ERCA budget increases slightly as insurance costs hit hard

Published Feb 16, 2024 • 2 minute read

The Essex Region Conservation Authority board held a budget meeting at the Essex County Civic and Education Centre on Thursday, Feb. 15, 2024. Photo by Brian MacLeod /Windsor Star

Spending will be going up about three per cent at the Essex Region Conservation Authority this year but municipal levies will drop slightly after some municipalities followed Windsor’s lead in holding back money for land acquisition.

ERCA’s board of directors approved the 2024 budget of just under $8.9 million Thursday night.

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But money apportioned to the municipalities for land acquisition, considered a non-mandatory cost by the provincial government, will decline by almost $480,000, or about 12.7 per cent.

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The provincial government requires that conservation authorities identify mandated programs, for which a levy is placed on member municipalities based on an assessment formula. Non-mandated programs now require cost-sharing agreements among municipalities.

Late last year, seven of nine non-mandatory initiatives received unanimous support from municipalities. But Windsor decided to reduce its contribution for land acquisition and the agricultural stewardship outreach program, deciding instead to hold money in its own reserve account pending requests from ERCA about any land purchases.

One employee in the agricultural stewardship outreach program was laid off from ERCA after Windsor decided to fund only five per cent of its apportionment of about 49 per cent for that program.

The city decided to fund $250,000 of its apportioned $439,000 for land acquisition. And it opted to place $133,000 in its own reserve fund.

Several other municipalities followed Windsor’s lead, said ERCA’s chief administrative officer Tim Byrne. That resulted in a total drop in spending on land acquisition of about $480,000.

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As a result, the nine municipalities that fund ERCA will see their levies reduced. Windsor’s levy drops by 13.4 per cent, as does Tecumseh’s; Leamington’s levy drops by 10.9 per cent, Essex’s levy drops by 12.6 per cent and Amherstburg’s drops by 11.7 per cent.

Several municipalities have yet to sign cost-sharing agreements for non-mandatory programs with ERCA.

ERCA’s overall spending is increasing mainly because of inflation and insurance costs, said Byrne.

“All of our insurance policies have doubled, tripled, quadrupled for people and for property, everything,” he said after the meeting.

Severe storms that hit parts of Ontario last summer caused more than $340 million in insured losses, and insurance companies are responding to that, said Byrne.

Still, one of the key initiatives in this year’s budget is restoration of the John. R. Park Homestead in Essex, he said.

The 19th century homestead, which consists of the original mansion and several buildings, and its surrounding grounds are part of a conservation area managed by ERCA.

The main mansion was closed to the public last fall, but it should be reopened next year, said Byrne. About $1 million is planned to be spent on the restoration project over 10 years.

bamacleod@postmedia.com

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