VARIANCE DESCRIPTION
The total departmental year-end variance is projected to be approximately:($1,410,000) (Deficit)
EMS / Land Ambulance: ($1,300,000) Deficit
Based on current information, EMS / Land Ambulance is projecting the City of Windsor’s share of the year-end deficit to be approximately ($1,300,000).
EMS / Land Ambulance has updated their projections based on August activity and additional information from WSIB regarding their NEER (New Experimental Experience Rating) assessment, which has resulted in significantly higher projected future costs than first expected for several 2019 claims. There is significant risk that those individuals won’t be back to work prior to the September 30th NEER cut off date, resulting in an estimated variance of approximately ($600,000).
Salaries and benefits are anticipated to be $1.2 million over budget, largely due to response efforts related to COVID-19 (hiring of temporary staff to assist with donning/doffing personal protective equipment (PPE), backfilling of sick leaves, managing overtime, and the inability to allow vacations). It should be noted that this does not include unbudgeted costs related to Temporary Pandemic Pay, as this was 100% funded by the Province.
The purchase of PPE, higher than normal laundry / disinfection costs (related to COVID-19 protocols), and increases in unit costs for medical supplies & equipment (resulting from global increases) is expected to cause an additional deficit of approximately $1.2 million.
Offsetting these variances are positive competitive procurement results related to the purchase of stretchers and door access improvements and the deferral of certain projects / equipment replacement which have generated significant savings. Additional savings resulting from the unexpected decline in fuel prices have materialized. Finally, adjustments were made to the methodology used for distribution of Paramedics funding within the region resulting in additional base funding for the VPN (vulnerable patient navigator) program.
Essex Region Conseration Authority ($65,000)
The Essex Region Conservation Authority's budget was approved subsequent to the City's budget being approved and will result in a ($65,000) deficit.
Handi Transit ($45,000)
Handi Transit is projected to end 2020 with a ($45,000) overall deficit. Due to Covid19, Handi Transit has experience a reduction in ridership which resulted in reduced revenue. Handi Transit also incurred additional expenses for building and vehicle cleaning in order to ensure all areas met Covid19 cleaning requirements. The department did see saving in the salary and wage accounts due to a reduction in temporary employees required to provide necessary service. At quarter 3, the department is anticipating a year end deficit of ($45,000).
Windsor Essex County Health Unit: $0
The Windsor-Essex County Health Unit (WECHU) received funding approvals from the Ministry of Health in the latter part of August 2020 and is currently assessing the application of those approvals to actual and forecasted financial expenditures for the 2020 fiscal year. Although it is estimated at this time that the projected deficit previously communicated in July may be offset by funding received from the Ministry, updated forecasts will be made available in October of 2020 which may change the final year-end position.