After a decade of ballooning budget requests, the London Police Services Board (PSB) released a draft budget that puts the brakes on spending.

Coming in at $93.2 million, it's only about $700,000 or 0.74 per cent more than 2014

Chief Brad Duncan credits cost savings of $1.8 million generated by a restructuring that reduced his ranks and cut non-core services.

"It's one of the lowest budgets we've ever brought forward, not withstanding settlements in previous years," says Duncan.

But the budget doesn't contain a huge potential cost - any wage increase negotiated or arbitrated with the police union in their new contract.

It's a big assumption considering the trend over the past decade in police salaries.

It means the police would in all likelihood have to turn to city hall to cover any contract increase.

"It's not bad budgeting, we don't know what we don't know right now. And we are working in good faith with the association," says PSB chair Paul Paolatto.

But the police union's surprise at the assumption their wages will be frozen - is sending a chill through that good faith.

"To be blindsided by this, I'm incredibly disappointed and somewhat furious," says Dan Axford of the London Police Association.

Not only does the budget contain uncertainty for city hall, but there also appears to be a message to the police union - the board has set aside $50,000 for negotiations - suggesting the board is willing to dig in its heels when setting a new contract.

The union says it was willing to consider exchanging some financial considerations for quality of life improvements at the bargaining table.

Union reps say it feels backed into a corner by the board in its opinion-- bargaining in the public.

"I don't think that it is responsible because if negotiations break down they are going to have to go back to council. Because the awards come from a provincial arbitrator and they are bound by it," says Axford.

"Why would we go out and forecast a number and be in a position where we compromise our ability to actually get a lower number down the road?" asks Paolatto.

A final budget figure will be submitted to council later this year.