VARIANCE DESCRIPTION

The total departmental year-end variance is projected to be approximately: $855,000 Surplus

As detailed below, a combined year-end City surplus of $855,000 is projected for Housing and Children's Services and Windsor Essex Community Housing Corporation (WECHC).

Housing Services and Windsor Essex Community Housing Corporation combined is expected to realize a surplus of $302,000. A net city surplus of $938,000 is projected in Housing due to lower mandated subsidy payments being required by WECHC and other service providers in 2019, as well as from the reconciliation of service provider fiscal year-end reports. In addition, a net City WECHC Covid-19 deficit is projected of ($362,000) as a result of the purchase of Personal Protective Equipment (PPE), increased cleaning expenses, increased capital expenses related to offices renovations to ensure staff and visitors are safe. In addition, WECHC experienced additional costs related to Information Technology and other expenses to allow staff to work from home and maintain physical distancing during the pandemic. A net City deficit of ($317,000) will reduce the surplus due the loss of Federal Block Funding from the Federal government. This deficit, however, is expected to be offset by higher than budgeted County revenue of $43,000 because of a change in weighted assessment rates after the budget was set.

The Community Homelessness Prevention Initiative (CHPI) budget is not projecting a City variance at this time. On April 1, 2020, the Province advised that the City of Windsor would be allocated $3,704,000 through Phase I of the 2020-21 Social Services Relief Fund (SSRF) to support vulnerable populations throughout the COVID-19 outbreak. On July 13th, a report was brought to council indicating the Covid-19 cost pressures for 2020 would be approximately ($1.27 million). Since then, the Covid-19 cost pressures are expected to lessen to approximately ($610,000) by 2020 year end. The Province announced Phase II SSRF funding of $4,475,031 which can be used to help offset eligible operating costs incurred on or after July 2, 2020. A business case to outline the planned utilization of the funds was recently submitted to the Province for approval. If the additional Phase II business plan is approved, the potential 2020 deficit of $610,000 may be offset, therefore this deficit was not included in the year end projection.

Children Services is projecting a surplus variance of $13,000 at this time. A surplus of $68,000 is attributed to higher than budgeted County revenue as a result of the shift in weighted assessment rates after the budget was set. This surplus is offset by a potential deficit of approximately ($55,000) due to re-deployment of Early On staff to other departments due to Covid19 Pandemic requirements.

Pathway to Potential (P2P) is projecting a surplus of $540,000 due to the impact of COVID -19. Savings of $380,000 for Recreation programs and $160,000 for Transit’s Affordable pass program are expected as the programs were not offered or were operating at reduced levels during the Emergency Closure period. Any P2P Recreation or APP saving realized in Housing & Children's Services, will be offset by corresponding revenue losses in Recreation and Transit departments.