Series 54: Municipal Advisor As Financial Advisor

Municipal Advisor as Financial Advisor

The first step in issuing a municipal bond is for the municipality to acquire the authority to issue it. This process involves:

•Demonstrating the financial viability of the project

•Defining the terms and conditions of the bond issue

•Attesting to its legality and tax-exempt status

•Ascertaining its impact on the issuer’s creditworthiness

To help the issuer prepare this material and assure the investor that the material is accurate and complete, the issuer will hire independent consultants from outside the municipality. In this process, a municipal advisor will sometimes take on the role of financial advisor. The financial advisor is a consultant retained by the issuer to advise and assist in creating a financing plan for the debt issue.

In general, the role of the financial advisor is to:

•Review the financ