Keygent was recently mentioned by The Almanac in its article titled, “Menlo Park school district bond refinancing saves $3.7 million.” Keygent served as financial advisor to Menlo Park City School District (the “District”) on its school bond refunding, which will save the District’s taxpayers over $3.7 million in the form of lower property tax bills.
Read MoreKeygent Vice President, Chris Hiatt, was recently quoted in an article by the Beverly Hills Courier titled “BHUSD Sells $160 Million in Measure BH Bonds.” Keygent advised Beverly Hills Unified School District (the “District”) on its first general obligation bond financing from its Measure BH authorization approved by District voters on June 5, 2018.
Read MoreMunicipal bonds are investments purchased by all types of investors such as “mom and pop” retail, banks, money managers, investment advisors, hedge funds, insurance companies, and even
governmental agencies. Municipal bonds are typically sold under one of three sale methodologies: competitive, negotiated and private sales.
Many municipalities had utilized tax-exempt advanced refundings for debt service savings through interest cost reductions and debt restructuring. The loss of this valuable tool is a blow to the many agencies who acted as good stewards of their limited repayment resources. The beneficiaries of these savings ranged from taxpayers to operating budgets to obligors of the debt. While districts may still advance refund bonds, they now have to do so with taxable bonds, and taxable bonds are more expensive than tax-exempt bonds.
Read MoreThere is currently a tax bill moving through the branches of the Federal government, the Tax Cuts and Jobs Act, which may change the individual tax brackets, tax credits, corporate tax rates, and the estate tax, among many other things. What is less discussed is a provision of the tax bill which may have significant reverberations in the municipal bond community: the removal of tax-exempt advanced refundings.
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Chet Wang is a registered municipal advisor with an exclusive focus on California education municipal bonds.
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