Barrie maintains an “AA” credit rating, showing the city is “on the right track”
“Good financial management helps us reduce taxes because it lowers interest charges on loans,” says Mayor of Barrie
The City of Barrie has maintained its “AA” credit rating for another year and the outlook is stable, according to the latest Standard & Poor’s (S&P) report. This report is published annually by S&P, a financial services company that provides credit rating, data analysis and equity research services to the private and public sectors around the world.
“Getting that ‘AA’ rating from S&P is always important to us, because it indicates that we are managing our finances well – and good financial management helps us reduce taxes because it reduces interest charges on loans,” said said Mayor Jeff Lehman. “With the city’s financial situation in the news lately, I am very happy to read the positive comments in the report on how Barrie has managed public money and the strength of our local economy.
“This memo shows that we are on the right track.”
The report attributes Barrie’s “AA” rating to the city’s cost containment efforts, a growing and diversifying economy, and strong financial management. S&P expects the city to maintain its healthy liquidity position over the forecast horizon.
“The steps we have taken to minimize the economic impacts over the past 20 months have helped protect the city’s financial future,” said Craig Millar, chief financial officer. “Our staff are committed to maintaining our commitment to the financial stewardship that S&P expects from the City of Barrie. “
Highlights of the S&P report:
- Barrie demonstrates strong financial management practices, with generally strong political consensus in adopting budgets without major changes or delays.
- Barrie’s economy is recovering as pandemic restrictions ease and the city’s major industries such as manufacturing and construction expand. Effective cost containment strategies have helped the city end 2020 in a relatively strong position, and as the local economy gradually reopens, Barrie is expected to continue to produce strong operating balances over the next several years.
- Management has put in place effective measures to compensate for the loss of income related to the pandemic.
To read the full report, visit barrie.ca/Finance.