P.E.I. towns on hook for hundreds of thousands in RCMP backpay

There was bad news for Stratford and Cornwall in the recent federal budget — or at least, a lack of good news.

The P.E.I. towns had hoped Ottawa would cover retroactive wages owed to RCMP officers, following wage increases negotiated a couple of years ago by the National Police Federation and the federal government.

But there was no mention of anything like that in last month's federal budget. 

"It was very disappointing to see that it was not even an item in the budget," Geoff Stewart, second vice-president of the Canadian Federation of Municipalities, told Island Morning host Laura Chapin.

It's an issue for communities across the country that don't have their own municipal or provincial forces in place, said Stewart. On P.E.I., the Town of Stratford owes $188,000 and the Town of Cornwall owes up to $130,000.

"As municipalities, we're not allowed to run deficits, so where do we get these funds?" said Stewart.

"We're left with two choices. We either cut services, which is really not an option, or we raise taxes, and that's not something any municipal government wants to do at this point in time."

No say for municipalities

In Stratford the bill comes to about $17 per person. In Cornwall it's about $20.

Adding to the difficulty is that municipalities were expecting five years to cover the backpay, but the current plan only gives them two.

"Municipalities were not at the negotiating table, yet it's our dollars that are paying for it. It's hard to accept somebody else negotiating on your behalf and then passing you a bill," said Stewart.

Stewart said he doesn't know what the national cost for backpay is, but some cities owe millions. The cost for Moncton is $5.7 million, and for Vernon, B.C., $3.4 million.

Not a done deal

Cornwall's budget for the upcoming year has already been discussed and approved.

Barring any changes in Ottawa's stance, it will have to be amended. Mayor Minerva McCourt said that will be discussed at a committee meeting Wednesday night, and a council meeting later this month.

In a statement emailed to CBC News, the Town of Stratford said it is still hoping for a reprieve.

"We will be having further conversations with our federal and provincial representatives regarding this decision," the statement said.

The town will also be working with the P.E.I. and Canadian federations of municipalities.

The Canadian Federation of Municipalities has not received any explanation about why there was no relief in the federal budget, said Stewart.

"I'm certainly hoping that conversations will continue, and I certainly don't think this is a done deal. We have to push this," he said.

In a statement to CBC News, the federal Finance Department said it provided the two-year, interest-free payment plan for the municipalities in recognition of the budget restraints they may face.