The municipality of Mexicali secured an HR A+ rating for Mexicali financial stability thanks to a 2.8% primary balance surplus and strategic revenue growth under Mayor Norma Bustamante’s administration.
The City Council of Mexicali, Baja California’s capital, won an HR A+ rating from HR Ratings in its June report, underscoring the municipality’s strong financial stability under Mayor Norma Bustamante’s leadership. The top-tier rating reflects prudent budget management, robust revenue growth, and a notable surplus in primary balance.
In the 2024 fiscal year, Mexicali’s administration reported a Primary Balance (BP) surplus equivalent to 2.8 percent of Total Revenue (TI). This achievement signals disciplined spending and consistent revenue streams. HR Ratings highlighted that Mexicali maintained this surplus even while increasing investment expenditure by 21.3 percent compared to 2023, demonstrating that growth did not come at the expense of fiscal health.
That investment boost was financed in part by a 9.5 percent increase in the municipality’s own revenue. City Hall implemented progressive rates on the Real Estate Acquisition Tax (ISAI), a move designed to distribute tax burdens more equitably while enhancing the city’s coffers. The resulting revenue growth not only covered expanded capital outlays but also preserved a healthy surplus cushion, a key factor in the A+ assessment.
A major milestone under Mayor Bustamante was the settlement of a longstanding debt obligation with the Institute of Security and Social Services for Government and Municipal Workers of the State of Baja California (ISSSTECALI). By closing this chapter, the administration removed a fiscal overhang that had strained prior budgets, reinforcing confidence among creditors and citizens alike.
Looking ahead, HR Ratings anticipates that the XXV Mexicali City Council will sustain this positive trajectory. The agency’s outlook is stable, with no additional financing plans required for the coming years. This expectation rests on continued revenue enhancements and careful alignment of investment projects with available funds.
Underpinning these financial gains is a management philosophy that balances infrastructure development, essential public services, and social obligations. Mayor Norma Bustamante’s team has prioritized investments in roads, utilities, and community facilities, while ensuring pension liabilities and employee benefits remain fully funded. This comprehensive approach has yielded both short-term stability and a foundation for long-term growth.
Residents stand to benefit directly from this sound financial footing. With a fortified budget, the city can expand services such as street maintenance, public parks, and social programs without resorting to sudden tax hikes or borrowing. Local businesses also gain confidence from predictable municipal finances, encouraging private investment and job creation.
Mexicali’s government is managing resources responsibly, fostering trust among investors, rating agencies, and the citizenry. As HR Ratings reaffirmed, the administration’s practices deliver certainty that public services will continue uninterrupted, and strategic projects can advance without jeopardizing fiscal balance.
