Surrey Mayor Brenda Locke is expressing concern that Surrey taxpayers could potentially be on the hook for half a billion dollars related to Surrey Police Service replacing the Surrey RCMP as the city's police of jurisdiction if costs surpass the up-to $250 million the provincial NDP government has earmarked under an agreement struck earlier this month.
Public Safety Minister Mike Farnworth revealed on July 10 an agreement between the provincial government and the City of Surrey that his government will provide up to $250 million over 10 years. This agreement was struck after the City lost a judicial review in B.C. Supreme Court in May where Justice Kevin Loo ruled in favour of the transition continuing.
Locke noted that a Deloitte Legal Canada LLP report done in April 2023 shows an annual cost difference of $75 million to operate the SPS compared to the RCMP, and Loo in his reasons for judgment said that "regardless of the exact figures, it is clear that it will be more expensive for the city to transition to the SPS compared to maintaining the RCMP."
The mayor said the Deloitte report was "hidden from the City" until it came before the court during the judicial review.
"The biggest concern for us right now is the enormous tax burden that is in front of us, the $75 million dollars,” she said in May, adding that “$75 million is forever, and that will only escalate. We are looking at a generational decision that is being imposed on our city.”
In April, the City of Surrey posted a press release stating that the report, "commissioned by the Province and developed by Deloitte, reveals new details that confirm the SPS will cost Surrey taxpayers a whopping $750 million more than the RCMP over just a 10-year period."
As for the $250 million over 10 years, Locke said Monday, "That was part of the agreement, but subsequently both the premier and the solicitor general have said Surrey taxpayers will not be out of pocket, so with that, I hold them to their word.
"If we are not to be out of pocket, that means that if there are extraordinary expenses or expenses over what they're giving us that the Province will compensate us for that because this is a provincially imposed police force," she told the Now-Leader. "So that would be my response to that. So we will be monitoring it. If we have expenses that exceed the amount that they're providing us every year, we will be informing the solicitor general's office because he said, his words were, that the Surrey taxpayers would not be out of pocket for his imposed police force. So if that is the case, then that means they will pay anything over. Now, will we have to raise taxes if they don't? According to Deloitte, we absolutely will."
Part of the agreement between the provincial government and the City of Surrey, according to a joint backgrounder, is that the City agrees to "not levy a separate police tax for any costs relating to the police transition for a period of 10 years."
This will in effect preclude the City from making political hay, should additional costs arise, by imposing a dedicated levy to cover them.
"We will have to include it into our general (budget) thing, but it'll be very obvious because there's one thing that's for sure, and that is that Surrey has always had a line items of policing, that's not new and it will be very obvious," Locke said. "Our electorate in Surrey is very, they're smart and they know what they're looking at, they know what their tax bill looks like, and they'll be able to see."
The upcoming general provincial election on Oct. 19 could of course see a change of government from the NDP.
Does the next government have to abide by a promise made by a previous governing party?
"With all governments, everything falls off the order papers," Locke noted. "Not with municipal governments, but with provincial government, everything falls off the order paper, so if the agreement is there and intact, it is still intact, but it doesn't mean they can't rescind them just like they rescinded the legislation to impose the police in the first place. They can do whatever."
Therefore, whomever forms government in the fall could renege on this promise, as identified by Locke, to help Surrey out with more cash beyond the $250 million.
"They could, absolutely. And of course that's been something we've been concerned about all along, and that's why taking the money over 10 years is a concern to me, but that's the agreement, so. Council made the decision to do that, so that's where it's at."
Meantime, Locke said said there will be a policing transition update prior to all regularly scheduled public hearings starting in September, in the form of corporate reports, and time allotted for council members to seek clarifications. She also said in June that a City budget review related to the cost of the transition will be done in September, prior to the provincial election.
Coun. Rob Stutt said the City has contracted with "some very respected professionals in policing in Canada to work on our behalf, to ensure that the very best occurs" as this 'imposed police model" is brought into effect.
"As plans and related costs for the transition become known, I won't hesitate to ask the Province for initial funding when required. If they're saying they're going to offset the costs when additional costs come forth, I'm assuming they'll be good for them," Stutt said.
