LMR JUNE 2021

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Making Lemonade During a Pandemic….BY DEATRIZ “DEDE” RIGGINS, GOVERNMENT CONSULTANTSThe past fifteen months have been one for the books.For municipalities across our great state, the workloadof maintaining calm in their communities and makingfinancially sound decisions were a must during thepandemic. Despite the financial strains of the pandemic,there was some light for several municipalities. Rateswere historically low when COVID-19 penetrated ourworld and many municipalities capitalized on the lowrates by refunding (“refinancing”) their outstandingdebt. Additionally, some municipalities had to placecapital projects and planning on hold.Low interest risks and narrow credit spreads createdan opportunity for local municipalities to considerentering the public market to refund their outstandingdebt. The Town of Leonville was presented with suchGOVERNMENT CONSULTANTS, INC.Specializing in Bond Issues and FinancingL. Gordon KingDede RigginsNnamdi I. ThompsonShaun B. ToupsDavid M. MedlinJames R. RyanPatrick ViceStephen 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)OVERVIEWModern day government has become a large financialenterprise, handling millions of dollars and facingservice and revenue pressures. The governingauthority and Administrator(s) face complex financialdecisions ranging from the impact of property andsales taxes to the financing of capital improvements.As government finance has become more complex,the need for financial advice to base decisions uponhas. The services of an expert Municipal Advisor arebeing used by more and more grown governmentalunits.A Municipal Advisor (or “MA”) serves as aconsultant advising the governing authority onmatters relating to the following:•Financial feasibility of projects;•Total cost analysis of financing alternatives;•Review of capital improvement financingprograms;•Advice on the structuring and marketing of debtsecurities.The MA is an integral member of the governingauthority’s management team, providing advice andanalysis to assist in financial decision-making.an opportunity and welcomed the idea of doing theproposed refunding.The Town’s main objectives were to shorten its debtby at least ten years and optimize cashflow savings.Let‘s just say the Town achieved their objectives PLUSsome. Leonville lowered their rate by over 125 bps,achieved cashflow savings of over $2.8 million and hadnet present value (“NPV”) savings of over 29 percent!Please note, the outcome for this refunding was basedon market conditions on the day of pricing.Next, I want to mention the City of Baker. The City reallytook a hit after the August 2016 flood. However, Bakerviewed the post-flood era as a time to “revamp” itsutility systems. Water meters were installed, and variousCONTINUED PAGE 22ECONOMIC DEVELOPMENTFINANCE ANALYSIS• Analyzing available alternatives in relation tocost to the governing authority and providingfinancial guidance and recommendations;• Analyzing from a cost/benefit standpoint theuse of incentives (free land, subsidy of bondissues, utility improvements) to attractindustry;• Providing a detailed upfront and long-termfinancial analysis of costs to the governingauthority versus benefits of the specificproject; and• Serving as an economic development financeresource for the Governing Authority.We Have The Experience!Page 20LMR | JUNE 2021
Partner InsightALWAYS ONFOR YOU.JOHN M. SCHRODER, SR.Louisiana State TreasurerLAMP, Inc. PresidentLouisiana local government entities trust LAMP to protect theirprincipal, deliver solid returns, and ensure same-day access totheir funds from anywhere. We have guided our clients throughchallenging environments over the past quarter century — andwe remain ready to serve you now.Find out how our consistent, conservative portfolio managementcan help your organization navigate uncertain times.THEODORE C. SANDERS, IIIChief Executive OfficerLAMP, Inc.LOUISIANA ASSET MANAGEMENT POOLCall 800-249-LAMP or visit www.lamppool.com to learn more.No transaction fees | Same-day access to your entire investment | Rated AAAm by Standard & Poor’sYou may incur fees associated with wires and/or ACH transactions by your bank, but there will be no fees charged from LAMP for such transactions. A ‘AAAm’rating by S&P Global Ratings is obtained after S&P evaluates a number of factors including credit quality, market price exposure, and management. Ratings aresubject to change and do not remove credit risk. Investment involves risk including the possible loss of principal. No assurance can be given that the performanceobjectives of a given strategy will be achieved. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.LMR | JUNE 2021 Page 21
Page 1 and 2: LOUISIANAMUNICIPAL REVIEWPublished
Page 3 and 4: Inside the LMADirector’s Viewpoin
Page 5 and 6: Inside the LMALegal BriefsA VOTER
Page 7 and 8: Inside the LMALetter of IntentBY MA
Page 9 and 10: Inside the LMALetter of IntentBY MA
Page 11 and 12: Featurethat we are going through, a
Page 13 and 14: City of Walker Movesinto New City H
Page 15 and 16: LAMSA Conference RecapBY MARLAINE P
Page 17 and 18: Attorney General’s OpinionsBY JEF
Page 19: Partner InsightTake a StaycationBY
Page 23 and 24: Partner InsightTreasury NotesRememb

LMR JUNE 2021

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