A hefty tax increase in Haldimand is likely next year thanks to a substantial rise in policing costs.
During its budget deliberations last year, Haldimand council estimated OPP services in the coming fiscal year (2009-2010) would cost $7.43 million. Instead, the cost will be in the range of $8 million.
Haldimand council reviewed the contract Monday and is expected to make a final decision on it today during Day 2 of its levy-supported budget deliberations.
In a report to council, Karen General, Haldimand's general manager of corporate services, said the increase in policing costs means council's goal of limiting the 2010 tax increase to 2% or less is unrealistic.
"A significant tax levy impact should be expected," General said.
The OPP contract on offer is retroactive to Oct. 1 of this year and expires at the end of September 2014.
The proposed cost increase -- more than 11% over the most recent contract -- is so high because the OPP has adjusted its formula for billing municipalities. Until now, Haldimand has been paying policing support costs -- gasoline, clothing, vehicles, equipment and the like -- according to a formula established in 2001. That formula has since been adjusted to account for inflation.
Under the 2001 formula, municipalities employing the OPP paid a flat rate fee of $13,827 per officer in the area of support costs. The adjusted figure is $25,881 plus a 15% provincial administration fee for processing data and paperwork related to the contract.
Mayor Marie Trainer says this is a large increase for a small municipality to swallow all at once. However, she isn't complaining.
"The formula has been a benefit to us for some time," Trainer said yesterday. "But there is a bump in the road when it is updated."
Haldimand council began its 2010 budget deliberations yesterday. The budget session is expected to wrap up today. Haldimand's policing costs in the most recent fiscal year came to $7.2 million.