Introduction to Issuing Bonds for Government Utilities
November 6-7, 2017
Denver, CO

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Overview

Raising money through the bond market requires a full team with expertise on all different sides of the process, and can be a daunting experience for those new to a utility or to the process as a whole. EUCI’s upcoming Introduction to Issuing Bonds for Government Utilities will give real insight into the process for issuing bonds, best practices for building the right team, and strategies to better prepare yourself for an offering.

 

You will hear from professionals on all sides of the bond issuing process: financial advisors, bond attorneys, financial feasibility consultants, ratings agencies, underwriters, and the utilities themselves. Each member of the financing team has their own unique skillset, and is integral to a utility’s success during this process. This program will offer a broad view of the process to help anyone new to issuing bonds better understand their next steps, and will leave you with strategically valuable information to best raise money for any new utility project.

 

Learning Outcomes

  • Outline the full bond issuance process from conception through issuing the funds
  • Analyze the various roles of the specialized professionals involved, and the process to building out the right team
  • Define the different types of bonds, funds, and rates that will all impact a municipality
  • Evaluate the laws and regulations facing utilities trying to issue bonds
  • Assess how rating agencies determine ratings on the bonds, and what issuers can do to better prepare for this process
  • Examine best practices for how cities and counties can improve their bond rating, and strategies to better prepare for a bond offering

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.0 CEUs for this event.


Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 12.0
There is no prerequisite for this Course.
Program Level: Beginner/Intermediate
Delivery Methood: Group-Live
Advanced Preperation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.

 

Requirements for Successful Completion of the Program

Participants must sign in/out each day and be in attendance for the entirety of the conference to be eligible for continuing education credits.

Instructional Methods

PowerPoint presentations and classroom discussion will be used in this program.

Agenda

Monday, November 6, 2017

7:30 – 8:00 a.m. :: Registration and Continental Breakfast

8:00 – 8:15 a.m. :: Conference Welcome


8:15 – 10:00 a.m. :: Introduction to the Process of Issuing a Bond

  • Key terms government utilities need to know for raising money through bonds
    • Breakdown of various types of bonds, and an understanding of which options are right for an individual utility – revenue bonds, general obligation bonds, revolving funds, etc.
  • Understanding the role of the financial advisor and their relationship to the utility
  • Typical advice provided to the utility during this process
  • Building out a strong municipal bond issuing team

Robyn Moore, Sr. VP, George K Baum & Co.

10:00 – 10:30 a.m. :: Networking Break


10:30 a.m. – 12:00 p.m. :: Understanding the Legal Framework of Municipal Bonds

  • Discussing the legal requirements for issuing a bond
  • The roles of various counsel in the bond issuance whole process / why hire a lawyer
  • Potential changes that might impact this process
  • Select legal variations by region
  • Experiences in various issuances and what utilities can learn from these

Michael Kozlarek, Partner – Public Finance, Parker Poe

12:00 – 1:00 p.m. :: Group Luncheon


1:00 – 2:45 p.m. :: Financial Feasibility Analysis

  • Understanding the role of financial feasibility consultants, and why this particular type of analysis is important for utilities to undertake
  • Reading your own balance sheet to anticipate the results and be better prepared
  • The primary components of the financial feasibility analysis and report:
    • Historical financial reports
    • Capital Improvement Program (CIP)
    • Historical and projected customers and usage
    • Projected operating results
  • Understanding the resultant feasibility analysis, assumptions and estimates, and balancing expectations from elected officials, customers and the market

Daryll Parker, Principal Consultant, Willdan Financial Services

Kevin Burnett, Senior Project Manager, Willdan Financial Services

2:45 – 3:15 p.m. :: Networking Break


3:15 – 5:00 p.m. :: Raising Municipal Bonds for Utilities – Colorado Springs Utilities Case Study

  • Introduction
    • Colorado Springs Utilities
      • Current Debt Portfolio – Colorado Springs Utilities
  • The Annual Plan of Finance
    • Expected timeline to Bond Issuance
    • What are your financing needs for the fiscal year?
      • Size of your proposed bond issue
        • How do you verify the size of the issue?
      • Type of bonds do you expect to issue (variable-rate or fixed-rate)
      • When do you need the proceeds?
      • Competitive or Negotiated Underwriting process?
  • RFP Process
  • The Internal Process
  • Document Review and approval
  • Approval Process
  • Rating Agency information
  • Bond Pricing Day
    • What else is happening around the day that you want to go to market?
      • Day before or Day after holiday; heavy vacation period (August) for investors and bankers
      • Other issuer(s) in the market on the day you want to price?
        • What “attention” will they draw away from your bonds?
      • Any major market announcement expected?
  • Bond Closing Day

Bob Lesher, Manager-Treasury and Finance, Colorado Springs Utilities


Water Revenue Bonds Case Study – Pooled Financing for a Water Project with 12 Participants

  • Windy Gap Firming Project – Description and Participants
  • Complicating factors
    • Who’s in and who’s out – pooled financing vs. individual financing
    • Contractual arrangements – take or pay, step-up, etc
    • Role of financial consultants
  • Senior/Subordinate Structure
    • CWCB Subordinate Loan – $90million
    • Senior Revenue Bonds
  • Credit ratings (pooled rating, unrated participants, RES process)
  • Underwriting process
  • Final outcome – TBD

Jeff Drager, Assistant General Manager – Engineering, Northern Water

5:00 p.m. :: Adjourn for Day


Tuesday, November 7, 2017

7:30 – 8:00 a.m. :: Continental Breakfast


8:00 – 9:45 a.m. :: The Role of the Ratings Agency, and Strategies for Achieving the Best Result

  • S&P Global Ratings definitions
  • Rating Input: Preparing for a ratings agency meeting, practices to make the most out of ratings agency meetings
  • Rating Output: What S&P Global produces and what to expect at the end of the process
  • After the Fact: Maintaining a credit rating over time
  • General factors contributing to rating deterioration and improvement
  • Electric and water utilities rating methodologies

David Bodek, Senior Director, Sector Leader – Public Power, S&P Global Ratings

Scott Garrigan, Director, Lead Analyst – Utility Revenue, S&P Global

9:45 – 10:15 a.m. :: Networking Break


10:15 a.m. – 12:00 p.m. :: Underwriting a Municipal Bond

  • Now that a utility has raised a bond to pay for their individual project, what are the next steps needed to ensure success?
  • Analyzing the role of the underwriter in a bond issuing team
  • The process for selling bonds on the open market, and how the underwriter is involved
  • Understanding how the pricing of bonds is determined
  • Evaluating interest rates and what a utility can expect
  • Breaking down the full public offering and all of the contributors

Robyn Moore, Sr. Vice President, George K. Baum & Co.

12:00 p.m. :: Summary and Conclusion of Program

Instructors

David Bodek, Senior Director, Sector Leader – Public Power, S&P Global Ratings

Kevin Burnett, Senior Project Manager, Willdan Financial Services

Jeff Drager, Assistant General Manager – Engineering, Northern Water

Scott Garrigan, Director, Lead Analyst – Utility Revenue, S&P Global

Michael Kozlarek, Partner – Public Finance, Parker Poe

Bob Lesher, Manager-Treasury and Finance, Colorado Springs Utilities

Robyn Moore, Sr. Vice President, George K. Baum & Co.

Daryll Parker, Principal Consultant, Willdan Financial Services

Location

EUCI Office Building Conference Center
4601 DTC Blvd, B-100
Denver, CO 80237

 

Nearby Hotels

Hyatt Regency Denver Tech Center
7800 E. Tufts Ave
Denver, CO 80237
Phone: 303-779-1234
0.4 miles away

Hilton Garden Inn Denver Tech Center
7675 E. Union Ave
Denver, CO 80237
Phone: 303-770-4200
0.6 miles away

Denver Marriott Tech Center
4900 S. Syracuse St
Denver, CO 80237
Phone: 303-779-1100
0.7 miles away

Hyatt Place Denver Tech Center
8300 E. Crescent Parkway
Greenwood Village, CO 80111
Phone: 303-804-0700
0.9 miles away

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

EventEarly Bird Before
Friday, October 20, 2017
Standard RateAttendees
Introduction to Issuing Bonds for Government UtilitiesUS $ 1195.00 US $ 1395.00

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Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before October 06, 2017 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800