March 2011

 

Paying Agents and New Payment Deadlines

by Connie Kuck and Debbie Peterson

 

Paying agents are a third party that is engaged on a contractual basis to make sure debt payments are made in a timely manner.

 

Responsible to maintain a record of the debt obligations, the paying agent is contracted to administer to notify the local government in advance of payment due dates, to collect the amounts due, and to make the payment on time to the proper party. 

 

The paying agent also handles other administrative actions, such as processing of mandatory redemption notices for term bonds.

 

Click here to continue reading. 

 

 

Financial Power Tools for Tough Economic Times

by Brad Townsend 

 

 

As part of the "Friends of Illinois City/County Management Association" Corporate Partnership Program, partners get the opportunity to submit a one-page written educational piece in their newsletter.

 

Check out Page 4 in the ILCMA newsletter for the Ehlers' article!

 

 

Ehlers Market Commentary

 

Are you up to date with current market trends? If not, be sure to check out the Ehlers Market Commentary, which is released every other week.

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Ehlers

550 Warrenville Road

Suite 220

Lisle, IL 60532-4311

 

Phone: 630-271-3330

 

Greetings!

Welcome to the spring edition of The Advisor.

 

In this issue we explore Tax Anticipation Warrants as an alternative for cash flows, look at the current interest rates for Illinois, and examine the debt service extension base.

Then we spring forward to referendum planning for 2012 and more.

Think spring! 

 

Brad Townsend         

 

President and CEO 

 

Considering Tax Anticipation Warrants for Cash Flow Alternatives 

byBrad Townsend, Financial Advisor

(630) 271-3335

btownsend@ehlers-inc.com

 

Brad TownsendTax Anticipation Warrants (TAWs) are used to fund deficiencies in the cash flow of a local government.

 

They are available to all units of local government in Illinois. TAWs allow a unit of government to borrow money for the short-term from a local bank or broker/dealer to be repaid with interest from the following year's property tax receipts. 

 

The maturity of the Warrants can range from one month to 13 months, and the debt is included in the calculation of a taxing entity's debt limits.

 

Click here to continue reading.

 

Current Interest Rates for Illinois

by Steve Larson, Senior Financial Advisor 

(630) 271-3331

 

Steve LarsonCurrently, residents of Illinois are paying more in interest rates than their counterparts in other states.

 

Tax exempt rates have been 0.5% to 1.0% more in Illinois than in Wisconsin.

 

The higher rates are attributed to the State of Illinois' budget issues and downgraded ratings.

 

Click here to continue reading.

 

Debt Service Extension Base

by Maureen Barry, Financial Advisor 

(630) 271-3341

 

Maureen BarryLocal governments, which are subject to the Tax Extension Limitation Law, are allowed to issue limited bonds. 

 

These limited bonds are payable from a local government's debt service extension base. 

 

The base is usually established the levy year before the taxing body became subject to the Tax Cap.

 

Click here to continue reading.

 

Referendum Planning for 2012

by Nancy Hill, Financial Advisor

(630) 271-3343

nhill@ehlers-inc.com 

 

Nancy HillWith the April 5, 2011 consolidated election around the corner, many local governments are looking to the next election cycles for bond referenda and other public questions. 

 

To initiate a public question, a governing board needs to take action by the specific dates for the March 20, 2012 General Primary Election and the November 6, 2012 General Election, respectively.

 

Click here to continue reading.

 

 

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