By Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press
Essex County Council approved the 2024County of Essex Consolidated Financial Statements, in addition to the 2024 Sun Parlor Home Residents’ Trust Fund Statements, during the June 18 meeting.
Last year, the County of Essex ended up with a surplus of just over $561,000, which went into the Rate Stabilization Reserve.
The 2024 County of Essex Consolidated Financial Statement report provides a snapshot of the County’s financial position as of the end of December 2024, Melissa Ryan, Director of Financial Services/Treasurer, explained. That includes the Essex County Library system and its 50% share of the Essex Windsor Solid Waste Authority (EWSWA).
KPMG LLP, Ryan explained, provided the County of Essex with a clean (unqualified) audit.
“This means our statements are accurate and follow Public and County sector standards,” Ryan said, adding no concerns were raised with internal controls, fraud, or financial reporting. “So, everything is in good shape.”
In 2024, the County adopted three new accounting standards. Those changes, however, had no material impact on the County’s financial results, Ryan added.
In addition to the surplus last year, the County’s total reserves increased to $316.4M, a $24.1M increase from the prior year.
“The positive change in reserve balances is a function of timing in infrastructure expansion work, including roadways, facilities and active transportation, as well as the continued commitment to managing the County’s capital assets and the funding of the New Windsor-Essex Hospital System,” Ryan detailed in her Report to County Council.“
We are in a strong position, in terms of sustainability, flexibility, and vulnerability,” Ryan added. “We have more than enough assets to cover our liabilities, our debt is low – less than 9% of total revenue, our debt service is less than 1% of revenue, which is very manageable, and we are not overly reliant on outside funding.”
Only 22% of the County’s revenue comes from government transfers from the federal and provincial levels.
The County does have a few long-term commitments, including the $100M to the future regional acute care hospital. At the end of 2024, $51M was already set aside in reserve for this. By the end of this year, it is anticipated to be around $60M.
The County also has a $2M commitment to Erie Shores HealthCare, $200,000 annually over the course of a decade, beginning in 2024. The County also has a $960,000 commitment to The Bridge in Leamington, which accounts for $48,000 a year for 20-years, beginning in 2023.
“The 2024 Financial Statements show the County continues to be on solid financial footing. Thanks to careful financial planning, healthy reserve levels, low debt, and transparent accounting, we are in a strong position for the long-term” Ryan said.
In answering LaSalle Deputy Mayor Mike Akpata’s question on if she had any concerns County Council needs to be aware of, Ryan said neither she or KPMG had any concerns, which is always a good thing.
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