RCMP contracts involve cost-sharing arrangements between federal, provincial, and municipal governments for police services. The federal government subsidizes a portion of RCMP contract policing costs, with the share varying by jurisdiction size. Historically, municipalities under 15,000 population paid 70% of policing costs with the federal government covering 30%, while larger municipalities paid 90%. Very small communities (under 5,000 in some provinces) may have provincial funding covering most costs. These cost-sharing formulas make RCMP contract policing attractive for smaller communities. Contract renewal negotiations periodically adjust these arrangements, with provinces and municipalities seeking to minimize their shares while maintaining service levels.