Capital Project Planning

The most effective use of our services comes from an ongoing involvement, where we work with you to develop a long-term capital plan and assist in the coordination of its implementation. We assist our clients in the development of a financial plan to size, structure and market their bonds. The plan should provide alternatives and be flexible in order to accommodate changing circumstances.

We will meet with the appropriate officials to review the proposed financing, determine the amount and nature of the financing and establish an approximate time frame. If necessary, we will be available to make presentations to the public in an effort to further explain the proposed financing. We prepare the maturity schedules for bond issues which will be attractive to potential bidders as well as acceptable to the entity. We will offer options, and perform sensitivity analyses so that the issuer may make a more informed decision regarding current as well as future budgetary impact.

Rating Agency Reviews

When a bond issue is brought to the market with an Official Statement, it will most likely be accompanied by a credit rating.  In anticipation of a bond sale or if an issuer would like to obtain an indicative rating, we submit all necessary documents and information to the rating agencies.  Munistat engages in approximately 75 rating agency reviews and surveillance calls per year.  It is Munistat’s policy to participate in the conference call with the rating agency in order to present our views regarding the Issuer’s rating.  If the situation warrants, we will arrange a personal meeting with the rating agency credit analysts to further solidify our position.  Copies of such rating agency presentations are made available upon request.

Financing with Bonds,
Notes and Leases

As soon as the method of borrowing has been determined, it is time to market the bonds to the investor community. An Official Statement is the offering document that is prepared on behalf of the issuer in connection with the sale of securities. Such document describes the terms and conditions of the sale, and sets forth all of the financial and operating information about the entity. Munistat assists our clients in the creation and presentation of all Official Statements so that the investor has all of the necessary information it needs in order to make an informed decision regarding the purchase of your bonds

The process for the financing is as follows:

Submit a list of the documents and information necessary to prepare the Official Statement. We then prepare the Official Statement, working with Bond Counsel for certain language relating to legal matters, in accordance with disclosure requirements, as set forth in Securities and Exchange Commission Rule 15c2-12. Distribute Official Statements and Notices of Sale to prospective underwriters and other members of the investment community through various information repositories and post the documents on our website. See “Bond and Note Sale Calendar”. The bid opening is held at our offices and we verify the calculation of the winning bid. We will then coordinate the preparation of the Final Official Statement and the details of the closing with the issuer, bond counsel, the underwriter, and other interested parties.

Continuing Disclosure

In accordance with SEC Rule 15c2-12 (the “Rule”) in connection with certain bonds, the issuer is required to file a Statement of Annual Financial and Operating Information with the Electronic Municipal Market Access System (EMMA) each year that the Bonds are outstanding. Failure to provide the Statement within the time specified constitutes a “material event” under the Rule and is required to be disclosed to the market immediately; Such failure may have a negative effect on the marketability of future bond and note issues of the issuer. As your Municipal Advisor, we will maintain in our database the record of the issuer’s obligation to file this document as well as all of the information contained in the Official Statement to ensure compliance with the Rule.


Munistat has a growing presence providing advice to nonprofits on long-term bank and capital markets financing. Our role as Municipal Advisor, unlike anyone else in a financing, is to provide independent financial advice, and our primary objective is to assist our clients in the development and implementation of their capital financing plans and the marketing of their securities, without any overt or implicit conflict of interest. While nonprofits borrowing in the municipal sector is less well-known than the $300 billion market of state, county and local government issuers, nonprofit borrowers still comprise $20-25 billion in annual borrowing. The nonprofit sector includes major healthcare nonprofit systems and private colleges and universities, as well as dozens of other types of nonprofits including: human service organizations, community facilities, secondary schools, summer camps, zoos, conservation organizations, museums and foundations.

Bond and loan financing may permit a user to build its projects sooner, expand the scope of its projects, spread the cost of a capital facility over a longer period to match the useful life of the project, or direct its fundraising to other purposes. With facilities financed by low-interest, long-term loans, fundraising can be directed to other purposes. Additionally, it helps build a stronger financial base to sustain the organization through downturns in the economy.

State Aid

Over our 40 years of industry experience, we have developed a comprehensive capital project recordkeeping system. The system includes the NYSED application, approval of plans and specifications, and final cost reports. Separate files should be maintained for the project, the contractors, professional services and financing. A specific timeline which incorporates the construction cash flow and responsibilities of the respective parties should (if all goes as planned) ensure a smooth and efficient building project.

In summary, Munistat will work closely with the architect and/or constructions manager to prepare pre-vote aid impact projections and calculate the maximum cost allowances and the bond percentages. Once we determine the scope of the projects and estimated costs we will prepare estimated debt service schedules showing total debt service before and after the estimated aid is received. We will assist in the preparation and submission of the required forms to SED in order for the District to get approval of building aid. After the sale of bonds or bond anticipation notes, we prepare the necessary documents to complete the requirement. We will periodically review SED output reports in order to ensure the District is continuing to receive the maximum amount of aid. Munistat will prepare, assist and review all building aid recalibration waiver applications that will be submitted to SED in order to eliminate any potential reduction in current aid.