Montague DeRose and Associates, LLC

Long Term Planning

Policy Development

Montague DeRose and Associates assists clients in developing policies that will enable them to finance capital improvements in a timely and cost effective manner. Policy development often includes a review of debt position, an evaluation of debt capacity, an analysis of the affordability of future debt and establishment of debt management guidelines.

Capital Budgets/Financial Modeling

Our extensive experience creating financing models includes, among others, a power bond financing program, housing portfolio models, utility capital improvement plans, power rate modeling and bond analysis, state building programs, a state asset sale, state revolving fund programs, a county master transportation plan and a school district capital improvement plan financing model. These models are continually revised and refined to fit the changing needs of each client. Our financing models have proven to be extremely flexible and useful as long-range planning tools.

Debt Capacity/Existing Debt

As a financial advisor, we believe an analysis of our clients' outstanding obligations and capital project needs is critical. We determine the debt capacity of an entity by analyzing factors similar to those examined by the rating agencies. These factors include analysis of current economic conditions and growth trends to determine a debt level that maintains or increases bond ratings, while meeting the client's capital project needs. Montague DeRose and Associates maintains a database of all our clients' existing debt. We use this database to assist in debt capacity analyses, and also in the refunding/restructuring analyses we perform. We are constantly examining existing obligations to determine if interest saving possibilities or cash flow improvement opportunities exists.

Bond Rating Strategy

Montague DeRose and Associates expends considerable time and resources to maintain and improve bond ratings for our clients. Year after year we organize tours of our clients' communities and/or facilities. Our efforts have resulted in numerous rating upgrades for our clients. Because of our familiarity with credit criteria and the rating analysts, we are able to advise clients about their credit strengths and weaknesses. This helps us prepare strategies for interacting with the rating agencies. We are committed to consistent communications with the rating analysts.

Financing Alternatives

Before committing to a specific financing structure, we produce and review alternative financing structures to maximize our clients' resources. Upon presentation of the available financing vehicles, we work with clients to select the most cost-effective structures. As independent financial advisors, we have access to every major municipal bond trading desk in the country. When our clients need important information, or want to test new ideas on the market, our national relationships allow us to poll five to ten different firms. Being independent broadens our market resources and provides our clients with valuable and more accurate information.