The Kenora District Services Board (KDSB) passed a resolution on August 11 at their monthly board meeting, to approve the 2012 Preliminary Budget Report.

The report outlined the goal of KDSB going forward, including zero-based budgeting, anticipated expenditures issues and other known contributing factors for 2012.

Zero-based budgeting is a method in which all expenses must be justified for each new period, and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.

KDSB has concentrated on two divisions, including Housing and EMS, as there are a high percentage of embedded operating costs driven by the existing operating conditions and operating practices currently in place.

Some of the 2012 operating factors and estimate assumptions include a 10 per cent increase, and there should be no significant increase in the cost of hydro due to an arrangement with AMO (Association of Municipalities of Ontario) to join the Municipal Hydro Buying Group.

The organization foresees a huge challenge with the Building System Renewals, as well as a difficulty estimating the cost increases on the horizon for EMS salary and benefits.

The current collective agreement with the paramedics expires on December 31, 2011, therefore causing difficulty in estimating cost increases in this area. The EMS salary and benefits expense represents approximately 22 per cent of the total KDSB operating budget, so any increase to this budget line is significant.

The board is still looking at equipment renewals for the EMS group in 2012, continuing its mission to replace the entire defibulator equipment inventory.

KDSB estimates an increase of 50 per cent of fuel cost, as well as repairs and maintenance to assist the aging fleet of EMS vehicles.

Patient care equipment and supplies are looking at an increase of 10 to 15 per cent for oxygen, due to a very limited competition, with medical supplies and drugs trending at a medical inflation rate which is much greater than the regular CPI (Consumer Price Index).

Due to the Province of Ontario announcing a change in their method of funding Ontario Words administration, the impact is due to have a net effect of loss of revenue in the $90,000 range for the 2012 budget year.

In 2010, the province announced a policy change in their method of funding Ontario Works client benefits. This policy change will have the province upload 100 per cent of the costs of client benefits by 2018. The net effect of this shift will have the province assuming an additional 1.6 per cent of the client benefit costs in 2012, converting to approximately $85,000 in savings to the local share for 2012.

Based on a very preliminary projected budget, KDSB is anticipating an increase in the local share of approximately $800,000, which represents an increase of 5.5 per cent over the 2011 budget year.

By Ally Dunham