02 February 2024 Final

GOVERNMENT CONSULTANTS INC.
Need for financing infrastructure projects in 2024?
First, congratulations and best wishes
to Governor Jeff Landry, all of the other
statewide elected officials, and all of the
Legislators who were sworn into their
offices on January 8 and 9. May God
bless you in all of your endeavors for this
state!!
If you are in need of financing a project
in your municipality, I hope that the following
information will be helpful:
• The Federal Open Market Committee
(FOMC) raised their fed funds
benchmark rate four times, consisting
of 100 bps, during 2023 to
attempt to tame inflation. Since
March of 2022, they have increased
rates 11 times. This action
drove interest rates higher than
they have been in a decade.
• The interest rate for the 10-year US
Treasury - the benchmark for rates
in the country - was extremely volatile
during 2023 with a difference
in rates of 168 bps (from a high of
4.98% to a low of 3.30%).
• Most (70% based upon the latest
survey I saw) interest rate gurus are
predicting interest rate cuts by the
FOMC beginning as early as March.
So, if you have projects that must be
financed this year, get your list and
amounts needed together, get with
your advisors and banking team, and
be ready to execute as rates start falling.
We may never see rates again at the
GOVERNMENT CONSULTANTS, INC.
Specializing in Bond Issues and Financing
levels post the credit crisis in 2008 – ’09
(I had a muni client with a variable rate
of 0.01%), but they should start coming
down from the recent highs.
GET READY TO PULL THE TRIGGER . . .
By L. Gordon
King
Government
Consultants, Inc.
Former LMA Executive Director L. Gordon
King is a Municipal Advisor at Government
Consultants Inc. He can be reached at 225-
344-2098.
L. Gordon King
Deatriz Riggins
Nnamdi Thompson
Shaun B. Toups
James R. Ryan
Jamie Holloway
Benjamin Bankston
(Consulting & Municipal Advisory Firm)
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 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
independent 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.
6767 Perkins Rd., Suite #250
Baton Rouge, LA 70808
(225) 344-2098 (Phone)
gcla@gc-la.net (Email)
We Have The Experience!
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LMR | FEBRUARY 2024