S&P has some good news for the County of Essex. Its credit rating hasn't changed.
The credit rating remains AA stable.
Warden Tom Bain credits a program started more than two decades ago for the county's fiscal stability now.
"We began the program pay-as-you-go, and it took 20 years where we got to the point where we had no debt," says Bain. "Now we are, in essence, reaping the benefit of that program."
If the county's credit rating had changed, County Treasurer Rob Maisonville says it could have meant a difference between 0.015% and 0.025% in its interest rate.
"It is significant when you're talking about big money," says Maisonville. "Eventually, in regards to the mega hospital for the county, we will be looking at potentially issuing debt down the road. So, there is a huge opportunity for savings."
Investors like hearing a jurisdiction has a solid credit rating because it means loans will be repaid. For the county, it means it can borrow at a lower rate from the banks, but Bain says it's good news for taxpayers too.
"Our taxpayers, when they're paying their taxes, they're getting immediate benefit from that. It's not paying off something that was bought years ago," he says.
Bain also says it's something seniors and young families consider when they relocate, and Maisonville agrees.
"Back in 1992, we had no reserves. We had 26% increases in the levy. Social services costs were spiking and we had really depleted our reserves and that's when we looked at how can we sustain ourselves," he says.
-- With files from Ricardo Veneza.
