The County of Essex is three months away from having zero tax-supported debt.
County treasurer Robert Maisonville told county councillors Wednesday that once the county makes its final $300,000 payment in June, “there will be zero debt on the levy.”
Maisonville also presented his annual report on the repayment limit for debt – a calculation based on 25 per cent of “own-source revenue” or money raised mainly through taxes but not things like government grants or reserve allocations.
That calculation determines the maximum amount a municipality can commit to debt payments before it must obtain approval from the Ontario Municipal Board.
He said the county could, if required, issue $250 million of debt over 20 years at five per cent interest.
“So we could issue lots of debt if we wanted to,” Maisonville said. “But we’re more pay as you go … so we aren’t burned by that interest on the debt.”
Warden Tom Bain credited staff in the finance department for putting together the plans that helped get the county in “excellent shape.
“I think it’s been a long term strategy that our administration has set in work a number of years ago of making sure we pay as we go,” Bain said.
“We’ve got a large reserve that’s been built up over time so when things come along that require immediate cash we don’t have to raise the taxes, we’ve got a base there,” he said. “And I think that’s a very important thing when you’re looking to attract new businesses into the area … one of the first things they look at is how is Essex County financially.
“We can very proudly state that yes we are (solid financially).”
Maisonville said that because the county owns 50 per cent of Essex Windsor Solid Waste Authority, “their debt shows up on our financial statements” but that is not county debt, it is paid for through dumping fees.
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