October 2023

More documents

Recommendations

Info

GOVERNMENT CONSULTANTS INC. Is it Time for ‘The Fall’? The fall season is always great here in Louisiana. First, fall signifies the start of FOOTBALL SEASON!!! Whether it’s rooting for your favorite college team or spending Friday nights under the lights of a local high school – you know it’s fall!!! Our Louisiana temperatures are more bearable, and gumbo is always on deck. Secondly, the beginning of fall marks the end of another season – summer!! And what a summer it has been – record-setting heat is just one statement describing the Summer of 2023. While enduring these extreme weather conditions, we knew “the fall” was coming – the fall of the temperature and the humidity. We just had to hold out for cooler days. Now, let’s tie the previous paragraph into what we have been experiencing in the financial world: this past summer’s record-setting temperatures represent the high interest rates that have been invading our world. And let’s not forget the unstable inflationary season we have been navigating since 2022. Taking just those two factors into consideration - the borrowing costs for families, municipalities, and businesses are much higher than just two years ago. When will the turbulent ride in our financial world stabilize? When will “the fall” happen for interest rates? Let’s look at the facts and trends of the Fed to see if we can predict “the fall”: • In 2022, the Federal Reserve increased interest rates seven times – four times with an increase of seventy-five basis points. • This year, the Fed continued to increase rates but at 25 basis points at each meeting. During the FOMC July 27th meeting, the Fed set the rate at 5.25% - 5.50%. • The inflation rate reached histor- GOVERNMENT CONSULTANTS, INC. Specializing in Bond Issues and Financing 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! Page 28 LMR | OCTOBER 2023
ical highs in 2022 but has been stabilizing since the beginning of 2023. This year, the inflation rate was 6.4% in January and as of this writing, the current inflation rate is at 3.7%. Source: Board of Governors of The Federal Reserve System website; and U.S. Bureau of Labor Statistics So, do the previous bullet points indicate “the fall” of interest rates on the horizon? Financial experts and commentators are indecisive. But one thing we can agree on, local governments must continue to operate during these unpredictable times and should continue to use sound financial sense when working on your budgets, especially your capital improvement plans. Second, take into account how inflation may affect your expenditures and how rates may increase your borrowing cost. In addition, always stay up to date on grant opportunities and federal programs that may benefit your community. And let’s not forget your investment accounts – reach out to LAMP or your investment advisor to make sure you are taking advantage of these higher interest rates. Again, “the fall” of interest rates may or may not be on the horizon but Government Consultants, Inc. is here to address any concerns you may have. Whether it’s issuing bonds to upgrade your infrastructure, funding your financial match requirement or should you consider a budgetary loan – we are here to serve Louisiana municipalities. By Deatriz “DeDe” Riggins Government Consultants, Inc. DeDe has over 14 years of experience in Public Finance, with nearly five years as a Registered Municipal Advisor. CONTINUED FROM PAGE 26: PRL BOOT CAMP Boot Camp” will run from 8:00 a.m. through 5:00 p.m., with attendees having one hour for lunch on their own. Thanks to our partnership with the Police Jury Association of Louisiana, these sessions are provided at no cost. However, registration is required for planning purposes, so please pick which date works best for you (or you can attend them both!) and REGISTER ONLINE TODAY by visiting the LMA website and searching under Events. Non-LMA members are welcome to attend the training as well and may register for the events by using the attached QR code. The first training will be held at the LMA Building in Baton Rouge on Wednesday, November 8, and the second will take place in Pineville on Monday, December 11. Please note that if registration numbers require, the trainings may be moved to an alternate area venue to accommodate all registrants. These detailed PRL trainings are perfect for municipal clerks, municipal attorneys, other public records custodians, and interested municipal leaders, as well as their parish counterparts. The LMA has applied for Supreme Court approval of 7.5 hours of CLE credit for each session for attorney attendees. We look forward to seeing you there! LMR | OCTOBER 2023 Page 29
Page 1 and 2: 10.23Louisiana Louisiana MUNICIPAL
Page 3 and 4: CONTENTS | OCTOBER OBER 2023 DIRECT
Page 5 and 6: PRESIDENT’S MESSAGE We Are Better
Page 7 and 8: TREASURY NOTES Money in the Newspap
Page 9 and 10: ecause of how it all works together
Page 11 and 12: for our Sportsman’s Paradise - na
Page 13 and 14: a threat, the threat immediately go
Page 15 and 16: LMR | OCTOBER 2023 Page 15
Page 17 and 18: and state funding today, or for tho
Page 19 and 20: ALWAYS ON FOR YOU. JOHN M. SCHRODER
Page 21 and 22: get ordinance. The Local Government
Page 23 and 24: 2023 Annual Meeting November 3, 202
Page 25 and 26: Tallulah Mayor Charles Finlayson ex
Page 27: 2023 Gubernatorial Primary Election
Page 31 and 32: BBQ, Bourbon and Blues Festival Nov

October 2023

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?