Members of Grey Highlands council had to deal with a 2007 budget deficit at their regular meeting on Monday morning.

Council received a report from CAO Kelley Coulter about a 2007 budget deficit that just came to light in recent weeks. Coulter explained that the OPP recently informed Grey Highlands that the municipality's policing credit was significantly smaller than what was budgeted in 2007.

The unexpected deficit forced council to juggle some reserve funds to ensure the shortfall didn't affect the recently adopted 2008 budget. Coulter said the OPP told Grey Highlands that its policing credit in 2007 would be $186,000. Municipalities that contract with the OPP for policing receive a credit at the end of the year for time its officers are needed for provincial duties.

Last week, the OPP informed the municipality that the 2007 credit was only $74,834.

Councillor Lynn Silverton, a member of the Grey Highlands Police Services Board, said in previous years that credit numbers provided to the municipality were usually on target.

"The guesstimates from the previous years were spot on. There was no reason to think there would be a problem this year," said Silverton.

CAO/Treasurer Coulter brought forward a report to council detailing how the municipality will deal with the unexpected deficit of $111,166. Coulter suggested Grey Highlands exhaust its rate stabilization reserve fund of $60,592 to help fund the shortfall. 

In addition she suggested $50,574 be brought forward into the 2008 budget from a Roads and Fleet reserve to help pay for a planned resurfacing of the Heathcote Hill. Coulter said using those reserve funds is acceptable in this case. Other reserve accounts have too many restrictions on them to use to cover a policing shortfall.

Silverton asked if recently awarded provincial infrastructure money could be used to help offset road construction costs to help create additional funds to fund the deficit. Coulter said that was possible in the future, but the municipality had to wait to find out what restrictions the provincial government places on the infrastructure grant.

Council passed resolutions supporting Coulter's recommendations for dealing with the deficit. Members of council also had some pointed comments for rising costs of OPP policing.

Councillor Manley Risk noted that in 2006 OPP policing cost Grey Highlands approximately $800,000. He said that amount has now increased to more than $1.2 million.

"That's a terrible increase. It's gotten right out of hand," said Risk.

Mayor Brian Mullin also pointed out that the OPP plans to increase costs in the future.

"Commissioner Fantino wants us to pay even more," said Mullin, who noted that Grey Highlands experienced an increase of 18 per cent in policing costs when it signed a new contract recently.

Deputy Mayor Dave Fawcett noted that after amalgamation OPP policing was $680,000.

"They just seem to want, want, want," said Risk, who said members of the public have definitely noticed the rising costs of police. "The public thinks it's ridiculous and that's who I have to talk to," he said.