By Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press
County Council received a report outlining that Standard and Poor’s recently gave the Corporation of the County of Essex a AAA credit rating, with a stable outlook for 2024.
Melissa Ryan, Director of Financial Services/Treasurer, called that great news, as it is the highest rating for a County government. The review process included an interview with the County Treasurer to discuss financial strategies and future goals.
The County’s reserves and fiscal policy ensure capital projects are funded without relying on debt, Ryan said.
“This credit rating translates to lower borrowing costs for the future and also reenforces the County’s reputation for financial stability,” Ryan added.
“The County was recognized for having supportive institutions and prudent financial management practices which strengthens our credit profile. Noteworthy attributes include robust after-capital surpluses, supported by solid reserves, which helps mitigate debt issuance. It was also noted the County has a robust liquidity position, which will support our creditworthiness,” it adds in the report.
In answering Amherstburg Deputy Mayor Chris Gibb’s question on the cost associated with having the report completed, Ryan noted its price tag is around $28,000.
Further, LaSalle Mayor Crystal Meloche asked if the report is required, and wondered of the value with the cost of having the report completed. Ryan answered that having the report completed assesses the County’s financial health and creates transparency for the public, because it is conducted by a third-party. It also helps the County get better rates if there is a need to borrow.
Meloche appreciates transparency, but wondered if it could be done every other year, with the cost.
CAO Sandra Zwiers said staff can look to see what other upper-tier levels of government do, however, she believes having the rating review completed is standard. Other companies can also be explored.
Essex Mayor Sherry Bondy explained on one of the documents provided on this matter, it presumes County Council will approve and implement tax increases as demonstrated by the 4.8% hike in the 2024 Budget. She found that to be a little presumptuous and scary, as the tax increases at the County-level have traditionally been lower, sans 2024.
“I do not believe we can continue to have hefty tax increases at the County-level…we haven’t had them in the past. It seems we are the Council that is having the heaviest tax increases at the County-level. And that makes it even harder on all of us at the local tier.”
Bondy believes it is great the County received the AAA credit rating, “but I do believe there are probably some consequences with these big tax increases at the County…going into budget, I think we need to sharpen our pencils here.”
In answering Warden Hilda MacDonald’s question, Ryan noted the County tax increase has always been at or below the inflation rate.