Kingston Police to present budget status update to board

Kingston Police will present an Operating Budget Status Update to the Kingston Police Services Board at its monthly meeting on Thursday, Mar. 20, 2025. 

Coauthored by Chief of Police Scott Fraser and Director of Finance Scarlet Eyles, this information report provides a financial status update on the general operating budget for the Kingston Police as of December 31, 2024. 

Exhibits to the report provide detailed budget and actual information and resulting variances by revenue and expenditure, with an overall net operating position reflecting 99.56 per cent of the total budget as of December 31, 2024, resulting in a $211,000 surplus.

The report notes that Kingston Police staff regularly monitor and review budget variance information to ensure that net spending remains within the approved budget parameters. This allows the identification of unanticipated variances so that any necessary corrective action in response to changing circumstances and conditions can be done quickly.

Overall, the report states the financial results reflect higher than projected revenues and recoveries across most categories, while most expenditures are within budgeted estimates. However, increased salaries and wage costs are impacting fiscal year-end results. 

Operating revenue and expenditure results

The total net policing cost for the 12 months ending December 31, 2024, was $47.3 million. The total amount budgeted was $47.5 million.  

Gross revenues and expenditures, as reported, show actual revenues of approximately $6.2 million compared to a budget of $5.3 million (116.08 per cent), and expenditures of $53.5 million compared to a budget of $52.9 million (101.3 per cent). 

Revenues 

The report notes that the total revenues are above budget by $897,000.

Revenue from provincial grants was $2.3 million, resulting in a year-to-date surplus of $277,000.

The report notes, "Higher than projected Court Security Prisoner Transportation (CSPT) funding of $182,000 positively impacts the revenue variance.” Results also include $63,000 of unbudgeted funding provided through a new provincial grant to support initiatives related to intimate partner violence. While this grant provides additional revenues, the report notes that program-related costs offset the funds. 

Background check revenues exceeded budgeted estimates. The report states that this reflects a pilot project with a third-party criminal record check provider to process additional background checks. 

The report notes that paid duty revenues exceeded the budget due to a higher than anticipated volume of requests for paid duty officers. These revenues are offset with corresponding officer salaries. These revenues also include an unbudgeted $97,000 recovery from the City of Kingston related to the deployment of paid duty officers for area security in and around the Integrated Care Hub (ICH) during September 2024. A portion of this recovery was allocated to other police services, with $35,000 reimbursed to these agencies for their assistance, offsetting the corresponding expenses. 

The favourable balance of $223,000 in expenditure recoveries includes an unbudgeted contribution of $122,000 from Criminal Intelligence Service Ontario (CISO), which supported the purchase of an X-ray machine. The remaining variance is primarily attributed to participant fees from internally hosted conferences, which offset the cost of hosting these events. 

Payroll experience recovery reflects unbudgeted payroll benefit rebates of $35,000 resulting from a reduction in the projected cost of claims, according to the report. Benefit costs are budgeted annually based on estimated plan premiums. 

Finally, the report notes that auction proceeds are higher than budgeted, reflecting higher than anticipated proceeds received at the semi-annual auctions held in 2024. Following policy, net proceeds generated from the sale of capital items are transferred to the police capital reserve fund. 

Expenditures 

According to the report, most expenditure categories stayed within budgeted projections. However, increased staffing costs impacted fiscal year-end results.  While inflationary increases are impacting a number of expenditures, the report says, efforts were made to manage discretionary spending to offset inflationary pressures where possible. 

The report provides further detail on the variances by expenditure category. 

Salaries and wages

Salaries and wages are $46.1 million or 101.98 per cent of what was budgeted, resulting in a year-end negative variance of approximately $895,000. The report explains that budget pressures occurred in absentee costs related to Workplace Safety and Insurance Board (WSIB) and other leaves, as well as additional overtime costs incurred to police major incidents. The settlement of collective agreements in 2024 also impacts the fiscal year-end results. 

The report makes note of some “significant variances” in salaries and wages.  

For example, according to the report, full-time wages are over budget, primarily due to wage increases. Staff vacancies and the timing of new hires offset these increases. Full-time wages include retroactive compensation adjustments for the 2023 and 2024 periods, which are higher than projected. Meanwhile, part-time wages are unfavourable, reflecting backfill requirements primarily due to full-time staff vacancies in the Communications Centre and the Court Services Unit. 

The report notes that capital-allocated salaries and benefits of $450,000 reflect the recovery of staffing costs from capital grant funding for the emergency communication system Next-Generation 9-1-1.

Overtime costs exceeded budgeted projections by $495,000 at the end of December, primarily due to the volume and complexity of major incidents. The report explains that Kingston Police experienced a significant number of critical incidents in 2024, including four homicides, which contributed $205,000 in additional overtime expenses. 

Overtime was also impacted by coverage for staff vacancies and reimbursable overtime related to initiatives such as the RIDE (Reduce Impaired Driving Everywhere) program, which is funded through an annual grant. 

Overtime costs to date include $117,000 to police the St. Patrick’s Day events within the University District, $23,000 incurred during the month of September (move-in weekend and weekends leading up to Homecoming), and $116,000 of overtime incurred during the Homecoming and Fauxcoming weekends, according to the report. It should be noted that Kingston Police largely celebrated the "success" of their policing strategies and reduced costs associated with all three of those events. 

The remaining overage reflects the increase in other significant incidents, including traffic fatalities, missing persons, and standoffs. 

Paid duties are over budget by $118,000, and the report says this is due to a higher than anticipated volume of requests for paid duty officers. Paid duties are entirely cost-recovered as they are charged to the respective customer. 

WSIB premiums exceeded budget by $123,000 at the end of December. WSIB costs continue to increase, primarily due to related legislation and post-traumatic stress disorder (PTSD) coverage, which has expanded benefits for first responders and members suffering from mental stress injuries. The increasing trend in these absences has placed significant strain on existing resources, according to the report.

Supplies and services 

Supplies and services came to $7.1 million (or 96.47 per cent of what was budgeted), reflecting a favourable variance of $262,000, the report notes. This includes costs such as uniforms and protective clothing, gasoline and diesel fuel, fleet parts and tires, ammunition, telecommunications, and education and training. 

The report clarifies that contracted services include asset maintenance and other services, including cleaning, winter control, and City building maintenance charges. Professional services include legal and consulting services.

Education, Training, and Travel is over budget by $145,000. The report attributes this primarily to requirements under the Community and Safety Policing Act (CSPA). The CSPA replaces the previous Police Service Act and includes provisions that mandate additional training for police officers in areas such as de-escalation, mental health, and diversity to improve interactions with the public and promote community-focused policing. 

Insurance expenses are over budget at the end of the year. Kingston Police are covered under the City of Kingston’s combined insurance plan. The increase reflects not only rising insurance costs but also additional items requiring coverage due to advancements in technology: for example, new equipment such as drones which have been added to the inventory, necessitating expanded insurance protection, the report explains.

Investigative services include $49,000 to support policing the University District events. According to the report, these costs primarily reflect bringing reinforcements from other police agencies to provide additional staffing resources. The remaining surplus in this expense category is due to costs being appropriately coded to other relevant accounts, whereas the budget was allocated entirely to this category.

The report states that departments work with finance staff to review variances regularly and look for opportunities to offset cost pressures. Unforeseen circumstances, situations, or activities always present a budgetary risk to a police budget, such as spikes in crime rates or activities, protests, and unsanctioned gatherings, according to Fraser and Eyles' report.