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GOVERNMENT CONSULTANTS INC. Empowering Louisiana Municipalities: The Benefits of Municipal Bonds Louisiana municipalities, ranging from vibrant cities to smaller towns, have a powerful financial tool at their disposal – municipal bonds. These instruments offer a unique avenue for local governments to fund essential projects, foster economic growth, and address the evolving needs of their communities. This article explores how municipal bonds can be a catalyst for positive change and sustainable development across Louisiana. Municipal bonds provide Louisiana municipalities with a reliable means of financing critical infrastructure projects. From roads and bridges to water and sewer systems, the funds raised through municipal bonds enable local governments to address pressing infrastructure needs, contributing to the overall well-being and safety of their communities. One of the key advantages of municipal bonds is the ability for municipalities to access cost-effective capital. Due to their tax-exempt status, municipal bonds often attract investors seeking a tax-advantaged investment, resulting in lower interest rates for municipalities. Recently, interest rates have seen an increase, driven largely by the actions of the Federal Reserve Bank to control inflation. The Federal Reserve Chairman indicated that while he is encouraged by the slowing pace of inflation, he expects the process GOVERNMENT CONSULTANTS, INC. Specializing in Bond Issues and Financing still has “a long way to go.” While higher than they’ve been in a decade, rates are still relatively attractive compared to historical averages. By leveraging municipal bonds, Louisiana municipalities can stimulate economic growth and community development. Projects funded through these bonds, such as business districts, recreational facilities, and cultural centers, not only enhance residents’ quality of life but also attract businesses and promote tourism, contributing to a vibrant local economy. Municipal bonds offer municipalities flexibility in structuring their financing CONTINUED PAGE 31 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 30 LMR | DECEMBER <strong>2023</strong>
LOUISIANA ASSOCIATION OF CHIEFS OF POLICE Partnership Offers Law Enforcement Training Solutions Greetings from the Louisiana Association of Chiefs of Police. I am honored to speak to you about an important opportunity to improve the quality of public safety in your municipality. For the 237 municipalities with mayor’s courts, state law affords two opportunities to support the educational efforts of LACP. From training newly elected/appointed chiefs of police, to providing ongoing training for law enforcement throughout the year, LACP’s aim is to empower municipal police to provide the highest standard of public safety services to their communities. La. R.S. 33:2334 provides that when a mayor’s court grants bail and issues an appearance bond for the next court date, they may assess a $15 fee, $2 of which may be allocated to LACP for law enforcement education and training. Similarly, La. R.S. 33:441 authorizes mayor’s court to designate any portion of their assessed court costs to LACP for the education and training of law enforcement personnel. I humbly request that mayor’s court municipalities consider allocating funds from appearance bonds and court costs to LACP. Those funds will be used entirely toward education and training for municipal police. Your contributions are a minimal investment that will reap maximum benefits since a well-trained police force is essential for effective ordinance enforcement and public protection. There are municipalities that have been contributing for some time, and I am deeply grateful for their consideration. I hope that those of you who have not historically contributed to help fund this critical education will – in light of this information – take the steps to begin contributing. With increasing educational mandates imposed on law enforcement professionals, we strive to retain the best possible teachers, trainers, and presenters to provide the most updated information. Your mayor’s court contributions are a vital part of helping LACP achieve that goal. I respectfully urge you to join our efforts to bring state-of-the-art excellence to your municipal police departments. Since 1968, LACP has focused on serving the needs of municipal law enforcement, and we are proud to partner with the LMA and its members because we know that we are better together. Thank you for your consideration and don’t hesitate to contact me for further information at 225.387.3261. By Fabian Blache Louisiana Association of Chiefs of Police Blanche is the Louisiana Association of Chiefs of Police Executive Director. He can be reached by calling 225.387.3261. CONTINUED FROM PAGE 30: BONDS options. Whether through general obligation bonds, revenue bonds, or other variations, local governments can tailor their approach to align with the specific needs of their community projects. This flexibility enhances the ability to fund diverse initiatives that contribute to overall community prosperity. The funds raised through municipal bonds can be directed toward improving and expanding public services. This includes investments in education, healthcare, and public safety. By securing financing through bonds, Louisiana municipalities can enhance the delivery of essential services, fostering a safer and more prosperous living environment for residents. Infrastructure projects funded by municipal bonds have a direct impact on job creation. The construction, maintenance, and operation of public facilities generate employment opportunities, providing a boost to the local economy. This economic stimulus, in turn, has a positive ripple effect, benefiting businesses and residents alike. Successfully managing municipal bonds can contribute to stronger credit ratings for municipalities. A higher credit rating not only reduces borrowing costs but also signals financial stability. This improved creditworthiness positions Louisiana municipalities to access additional financing options and undertake more ambitious projects in the future. Municipal bonds stand as a potent financial tool for Louisiana municipalities, offering a pathway to address critical needs, stimulate economic growth, and enhance the overall quality of life for residents. By harnessing the benefits of municipal bonds, local governments can build resilient communities that thrive and evolve to meet the challenges of the future. The strategic use of these bonds represents an investment not only in infrastructure but also in the long-term prosperity and vitality of Louisiana municipalities. By Ben Bankston and Shaun Toups Government Consultants Inc. Bankston and Toups are Municipal Advisors with Government Consultants Inc. They can be reached at bbankston@gcla.net and stoups@ga-la.net, respectively. LMR | DECEMBER <strong>2023</strong> Page 31
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December 2023

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