The Province has informed UBCM that there may be retroactive cost impacts for property owners in municipalities with populations under 5,000 and in unincorporated areas as a result of the first RCMP Collective Agreement. Once the Police Tax rate has been determined, more information will be shared by the Province with affected communities. This information follows a UBCM update, delivered earlier this year, regarding the first RCMP Collective Agreement and retroactive costs for municipalities over 5,000 in population.
Municipalities under 5,000 in population and unincorporated areas do not contract directly for policing. Instead, these areas receive policing and law enforcement from the Province through the Provincial Police Service. In accordance with Section 66.3 of the Police Act, the Provincial Government may recuperate up to 50% of the estimated cost of ‘frontline policing’ through the Police Tax from municipalities under 5,000 in population and unincorporated areas. Frontline policing costs are those attributed to General Duty and General Investigative Services and do not include costs for specialized services, such as but not limited to Major Crime.
The Police Tax is a provincial property-based tax paid by property owners within provincial policing jurisdictions. As outlined in the Police Act, the estimate for the Police Tax is based on the number of front-line members needed for the Provincial Service and the average annual cost of a frontline member in municipalities with a population between 5,000 – 14,999. Based on this calculation, the Province may recover up to 50% of the cost. As a result of the retroactive liability related to the RCMP’s first Collective Agreement, the Police Tax may capture a portion of this cost.
The first RCMP Collective Agreement expired on March 31, 2023. Negotiations related to the second RCMP Collective Agreement are ongoing, with only monetary items left to be finalized. It is unlikely that the second RCMP Collective Agreement will contain a retroactive component as significant as was included in the initial Agreement.