Director

Municipal Advisory

Municipal advisory services for local governments

Economic development for local governments

Municipal advisory services for utilities

Municipal advisory services for schools

Municipal advisory services for libraries

Managing Director

Municipal Advisory Services for Schools

Municipal Advisory Services for Libraries

Referendum Strategies & Community Surveys

Principal, CIPMA

State & Local Government

Partner, CPA

Director, Ph.D.

Public Sector Advisory

Municipal Advisory Services for Local Governments

Director, Ed.D.

This insight is part of a continuing series of informative best practices and shout outs to recognize innovative approaches state and local governments have adopted to help them manage through the current COVID-19 crisis. Thanks to the City of Plano, Texas for allowing us to share this material. In the face of the COVID-19 crisis and the public’s growing need for timely and reliable information from their local government, the City of Plano, Texas adopted an innovative approach to keeping citizens informed. As the virus began to spread, and social distancing became necessary, the city closed all municipal parks, recreation centers, athletic fields and the public library.  Additionally, numerous Plano employees were directed to work remotely as non-essential services were curtailed.  The city furnished employees with the equipment necessary to work from home and the City’s Technology Services staff, working on very short notice, deployed over 200 laptop computers to support remote work.  Recognizing that librarians could be a valuable resource in responding to the high volume of coronavirus-related calls, the City created a virtual call center staffed by library personnel. Technology Services redesigned the phone system’s call routing trees to redirect coronavirus calls to the homes of library staff, who are now serving as call-takers for virus-related questions.   The establishment of the virtual call center has enabled the city’s core services continuity efforts by limiting the call volumes to 9-1-1 and other service providers, while allowing the library staff to continue to serve the community as productive providers of vital information. For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team. 

In the face of the COVID-19 crisis and the public’s growing need for timely and reliable information from their local government, the City of Plano, Texas adopted an innovative approach to keeping citizens informed.

State and local government coronavirus resources

Good news story: Plano, Texas librarians staff a virtual call center!

When financing a project through bond issuance, one of the most important early steps is developing the professional team. From developing the scope of the project, to undertaking the legal requirements, to selling the bonds and collecting the proceeds, each complex, important step in the process requires a coordinated team effort.  Under the direction of the issuer, the professionals on these teams, often referred to as “working groups,” work in tandem with one another. Typically, the roles on a bond issuance working group include: Owner – The public entity (i.e. – school, county, city, utility, etc.) that issues the bonds to make improvement to its facilities. Architect/engineer – Develops construction project scope and design Project manager and/or construction manager – Develops cost estimates and oversees project Local attorney – Helps facilitate local approvals, publications, recording of documents, etc. Municipal advisor – Develops plan of finance and assists with bringing bonds to market Bond counsel – Outlines legal requirements for the project and provides legal opinion for the financing Trustee, registrar and paying agent – May hold bond proceeds and make payments to contractors throughout project; assists with making bond payments to bondholders (investors) Underwriter – purchases the issuer’s bonds to sell to its clients (investors) The above list is only a brief summary the working group’s roles; some may be expanded or limited depending upon the needs of each project. Depending on the project, you may require more or fewer professionals in your working group.  Stay tuned for more articles in this series as we discuss the bond issuance process and considerations when issuing bonds. View part 1 of this series  here. For more information on project financing or capital planning, please contact us.

Bonds 101: Part 2 – developing the working group

This article is part of a series to provide an overview of the bond issuance process. Let’s start with the basics. What are bonds? A debt security providing external funds for current expenditures.  Bonds are similar to a mortgage in that dollars are borrowed upfront and repaid over a fixed term. The governmental entity is commonly referred to as the issuer or borrower and the investor is known as the bondholder, lender or purchaser. When bonds are issued, a repayment source is pledged and certain bond covenants are outlined for the issuer to follow through the repayment term. More specifically, what are some basic characteristics of municipal bonds? Repayment is matched with the useful life of the asset so debt is not outstanding beyond the life of the asset. Depending on the source of repayment, the issuance of bonds can provide tax rate management and stability, and assist with financial management and capital planning. Bonds can also help free up operating dollars for other needs. Bonds can provide a relatively low-cost way to borrow over a long term, helping an entity to "pay as they use" rather than "pay as they go" where appropriate. Interest charged is often tax-exempt, which can translate to a lower interest rate paid by the issuer. Communities issue bonds to pay for capital expenditures ranging from vehicles and technology to infrastructure, economic development and renovation and construction of public facilities. Stay tuned for more articles in this series as we dive into the bond issuance process and considerations when issuing bonds. For more information on this topic, or to learn how Baker Tilly municipal specialists can help, contact our team. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.

This article is part of a series to provide an overview of the bond issuance process.

Consulting

Bonds 101, part 1

Utilities in the Midwest and across the country are facing ever increasing pressure on utility rates. The rate pressure is the result of a variety of factors, including long-term control plan implementation, asset management replacements, operating increases and declining usage because of water conservation. These mandates and other increases in requirements are pushing the affordability limits of water and sewer utility rates. What can be done to help? When facing necessary utility rate increases, reducing your fixed bond payments by paying off the bonds may be a valid consideration. Assuming you have been diligently setting aside revenues and saving cash, one option might be to redeem or pay off your bonds early. However, most municipal bonds have standard call provisions which will not allow for the bonds to be paid off until they have been outstanding for a certain period of time. There also may be some redemption premium. When considering this option, an important consideration is the need to keep adequate cash balances. Most bond documents have cash balance requirements for outstanding bonds and there should be adequate funds set aside for unforeseen capital expenditures and contingencies. Many things must be considered before you payoff bonds, so you should ask your municipal advisor to provide you with the information needed to make this decision. For more information on this topic, or to learn how Baker Tilly municipal specialists can help, contact our team. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.

Utilities in the Midwest and across the country are facing ever increasing pressure on utility rates.

Reduce rate impact by paying off bonds

Tax Increment Financing (TIF) is traditionally viewed as a resource for funding infrastructure, downtown redevelopment or incentives to promote economic development in a community. TIF funds are not generally viewed as a possible source for funding educational programs or projects, but that is changing.  Communities across Indiana are finding opportunities to partner with their local school corporations and educational institutions to allocate TIF funds in support of educational programs and capital projects. Some redevelopment commissions have begun to utilize a state law that allows for up to 15% of TIF revenues generated in an allocation area to be used for programs that provide job training and re-training for residents of the community. Eligible organizations include local school corporations, nonprofit organizations whose primary purpose includes job training and re-training, and institutions of higher education that offer these types of programs, such as Ivy Tech Community College of Indiana. Many redevelopment commissions also are exploring opportunities to collaborate with local school corporations on capital projects. Such projects may be eligible for TIF funding as long as they are (1) located in or directly benefit the area and (2) included in the area’s economic development plan. Examples of successful TIF-Education partnerships in Indiana include: The Whitley County Redevelopment Commission is contributing $7.5 million to the Whitley Consolidated School Corporation over a three-year period to a new high school project. The Gibson County Redevelopment Commission contributed $600,000 to Ivy Tech to fund a local welding program. The Town of Plainfield is utilizing TIF funds to make debt payments on the school transportation center bonds. The City of Lebanon used TIF to fund a multi-use training room at Lebanon High School. Another tool available to redevelopment commissions is the pass-through of incremental assessed value for the benefit of overlapping taxing districts, including school corporations. Redevelopment commissions typically use the time leading up to the June 15th TIF excess incremental assessed value notification deadline to evaluate opportunities for such pass-through determinations. Along with monitoring and carrying out the economic development plan(s) for your community, exploring partnership opportunities with local education providers and other taxing units should be part of your annual analysis of your community’s TIF areas. Engagement with these units can be a part of a larger economic development strategy in your community. Baker Tilly can assist you with evaluating potential opportunities to utilize your TIF dollars to support local education efforts or collaborate with other taxing units. For more information on this topic, or to learn how Baker Tilly municipal specialists can help, contact our team. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax advice, if any, contained in this communication was not intended or written to be used by any taxpayer for the purpose of avoiding penalties.

Utilizing TIF to support education in your community

Libraries have needs that are different from other units of government. Baker Tilly Municipal Advisors is experienced with the financial aspects of library projects – including financial management, capital planning, bond issuance and refinancing.  

Today’s library directors are faced with numerous challenges, including providing transparency in financial information, responding to users’ needs for more technology, addressing renovation and facilities needs and attending to future capital needs.

Baker Tilly’s independent municipal advisors provide objective analysis, planning and creative solutions for all types of library projects. We will meet with you to understand your objectives and challenges and develop plans to help you address those challenges.

Accounting systems design, implementation and training

Audit preparation and financial assistance

Project planning and financial development

Developing and evaluating funding alternatives

Financial presentations to elected officials and the public

Official statements and bond sale preparations

Competitive bond sales and electronic bidding services

Negotiated bond sales and private placements

Our independent municipal advisors provide objective analysis, planning and creative solutions for all types of projects. Our priority is helping you achieve your objectives and meet your obligations.

Our independent municipal advisors provide objective analysis, planning and creative solutions for all types of projects. Our priority is helping you achieve your objectives and meet your obligations. 

Baker Tilly serves the advisory, accounting and assurance needs of states, cities, counties, townships, boroughs, villages and other municipalities across the U.S.

Baker Tilly’s state and local government practice serves a wide variety of governmental entities on their accounting, assurance and advisory needs.

Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.

Our team serves as financial advisors for a number of libraries — particularly for bond issues and projections of property tax revenue.

Elizabeth Bergman, a director at Baker Tilly, has been with the firm since 2017 and has more than 15 years of experience in public finance. 

https://go.bakertilly.com/directory2019?Directory=Elizabeth%20Bergman

Marvin is a managing director and municipal advisor within the public sector practice group.

Belvia is a principal and municipal advisor within the public sector practice group and has been with the firm since 2005.

Dan Hedden is a partner in the public sector practice group.

https://go.bakertilly.com/directory2019?Directory=Daniel Hedden

Don Lifto, a director with Baker Tilly, has 25 years of experience as a public-school superintendent and more than 13 years of experience serving primarily public-school clients.

Mark is a director and municipal advisor within the public sector practice group.

https://go.bakertilly.com/directory2019?Directory=Mark%20A.%20Miller

Jesse Nelson joined the firm in 2004 and is a partner in the public sector practice group.

Todd A. Samuelson is a partner of Baker Tilly. Todd works with cities, towns, counties, school corporations, libraries,  and utilities on comprehensive financial planning, bond issues, and  economic development. He also assists numerous clients with budgeting,  forecasting and strategic planning.

Kelly D. Smith, a director at Baker Tilly, has been with the firm since 2015.

Anton Voinov, a director with Baker Tilly, recently joined the firm and  has 15 years of municipal finance experience. 

Address challenges and uncover opportunities with consultants focused on protecting and enhancing your value.

Solve your toughest challenges with Baker Tilly's flexible consulting engagement model.

Municipal Advisory Services for Libraries

Good news story: Plano, Texas librarians staff a virtual call center!

Bonds 101: Part 2 – developing the working group

Bonds 101, part 1

Reduce rate impact by paying off bonds

Utilizing TIF to support education in your community

Consulting

Municipal Advisory

Libraries have needs that are different from other units of government. Baker Tilly Municipal Advisors is experienced with the financial aspects of library projects – including financial management, capital planning, bond issuance and refinancing.

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