LMR FEB 2020.pdf

Cyber Attacks on the Rise
Moody’s Rating Agency just released a report that
we think is especially timely and beneficial to local
governments:
Targeted ransomware attacks, in which attackers
block access to victims’ data or computer systems in
exchange for a ransom payment, picked up speed in
2019 and will continue to gain pace in 2020. In prior
years, ransomware attacks had been opportunistic,
often distributed at random to individual computer
users with ransom amounts in the low hundreds of
dollars.
But more recently, attackers have also stolen
data that they then threaten to release publicly if
they are not paid. Release of sensitive data adds
reputational and data breach concerns for victims,
GOVERNMENT CONSULTANTS, INC.
Specializing in Bond Issues and Financing
as well as creating risk of losing intellectual property.
Targeted ransomware attacks have hit regional
and local governments (RLGs) particularly hard.
Private entities may be able to hide the effects of
a ransomware attack from the public, but it is clear
when a local municipality can no longer provide
services to its constituents. While 70% of victim
RLGs assert that they have not paid the ransom,
cybercriminals are profiting significantly from the
victims that do pay, making it likely that RLGs will
remain targets in 2020.
Local governments need to allocate some of their
resources to this topic to ensure the efficient operation
of their cities. Contact LMA IT Director Tracy Melancon
to discover what resources are available for LMA
members through the MAP-IT program.
L. Gordon King
Dede Riggins
Nnamdi I. Thompson
Shaun B. Toups
David M. Medlin
James R. Ryan
Stephen Holley
(MSRB Registered Municipal Advisors)
700 North 10 th Street Annex Bldg.
Baton Rouge, LA 70802
(225) 344‐2098 (Phone) (225) 344‐5952 (Fax)
gcla@gc‐la.net (email)
OVERVIEW
Modern day government has become a large financial
enterprise, handling millions of dollars and facing
service and revenue pressures. The governing
authority and Administrator(s) face complex financial
decisions ranging from the impact of property and
sales taxes to the financing of capital improvements.
As government finance has become more complex,
the need for financial advice to base decisions upon
has. The services of an expert Municipal Advisor are
being used by more and more grown governmental
units.
A Municipal Advisor (or “MA”) serves as a
consultant advising the governing authority on
matters relating to the following:
Financial feasibility of projects;
Total cost analysis of financing alternatives;
Review of capital improvement financing
programs;
Advice on the structuring and marketing of debt
securities.
The MA is an integral member of the governing
authority’s management team, providing advice and
analysis to assist in financial decision‐making.
ECONOMIC DEVELOPMENT
FINANCE ANALYSIS
• Analyzing available alternatives in relation to
cost to the governing authority and providing
financial guidance and recommendations;
• Analyzing from a cost/benefit standpoint the
use of incentives (free land, subsidy of bond
issues, utility improvements) to attract
industry;
• Providing a detailed upfront and long‐term
financial analysis of costs to the governing
authority versus benefits of the specific
project; and
• Serving as an economic development finance
resource for the Governing Authority.
We Have The Experience!
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LMR | February 2020