Ontario Regulation 224/2025, made under the Community Safety and Policing Act, 2019, introduces technical amendments to Ontario Regulation 413/23, which governs the amounts municipalities must pay for policing services provided by the Ontario Provincial Police (OPP). This regulation refines how policing costs are calculated, particularly in relation to property classifications, municipal cost ratios, and payment adjustments for 2026 and future target years.

The regulation updates the definition of “number of properties” to ensure it aligns with the Municipal Act, 2001 and the Assessment Act. Specifically, it clarifies that properties included in the commercial, industrial, or aggregate extraction classes are to be counted in the calculation of municipal policing costs. This modification ensures a more accurate reflection of the tax base for municipalities with significant aggregate extraction operations, which often contribute to unique policing demands.

Section 4 receives extensive revisions as a new framework is introduced for handling municipalities whose policing cost ratios substantially exceed provincial averages. The new paragraph 25.1 establishes that, beginning in the 2026 target year, if a municipality’s cost ratio exceeds the average by three or more standard deviations, its Municipal Calls for Service Charge will be reduced based on a graduated scale. This scale, outlined in the newly added Table 2, ranges from a 5% reduction for municipalities three standard deviations above average to as much as a 95% reduction for those exceeding seven and a half standard deviations. A similar formula is applied to Overtime Charges through the addition of paragraph 34.1, ensuring consistency in how exceptional outlier costs are mitigated across different billing components.

These changes aim to introduce fairness and predictability in how policing costs are distributed among municipalities. By moderating extreme cost discrepancies, the regulation provides financial relief to communities facing unusually high charges that may not proportionally reflect their policing needs or capacity to pay. The inclusion of statistical thresholds and corresponding percentage reductions introduces a data-driven approach to cost adjustment, adding transparency to the process.

A new section, 4.1, establishes a special rule for the 2026 target year. It specifies that each municipality’s payable amount will be the lesser of two calculated values—referred to as “X” and “Y.” The “X” value is based on the standard 2026 calculations plus or minus reconciliation amounts from 2024, while “Y” is capped at 111% of the total 2025 policing costs, excluding certain special service agreements and improvements under previous legislation. This mechanism effectively limits cost increases between 2025 and 2026, ensuring that municipalities are not subject to sudden spikes in policing fees due to transitional adjustments or legacy accounting reconciliations.

Ontario (225/2025) October 14, 2025
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