Computation of Bonding Capacity
State laws determine the legal bonding
capacity for local governments. Sometimes,
the size of an important building project may
place an issuer very close to its bonding limit.
On these occasions, it is useful in the
planning process to know what the maximum
bonding capacity is in order to place
boundaries on the committee studying the overall needs. In Missouri,
the issuer’s bonding limit also includes the value of State Assessed
property lying within its boundaries, but getting this value is a complicated process.
L.J. Hart & Company has considerable experience with this type of assignment and preparing
such an analysis is part of the overall financing package at no additional cost.
Our basic service is to help local governments borrow money on a tax-exempt
basis to meet their capital facilities and equipment needs. These are some of
the services we provide in the process of reaching that goal.
