Traffic Safety Act Revenues – Edmonton Police Commission

Recommendation:
That the Edmonton Police Commission excess Traffic Safety Act revenues be utilized to fund associateddirect expenditures and revenue shortfallsfor 2005 and future years.

Report Summary

This report requests approval for the Edmonton Police Commission to use excess Traffic Safety Act (TSA) revenues to fund associated direct expenditures and revenue shortfalls for 2005 and future years.

Previous Council/Committee Action

At theApril 5, 2005 City Council meeting, the following motion was passed:

That the 2004 Traffic Safety Act revenues be utilized by the Edmonton Police Commission to fund 2004 revenue shortfalls and unanticipated expenditures as outlined in the February 24, 2005, Edmonton Police Commission report 2005POAC02.

Report

  • The authority to approve the use of any excess fine revenue rests with City Council and can be directed to be used for any municipal purpose.
  • TSA revenues are projected to exceed budget by the end of 2005 by $1,266,000 (as of September 30, 2005). This is due largely to a higher than expected average fine value collected from traffic enforcement and prevention activities.
  • Direct expenditures have been incurred as a result of these enforcement and prevention activities from traffic and patrol divisions. Excess costs to the end of 2005 are projected to be $810,000 (as of September 30, 2005).
  • Other revenue shortfalls are projected to be $136,000 by December 31, 2005 (as of September 30, 2005).
  • Net excess TSA revenues projected to the end of 2005 are $320,000 (as of September 30, 2005).
  • As a result of anOctober 14, 2005 agreement between the City of Edmonton and the Edmonton Police Association, Edmonton Police Service will incur additional costs for recruit wages (retroactive to March 2005) for 2005 of $515,000. It is the strategy of the Edmonton Police Commission (EPC) to partially offset this unbudgeted cost with the net excess TSA revenues projected to the end of 2005.

Budget / Financial Implications

  • This recommendation manages the EPC’s overall financial position within the constraints of the tax levy approved by City Council.
  • As of September 30, 2005 projections,the EPC wouldnot return $320,000 to the City in net tax levy surplus but use the excess to reduce the unbudgeted costs for increased recruit wages. The actual net tax levy surplus will be dependent on year end results.
  • In discussion with City Administration, financial strategies are not available in 2005 to offset this additional cost.

Justification of Recommendation

  • The recommended approach is consistent with the proposal for a Multi-Year Funding Strategy, report 2005POAC10, presented to Council in June 2005.
  • Approach is consistent with recommended policy for the disposition of any future annual budget surplus incurred by the Greater Edmonton Foundation and endorsed by Community Services Committee in October 2005.
  • The EPC has been given the authority and responsibility to allocate funding provided by City Council to police activities.
  • In the past, the EPC has managed shortfalls of revenues and over-expenditures within the constraints of the tax levy funding approved by City Council. This is consistent with the approach used by other City programs.

Others Approving this Report

  • Edmonton Police Commission

Others Reviewing this Report

  • J.Tustian, General Manager,

Corporate Services Department

City Administration Comments

  • CityAdministration supports the recommendation of the Edmonton Police Commission to apply excess TSA revenues in 2005 to offset directly related costs in excess of budget as well as other net revenue shortfalls. The residual of net TSA revenues in excess of budget will form part of any tax levy surplus which would transfer to the Financial Stabilization Reserve and ultimately be available to address future issues or initiatives. It should also be noted that increased expenditures that may be attributable to Police operations (e.g., self insurance claims) are borne corporately within the Corporate Expenditures program.
  • The report contains a reference to consistency with a recent decision regarding the Greater Edmonton Foundation. The establishment and rights of the Greater Edmonton Foundation are specifically established by provincial Ministerial Order and are not consistent with those of the Police Service or Commission.
  • City Administration does not support City Council providing advance approval for retaining excess future (beyond 2005) TSA revenues. The ability to review and approve any such allocations of excess TSA revenues annually allows Council to maintain a level of flexibility to address issues that emerge across the corporation.

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