Region of Peel - Working for you
Region of Peel - Working for you

Building a Community for Life in Peel


The Three Pillars of Financial Sustainability

As mentioned in Long Term Financial Planning for a Sustainable Future, the purpose of our Long Term Financial Planning Strategy is to ensure the financial sustainability of Regional services and to guide our prudent use of tax payers' dollars.

The Long Term Financial Planning Strategy is founded on balancing the three pillars supported by the Canadian Institute of Chartered Accountants:

  1. Financial Sustainability
  2. Financial Vulnerability
  3. Financial Flexibility

Financial Sustainability is our ability to provide and maintain planned service and infrastructure levels without resorting to unplanned increases in rates or significant changes to services.

Financial Vulnerability is the level of risk exposure from external funding sources and the resulting impact this funding has on the ability to deliver Regional services and meet existing financial obligations and commitments. This is increased in areas where the program is 100 per cent funded by external sources.

Financial Flexibility is related to debt and taxes; it is our ability to change debt levels or taxes to meet financial obligations. Flexibility gives us the ability to issue debt responsibly without affecting the credit rating or the ability to generate needed revenues.

We maintain our strong financial position by achieving a balance of financial sustainability, vulnerability and flexibility. In order to implement these pillars, nine financial principles have been developed. Each financial principle addresses a specific financial aspect such as debt, reserve adequacy and investments.

Our next story will focus on these nine financial principles and how they are used to measure our financial health and include our 2017 Financial Condition Scorecard.