Sudbury gets AA+ credit rating, but what does it mean?

For the third straight year, Greater Sudbury has maintained an AA+ credit rating with Standard and Poor's.

The assessment of the municipality's financial health is based on factors such as financial performance, policies and economic growth.

The credit rating reflects the global financial services company's expectation for the next two years.

While the city expects to continue generating healthy operating surpluses, its large capital program will result in high after-capital deficits.

However, the city officials said this week the numbers will adjust after 2026 due to a decline in the debt burden.

"Potential debt that has been directed by city council so far is in the model that Standard and Poor's used to arrive at this rating," said Kevin Fowke, of the City of Greater Sudbury.

"That includes the $850 million that we would have talked about in the 2024 to 2027 capital plan. That includes the arena/event centre (and) that includes a cultural hub. And so what it means for us is, as we approach the issuance of any new debt that we require for the plan, it means that in addition to the base rate for Government of Canada 30-year debt, we will receive a lower spread."

Mayor Paul Lefebvre said what it boils down to is the city is in a good spot right now.

“We're going to continue certainly investing in our infrastructure and investing in our people and growing our community as well,” Lefebvre said.

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He said property taxes will increase in 2025, but add that staff continue to work on a plan to reduce next year's increase from 7.3 per cent to 4.9 per cent.

“We certainly would appreciate more help from the province and the feds, too, to help us out trying to keep the levy low," Lefebvre said.

"We provide all the gamut of services as a city. And there's only four cities, actually, in the province that do that -- Ottawa, Toronto, Hamilton and Sudbury -- have all the services that we offer ... People don't realize the breadth of that.”

The city’s 2025 base budget will be made public Nov. 19, with the final budget approved sometime in December.