08/14/2014

After much municipal and provincial consultation and discussion, Minister Yasir Naqvi, Ministry of Community Services and Correctional Services (MCSCS), released the framework of the new OPP Billing Model today.

This responds to a 2012 recommendation of the Provincial Auditor General for a simplified, more transparent cost-recovery method that addresses the issues of a billing method that has resulted in municipalities paying different rates.

We are told that the new OPP billing model, to be in effect January 1, 2015 will be a base cost and call for service formula with the following elements:

  • A base service cost that each of the 324 OPP-serviced municipalities will pay plus the cost of the actual calls for service.
    • Base service costs will be an estimated 60% of what a municipality will pay (i.e. fixed costs).
    • Base service costs will be calculated on a per property basis for households, including seasonal and business properties including commercial and industrial properties.
  • The calls for services costs are estimated to be about 40% of what a municipality will pay (i.e. the variable cost) and will be based on the individual municipal usage level. Much greater detail about the type of calls for service will be included on the municipal bills to increase transparency. This will assist municipalities and the police community to look at ways to reduce these variable costs.
  • Transition will be phased in over 5 years for both cost increases and decreases to municipalities:
    • $40 per property cap on increases per year for those with an increase.
    • Decreases will be graduated over the 5 years for those with a decrease.

AMO anticipates that the majority of municipal OPP bills are expected to be between $200 -$400 per property based on 2015 estimates.

MCSCS has advised AMO that it engaged a third party auditor to review the split between provincial and municipal OPP costs, the evidence for the proposed split between base and calls for services, and the appropriateness of a per property approach compared to other possible billing approaches considered.

Over the coming weeks, additional MCSCS/OPP information about the new billing model will be available including: 

  • Two information sessions at the AMO conference on Sunday August 17 and Monday the 18th;
  • For those municipalities not attending the AMO conference, regional information sessions will be organized soon, and
  • OPP officials will be meeting with each of the 324 OPP serviced municipalities in the early fall to discuss the financial and operational details of the new billing model.