The financing impact of the ten-year $1.1 billion Durham Regional Police Service (DRPS) capital outlay plan, forecasts a 25 per cent growth in regional tax over 10 years (see annual breakdown below).
“The additional $1 billion in forecasted debenture financing for the DRPS Major Facility Capital Program increases the region’s 2026 to 2036 debt forecast for property tax and water and sewer services from approximately $4 billion to $5 billion, an increase of 25 per cent,” said a region report.
It said after leveraging the available funding sources, including all development charges, known senior government funding opportunities, significant debt, and reserve and reserve fund financing, annual incremental overall property tax increases are projected at:
- 4.62 per cent in 2027,
- 4.25 per cent in 2028,
- 4.06 per cent in 2029, and
- 3.64 per cent in both 2030 and 2031,
- reducing to roughly 2.2 per cent per year for 2032 to 2036.
Oshawa Debentures Burden
On 23 March, the City of Oshawa Council enacted a by-law for the issue of $20 million worth of debentures by the Regional Municipality of Durham for a term of 30 years on behalf of Oshawa (see here) for financing the Tributes Communities Centre $50 million upgrade.
The upgrade repayment costs, combined with the original construction cost debt, adds up to over $200 million in property taxes across half a century to fund the TTC, says city Councillor and Chair of the city’s Corporate and Finance Services Committee, Derek Giberson.
Police Plan Financing Strategy
The report said based on the expenditure forecast provided for the DRPS Service and Financing Strategy, regional staff have developed the financing strategy utilizing available and forecasted development charge revenues, known senior government grants, and available reserves and reserve funds.
“Debenture financing and property taxes have been utilized to finance the balance of the expenditures.”
It said the financing strategy includes $1 billion in debenture financing (including $10.8 million in development charge funded debt).
Annual Debt Servicing
“Annual debt servicing costs are projected to increase by $73.9 million over the forecast period with 2036 annual debt servicing costs estimated at $87.1 million. Actual debt servicing costs will vary based on market conditions at the time of the debenture issuance, the term of the debenture and the debenture instrument selected,” the report said.
In 2026, the police budget was the largest component of the region’s property tax increase of 4.8 per cent.
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