Submitted by: Dr. Nicola Mercer, Medical Officer of Health and CEO
Subject: 2019 DRAFT BUDGET
Recommendation(s)
(a) That the Finance + Facilities Committee makes recommendation to the Board of Health to refer the 2019 Draft Budget to the Board of Health for approval.
Background
Wellington-Dufferin-Guelph Public Health (WDGPH) receives ongoing funding from several sources: the Ministry of Health and Long-Term Care, the Ministry of Children and Youth Services, the City of Guelph, the County of Wellington, the County of Dufferin, and the Public Health Agency of Canada. Most of the Ministry of Health and Long-Term Care funded programs are cost shared with the three obligated municipalities, and some of them are 100% provincially funded programs.
This document presents a consolidated budget for all Ministry of Health and Long-Term Care funded programs, including both those cost-shared with the three municipal partners, and those funded 100% provincially. Appendices “A”, “B” and “C” presented these budgets, grouped as follows:
- Appendix “A” - Cost-shared budgets: includes Cost-Shared Mandatory Programs and Cost-Shared Related Programs (Vector Borne Diseases and Small Drinking Water Systems);
- Appendix “B” - 100% MOHLTC funded budgets: includes all pots of funding for specific programs and initiatives that receive 100% provincial funding; and
- Appendix “C” - Consolidated budget.
Each of the sub-budgets have been numbered, as follows, and these numbers will be used consistently throughout this report when referring to a sub-budget component:
| Sub-budget | Report Reference Number | Appendix |
|---|---|---|
|
Cost-Shared Mandatory and Related Programs |
(1) | Appendix “A” |
|
Cost-Shared Related Programs: Vector Borne Diseases and Small Drinking Water Systems |
(2) | Appendix “A” |
|
100% MOHLTC Funded Budgets |
(3) | Appendix “B” |
|
Consolidated Budget |
(4) | Appendix “C” |
(1) Funding for Cost-Shared Mandatory Programs is received as a global budget, which is an amount of funding from the province that is intended to fund programs as organized by health units that meet the Ontario Public Health Standards. The allocation of funds to meet the various standards is at the discretion of the Board of Health based on management’s recommendations.
Cost-Shared Mandatory Programs (1) include:
- Chronic Disease Prevention
- Food Safety
- Health Hazard Prevention and Management
- Positive Parenting
- Growth and Development
- Healthy Parents and Caregivers
- Healthy Communities
- Non-Publicly Funded Immunizations
- Publicly Funded Immunizations
- Vaccine Distribution
- Rabies
- Infectious Diseases Prevention
- Tuberculosis Prevention and Management
- Sexual Health
- Infection Control
- On-Call
- Safe Water
- Oral Health
- Vision
- School Health Immunization
- School Health Promotion
- Substance Use
- Harm Reduction
- Injury Prevention
(2) Cost-Shared Related programs are cost-shared between the provincial and municipal funders, but provincial funding is provided on an individual basis for each of these programs to be used specifically for that program. New in 2018, and expected to continue for 2019, is the ability to request a transfer of funds from one individually funded program to another, or from one individually funded program to a cost-shared mandatory or 100% MOHLTC funded program. Budgeted revenue and expenditures for each of these programs are included in the Cost-shared budget at Appendix “A”.
Cost-Shared Related programs are:
- Vector Borne Diseases; and
- Small Drinking Water Systems.
(3) The MOHLTC provides several pots of 100% funding for specific positions, programs, and enhancements to programs. This funding is presented, in aggregate, in Appendix “B”. Appendix “B” includes the following:
- Position specific funding:
- Infection Prevention and Control Nurses Initiative;
- Chief Nursing Officer;
- Infectious Diseases Control Initiative;
- MOH/AMOH Compensation Initiative; and
- Social Determinants of Health Nurses Initiative.
- Programs:
- Healthy Smiles Ontario; and
- Smoke Free Ontario.
- Program Enhancements:
- Electronic Cigarettes Act;
- Enhanced Food Safety;
- Enhanced Safe Water;
- Harm Reduction Program Enhancement; and
- Needle Exchange Program Initiative;
WDGPH programs that are not included in this draft budget are:
- Healthy Babies Healthy Children (HBHC) – funding provided by the Ministry of Children, Community and Social Services (MCCSS), formerly the Ministry of Children and Youth Services (MCYS).
- Preschool Speech and Language (PSL) – March 31st year-end – funding provided by MCCSS.
- County of Special Needs Resourcing – funding provided by the County of Wellington.
- Canadian Prenatal Nutrition Program (CPNP) – March 31st year-end – funding provided by the Public Health Agency of Canada (PHAC).
- Other Community Grants – based on individual service contracts.
(4) The Consolidated budget shows the Cost-Shared Mandatory (1), Cost-Shared Related (2), and 100% MOHLTC Funded Related (3) programs together.
Analysis/Rationale
Budget Objectives
The Senior Leadership Team’s objectives for the 2019 budget are:
- Alignment with organizational vision and strategic plan, updated Ontario Public Health Standards, and Accountability Framework;
- Balanced budget;
- Value for money.
Budget Process
The following process was undertaken for the preparation of the 2019 budget.
To date:
- Budget guidelines provided to management team;
- Budget training sessions delivered to the management team by Finance;
- Salaries and benefits costs for 2019 calculated by Finance;
- Preparation of program operating budgets and operational plans by Program Managers;
- Review of program operating budgets and operational plans by Directors;
- Finance compilation of Divisional Budgets;
- Finance meetings with each Director and their Managers to review budgets submitted;
- SLT review of draft budget and preliminary discussion of one-time grant requests;
- Preparation of report and presentation for Finance + Facilities Committee based on SLT approved draft.
To come:
- Finance + Facilities Committee review and recommendation to Board of Health for approval;
- Board of Health approval;
- Finalize list of one-time grants;
- Present final list of one-time grants to be submitted to Board of Health in February 2019;
- Preparation of Annual Service Plan and Budget Submission;
- Submit Annual Service Plan and Budget Submission (by February 28, 2019);
- Receive provincial funding approval from MOHLTC.
2019 Budget Information
Status Quo Forecast:
- Provincial funding increase of 0%;
- Municipal funding increase of 2%;
- Salaries increase of 1.25% for all management, union and non-union staff except MOH/CEO;
- Benefits:
- Statutory – approximately 2% increases based on trajectory from past 3 years.
- Non-statutory – overall decrease of 5.5% due to switch to Sunlife in July 2018.
Overview of Key 2019 Consolidated Budget Changes by Category:
| Budget Category | 2018 Budget | 2019 Budget (Draft) | Change | Explanation |
|---|---|---|---|---|
| Revenue |
$23,232,216 |
23,428,285 |
196,067 |
2% increase in municipal funding, added transfer from Fluoride Varnish Reserve, and increased interest revenue by $7,000. |
|
Staffing expenses |
$17,707,121 |
$17,920,801 |
$213,680 |
1.25% increase in staff salaries (except MOH, AMOH, and red circled positions), added 1.0 FTE Program Assistant position for vision program. |
| Operating expenses |
5,525,096 |
5,507,483 |
(17,613) |
|
| Total expenses |
$23,232,217 |
$23,428,284 |
$196,067 |
Enterprise Resource Planning (ERP) Software Budget
There will be two types of funding required for the ERP project: up-front capital costs, and ongoing operating costs. WDGPH has not yet selected a system to purchase, so the estimated costs presented below are preliminary and subject to change.
Plan for funding up front capital costs:
| Estimated Capital Cost | $800,000 |
|
Amount to be funded from 2019 Operating Budget (included in 2019 Draft Budget) |
$214,155 |
|
Amount to be funded by One-time Grant (primary plan) or IT Reserve (back-up plan) |
585,845 |
|
Total funding |
$800,000 |
Plan for funding the ongoing operating costs:
Beginning on January 1, 2020 the amount earmarked for up-front capital costs in 2019 will be available to be used to fund the ongoing operating costs of the ERP software in addition to the funds in the annual operating budget for the agency’s current administrative systems, as follows:
| Estimated ongoing annual costs |
$225,000 - $275,000 |
|
Annual operating budget for administrative systems being replaced – and diverted to ERP** |
49,120 |
|
Amount in 2019 budget for up-front capital costs converted to ongoing annual costs in 2020 |
214,155 |
|
Total annual operating funding available annually beginning in 2020 |
$263,275 |
** Administrative systems that would definitely be replaced by the ERP. Does not include annual fees for Questica Budget software ($12,000), Emperform ($9,000), CaseWare ($1,800), and Njoyn ($7,000), though depending on the functionality of the ERP solution purchased some of these programs may be replaced by the ERP.
Vision Screening Program Budget
The Vision Screening program will have two components:
- Notification/follow-up/system navigation; and
- Kindergarten students school screening
The 2019 Draft budget includes reallocated funds for both components as follows:
|
1.0 FTE Program Assistant for notification/follow-up/system navigation |
$65,943 |
|
Fees for service to external provider of kindergarten students school screening |
62,950 |
|
Total budget for Vision Screening program |
$128,893 |
One-Time Grants
Similar to the process for the 2018 budget, one-time grants ideas are under development, and will be finalized in January 2019.
A final list of one-time grant requests to be submitted to the MOHLTC will be provided to the Board of Health at the February 6, 2019 Board of Health meeting. The deadline for submission is February 28th.
To date, there are two proposed one-time funding requests for 2019:
- Enterprise Resource Planning Software (see Finance + Facilities Committee Report BH.04.MAR2818.R08 – Enterprise Resource Planning (ERP) Software for details about this project); and
- Strategic Planning Support.
Risk Analysis
As of the writing of this report, the areas of risk and opportunity for the Board related to the 2019 budget are:
- Impact of the Making Ontario Open for Business legislation;
- Level of provincial funding for 2019
APPENDICES
Appendix “A” – Cost-Shared Mandatory and Related Programs Budget (1) and (2)
Appendix “B” – 100% MOHLTC Funded Programs Budget (3)
Appendix “C” – Consolidated Budget (4)
Prepared by: Shanna O’Dwyer
Reviewed by: David Kingma, Director of Administrative Services Manager, Finance
Approved by: Dr. Nicola Mercer, Medical Officer of Health & CEO
Appendix “A”
Wellington-Dufferin-Guelph Public Health - 2019 Draft Budget
COST SHARED BUDGET: Cost-Shared Mandatory (1) and Cost-Shared Related (2)
| 2018 BOH Approved | 2018 Revised based on Provincial Funding Approval | 2019 Draft | Increase (Decrease) $ | Increase (Decrease) % | Notes | |
|---|---|---|---|---|---|---|
| Revenue | ||||||
| Funding | ||||||
| Grant - MOHLTC |
12,177,400 |
12,537,000 |
12,537,000 |
0 | 0.0% | |
| Grant - City of Guelph |
3,868,973 |
3,868,973 |
3,946,353 |
77,379 |
2.0% |
|
| Grant - County of Wellington |
2,670,691 |
2,670,691 |
2,724,105 |
53,414 |
2.0% |
|
| Grant - County of Dufferin |
1,807,342 |
1,807,342 |
1,843,489 |
36,147 |
2.0% |
|
| Transfers from reserve | 0 | 0 |
22,333 |
22,333 |
100.0% |
Note 1 |
| Total Funding |
20,524,406 |
20,884,006 |
21,073,280 |
189,273 |
0.91% |
|
|
Interest Income |
||||||
|
Interest revenue |
20,000 | 20,000 | 27,000 | 7,000 | 35.0% | |
|
Total Interest Income |
20,000 |
20,000 |
27,000 |
7,000 | 35.0% | |
|
Total Revenues |
20,544,406 |
20,904,006 |
21,100,280 |
196,273 |
0.94% |
|
| Expenses | ||||||
|
Employee Costs |
||||||
|
Employee salaries & wages |
11,751,443 |
12,046,529 |
12,223,307 |
176,777 |
1.47% |
Note 2 |
|
Employee benefits |
3,521,305 |
3,568,820 |
3,608,879 |
40,059 |
1.12% |
|
|
Total Employee Costs |
15,272,749 |
15,615,349 |
15,832,185 |
216,836 |
1.39% |
|
|
Operating Costs |
||||||
|
Travel |
285,827 |
292,827 |
251,226 |
(41,601) |
-14.21% |
Note 3 |
|
Staff training |
166,778 |
173,778 |
227,388 |
53,610 |
30.85% |
Note 4 |
|
Program supplies |
478,734 |
478,735 |
481,721 |
2,986 |
0.62% |
|
|
Professional & purchased services |
703,240 |
706,240 |
937,814 |
231,574 |
32.79% |
Note 5 |
|
Equipment and furniture |
5,870 |
5,870 |
5,720 |
150) |
-2.56% |
|
|
Board of Health |
38,500 |
38,500 |
38,500 |
0 | 0.0% | |
|
Building occupancy |
2,513,812 |
2,513,812 |
2,257,894 |
(255,918) |
-10.18% |
Note 6 |
|
Information & IT equipment |
794,433 |
794,433 |
728,483 |
65,950) |
8.3% |
Note 7 |
|
Telecommunications |
163,834 |
163,834 |
144,980 |
18,854) |
-11.51% |
Note 8 |
|
Office expenses, printing, postage |
170,130 |
170,130 |
173,353 |
3,223 |
1.89% |
|
|
Expenditure recoveries and offset revenue |
(430,419) |
(430,419) |
(363,712) |
66,707 |
-15.5% |
Note 9 |
|
Transfers to reserves |
380,918 |
380,918 |
384,727 |
3,809 |
1.0% |
Note 10 |
|
Total Operating Costs |
5,271,657 |
5,288,658 |
5,268,094 |
(20,564) |
-0.39% |
|
|
Total Expenses |
20,544,406 |
20,904,007 |
21,100,279 |
196,273 |
0.94% |
|
|
Net Surplus (Deficit) |
0 | (0) | 0 | 0 | ||
Appendix “B”
Wellington-Dufferin-Guelph Public Health - 2019 Draft Budget
100% MOHLTC FUNDED BUDGET (3)
| 2018 BOH Approved | 2018 Revised based on Provincial Funding Approval | 2019 Draft | Increase (Decrease) $ | Increase (Decrease) % | |
|---|---|---|---|---|---|
| Revenues | |||||
| Funding | |||||
| Grant - MOHLTC |
2,328,210 |
2,328,210 |
2,328,005 |
(205) |
-0.01% |
|
Total Funding |
2,328,210 |
2,328,210 |
2,328,005 |
(205) | -0.01% |
|
Total Revenues |
2,328,210 | 2,328,210 | 2,328,005 | (205) | -0.01% |
| Expenses | |||||
|
Employee Costs |
|||||
|
Employee salaries & wages |
1,636,419 |
1,636,419 |
1,649,879 |
13,460 |
1.0% |
|
Employee benefits |
455,353 |
455,353 |
438,737 |
(16,616) |
-4.23% |
|
Total Employee Costs |
2,091,772 |
2,091,772 |
2,088,616 |
(3,156) |
-0.15% |
|
Operating Costs |
|||||
|
Travel |
16,000 |
16,000 |
14,000 |
(2,000) |
-12.5% |
|
Staff training |
5,448 |
5,448 |
5,027 |
(421) |
-7.72% |
|
Program supplies |
180,005 |
180,005 |
184,145 |
4,140 |
2.3% |
|
Professional & purchased services |
22,924 |
22,924 |
22,210 |
(714) |
-3.11% |
|
Equipment and furniture |
2,073 |
2,073 |
2,073 |
1 |
0.02% |
|
Building occupancy |
2,000 |
2,000 |
2,000 |
0 | 0.0% |
|
Telecommunications |
1,874 |
1,874 |
4,070 |
2,196 |
117.18% |
|
Office expenses, printing, postage |
6,115 |
6,115 |
5,864 |
(251) |
-4.11% |
|
Total Operating Costs |
236,438 |
236,438 |
239,389 |
2,951 |
1.25% |
|
Total Expenses |
2,328,210 |
2,328,210 |
2,328,005 |
(205) |
-0.01% |
|
Net Surplus (Deficit) |
(0) |
(0) |
0 | 0 | |
Appendix “C”
Wellington-Dufferin-Guelph Public Health - 2019 Draft Budget
(4) CONSOLIDATED BUDGET: Cost-Shared Mandatory (1), Cost-Shared Related (2), and 100% MOHLTC Related (3) Funds
| 2018 BOH Approved | 2018 Revised based on Provincial Funding Approval | 2019 Draft | Increase (Decrease) $ | Increase (Decrease) % | Notes | |
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Funding | ||||||
| Grant - MOHLTC |
14,505,610 |
14,865,210 |
14,865,005 |
(205) |
0.0% | |
|
Grant - City of Guelph |
3,868,973 |
3,868,973 |
3,946,353 |
77,379 |
2.0% |
|
|
Grant - County of Wellington |
2,670,691 |
2,670,691 |
2,724,105 |
53,414 |
2.0% |
|
|
Grant - County of Dufferin |
1,807,342 |
1,807,342 |
1,843,489 |
36,147 |
2.0% |
|
|
Transfers from reserve |
0 |
0 |
22,332 |
22,332 |
100.0% |
Note 1 |
|
Total Funding |
22,852,616 |
23,212,216 |
23,401,285 |
189,067 |
0.81% |
|
|
Interest Income |
||||||
|
Interest revenue |
20,000 |
20,000 |
27,000 |
7,000 |
35.0% |
|
|
Total Interest Income |
20,000 |
20,000 |
27,000 |
7,000 | 35.0% | |
|
Total Revenues |
22,872,616 |
23,232,216 |
23,428,285 |
196,067 |
0.84% |
|
|
Expenses |
||||||
|
Employee Costs |
||||||
|
Employee salaries & wages |
13,387,861 |
13,682,948 |
13,873,186 |
190,237 |
1.39% |
Note 2 |
|
Employee benefits |
3,976,660 |
4,024,173 |
4,047,615 |
23,442 |
0.58% |
|
|
Total Employee Costs |
17,364,521 |
17,707,121 |
17,920,801 |
213,680 |
1.21% |
|
|
Operating Costs |
||||||
|
Travel |
301,827 |
308,827 |
265,226 |
(43,601) |
-14.12% |
Note 3 |
|
Staff training |
172,225 |
179,225 |
232,415 |
53,189 |
0.11% |
Note 4 |
|
Program supplies |
658,740 |
658,740 |
665,867 |
7,127 |
1.08% |
|
|
Professional & purchased services |
726,164 |
729,164 |
960,024 |
230,860 |
13.4% |
Note 5 |
|
Equipment and furniture |
7,943 |
7,943 |
7,793 |
(150) |
1.88% |
|
|
Board of Health |
38,500 |
38,500 |
38,500 |
0 | 0.0% | |
|
Building occupancy |
2,515,812 |
2,515,812 |
2,259,894 |
(255,918) |
-10.17% |
Note 6 |
|
Information & IT equipment |
794,433 |
794,433 |
728,483 |
(65,950) |
-8.3% |
Note 7 |
|
Telecommunications |
165,708 |
165,708 |
149,050 |
(16,658) |
-10.05% |
Note 8 |
|
Office expenses, printing, postage |
176,245 |
176,245 |
179,217 |
2,972 |
1.69% |
|
|
Expenditure recoveries and offset revenue |
(430,419) |
(430,419) |
(363,712) |
66,707 |
-15.5% |
Note 9 |
|
Transfers to reserves |
380,918 |
380,918 |
384,727 |
3,809 |
1.0% |
Note 10 |
|
Total Operating Costs |
5,508,095 |
5,525,096 |
5,507,483 |
(17,613) |
-0.32% |
|
|
Total Expenses |
22,872,616 |
23,232,217 |
23,428,284 |
196,067 |
0.84% |
|
|
Net Surplus (Deficit) |
0 | (0) | 0 | (0) | ||
Appendix “D”
2019 Draft Budget Notes
- From Fluoride Varnish Reserve
- 1.25% increase to all staff salaries except MOH, AMOH and red circled staff; addition of a 1.0 FTE permanent program assistant
- Reduced based on review of 2017 and 2018 usage to date
- Continuation of Lean Sigma training for the organization
- ERP project support, disaster recovery site and telephone system maintenance, Strategic Planning support and psychological Health & Safety Survey follow-up, and vision screening services
- Mount Forest and Shelldale facilities budgets removed including reduction in custodial costs for these facilities. Reduction in building maintenance projects budgets as many updating projects have been completed over the past two years.
- Telephone system equipment upgrades budget moved to Professional and Purchased Services line; includes some funds for ERP upgrade but most of the budget for this project will come from one-time grants (OTG), or, if OTG not approved, from the IT Reserve
- Reduction in internet costs, cell phones, and phone services
- Reduction in food handler course fees, prenatal fees, flu recoveries (per dose), sales of non-publicly funded vaccines and TB skin tests
- Per Board of Health Reserve Fund Plan
