Canadian Municipal Governments - 2001 Overview

Paul Judson, Eric Beauchemin / 416-593-5577 ext.2261, ext.2252 / pjudson@dbrs.com

DBRS has released its annual review of the Canadian municipal governments currently rated by DBRS.  The study provides an overview of the strengths and challenges facing these Canadian municipalities, and highlights the risks for this sector over the medium term.  In addition, it also compares the fiscal and economic indicators that influence the credit ratings of the municipal governments.

Although the 2001 financial results were not available for all municipalities, preliminary information suggests it was a good year for the majority of municipalities included in this study.  Most municipalities generated sizeable operating surpluses and reduced their level of tax-supported debt. Large capital expenditure requirements continue to be an important challenge for most municipalities, however, as capital requirements have been building up steadily due to growing populations, aging infrastructure, and persistent maintenance under-spending. DBRS believes that developing a viable long-term strategy to effectively address their capital backlogs, while containing upward pressure on property taxes and debt, will present a significant challenge for most municipalities in the years ahead.

The municipal governments included in the study are (1) City of Vancouver, (2) City of Edmonton, (3) City of Calgary, (4) City of Winnipeg, (5) City of Toronto, (6) City of Ottawa, (7) City of Hamilton, and (8) Regional Municipality of Peel.

Dominion Bond Rating Service Limited (DBRS) has published a study that provides additional analytical detail.  To see this study, please click on http://www.dbrs.com/web/sentry?COMP=2900&DocId=116742.  If you do not have access to this study, please contact us at info@dbrs.com.