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Steep OPP cost increases add unexpected pressure to London-area municipal budgets

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Rural London-area municipalities will have to make hard budget choices as they grapple with significant and unexpected increases to their policing bills.

CBC News spoke with several mayors in the London region who expressed shock at the high bills their municipalities had received from Ontario Provincial Police for 2025. Each said they faced year-over-year increases of more than 20 per cent, with one as high as 30 per cent.

The extent of the increase was surprising and came without warning, they said, adding the increased cost, which they have to pay, will burden the tax bills of ratepayers next year.

In Lucan Biddulph, officials are staring down a bill 20 per cent higher than last year’s, totalling $120,000 and adding 2.2 per cent to next year’s tax increase.

“Our residents need to know this is a bill we received that we can’t negotiate,” said Cathy Burghardt-Jesson, Lucan Biddulph’s mayor.

The bill makes up half of the 4.4 per cent levy in the draft budget coming before council on Dec. 17, she said. The budget hasn’t been finalized, but mitigating the impact could mean service cuts.

Lucan Biddulph Mayor Cathy Burghardt-Jesson
Lucan Biddulph Mayor Cathy Burghardt-Jesson (Cathy Burghardt-Jesson/Facebook)

Middlesex Centre faces a 22.4 per cent increase of more than $400,000. Of next year’s projected 5.9 per cent tax hike, two per cent is due to the OPP increase, said Mayor John Brennan.

“There’s very little we can do to mitigate the impact. We simply have to pass it on to the taxpayers and pay the bill to give them police protection,” he said.

Thames Centre ratepayers could see a three per cent tax increase because of the OPP bill, which is up about 20 per cent, said Mayor Sharron McMillan.

With looming budget talks, they may have to cut a few other things to keep the levy manageable, she said.

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The OPP referred questions to the Ministry of the Solicitor General.

The province said it understands some municipalities face additional costs due to existing agreements with the OPP, said Chelsea McGee, a ministry spokesperson, in a statement.

“We will work with these municipalities to ensure they are not negatively financially impacted by this.”

The spokesperson did not respond to subsequent messages before publication.

According to the OPP’s 2023 annual report, municipal billing recoveries increased one per cent per year on average from 2019 to 2023. It recovered roughly $416 million from municipalities in 2023.

Robin Jones, president of the Association of Municipalities of Ontario, said further increases were expected for 2026, and that municipalities were struggling with inflation, housing, homelessness and addictions.

The association is calling for a review of municipal-provincial funding arrangements for public services.

“Each year, the Ontario government siphons off $4 billion in municipal revenue to pay for provincial responsibilities like healthcare and social services. This is not sustainable or effective.”

Robin Jones has been mayor of the municipality of the village of Westport, Ont. since 2014.
Robin Jones, president of the Association of Municipalities of Ontario and mayor of the municipality of the village of Westport, Ont. (Hallie Cotnam/CBC)

Andrew Sloan, mayor of Central Elgin, which includes Port Stanley, said the municipality learned of its 30 per cent bill increase, adding 4.1 per cent to the tax levy, at the “11th hour.”

“We can’t run deficits as municipal governments. We have to pay these costs as they’re incurred, and it’s a tremendous disadvantage for us,” he said. He hoped the province would come through with financial relief.

“I would certainly welcome anything from the provincial government or any level government,” said Brian Petrie, mayor of Ingersoll. It’s facing a 17 per cent bill increase, bumping the tax levy by two per cent. 

“At the end of the day, I don’t think that will come.”

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The OPP services about 330 municipalities who don’t have their own police.

Costs are recovered through a billing model split between base costs, which includes routine patrol and proactive policing, and reactive calls for service, which vary based on service demand and other factors.

Laura Huey, a Western University criminologist, attributed the higher bills to salary increases in the contract between the Ontario Provincial Police Association and the province.

The union signed a four-year deal in July, with raises of 4.75 per cent retroactive to 2023, 4.5 per cent for 2024, and 2.75 per cent for 2025 and 2026. It followed the repeal of Bill 124, which capped public sector wages, including for OPP officers.

Police across Ontario have also faced pressure with addictions and mental health-related calls, repeat offenders and increased public protests, she said.

“The two biggest drivers are substance abuse and mental health,” she said. “If the province wants to reduce policing demand, they would pick up the tab on those things.”

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