The Moose Jaw Police Service may have to use its accumulated surplus to cover any shortfalls this year because inflation continues to affect the budget, the chief says.
The police service (MJPS) presented information about its operating budget during the Board of Police Commissioners’ Oct. 19 meeting, with the report looking at revenues and expenses from Jan. 1 to Aug. 31.
The numbers for actual, budget, and variance show:
- Revenues: $798,801 / $1,878,507 / $1,079,706
- Expenses: $9,958,924 / $13,388,055 / $3,429,131
- Net overall: $9,160,123 / $11,509,548 / $2,349,425
Some revenue categories with notable variances between the actual and budget include:
- Traffic safety reserve contribution: $332,108 / $330,000 / -$2,108
- Policing services: $95,774 / $290,000 / $194,226
- Provincial funding: $3,167 / $800,000 / $796,833
Some expense categories with notable variances between the actual and budget include:
- Labour: $6,389,056 / $9,165,735 / $2,776,679
- Employee benefits: $1,275,178 / $1,449,287 / $174,109
- Legal and adjudication: $114,480 / $150,000 / $35,520
- Subscriptions and publications: $10,217 / $2,500 / - $7,717
- Insurance: $73,014 / $30,000 / - $43,014
- Maintenance: $98,157 / $311,000 / $212,843
- Supplies: $163,139 / $81,000 / - $82,139
- Miscellaneous: $168,961 / $155,000 / - $13,961
- Employee benefits: $10,475 / $8,160 / - $2,315
“We know it’s going to be a very tight year (budget-wise); we’ve known that all year. We’re still not absolutely certain where we’ll be at the end of the year,” Police Chief Rick Bourassa said during the meeting.
The current economic climate has forced the organization to postpone some training into 2024 while it has taken other steps to reduce expenses, he continued.
Bourassa pointed out that the police service’s expenses don’t occur smoothly throughout the year or come out in one-twelfth increments. Instead, it usually spends money in “clusters” and groups.
Conversely, one big revenue item for which the agency is waiting is $800,000 from the Ministry of Justice. The organization expects to receive that funding “in the very near future” since it has a significant effect on the bottom line.
The MJPS anticipates that it will be under budget by Dec. 31 and is monitoring its expenses closely. However, if it does not have sufficient funds, the organization will tell the board and the board will approach city council about addressing that situation, he continued.
“We’re not there, but we’re alive to the fact that it’s going to be very close. We think we’ll be OK,” Bourassa added. “If it’s all the anticipated expenditures, we should be fine. It’s any unanticipated ones that come up in relation to crises (that) could be a challenge for us.”
Lisa Renwick, MJPS finance officer, clarified that even if the organization ends in a deficit, the only time it must approach council for more money is if there aren’t enough funds in the accumulated surplus — $395,135.69 as of Dec. 31, 2022, minus interest — to cover the shortfall.
“We’ll cross that bridge when we get to it,” said Bourassa.
Commissioner Doug Blanc had several inquiries about the budget’s expenses, specifically labour, legal and adjudications, insurance and miscellaneous.
With labour, the collective bargaining agreement included roughly $500,000 in backpay, while that money should be in the accumulated surplus and be used to balance the budget, said Bourassa. Those funds won’t be reflected until roughly February when city hall balances the accounts.
“We’re still running a little hot, as I’ve been saying … ,” he remarked.
With legal and adjudication, that includes fees for all internal and external matters and grievances, the police chief added. While the agency has in-house counsel, sometimes it requires external support.
With concerns about insurance, maintenance and miscellaneous expenses, Renwick explained that city hall — because of its new accounting software — incorrectly allocated items like fuel and vehicle upgrades to the wrong accounts. The agency expects the city to rectify that problem in 2024.
The next police board meeting is Thursday, Nov. 9.
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