County projects million dollar surplus for 2021

By Ron Giofu

Essex County council is projected to have a seven-figure surplus at year’s end, according to its treasurer.

Sandra Zwiers, the director of financial services/treasurer with the County of Essex, said they have actual results until the end of June and a projection until the end of 2021 forecasts a surplus of approximately $1,015,020.

Zwiers stated in her report that her projections are predicated on “a number of significant assumptions” such as favourable resolutions to various outstanding wage-related matters within collective bargaining groups, winter control activities remaining within the five-year average, social services caseloads and social housing remaining favourable, no significant tax write-offs, stable returns regarding the county’s investment portfolio, and the impacts of COVID-19 remaining at projected levels for the rest of 2021.

The county’s community services department is projected to have a $8,030 surplus but the Sun Parlour Home in Leamington is projected to have a deficit of $91,420, according to Zwiers’ report.

“The operational cost pressures from COVID-19 remain significant. Staffing costs for co-horting, additional PPE, screening/swabbing and enhanced cleaning protocols are projected to continue through to the end of the year,” stated Zwiers. “The Ministry of Long-Term Care (MLTC) flowed support funds through a number of specific programs to offset pandemic related costs; however, funding announcements have only been confirmed to June. The projection assumes these costs will be funded to the end of the year by either additional MLTC grants or the use of the Corporation’s allocation of Safe Restart dollars.”

EMS operations continue to be impacted by the response to the ongoing COVID-19 pandemic, she added, with that department projected to have a $344,710 surplus.

“Certain capital projects planned in the 2021 Budget will need to be deferred to 2022 due to ongoing pandemic related resource and vendor constraints. The deferral of these projects is anticipated to generate a net surplus of $241,410,” she noted.

Zwiers added regarding EMS: “The Ministry of Health has confirmed pandemic related funding only to March 2021. The projection assumes all pandemic related operating costs to year end will be offset by provincial and/or federal funding either directly from the Ministry of Health or through the application of the Corporation’s Safe Restart funds.”

Zwiers reported the largest driver of the projected surplus for general government relates to the return on investment within the county’s investment portfolio.

“The Corporation’s projected financial position is based on six months of activity with significant uncertainty regarding budget performance for social services, social housing, EMS, Sun Parlor Home, infrastructure services and outstanding contract/wage settlements and pay/internal equity adjustments,” Zwiers’ report added.