County financially strong, nearly $315 million in reserves

Essex County Civic Centre.

Good news to those who pay taxes in Essex County; the local upper-tier government is in solid financial shape.

At last week’s county council meeting, director of financial services/treasurer Melissa Ryan presented the 2024 Consolidated Financial Statement and deputy treasurer Heidi McLeod presented the current Asset Management Plan (AMP).

“This version (AMP) did come with a lot of added provincial requirements including detailed proposed level of service and long-term financial strategies which made it more complex than in previous years,” said Ryan.

In viewing both the financial statement and the AMP, council had questions and comments about the county’s on-going contribution to the new mega hospital.

It appears as though Essex County’s $90 to 100 million contribution now sits about halfway at $51 million.

“If and when the new hospital comes, that will not be part of the county’s asset management plan,” questioned Amherstburg Deputy Mayor Chris Gibb. “We are paying our share but we don’t have to maintain that asset, it becomes the province’s responsibility. Is that correct?”

Gibb was assured that once the hospital is built, it is not up to the county and its taxpayers to keep it going.

Essex County has $51 million in reserves for the hospital which is a significant percentage of its $314.7 million overall reserves. The biggest in the bank is $110.7 for roadway expansion and there is also $17.5 for both EMS vehicle and equipment replacement and the rate stabilization fund which council has dipped into in the past.

As far as financial assets, the county has $372.5 million which is up from 2023 of $346.1 million.

The Asset Management Plan provides county council with an in-depth financial look which will help it come up with the 2026 budget of which deliberations will begin in a few months.

In her report, McLeod noted that 64 percent of the county’s assets are in good or very good condition which is down by about six percent from the last AMP. She also said that the county is taking a cautionary approach and will factor in inflation.

“We need to ensure that spending keeps pace with inflation,” said McLeod.

McLeod expects the two biggest assets, roads and bridges and culverts could see a jump of up to five percent in interest.

Ryan expects that the next county budget will have to include at least one million dollars for inflation.

“Can we be a little bit strategic as far as priorities because I think we all know where we are at in our economic climate,” said Kingsville Mayor Dennis Rogers.

County financially strong

By Fred Groves