HAMILTON, ON – S&P Global Ratings (S&P) released its most recent Research Update this week, affirming its ‘AA+’ long-term issuer credit and debt ratings for the City of Hamilton with a stable outlook.
S&P recently realigned their ratings review and surveillance schedule resulting in the release of this Research Update just five months after the previous Research Update, which was released in June.
The ‘AA+’ credit rating and stable outlook reflect the City’s high rankings in almost all categories, including:
Institutional framework – Very predictable and well balanced
Economy – Very strong
Financial management – Strong
Budgetary flexibility – Average
Budgetary performance – Strong
Liquidity – Exceptional
Debt burden – Very low
Contingent liabilities – Very low
The City’s budgetary flexibility continues to be rated as Average due to the impacts of provincially mandated service levels, labour contracts, inflation, challenges deferring capital spending due to aging infrastructure and infrastructure deficit.
Other highlights include:
• The City operates in a very predictable, well-balanced local and regional government framework, which lends to its stability
• Financial management is considered strong due to fiscal prudence, e.g. cost-cutting where possible, including $12M from the City’s 2017 budget
• Strong budgetary performance; the city has mild, yet steady, assessment growth
• Exceptionally high internal liquidity levels complemented by very robust internal cash flow generation reflected in its very high operating surpluses and satisfactory access to external liquidity for refinancing needs
• Very low debt burden and interest costs are expected to remain very modest
• Contingent liabilities such as ownership of businesses, standard employee benefits and landfill post-closure liabilities are modest and do not present significant risks to the City’s debt burden or liquidity
The research update findings are consistent with the City’s continued focus on greater financial acumen through multi-year business planning, business cases with identified good value for money, risks and outcomes, vendor management and standardized project management processes.
Additional Resources
S&P Global Ratings (S&P) Research Update - November 2017 - City of Hamilton
Quotes
"I am extremely pleased with the recent update from S&P Global Ratings that the City of Hamilton rating is once again AA+. We are on the right track. We continue to benefit from strong, robust financial management, allowing us to keep tax increases low while investing in programs, services and infrastructure. This acknowledgment is encouraging and confirms that Hamilton continues to be a thriving municipality.”
Mayor Fred Eisenberger
What kind of cockamamie S&P rating and City Media Release is this?
ReplyDeleteNOTE from the release - "The City operates in a very predictable, well-balanced local and regional government framework, which lends to its stability"
That statement tells it all. The City operates under the Municipal Act and it is impossible for the City to go bankrupt! No Ontario municipality has ever gone bankrupt.
It's disingenuous for the Mayor to take credit for being a creature of the Province.
we currently own a $3.3B infrastructure deficit, on assets currently graded in "fair" condition, to which we continue to add an additional $200M per year.
ReplyDelete"to pay for everything we need we have to tax the heck out of people"
Chris Murray, Ham.Spec. 3/21/15 "Hamilton-The unaffordable City"
This pleases Fred, he is certain we are on the right track.
Such acknowledgments are insulting and confirms Hamilton continues to be led by mismanagement and incompetence.
Through a combination of federal incentives, state programs and private capital, cities were able to rapidly grow by expanding horizontally. This provided the local government with the immediate revenues that come from new growth -- permit fees, utility fees, property tax increases, sales tax -- and, in exchange, the city takes on the long term responsibility of servicing and maintaining all the new infrastructure. The money comes in handy in the present while the future obligation is, well....a long time in the future.
ReplyDeletehttps://www.strongtowns.org/journal/2017/1/9/the-real-reason-your-city-has-no-money
Raw
Don't hold your breath waiting for that "state program" to kick in and subsidize your purchase.
DeleteClose. So close.
Demi
Hamilton.
DeleteWhere Santa needs a permit.
Mike Stark
$10.7M now required for "immediate action" to prevent falling bricks from the Convention Centre from maiming(or worse)unsuspecting pedestrians, to fix inoperable elevators and escalators and corroded steel beams at the First Ontario Centre.
ReplyDelete2 jewels in the core.
Maybe we could get the Fire Dept. to practice rope rescues at Bulldog games to get patrons to the 2nd level.
Maybe some Gorilla Glue for them bricks.
Maybe Fred closes his eyes when he looks out his office window.
(interesting how both Carmens and First Ontario manage to avoid any responsibility for maintaining properties which carry their respective banners.Yet more evidence of the robust mismanagement on display from our friends at 71 Main)
Chachi