Strong foundations are key to the success of any household, business or organization. The same rings true for the City. To become a future-ready City, we need to consistently work together as an organization to make sure our finances are in order.
In 2022, the City achieved the highest possible independent AAA credit rating from S&P Global Ratings. This rating reflects the City’s commitment to long-term financial sustainability and the resilience of Guelph’s local economy.
S&P’s positive and objective third-party assessment of Guelph’s financial picture shows our fundamentals are solid. The rating is a testament to Council and City staff’s collective focus on strong fiscal discipline and prudent policies.
S&P is an independent company that looks at municipalities and corporations worldwide and analyzes their capacity to meet financial obligations. The report highlights the strength of Guelph’s economy and budgetary resilience through future economic cycles, with S&P’s report authors noting, “We expect Guelph will remain a destination for economic development.” The City’s stable financial foundation and long-term revenue planning initiatives include the Long-Term Financial Framework, strong reserve balances and responsible debt management.
S&P also highlights the benefits of Guelph’s multi-year budget process as key to Guelph’s stable financial position, stating: “The City has begun preparing multi-year budgets” and “Guelph plans to introduce a four-year operating budget in 2024.” The report also highlights the capital program resourcing strategy, noting that “Guelph has also begun to reinforce its capital projects team, resulting in increased capital spending this year and lower expected deferrals. It is also undertaking a capital reprioritization project to better inform its future capital plans.”
A credit rating is not just a letter grade on a report card. It exemplifies Guelph’s long-term planning and overall commitment to fiscal responsibility now and in the future to ensure a solid foundation for our community. Achieving a AAA credit rating allows our tax dollars to go further through a lower cost of borrowing. It provides the fiscal flexibility we need to fund critical infrastructure projects in the City.