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.

An RCMP officer on P.E.I. conducts a road check on York Road in January 2022. (Shane Hennessey/CBC)

"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.

Emily Lutz, president of the Federation of Nova Scotia Municipalities, said one of the issues municipalities face with the looming increase is they don't have the ability to raise revenue without going to the tax base.

"It makes it very difficult for municipalities to be flexible and to adapt when unexpected costs arise," said Lutz, who is also deputy mayor of the Municipality of the County of Kings.

The union that represents RCMP members ratified the new contract this past summer.

    Emily Lutz is deputy mayor of the Municipality of the County of Kings and president of the Federation of Nova Scotia Municipalities. (Emily Lutz/Facebook)

It will see salaries for constables increase by as much as $20,000 a year and even more for some staff sergeants. The changes come into effect April 1 and include retroactive increases back to 2017.

Service delivery and return on investment are key issues for municipalities, and Lutz said no municipality wants the increase in the costs for RCMP members to result in an inability to maintain current staffing levels.

"It's an essential service," Lutz said in an interview. "No municipality wants to see compromises to public safety."

The mandate letter of Municipal Affairs Minister John Lohr includes renegotiating the memorandum of understanding with municipalities, as well as reviewing the Municipal Act and charters "with a goal of refining the delivery and governance model for all municipalities in the province."

Lutz said she expects policing costs to be part of that discussion.

Lohr said Thursday he hasn't heard any direct concerns about the cost of policing, but he's aware money is a concern for at least some municipalities in Nova Scotia.

"Obviously, they were very appreciative of the fact that we did double the financial capacity grant this year," he said in an interview at Province House.

Municipal Affairs Minister John Lohr says he's open to hearing concerns from municipalities about the costs of policing services. (CBC)

Last December, former justice minister Mark Furey said he wanted to launch a review of police services in the province, in large part out of concerns over the potential increases that would come with a new RCMP contract.

What's happened with that review is unclear. Furey stepped down from his post in February after announcing he would not seek re-election.

In a recent interview, Justice Minister Brad Johns said the only police services review he's aware of is the one happening as part of the mass casualty commission, which is looking into the circumstances related to the mass shooting in Nova Scotia in April 2020.

"Through that, there will be an examination of policing services and the mandate for Nova Scotians," said Johns.

Last December, Furey said he'd initiated talks within the department about provincial policing service models, but Johns said he'll wait to see what comes from the mass casualty commission, as well as what he hears from municipalities, before determining whether to consider that option.

The province's contract with the RCMP runs until 2032, although there are out clauses.

Lutz said she has noticed more talk among her municipal colleagues in the province during the last year about the idea of a provincial force.