Question

Articulating Costs of Police Services

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Matthew Morton

Our city is the regional service provider for Police Services, and it is time to renegotiate service contracts. I am having difficulty articulating costs in a way that the neighboring council and the public can understand (or the converse is possible; I have a flaw in my logic or calculation not apparent to me). For argument sake assume the total PD budget is 1,100,000 and I have eight employees, simple math that is being argued is that we should take the “standard” 2,080 hours per year per employee and divide by total costs to estimate costs for 66.10 per hour. However, the difficulty for me is demonstrating that costs are nearly 150/hour on a contract basis, as I am always “stocking extra product”, having appropriate service levels, etc., and covering OT, multiple response, etc. The neighboring jurisdictions contract on an hourly basis at a rate of 71.28 hour, for 160 hours a month of patrol AND 24/7 response. I think I am not communicating the 24/7 costs for standby, etc….essentially when simple math says total budget / total worked hours is costs. Thoughts, ideas, help! Thanks.




Paul Ellis
Paul Ellis said

Hi Matthew,
We have a similar situation with our Village Fire Department where several towns contract with us. We have moved to property assessments as our basis of determining each town's share. We did meet significant push back at first, but we are now using assessments.
Perhaps the notion of contracting for a certain number of hours per month needs to be rethought? If you look at it...the service being provided is 24/7 response (same as our fire department) and there is a cost of not only providing the service, but having it available.
Through use of our GIS system and various real property tax offices, we determined taxable values in our service area in the townships and within the Village. We looked at a percentage of each municipality's share of the total taxable value and then applied it to the total cost of operating the fire department. That became the basis of charging for the service.
I hope this helps you.
Regards,
Paul

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