FOR IMMEDIATE RELEASE 06/03/2025

For further information, contact:

Susan Scully Petroni

City of Framingham Public Information Officer

spetroni@framinghamma.gov

508-782-8629

City of Framingham Maintains Strong Credit Profile with Stable Outlook from Moody’s

FRAMINGHAM - The City of Framingham has once again demonstrated its fiscal strength and economic resilience, as Moody’s Investors Service reaffirmed the city’s Aa2 credit rating with a stable outlook in its most recent credit opinion.

Moody’s cited Framingham’s strong and diverse economy, above-average resident income levels, and significant unused tax levy capacity as key credit strengths supporting the city’s rating.

“Our city’s continued strong rating reflects responsible fiscal management and a thriving local economy,” said Mayor Charlie Sisitsky. “We are proud of the work we’ve done to make Framingham a place where residents, businesses, and institutions can grow and succeed. This rating affirms our commitment to long-term financial sustainability.”

The report highlighted Framingham’s sizeable commercial and industrial tax base and a resident income level at 112% of the national average. The city’s full equalized value per capita stands at $213,707, well above average for similarly rated municipalities. Additionally, Framingham maintains an unused levy capacity of 8.3% of revenue, offering flexibility not commonly found in peer communities.

Credit Outlook and Financial Trends

Framingham’s financial position is expected to remain stable in the coming years, bolstered by conservative budgeting and improved reserve management. The city’s available fund balance increased to 19.9% of revenue by the end of fiscal year 2024.

However, Moody’s noted the city’s continued use of reserves to balance operations and encouraged prudent reserve management to preserve long-term financial health.

“Maintaining a strong reserve position while meeting growing service demands is a constant balancing act,” said Chief Financial Officer Jennifer Pratt. “We remain focused on disciplined financial planning, investing in essential services, and safeguarding the city’s fiscal future.”

The fiscal 2026 budget reflects a 6.7% year-over-year increase, driven by investments in education, healthcare, and employee benefits. It includes a 2.5% tax levy increase and a $10 million free cash allocation, underscoring continued fiscal discipline.

Path to a Rating Upgrade

Moody’s noted that an upgrade could be considered if Framingham significantly increases its fund balance ratio to 35% or higher, coupled with material growth in resident income and equalized value per capita.

A Stable Future Ahead

City officials remain committed to maintaining Framingham’s strong financial standing while supporting sustainable growth and infrastructure investment. The stable outlook from Moody’s reflects confidence in the city’s economic resilience and long-term planning.

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