S&P A+ Rating Obtained by the City of Altoona

ALTOONA, PA — The City of Altoona is proud to announce that S&P Global Ratings has raised the city’s general obligation (GO) debt rating to ‘A+’ from ‘A’. This upgrade, accompanied by a stable outlook, highlights the city’s significant financial turnaround and sustained operational strength.

A Stronger Financial Foundation

The rating increase reflects Altoona’s consistent track record of positive operations and material growth in its reserves. Key financial highlights noted in the S&P report include:
 

• Consistent Surpluses: Altoona has maintained strong operating surpluses averaging over 7.5% of revenues over the past three fiscal years.
• Robust Reserves: General fund reserves have grown steadily, reaching more than $14.9 million in fiscal 2024.
• Exceeding Policy Goals: The city is far exceeding its formalized policy of maintaining at least 10% of the previous year’s expenditures in unassigned reserves.
• Fiscal Turnaround: Since its 2012 designation as a distressed municipality under Act 47, the city has posted solid surpluses in eight of the past ten fiscal years.

"This upgrade is a validation of our commitment to making continued progress from the decades of decline and neglect" said Councilman Jesse Ickes. "Balancing growth, prudent risk management, maintaining manageable debt and a budget that prioritizes public services and responsibility, we have moved from a distressed status to a position of strength that mirrors the stability of our highest-rated peers."  “We continue to see significant investments into Altoona and there is an enticed appetite for more private development into our community.”

Management and Modernization

S&P credited the city’s "prudent management practices" and conservative budgeting as core drivers for the upgrade. Looking ahead, the city plans to further modernize its financial operations by:

• Partnering with OpenGov to enhance public engagement with the budget and other departments within the City of Altoona.
• Bringing tax collection services in-house.
• Developing a long-term financial forecast to ensure continued stability.

Strategic Use of Resources

The city's manageable debt burden was recognized as a credit strength. The strategic use of $39 million in American Rescue Plan Act (ARPA) funding allowed Altoona to complete critical infrastructure projects ahead of schedule, reducing the need for additional debt in the near term.

Outlook for the Future

The stable outlook reflects S&P’s expectation that Altoona will maintain fiscal stability over the next two years through its conservative budgeting and a slightly growing local economy.