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.
| 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.
| 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.
| 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.
| 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.