This is our first article in a series, additional insights will be featured in the coming months.
You are an issuer who is looking to issue municipal bonds to finance a project. But where do you start?
First, you need to assemble a team. There are several individuals involved in this process – and some have overlapping responsibilities. Certainly, one of the first calls to make is to your municipal advisor. The Government Finance Officers Association (GFOA) recommends the use of a municipal advisor for the issuance of municipal bonds unless enough expertise exists on the issuer’s staff and there is access to the bond market for information on pricing and selling the bonds.
While the issuer retains ultimate control over the financing, the involvement of a municipal advisor provides the issuer with outside expertise to help evaluate decisions that will need to be made throughout the debt issuance process.
The role of the municipal advisor is distinguished from other members of the project team in that municipal advisors have a fiduciary responsibility to the issuer. This responsibility means municipal advisors must always act in the best interests of the issuer and that they possess the expertise needed to execute a deal.
The role of a municipal advisor can vary from project to project and can include, but is not limited to the following:
Municipal Advisors providing advice to issuers related to debt issuance must hold a Series 50 license and be registered with the Securities and Exchange Commission. In our next issue, we will discuss the key roles and responsibilities of other project team members.
For more information on this topic, or to learn how Baker Tilly municipal advisory specialists can help, contact our team.