AWWA JAW30349

Utility administrators trying to control rising costs and rates should pay attention to revenue bond marketing as a way to cut costs when planning capital improvements. Bond marketing involves establishing the optimum debt funding requirements and the subsequent marketing of bonds at the most favorable interest rates. The process requires a clear understanding of the roles of marketing team members and the bond rating process. The author describes the responsibilities of various members of the marketing team: utility management, financial advisor, underwriter, bond counsel, consulting engineer, and certified public accountant. The rating process is described, with emphasis on the application for rating and credit analysis. Two significant areas are sometimes inadequately addressed by bond issuers in the documents submitted to rating agencies: evidence of comprehensive capital improvement financial planning and negative aspects or problem areas. The author offers guidance on positioning the utility to receive financing at low cost. A table lists questions that usually come up during the rating process. Includes 2 references, table, figures.