State laws determine the legal bonding capacity for local governments. L. J. Hart & Company uses their experience to calculate the maximum bonding capacity available. Bonding Capacity projections form the basis for current and future decisions regarding how issuers will address facility and capital project needs.
Debt Repayment Analysis
Debt Repayment Analysis- L. J. Hart & Company can provide several debt repayment plans based upon current market conditions, tax collection rates, assessed valuation growth assumptions, etc.The analysis services of L. J. Hart & Company helps the issuer anticipate future cash flow obstacles or take advantage of certain opportunities. By partnering with us, it becomes easier for local decision makers to select a plan that best meets their goals and enhances the chances for voter approval when necessary.
Refunding Analysis - Providing our client issuers with the best possible redemption provisions is a speciality of L. J. Hart & Company. With the company’s philosophy of structuring financings with short call features, or the ability to pay off debt early, opportunities to refinance existing debt and enjoy significant interest savings may be available. To save money, it is beneficial to take advantage of opportunities to refinance debt with more attractive interest rates and achieve greater flexibility on future facility needs.
Credit Enhancement - Credit enhancement is a method whereby an entity attempts to improve its credit worthiness. With credit enhancement, the lender is provided with reassurance that the borrower will honor its obligation through insurance, additional collateral or a third party guarantee.
L. J. Hart & Company completes most of the application and can assist in the data gathering process. The company has considerable experience in working with all rating agencies as well as the firms that provide municipal bond insurance to local governments. Having the benefit of this experience is useful in expediting the process, receiving competitive pricing of the insurance fee quotes, as well as the achievement of professional respect for the quality and completeness of the presentation.
Credit Ratings - An assessment of credit worthiness can be obtained through a credit rating. The credit rating is based upon the fiscal management of the issuer’s history of borrowing and repayment, as well as the availability of assets and the extent of an entities liability.
L. J. Hart & Company provides complete services to issuers to apply for underlying credit ratings. We help compile, submit, and present the data that rating agencies request in this process. In addition, we provide insight into the rating process to assist the borrower in pursuing long term strategies to help maintain and strengthen these ratings.
Form C Preparation
Form C Preparation - The calculation of the annual debt service levy is a service provided to clients by L. J. Hart & Company. Prior to the tax levy setting process we request the information that enables our staff to calculate the allowable debt service levy that can be submitted to the Missouri State Auditor’s Office and the County Clerk. This service will help identify the need to prepay existing bonds in order to maintain the current debt service levy and remain in a good position for a future no-tax increase general obligation bond proposal.
Missouri Direct Deposit Program
Missouri Direct Deposit Program - Missouri school districts issuing general obligation bonds for construction and refunding purposes are eligible in most cases to participate in the State of Missouri Direct Deposit Program. This program provides each issuer with an AA+ rating by Standard & Poor’s Corporation with no charges incurred by the school district.
L. J. Hart & Company completes the application needed for the State of Missouri Health and Educational Facilities Authority (MoHEFA) program. Since the development of this program, L. J. Hart & Company has completed over 900 separate financings with a total par value of $2.5 Billion.