A Way For Cities To Self-Assess Creditworthiness And Build Solutions
The City Creditworthiness Self-Assessment & Planning Toolkit (City Cred Tool) enables local authorities to self-assess core challenges to creditworthy financial management and develop a set of recommendations to form an action plan to improve upon those challenges. Local authorities include all sub-sovereign governments (e.g., municipalities, state, other regional, etc.) and related special purpose entities used to perform essential public services (e.g., service operating companies, municipal banks, sub-national PPPs, etc.).
Using the City Cred Tool can be summarized into 6 steps. A brief description of these steps is provided below, and detailed information is provided in the downloadable user guide. Oftentimes, city leaders work through the full assessment as part of a City Creditworthiness Academy (CCA), led and supported by the CCI team. If you are a city official or related government leader who is interested in organizing a CCA, please contact our team.
- Self-Assessment: Local authorities are asked to answer questions on their service mandates, financial management, financial performance, planning process, and enabling environment.
- Identify Creditworthiness Challenges: The toolkit suggests key creditworthiness challenges based on the local authority’s responses to the questions. Each challenge is assigned an “Intensity” score based on the specific responses given in the self-assessment. Intensities are scored 0-100%, with higher percentages indicating greater severity.
- Prioritize Challenges: The local authority then ranks the challenges to create a customized set of priority creditworthiness challenges based on local preferences. These priority challenges will form the basis of the local authority’s creditworthiness action plan. Local authorities have the option to add customized challenges.
- Create Preliminary Action Plan: The toolkit then guides the local authority through optional creditworthiness “actions.” The local authority selects from the list the specific actions that they feel are most relevant. Local authorities have the option to add customized action Items.
- Download Preliminary Action Plan Report: The local authority can then download this customized report.
- Refine and Implement Action Plan: The local authority should refine its preliminary action plan in consultation with experts. The refined action plan can then be implemented to strengthen financial performance & creditworthiness.
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