update the provincial-municipal fiscal framework to support longer-term municipal financial sustainability.
The Association of Municipalities of Ontario (AMO) has been calling for such a review, the Social and Economic Prosperity Review (SEPR), for over a year now. Aligned with our long-standing position that municipalities need better financial tools to continue to deliver services to their communities, we continue to support the call for such a review. We have heard from our members that municipal staff are limited in the ways that they can ensure effective financial management and planning. Without such a review, the long-term financial sustainability of the municipal sector remains uncertain.