Corporate Provisions: $955,000 

The Corporate Provision account is projected to end the year with a surplus of approximately $955,000. This budget contains provisions for JJE, unanticipated WSIB costs, an overtime provision for eligible non-union members, and a general contingency provision. This account contains provisions and accruals for various collective agreements that have been updated to reflect expected costs for the current year. It should be noted that the surplus in this account is offset by various deficits experienced across various line items in departmental budgets.

Fringe Benefit Savings: $1,220,000

For the majority of the Corporation’s fringe benefits (Canada Pension Plan, Employment Insurance, and OMERS) it is business as usual and no savings are projected at this time. Medical and dental benefits through Green Shield, are forecasted to have an annual savings of approximately $2 million. This has been estimated by the Corporation’s benefits consultant, due to the closures throughout the year as a result of COVID-19. The Short Term Disability Program for Transit Windsor is projecting a deficit of ($130,000) due to increased claim activity. LTD Payments is forecasting a ($400,000) deficit, due to the unpredictability of the number of employees who are expected to be approved for LTD in a given year, the amount of their LTD benefit and the length of time they are claiming the benefit. In addition, Transit Windsor settlement increased the cap on the LTD payments, which in turn increased the premiums paid. The Group Life Insurance account is trending in a ($250,000) deficit based on 2020 budget deliberations where it was decided not to bring forward the budget increase request and to assume the risk and maintain a zero budget increase.

Corporate Utilities: $1,995,000

The analysis below for Electricity, Water and Natural Gas is reflective of information available for the months of January to July 2020. District Energy analysis is reflective of year to date June data.

Electricity: $650,000

A budget surplus of $650,000 is being projected to year end. Consumption data indicates a decrease of (3.67%) and a corresponding decrease in costs of (9.79%) compared to 2019. The consumption/cost decrease is primarily related to the shut down of various facilities as a result of COVID-19 $620,000 Surplus and mitigating electricity rate adjustments by the IESO $30,000 surplus. Efforts to reduce electricity consumption and contain operating costs are critical and continue to be a central focus of the Corporate Energy Initiatives. An additional savings of $346,000 is related to sewer surcharge and $4,000 in Parking are not included in the total $650,000 surplus.

Water: $335,000

A budget surplus of $200,000 is being projected to year end. Consumption has decreased by (28.09%) with a corresponding cost increase of 12.95% compared to 2019. The consumption decrease is primarily the result of the COVID-19 shut down. The cost increase of 12.95% is associated with the sewer surcharge rate increase. While the COVID saving is projected to be an estimated $400,000 surplus it is being offset by a projected year-end deficit of ($65,000) relating to sewer surcharge rate increases. An additional deficit of ($135,000) is related to sewer surcharge and is not included in the total $335,000 surplus.

Natural Gas: $810,000

A budget surplus of $810,000 is being projected to year end. Consumption data indicates a decrease of (9.84%) and a corresponding decrease in costs of (8.55%) compared to 2019. The consumption/cost decrease is a result of the following factors: The CHP at WIATC is projected to operate only 3 months in 2020 compared to initially estimates of 12 months $245,000 surplus, formulation error during 2020 budget preparations $240,000 surplus, overstated WBPF consumption adjustment $245,000 surplus and projected COVID savings related to the shut down of various facilities $80,000 surplus. An additional deficit of ($25,000) is related to sewer surcharge and is not included in the total $810,000 surplus.