RCMP’s retroactive salary increases cost more than $32 million

SURREY Council voted to accept the 2021 Consolidated Financial Statements at Monday’s regular meeting.

“I am pleased to see the City of Surrey in a strong financial position,” said Surrey Mayor Doug McCallum. “Surrey’s fiscal position remains sound despite additional unbudgeted increases in costs associated with the RCMP’s retroactive salary increases, which total in excess of $32 million.”

In 2021, the City recorded a $28.3 million unfavorable expenditure variance with Police Services due to a number of factors, including the City recording a liability of $32 million in 2021 resulting from the RCMP collective agreement retroactive salary increases.

The 2021 Policing Services budget was allocated on the assumption that the RCMP would provide 75% of the policing services in 2021 while Surrey Police Service (SPS) would provide 25%. The split of policing operations costs continues to evolve. As a result, the RCMP Contract had an unfavourable variance of $58.8 million in 2021, while the Surrey Police Service had a favourable variance of $33.8 million.

Meantime, Parks, Recreation and Culture saw a $27.6 million favourable expenditure variance in 2021 as a result of City facilities not operating at normal capacity due to the pandemic, including $20 million in salaries and benefits.

The Financial Statements were audited and prepared in accordance with Canadian Public Sector Accounting Standards and was carried out by BDO Canada LLP. The full corporate report and 2021 Annual Consolidated Financial Statements can be read here.