November 2021 Board of Health Meeting - 2022 Budget Resolution

Meeting Document Type
Resolution
2022 Budget

ISSUE

The Windsor-Essex County Health Unit (WECHU) requires the Board of Health to approve the annual operating budget, as this budget forms the basis of the Annual Service Plan and Budget Submission to the Ministry of Health (MOH).

BACKGROUND

The WECHU is a publicly funded organization; as such, the WECHU has a responsibility to spend funds prudently with the objective of providing public health programs and services as required by the Health Protection and Promotion Act (HPPA) and the Ontario Public Health Standards:  Requirements for Programs, Services, and Accountability (OPHS).

The WECHU receives funding in the following manner:

  • The Province of Ontario, more specifically the Ministry of Health, annually grants the WECHU funding to a maximum of 70% of admissible expenditures for its Mandatory Program.  In addition, the WECHU receives required contributions for the Corporation of the City of Windsor, The Corporation of the County of Essex, and the Corporation of the Township of Pelee (hereinafter collectively referred to as the Obligated Municipalities) at a minimum of 30% of admissible expenditures.
  • The Ministry of Health annually provide grants for certain related health protection and promotion programs at a rate of 100% of admissible expenditures.  More specifically this includes the Ontario Seniors Dental Care Program and the AMOH/MOH Compensation Initiative.
  • The Ministry of Children, Community and Social Services (MCCSS) provides annual grants to fund the Healthy Babies Healthy Children Program Initiative and the Nurse Practitioner Program Initiative at a rate of 100% of admissible expenditures.

On an annual basis, the WECHU prepares its operating budgets for review and approval by the Board of Health.  This budget approval than becomes the foundation of the Annual Service Plan and Budget Submissions to the Ministry of Health.  The due date for the 2022 Annual Service Plan and Budget Submission to the Ministry of Health is tentatively set for March of 2022. 

The operating budgets for programs funded by MCCSS will be reported to the Board of Health in a separate report in March of 2022.

Mandatory Program

Item 2022 2021 Change
Salaries and employee benefits 16,106,151 16,982,867 (876,716)
Other operating expenditures      
  Association and membership fees 53,250 53,250 -
  Mileage 272,925 272,925 -
  Professional development 82,605 82,605 -
  Travel meetings 65,451 65,451 -
  Advertising 3,000 4,000 (1,000)
  Bank charges 5,000 5,000 -
  Board expenses 14,571 9,978 4,593
  Office equipment rental 85,000 104,000 (19,000)
  Office supplies 32,000 39,000 (7,000)
  Postage and freight 33,000 30,500 2,500
  Professional fees      
    Program – dentistry 150,000 150,000 -
    Program – legal 20,500 15,000 5,500
    Corporate – legal 132,000 172,000 (40,000)
    Corporate – audit 19,900 19,500 400
    Corporate - consulting 6,900 6,900 -
  Program supplies      
     Programs 989,671 994,671 (5,000)
     Corporate 440,732 410,370 30,362
  Purchased services      
     Programs 110,054 110,054 -
     Corporate 176,446 15,088 161,358
  Building maintenance 150,600 149,300 1,300
  Insurance 205,000 205,000 -
  Parking 37,500 37,500 -
  Property taxes 210,000 220,000 (10,000)
  Rent 697,000 770,000 (73,000)
  Security 14,900 14,914 (14)
  Telephone 145,000 150,500 (5,500)
  Utilities 148,000 159,000 (11,000)
  Vehicle 2,300 2,300 -
Total other operating expenditures 4,303,305 4,268,806 34,499
Total budgeted expenditure 20,409,456 21,251,673 (842,217)
Less:  Offset revenue (147,724) (153,359) 5,635
Total net expenditures 20,261,732 21,098,314 (836,582)

The Mandatory Program budget supports 151.98 FTEs, more specifically:

  • Leadership Team 6.75 FTEs
  • Management Team 9.60 FTEs
  • Coordinators 5.75 FTEs
  • Administrative support staff (all departments) 25 FTEs
  • Communications staff 4.0 FTEs
  • Oral health staff 13.50 FTEs
  • Nursing staff (all) 32.50 FTEs
  • Enforcement staff (Public health inspectors and Tobacco and Vaping Enforcement officers) 22 FTEs
  • Corporate services staff including Human Resources 13 FTEs
  • Health promotion and mental health specialists 14.88 FTEs
  • Other program staff 5.00 FTEs

The following represents a summary of changes in the 2022 Mandatory Program budget compared to 2021:

  • Salaries and employee benefits decreased $876,716.  In 2022, the Mandatory Program budget supported 152.23 FTEs as compared to 164.50 FTEs in 2021.  In 2022, additional human resource capacity was shifted from Mandatory Programs to support the COVID-19 activities and recovery activities.
  • Increase in other operating costs of $34,499.  The most notable changes are as follows:
    • A decrease in office equipment rental of $19,000 due to the decline in rental fees in the latter part of the agreement. 
    • A net decrease in professional fees of $34,100, namely legal fees.
    • An increase in purchased services of $161,358. The WECHU will employ third party consultants/services to support the Corporate Services division, namely in the areas of Finance and Facilities.  From a Facilities perspective, these services will be focused on the Windsor Facility Project. 
    • A decrease in building occupancy costs of $99,514.  In 2022, the WECHU will only lease two (2) office facilities (Windsor and Leamington), as compared to three (3) in 2021 (Windsor, Essex and Leamington).

Vector-Borne Diseases Programs

Item West Nile Virus Program Enhanced Mosquito Surveillance Program Tick-Borne Diseases Program
Salaries and employee benefits 94,018 62,678 -
Other operating expenditures      
  Communication and awareness 10,000 10,000 20,000
  Mileage 6,500 6,000 -
  Program supplies 15,000 16,000 -
  Purchased services 150,000 29,500 -
Total Operating expenditures 181,500 61,500 20,000
Total 2022 budgeted expenditures 275,518 124,178 20,000
Total 2021 budgeted expenditures 276,257 122,129 20,000

Included within the Mandatory Program budget are costs associated with the Vector-Borne Diseases Program (VBD).

The VBD Program is further divided into three sub-programs, the West Nile Virus Program, the Enhanced Mosquito Surveillance Program and the Tick-Borne Disease Program.

In totality, these programs support the salaries and benefits of five (5.0) public health inspection student FTEs and one-half (0.5) of a public health inspector FTE.

COVID-19 Program

Item 2022 2021(Combined)
Salaries and employee benefits 5,697,435 7,668,839
Other operating expenditures    
  Mileage 29,205 154,653
  Program supplies    
    Communication and awareness 15,773 117,838
    Information technology - 79,478
    Medical - 57,321
    Personal protective equipment - 160,780
    Other 25,440 50,880
    Telephone 27,417 44,003
  Purchased services    
    Case and contact management support - 549,504
    Legal - 30,528
    Other 295,969 231,929
    Sharps disposal - 50,000
    Translation and interpretation 65,635 103,287
    Transportation 132,910 232,681
  Travel and meetings - 4,000
Total operating expenditures 592,349 1,866,882
Total budgeted expenditures 6,289,784 9,535,721

The COVID-19 Program budget includes activities to support the response to COVID-19 pandemic in Windsor and Essex County including vaccination efforts. This budget supports 62.04 FTEs, more specifically:

  • Leadership Team 1.00 FTE
  • Management Team 7.00 FTEs
  • Coordinators, including Performance Improvement and Accountability Specialists 1.25 FTEs
  • Administrative support staff (all departments) 4.50 FTEs
  • Communications staff 1.00 FTEs
  • Nursing staff (all) 34.50 FTEs
  • Enforcement staff (Public health inspectors and Tobacco and Vaping Enforcement officers) 7.00 FTEs
  • Corporate services staff 1.25 FTEs
  • Other program staff 4.54 FTEs

The COVID-19 Program budget has decreased $3,245,937 over 2021 primarily due to the following:

  • Decrease in salaries and employee benefits of $1,971,404.
  • Decrease in operating expenditures of $1,274,533.  This is attributed to:
    • Decrease in Mileage of $125,448.  The 2021 COVID-19 Program budget contemplated additional mileage costs associated with multiple mass vaccination sites operating throughout Windsor and Essex County.  In 2022, only one mass vaccination site will be in operation supplemented by mobile vaccination events.
    • Decrease in Program supplies of $441,670.  The 2021 COVID-19 Program budget contemplated expenditures on such items as personal protective equipment (PPE), information equipment and medical supplies.  In 2021, vaccine administration supplies including PPE were provided by the MOH with vaccine deliveries.  Additionally, iPads, and other information technology accessories, were provided to public health units to support mass vaccination centres and other related efforts.  Nominal expenditures associated with Program supplies are anticipated for 2022.
    • Decrease in Purchased services of $703,415. In 2021, the WECHU employed a third party provider to support case and contact management ($549,504).  This support is not anticipated to continue in 2022. 

The WECHU will include the COVID-19 Program budget as a one-time request for funding from the MOH.

Recovery

Item 2022
Salaries and employee benefits 2,164,934
Other operating expenditures  
Program supplies  
    Communication and awareness 17,299
    Other 25,440
 Purchased services  
    Other 90,126
    Translation and interpretation 32,054
Total Operating expenditures 164,919
Total budgeted expenditures 2,329,853

The Recovery Program budget includes activities related to recovery from the COVID-19 pandemic in the community of Windsor and Essex County as well as catch-up efforts.  This budget supports 22.73 FTEs, more specifically:

  • Management Team 1.40 FTEs
  • Coordinators, including Performance Improvement and Accountability Specialists 2.50 FTEs
  • Administrative support staff (all departments) 0.50 FTEs
  • Communications staff 1.00 FTEs
  • Nursing staff (all) 9.50 FTEs
  • Corporate services staff 1.00 FTEs
  • Epidemiology and evaluation staff 5.00 FTEs
  • Other program staff 1.83 FTEs

The WECHU will include the Recovery Program budget as a one-time request for funding from the MOH.

Ontario Seniors Dental Care Program

Item 2022 2021
Salaries and employee benefits 1,633,878 1,086,828
Other operating expenditures    
  Association and membership fees 2,000 2,000
  Mileage 15,000 15,000
  Professional development 10,000 3,000
  Program supplies and other    
      Bank charges 1,000 1,000
      Clinic supplies and other 400,000 397,372
      Office supplies 4,000 4,000
  Purchased services    
      Professional services 300,000 150,000
      Security 11,500 11,500
  Travel and meetings 4,000 4,000
Total Operating expenditures 747,500 587,872
Total budgeted expenditures 2,381,378 1,674,700

The Ontario Seniors Dental Care Program (OSDCP) supports eleven and one-half (16.5) FTEs comprised of one and one-half (1.5) manager FTEs; one and one-half (1.5) dentist FTEs, one (1.0) denturist FTE, five (5) dental assistant FTEs, four (4) dental hygienist FTEs, one (1.0) health promotion specialist FTE, and two and one-half (2.5) support staff FTEs.  The ODSCP expenditure budget is funded in its entirety by the MOH.

The OSDCP budget has increased $706,678 over 2021 primarily due to the following:

  • Increase in salaries and employee benefits of $547,050. This is attributed to the following:
    • one (1) denturist FTE ($121,845)
    • two (1) dental assistant FTEs ($174,760)
    • one (1) dental hygienist FTE ($97,138)
    • one-half (0.5) health promotion specialist FTE ($53,903)
    • one-half (0.5) support staff FTE ($36,487)
    • other salaries and benefits increases ($62,917)
  • Increase in operating expenditures of $159,628.  This is primarily attributed to an increase in professional services of $150,000.

FUNDING

Administration has arrived at three funding scenarios for consideration by the Board of Health. The purpose of these scenarios is to define the financial risk to the WECHU and the Obligated Municipalities for the 2022 Budget, if additional funding is not available for COVID-19 related expenditures or to support recovery efforts.

SCENARIO 1

Under scenario 1, the Mandatory funding approval from the MOH for 2022 would be $16,301,232.  It anticipates a two (2) percent increase in the 2021 funding approval of $15,981,600.  Additionally, this scenario contemplates the opportunity for one-time funding for costs in excess of the Mandatory funding approval, funded at a rate of one hundred (100) percent.  Total contributions from the Obligated Municipalities for 2022 would be $6,986,242 (Table 1).  These contributions do not contemplate the Mitigation funding approval for 2022 in the amount of $1,260,800.  Such Mitigation funding will be apportioned to the Obligated Municipalities during the 2022 settlement process, if eligibility requirements have been met.

Funding Scenario 1 - Table 1
Municipality 2022 2021 Change
The Corporation of the City of Windsor 3,803,275 3,728,701 74,574
The Corporation of the County of Essex 3,178,852 3,116,522 62,330
The Corporation of the Township of Pelee 4,115 4,034 81
  6,986,242 6,849,257 136,985

Table 2 below summarizes total funding compared to total budgeted expenditures for all programs except OSDCP, as this program is funded entirely by the MOH.

Funding Scenario 1 - Table 2
Item 2022
Total Mandatory funding approval - MOH 16,301,232
Total Contributions – Obligated Municipalities 6,986,242
Total Mandatory funding - 2022 23,287,474
Total Mandatory Program budget 20,261,732
Total COVID-19 Program budget 6,289,784
Total Recovery budget 2,329,853
Total 2022 expenditures 28,881,369
Excess of total 2022 expenditures over total mandatory funding – 2022 5,593,895
One-time funding 5,593,895

SCENARIO 2

Under scenario 2, total contributions from the Obligated Municipalities for 2022 would be $8,664,410 or 30% of total 2022 expenditures as noted in table 2 above of $28,881,369.  Similar to Scenario 1, contributions do not contemplate the Mitigation funding approval for 2022 in the amount of $1,260,800.  Such Mitigation funding will be apportioned to the Obligated Municipalities during the 2022 settlement process, if eligibility requirements have been met.

Funding Scenario 2
Municipality 2022 2021 Change
The Corporation of the City of Windsor 4,716,861 3,728,701 988,160
The Corporation of the County of Essex 3,942,445 3,116,522 825,923
The Corporation of the Township of Pelee 5,104 4,034 1,070
  8,664,410 6,849,257 1,815,153

SCENARIO 3

Under scenario 3, total contributions from the Obligated Municipalities for 2022 would be $12,580,137. This represents the Obligated Municipalities 30% share of the Mandatory program funding plus 100% of costs in excess of the Mandatory program budget.  Similar to Scenarios 1 and 2, contributions do not contemplate the Mitigation funding approval for 2022 in the amount of $1,260,800.  Such Mitigation funding will be apportioned to the Obligated Municipalities during the 2022 settlement process, if eligibility requirements have been met.

Funding Scenario 3
Municipality 2022 2021 Change
The Corporation of the City of Windsor 6,848,563 3,728,701 3,119,862
The Corporation of the County of Essex 5,724,164 3,116,522 2,607,642
The Corporation of the Township of Pelee 7,410 4,034 3,376
  12,580,137 6,849,257 5,730,880

RISK ASSESSMENT

The inherent risk associated with the budget process is other than low, due to the number of factors:

  • Mandatory Funding approval from the MOH.  A risk exists that the Mandatory funding approval for 2022 will be greater than or less than 2021 approval of $15,981,600.  If less, the Obligated Municipalities will be required to increase their contributions to fund programs and services in excess of the required 30%.  If greater, Obligated Municipalities will be required to increase their contributions to bring their funded portion of the WECHU’s budget to 30%.  Should Obligated Municipalities not increase their contributions in response to changes in funding by the MOH, the WECHU would be required to curtail programs and services.
  • One-time Funding approval from the MOH.  A risk exists that the MOH will not provide on-going financial support to public health units for expenditures incurred on account of COVID-19 response, including vaccination.  In addition, there is a risk that the MOH will not provide financial support to public health units for program restart and program development as we enter Recovery.
  • The future state of the COVID-19 pandemic continues to be the most substantial risk impacting public health.  The question of whether the COVID-19 pandemic will transition from a pandemic to an endemic disease state in 2022, remains unknown.
  • Costs associated with capital projects.  Except for project management costs, no other costs associated with the capital project have been contemplated in the 2022 budget.  Administration will investigate capital funding opportunities through the Health Capital Investment Branch of the MOH to mitigate the WECHU’s exposure to this financial risk.
  • Other operating costs.  In arriving at budgeted operating costs, Administration attempted to factor in the impact of external pressures, such as inflation and market pressures.  Administration will mitigate these risks by ensuring appropriate procurement processes and procedures have been followed.  Additionally, the WECHU will actively monitor budget to actual financial results and implement mitigation strategies when required.

MOTION

Whereas, the Windsor-Essex County Health Unit receives grants annually from the Ministry of Health to a maximum of 70% of admissible expenditures associated with the Mandatory Program.  In addition, the WECHU receives required contributions from the Obligated Municipalities at a minimum of 30% of admissible expenditures, and

Whereas the Ministry of Health annually provides grants for certain related health protection and promotion programs at a rate of 100% of admissible expenditures,

Now therefore be it resolved that the Windsor-Essex County Board of Health approve the 2022 Mandatory Program budget, requiring $16,301,232 in base funding from the Ministry of Health and $6,986,242 in contributions from the Obligated Municipalities, the Corporation of the City of Windsor, the Corporation of the County of Essex and the Corporation of the Township of Pelee, be approved.

FURTHER THAT the Windsor-Essex County Board of Health approve the 2022 Mandatory Program budget with total expenditures of $20,261,732 and offset revenue of $147,724, and

FURTHER THAT the Windsor-Essex County Board of Health approve the 2022 COVID-19 Program budget with total expenditures of $6,289,784, and

FURTHER THAT the Windsor-Essex County Board of Health approve the 2022 Recovery Program budget with total expenditures of $2,329,853, and

FURTHER THAT the Windsor-Essex County Board of Health apply for one-time funding for costs in excess of the Mandatory funding approval, funded at a rate of one hundred (100) percent in the amount of $5,593,895 associated with the 2022 COVID-19 Program budget and the 2022 Recovery Program budget.


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