Financial Advisory

28.01.2014 Financial Advisory, Uncategorized Comments Off on BOND MARKET ROUND UP

BOND MARKET ROUND UP

Interest Rates – What to expect?

Good news so far on the interest rate front.  Interest rates have been declining since year-end and appear to be trending downward in the near term.  The cost of issuing bonds is expected to remain flat and therefore a good time to issue bonds in the market.  Simple supply and demand is partially responsible for this trend. Over the next month, there are approximately $30 billion of municipal bonds that are maturing and only $12-15 billion of new bonds being issued in the market.  Demand is simply outweighing supply resulting in lower  interest rates.  Second, there are certain income tax increases that will become effective in 2014.  This creates further demand for tax-exempt bonds as those in the higher tax brackets seek tax-free income they receive from holding municipal bonds.

While the economy in California appears to continue its upswing, the host of national economic indicators, including unemployment, are still not at desired levels.  We can expect our folks in Washington to hold tight to current fiscal policies that will keep interest rates as low as possible.

Historical-Municipal-Bond-Yields

Good news from Sacramento– what does it mean for your district?

Governor Brown’s budget proposal will have a positive credit effect for schools and community colleges in California.  Credit Rating agencies, like Moody’s and Standard & Poor’s will look very favorably on the increase in per-pupil funding by 8.5% from last year as well as the 11% increase for California Community colleges.

The state also expects to pay down past state payment deferrals.   This combination will equate to a credit positive for all  districts when getting a new credit rating in 2014.  And a better credit rating means lower interest rates for your taxpayers!

Private Placements – Still around in 2014?

By all means, YES!  In speaking with some of the major banks around the state, it appears that they are still open for business when it comes to providing a direct purchase of municipal securities which include school bonds.

Their continued profitability helps support their demand for tax- free income and their interest in purchasing school bonds.  This can be a very good fit for smaller issuers as the “closing costs” of a private placement can be much less than a traditional market transaction.  For further information, or if you have any questions, please call John Greenlee at 510-596-8170 or jgreenlee@cfwinc.com.

01.05.2013 Facilities Planning, Financial Advisory, K-12, Program Management Comments Off on Oxnard District Plans to Open Academies at 3 Schools

Oxnard District Plans to Open Academies at 3 Schools

By Jeremy Foster Special to The Star

PUBLISHED BY VENTURA COUNTY STAR ON APRIL 24, 2013

Middle school students in the Oxnard School District will have more opportunities next year to pursue specializations.

The district plans to open three academies at three intermediate schools, which will be reconfigured as grade 6-8 campuses. The redesigned schools are meant to make students more competitive in the global economy, district Superintendent Jeff Chancer said. read more

30.01.2013 Community Colleges, Financial Advisory, K-12 Comments Off on CABs: State Leaders Aim to Restrict Local School Financing Options

CABs: State Leaders Aim to Restrict Local School Financing Options

When the economy tanked, the need to replace leaking roofs or update electrical systems for computers and technology didn’t go away. Schools throughout California have continued to be under tremendous pressure to provide quality and safe schools for our children.

Like most things, there is no free lunch when it comes to financing the construction and renovation of our public schools. Whatever path a community takes, you either pay now or pay later for these buildings – but like your household, it’s good to have both options. read more

05.06.2012 Financial Advisory Comments Off on MSRB and CDIAC to Host Outreach Seminar for Municipal Issuers

MSRB and CDIAC to Host Outreach Seminar for Municipal Issuers

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) and the California Debt and Investment Advisory Commission (CDIAC) will co-host an education and outreach seminar for municipal market professionals on July 24, 2012 in San Francisco, California. This seminar will provide market participants and, in particular, public agencies, with information about how regulation of the municipal securities market is changing and the MSRB’s long-range plan for greater market disclosure and transparency. The keynote luncheon speakers will be MSRB Chair Alan D. Polsky and California State Treasurer Bill Lockyer. read more

26.05.2011 Campaigns, Financial Advisory, K-12 Comments Off on AB1045 Seeks to Restrict School District Access to Local Funds

AB1045 Seeks to Restrict School District Access to Local Funds

The ability for local school districts to raise funds through local measures is in jeopardy.  Last week, the Assembly approved AB 1045 (Norby), and the bill now moves to the Senate Finance and Governance Committee. read more

14.01.2011 Facilities Planning, Financial Advisory, K-12 Comments Off on CDE Announces QSCB Allocations

CDE Announces QSCB Allocations

The California Department of Education (CDE) announced the allocation of approximately $849 million in Federal Qualified School Construction Bond (QSCB) authorizations to 61 California school districts. read more

07.12.2010 Campaigns, CFW Foundation, Facilities Planning, Financial Advisory, K-12, Program Management Comments Off on 2010 Holiday Highlights Video

2010 Holiday Highlights Video

Please enjoy the following 2010 Highlights video, including the CFW Foundation Annual Scholarship Program awards. read more

12.10.2010 Financial Advisory Comments Off on Governor Signs AB 920

Governor Signs AB 920

Expands Solar Energy Incentives for Schools read more