The Winnipeg Police Service currently expects a $6.5-million budget shortfall this year, triggering a call for the city to better control some labour costs.

A second-quarter financial update reveals rising salary and pension costs and a revenue decline are key factors fuelling the shortfall. The projection also takes place during a year when city council had required police to find $1.45 million of savings after the budget process wound up.

“It’s always a concern when you see the gap growing ... It is a big gap to close but I’ll be looking forward to the third-quarter report,” said Coun. Scott Gillingham (St. James-Brooklands-Weston.)

Much of the shortfall can be blamed on a $3.7-million cost hike to the city’s portion of police pensions, after an actuarial analysis unexpectedly determined these were underfunded.

And salary costs are currently up 7.1% this year, due to collective agreement increases.

Gillingham said the report shows a need for the city to focus on salary and pension pressures, since salary costs make up 83.35% of the 2016 police budget and that share is expected to grow in the future.

“This round of collective bargaining needs to address overtime as pension earnings and the rate of salary increases over the past few years,” said Gillingham.

The councillor also believes the city should set target outcomes for the next round of collective agreement negotiations, which are set to begin in late fall. He hopes that could trigger an outcome the cash-strapped city can better afford.

Gillingham stressed his comments on union negotiations reflect his role as city councillor and not as chair of the Winnipeg Police Board, since that board doesn’t negotiate collective agreements.

The Winnipeg Police Association union, however, argues the city created the pension woes when it drew out surpluses worth millions of dollars from the fund years ago.

President Moe Sabourin said his union is always willing to negotiate but the city’s budget demands can’t come at the cost of fair compensation for its members.

“We know citizens want to be safe and the job is very dangerous and we deserve fair compensation for that,” said Sabourin.

Meanwhile, a decline in photo traffic enforcement revenues is blamed as a key driver of a $3.75-million police revenue drop from the first six months of 2015.

But some budget relief is expected once other government grants are paid out. Police overtime costs are also down 6.4% so far and a fall recruit class has been deferred.

The report cautions, however, that the current overtime tab doesn’t account for service-call increases that tend to occur during the summer.

Winnipeg Police could not immediately be reached for comment about the report this weekend.

jpursaga@postmedia.com

Twitter: @pursagawpgsun