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Debt Financings for Small Governments - April 11, 2013 Training Outline

Smaller governments who do not frequently issue debt need to be aware of an ever-changing market and regulatory landscape. This course will discuss the various types of debt instruments that are best utilized by smaller governments, the role of finance professionals in a transaction, tax laws and security regulations that must be adhered to and a review of how to position your government's debt issuance that can best take advantage of market conditions.

 

Debt Issuance Process

  • Issuing Debt – Small Government Considerations
    • Self Issuance - Type of Bonds You Can Issue 
    • Pooled Bond Financings 
    • Bank Qualified Debt and Private Placements 
    • Direct Bank Loans
  • Financings that May be Best to Avoid
    • POBs and OPEBs 
    • Derivatives
  • Method of Sale
  • Professionals involved in Transaction
  • Costs Incurred in Bond Transaction 
  • Developing Policies and Procedures
  • What You Need to Know When Preparing the OS


Reference Documents –

  • Costs of Issuance Incurred in a Publicly Offered Debt Transaction (2013) new
  • Debt Management Policy (1995, 2003 and 2012)
  • Expenses Charged by Underwriters in Negotiated Sales (1996, 2010 and 2012)
  • Issuer's Role in Selection of Underwriter's Counsel (1998, 2009) 
  • Pricing Bonds in a Negotiated Sale (1996, 2000, and 2010)
  • Selecting and Managing the Method of Sale of State and Local Government Bonds (1994 and 2007)
  • Selecting Bond Counsel (1998 and 2008)
  • Selecting Financial Advisors (2008) 
  • Selecting Underwriters for Negotiated Bond Sales (2008)


Market Outlook

  • Interest Rate Environment
  • Market Access for Smaller Governments
  • Credit Ratings 
  • Washington Activities Threatening Tax-Exemption
  • Regulatory Issues Impacting Municipal Securities and Issuers


Reference Documents –

  • Analyzing and Issuing Refunding Bonds (1995 and 2010)
  • GFR, "Federal Focus," February 2013
  • GFR, Jim Spiotto, "The Renewed Battle Over Tax Exemption of Interest on State and Local Debt Obligations," February 2013.


Post Issuance Compliance

  • Federal Tax Laws/ongoing
    • Change in Private Use
    • Arbitrage Restrictions
  • Federal Securities Laws
    • Official Statements
    • Ongoing Disclosure Responsibilities
      • Using EMMA
      • Case Study on Disclosure


Reference Documents –

  • Investment of Bond Proceeds (1996 and 2007)
  • Maintaining an Investor Relations Program (1996, 2003 and 2010) 
  • Using a Web Site for Disclosure (2002 and 2010) 
  • Understanding Your Continuing Disclosure Responsibilities (2010)
  • Web Site Presentation of Official Financial Documents (2009)
  • Post Issuance Compliance Checklist
  • GFR, "Federal Focus," October, 2012
  • GFR, Robert Doty, "Telling Myth From Reality in Muni Land," February, 2013.


QUESTIONS AND ANSWERS