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    Winnipeg Police Service 2014 fourth quarter financial report - March 9, 2015

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    Winnipeg Police Service financial report

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    Winnipeg Police Service 2014 fourth quarter financial report - March 9, 2015

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    © All Rights Reserved
    Download as PDF or read online from Scribd
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    566 views18 pages

    Winnipeg Police Service Financial Report

    Uploaded by

    LaraSchroeder
    Winnipeg Police Service 2014 fourth quarter financial report - March 9, 2015

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
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    i i 2014 Financial Fourth Quarter Report Report Winnipeg Police Service March 9, 2015 Table of Contents 2014 Fourth Quarter Overview, Q4 Financial Highlights - Revenues. Q4 Financial Highlights - Expenses Financial Summary. Complement Capital Expenditures ... Financial Outlook Revenues. Salary and Wages.. Overtime. Other expen Risk: Cost Saving Initiatives. Operational Efficiencies. Winnipeg Police Service 2014 Fourth Quarter Overview Year to date for the fourth quarter of 2014 the Winnipeg Police Service overall revenues have exceeded last year's revenue by 4.70%. * Photo enforcement revenues have increased significantly 25.15% due to the addition of construction zone ticketing, at double the fine, and the late fall introduction of school zone enforcement, both increasing photo enforcement revenues to the highest they have been during the life of this speed reduction program. * Traditional enforcement increased last year by 12.01% primarily to an emphasis on enforcement beginning early in the year and being maintained consistently during this fiscal period. Criminal record check revenues are also up 12.26% as a result of fee and volume increases compared to the same time last year. Contract and police services revenues fell by 14.33% with the cessation of the Airport Unit contract in October as compared to last year, but the Service sfill managed to exceed 2014 budgeted revenues for this category by 7.32%. Overall expenses have increased by 5.30% as the retroactive impact of collective agreement increases flows through the system and impacts on all the salary and benefit related accounts, overtime, pensions, etc. * Asset purchases were delayed to avoid additional moving costs. It appears that the tentative move in date may begin sometime in late fall 2015. Unspent funds for these categories have been approved to be carried over as. a commitment reserve. This totalled $2.5M and will be used for the new Police HQ furniture and equipment that had been previously budgeted. Due to a significant reduction to facility costs of $7.4M, from the delayed move in date, the Police Service overall year to date expenses were $7.952M less than amended budget. Additional cost reductions of $.546M were realized in salaries and benefits primarily due to vacancy management. Winnipeg Police Service 2 Q4 Financial Highlights - Revenues 2014 Revenue Budget by Source at 10% Reguiotion Fees sakes of Good: & Services Government Grants traffic Enforcement Iniiative 48% Actual YTD Revenues Comparison 2014 to 2013 : Dec 31, Dec 31, Revenues (000's) OO Soe % Total Revenue Total Government Grants (19.354) (20,128) 9% Police Fines (4.450) (3,973) 112% Traffic Enforcement Initiative (14,602) (11,668) 125% Other Regulation Fees (479) (127) 377% Total Regulation Fees (19,531) (15,768) 125% Police Services (6.580) (7.681) 86% Record Searches (1,857) (1.655) 114% Other (168) (127) 21% Total Sale of Goods & Services (8,605) (9.463) 124% Total Revenue (47,490) (45,359) 105% Overview a) Goverment grants were down due to the early termination of a number of funded programs which had not been anticipated. Winnipeg Police Service 3 b) Photo enforcement revenues are much greater than last year due to the re- occurence of construction zone ticketing occurring this past summer. An additional impact that occurred was the Province doubling the actual fine Portion on construction tickets. This generated additional revenue that was not expected and budgeted. This combination of events, plus good winter road conditions, assisted in this speed reduction program having the highest year in revenues since inception. The early winter introduction of school zone speed enforcement also aided in achieving higher revenues. These areas of enforcement have been added due to safety concerns for construction workers and our school children. c) Fee and volume increases related to criminal record checks have increased revenues. d) Alarm permit renewals occurred early in this fiscal year, already exceeding this year's budget by the first quarter. Another renewal process. was anticipated to occur in 2014 but the Service is reviewing automating this process and developing an onine payment system in early 2015, enabling some efficiencies to be obtained in administrative efforts. e) Traffic Fines are ahead of last year due to a consistent enforcement during the early winter months of 2014. Increased efforts in issuing tickets have also added to the amount of time that officers spend in court, which takes away from available time to do enforcement. Legislative changes to be enacted should reduce the requirement to attend court. It is unknown when this legislation will be passed. f) Revenues in police services were anticipated to decrease due to the termination of the Airport Unit contract, however several unexpected last minute cancellations of contracts added to this overall decrease. Increases in special duty services and retroactive billing for salary increases permitted ‘an overall increase over budget. Winnipeg Police Service Q4 Financial Highlights - Expenses 2014 Expense Budget by Source 1%. om Salaries & Benefits services BMoterials Assets ‘ODebt & Financing GFocilty & other Actual Expenses Comparison 2014 to 2013 Dec 31, Dec31, Expenses (000s) 2014 2013 B Total Expenditures Tofal Salaries & Benefits Salaries-Permanent 168,110 156,131 108% Overtime 8,364 8875 4% Other Salaries and Benefits 42,692 39,912 107% Total Salaries & Benefits 219,166 204,918 107% Total Services 15,374 13,931 110% Total Materials Parts Supplies 5114 5,238 98% Total Assets & Purchases 2.246 1,673 282% Total Debt & Finance Charges a7 611 78% Isf to GCF-cash to capital 4143 8781 47% Tsf to Civic Accommodations 7.405 7416 100% Tsf fo Commitment Reserve 2.467 700 352% Other 730 1461 96% Total Transfer fo Other Funds 14,745 17,658 116% Total Recoveries (837) (637) 131% Total Expenditures 256,286 © 243,392«105% Winnipeg Police Service Overview a) New Collective Agreements signed in 2014 provided for a number of salary increases, some of which were for retroactive increases. These retroactive payments were all budgeted for and provided for in the current budget year. The new contracts, with an expiration date for the end of 2016 will assist in eliminating some of the in-year salary fluctuations that occur when contracts are ratified. b) With the continued delay of the move-in to the new Police HQ, some positions still have not been filled, i.e., caretakers, and along with other vacant positions, results in lower budgeted FTE salary costs. This has mitigated to some extent the increases due to collective agreement increases. Some savings will continue on to 2015 until the Service moves into the new headquarters. ¢) Continued effort to manage overtime has resulted in these costs by the end of the fourth quarter to be 5.76% lower than the previous year. This decrease occured, in spite of the collective agreement increases, which partially disguises the excellent effort to stay on top of overtime costs. Court overtime hours are lower as well, although management action in this area is limited as it is determined by legislative processes. Although, where allowed, processes that can be implemented to further lower court costs are yielding posi results. ) The non-saiary expense category covers a wide variety of expenses and for the most part final YTD expenses primarily came in at budgeted amounts. A number of accounts were under budget as the Service made a concerted effort to minimize purchases in a broad category of items, including stationery and uniforms. These efforts were made as the move-in date at headquarters remained fluid. As a result, all unspent funds were collected into a commitment reserve, to be expended in 2015. The Service's goal was to minimize purchases of items to reduce the number of items to be moved. e) As a point of interest this is the first time in police financial history that cellular costs have exceeded land jine costs. As cell phone technology improves, and costs drop, there will be more conversions of land lines to cell phones. f) Fuel costs, for the most part of the year, were looking like they were going to exceed budget. With the dramatic drop of fuel costs in the last quarter, not only was the Service quite a bit lower than budget, costs wound up being lower than last year. Winnipeg Police Service 16 9) Cost in relation to cash to capital is 47.181% of last year as budgeted, and Municipal Accommodations costs wound up comparable to last year. Originally the budget had anticipated that the Service would have been moved into the new building by July 1, but as this did not occur, the budget was credited for the new HQ costs for the balance of the year. As a result, costs were comparable to last year as the facility environment was the same. h) A commitment reserve request was submitted and approved for $2.467M to camry over unexpended funds from the 2014 budget to be spent in 2015. This ‘amount represents items that would have been acquired in 2014 if the move to the new Police Headquarters had taken place. As the move date was fluid it was fiscally responsible to not purchase items, and save potential moving costs. The bulk of the commitment reserve addresses furniture and building related items that would be required to outfit HQ. Financial Summary From a budget perspective, a great deal of focus relates to salaries and benefits as these comprise approximately 85.6% of total costs in 2014. Due to vacancy management, savings in this area helped to offset a substantial arbitration settlement, resulting in the Service still coming in $.545M under budget. Normally vacancy management levels would not be this high, but a delay in hiring for new HQ requirements, the difficulty in attracting new Cadets, and the vacancy of a number of individual positions contributed to this one time savings. Projecting for attrition is @ financial risk as it directly impacts salary budgeting. Attrifion has been lower than expected over the last number of years; however, the number of employees eligible to retire remains high. Historically, the gap between projections and actual departures creates an annual challenge respecting budget and staffing. This year, a drop in authorized complement will be realized as a number of funded programs will terminate. The major one, the Winnipeg Airport Authority contract terminated as of October 15, 2014 and resulted in 25 officers retuming to regular complement. It is expected that a number of officers that were assigned to the Airport Unit will retire; this has been built into attrition projections. However, actual retirements may deviate as it is unknown what the intentions of these members are. ‘A number of other funded programs with MPI and the federal government have required additional decreases in the authorized complement. Another contract that expired, just recently announced for @4, is one officer for the Community Corrections Liaison Officer. Winnipeg Police Service 7 Complement is generally adjusted by reducing the size of an incoming recruit class. The Winnipeg Airport Authority budget revenue was adjusted as part of the budget process; however, the MPI and federal contracts were not, thereby creating a decrease in revenues in these areas, but retaining the salory expenses. These reductions were considered in determining the size of the spring 2015 class, which was reduced from 24 to 20. At the end of the third quarter YTD attrition was at 30, as compared to the yearly budget of 37. The 10 year average would indicate another 5 to 6 retiring by the end of the year. Some members from the Airport Unit did retire in 2014, although indications are that more would retire in early 2015 rather than the current fiscal year. The 2014 final result is that retirements were above projections, ultimately coming in at 41. The authorized complement at the beginning of the year was 1463, and by the end of the year it was 1430. Police pension costs have increased over the last few years to 15.12% of salaries, with overall costs of all benefits now totaling 24.79% of salary amounts for the police complement. Overtime comparisons (converted hours) to last year remain consistent with an overall 14.02% decrease from 2012. This is attributed to management's overtime mitigation strategies that began in 2012. New legislation, anticipated in 2015, is expected to result in a decrease in traffic court overtime. WinipegPoiceSevice —ssstsi—

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