Post-Referendum Quick Start Guide
Congratulations on the passing of your referendum! Managing a large referendum project(s) may seem overwhelming, especially if this is the district’s first experience. Your financial advisor, bond counsel, and investment partners are valuable resources who will walk you through each step of the process to ensure your project’s success.
“Where do I begin?” is the most common question once a referendum passes. Ampersand has created the following quick start guide to assist the district with developing a plan for managing your bond proceeds that not only aims to keep your cash safe, but also optimizes your liquidity while minimizing both costs and management time.
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STEP ONE – Review District’s Policies on Vendor Selection and Investments
Review the district’s board-approved investment policy
Verify the district’s process for selecting vendors and approving depositories
Is the district required to issue a Request for Proposal (RFP)?
When the district selects a partner to manage its proceeds, what is the process to submit the depository for board approval?
STEP TWO – Identify District’s Key Personnel
Identify internal stakeholders who will be involved in managing the district’s project(s)
STEP THREE – Review Prioritized Checklist to Manage Proceeds and Project
Choose an investment partner to manage the district’s bond proceeds
If RFP is required, distribute to potential partners for their consideration
If RFP is not required, engage partners who specialize in bond proceeds management, like Ampersand, to learn about their services and request a proposal including an investment plan
Request a preliminary draw schedule, if available, from the district’s architect and/or construction management firm managing the referendum project(s)
Communicate anticipated bond issuance dates to bond proceeds management partner
Is the district issuing the total amount of the referendum in one or multiple bond issues?
Is the district planning on issuing a Bond Anticipation Note (BAN) in advance of issuing the bonds?
Other priorities to consider when issuing debt and managing a referendum project:
Understanding issuer’s responsibilities for arbitrage rebate calculation (ARC) compliance
Contact Ampersand to request the “Navigating the ARC” reference guide
Process for paying general contractor, sub-contractors (if applicable), and other referendum project vendors
Will district pay directly from Fund 49 account?
Will bond proceeds management firm pay vendors on behalf of district?
Resources
Wisconsin Department of Public Instruction (DPI) – Referendum Procedures and Reporting Requirements
Wisconsin State Statutes
Public Depositories
Definitions – State Statute 34.01
Designation of Public Depositories – State Statute 34.05
Financial Institutions Eligible as Public Depositories – State Statute 34.09
Investments – State Statute 66.0603
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Check Out Ampersand!
Ampersand
Ampersand assists districts in all facets of bond proceeds management. From evaluation, optimization and execution of investments, vendor and debt service payments, arbitrage rebate calculation compliance, and board reporting, Ampersand is your trusted partner who will help make your referendum project a success for both the district and your community.
Contact us today at hello@trustampersand.com to get started!
DISCLAIMER:
The information provided is for general informational purposes only and does not constitute legal, tax, or financial advice. This information is not intended, nor should it be construed, as municipal advisory advice under Section 15B of the Securities Exchange Act of 1934. Under MSRB Rule G-42, no fiduciary relationship between Ampersand, Inc. and the municipal entity is established unless and until a formal written advisory agreement is signed by both parties.