The County of Essex is in good financial shape and to ensure that, it has decided to create a new policy in regard to managing its reserves.
At last week’s regular council session, director of financial services/treasurer Melissa Ryan presented a proposed reserve management policy which was adopted.
In her report, Ryan said that the purpose of the new policy was to help manage reserves, assist with informed decision making and ensure long-term financial stability.
“It is designed to provide clear and consistent guidelines for managing the county reserves,” said Ryan.
A condensed look at the county indicates there is $115,410,925 in reserves which is divided into various categories including rate stabilization at $18.54 million, $94.7 million in capital reserves and $13.76 million in EMS.
Prior to approving the new policy, any reserve related decisions were made during budget deliberations.
“It (the new policy) was created by reviewing other municipalities’ policies as well as drawing from reputable sources,” said Ryan.
The policy allowed for some reallocation of reserves from one category to the next.
“These targets will be reviewed annually to ensure they remain consistent with industry standards and our strategic plan objectives.”
Ryan pointed out in her report that reserve funds are established for several reasons including to facilitate long-term planning, smooth tax rate impacts and revenue fluctuations and to absorb cost of any one-time expenses not included in the annual budget.
“The county has a long-time history of solid financial practice,” said Lakeshore Mayor Tracey Bailey.
Also at last Wednesday night’s meeting, county council received the financial projected results of operations for the period of January to June.
As it currently appears, by year’s end there will be a surplus of $487,420. This is dependent on several factors including winter control activities remain within the five-year average, social services caseloads and social housing costs remaining favourable, no significant tax write-offs and continual stable returns on county investments.
It was noted by Ryan that the county’s Sun Parlour Home in Leamington is projected to have a $600,000 surplus by year’s end but general government has a $448,570 deficit due in part to unbudgeted non-union and councillor increases.
New reserve policy adopted by the county
By Fred Groves
Comments