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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.
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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!
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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.
Be sure to sign up to receive your email copy, or read
past articles here.
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Conferences
and Presentations
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hello to us at any of the upcoming conferences!
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them to sign up to receive their own copy.
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Ehlers
550 Warrenville Road
Suite 220
Lisle, IL 60532-4311
Phone: 630-271-3330
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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!
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Considering Tax Anticipation Warrants for Cash Flow
Alternatives
btownsend@ehlers-inc.com
 Tax 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.
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Current
Interest Rates for Illinois
 Currently, 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.
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Debt
Service Extension Base
 Local 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.
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Referendum
Planning for 2012
 With 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.
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