Continued Projection of Balanced County Budget for 2020 Year

Wyoming, ON - The County of Lambton continues to project a balanced budget for the 2020 calendar year. Cost containment measures immediately taken since the onset of the COVID-19 pandemic in March of this year, combined with potential revenue opportunities, capital project savings/deferrals and funding from a variety of provincial and federal government agencies have supported staff and Council in mitigating the costs and operational pressures from the COVID-19 pandemic.

"Staff have analyzed the situation, made adjustments and continued to maintain County services and operations in alternate forms as much as possible within the restrictions brought on by the COVID-19 pandemic," stated Lambton County Warden Bill Weber. "We are in this financial position because of the staff team we have working together at the County, and they deserve credit for lessening the potential negative financial impacts the pandemic could have inflicted on the County budget."

In total, $1.3 million of cost containment initiatives have been implemented within the County's Operating Budget since the start of the COVID-19 pandemic. These cost containment strategies and action steps include:

• Staff Layoffs: 120 Cultural Services staff temporarily laid off in early April and 26 employees remain on layoff.
• Hiring Freezes: Staff savings of $185,000 anticipated due to hiring freezes in Human Resources, Social Services and Infrastructure & Development Services (cancellation of Public Works - Students).
• Gapping Savings: An estimated savings of $250,000 to $350,000 anticipated due to delays in the replacement of staff due to unanticipated turnover (maternity leaves, new jobs, internal job transfers, etc.).
• Training/Conventions: An estimated savings of $75,000 anticipated due to the cancellation of staff attending conventions/training.
• Reduced Travel Costs: An estimated overall savings of $85,000 anticipated due to reduced travel costs associated with the COVID-19 Pandemic.
• Supplies, Equipment: An estimated savings of $70,000 on discretionary supplies/equipment is anticipated due to County Divisions reviewing supply, equipment requirements as well as the cancellation of County related events.

The County is also looking at potential "revenue opportunities" to achieve a balanced position for 2020. To date, revenues are currently being recognized in the following areas:

• Benefits (Sun Life): A $220,000 withdrawal from the administrative services only account with Sun Life, which accrued due to, in part, the underutilization of group benefits over the past year. A portion of this withdrawal ($120,000) will be deposited to a benefits reserve to offset a potential spike in costs once service providers start resuming full operations and services and employees resume accessing those services in the future.
• Administration Cost Arrangements: Review of the cost sharing arrangements. These include arrangements with other agencies such as Southwestern Integrated Fibre Technology (SWIFT) and internal Departments such as Information Technology, Finance, and Human Resources.

In addition to the cost containment initiatives and revenue opportunities, capital budget amendments and deferrals have been identified by staff to mitigate the costs of COVID-19. To date, the County has identified approximately $1.95 million in capital project savings and cash flow deferrals across all Divisions.

County Administration continues to review its 2020 Capital Plan, including finalizing plans associated with enhanced regulations related to social/physical distancing in the workplace.

The County has received COVID-related funding from several provincial and federal government agencies including the Safe Restart program, Social Services Relief Fund (Phase I and Phase II), funding from the Ministry of Long-Term Care, Cultural Services funding from the Department of Canadian Heritage, and the continued funding of Public Health Units at the 2019 funding level for the 2020 year.

The County will continue to monitor and report the financial impacts of the COVID-19 pandemic, and will continue to implement and recommend strategies to mitigate any budgetary impact to ensure a balanced position for the 2020 year-end to the greatest extent possible.

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Please contact:

Bill Weber
Warden
County of Lambton
519-649-6885
Email Warden Bill Weber