Whether your locality is taking a fresh look at its financial foundations, planning for future capital projects, or is ready to get a project underway, VML/VACo Finance can help. VML/VACo Finance is registered as a Municipal Advisor (MA) with the Municipal Securities Rulemaking Board (MSRB) and the Securities and Exchange Commission. Our finance professionals earned the designation of Municipal Advisor by taking and passing the MSRB Series 50 exam. As Municipal Advisors, we follow a code of conduct and have a fiduciary responsibility to our clients.
*Some deliverables qualify for at $2,500 grant from the Virginia Local Government Finance Corporation – see below, “About VML/VACo Finance’s automatic grants.”
Local governments periodically need to step back and examine their financial strengths and weaknesses, whether as part of their long-range planning or before undertaking a financing. VML/VACo Finance can provide an objective third-party analysis to serve as the foundation for your financial review. VML/VACo Finance examines the local government’s credit profile and compares it to industry standards and peer localities. We assess your debt capacity and make recommendations for presentation to the governing body.
If your locality or authority is taking on a large or complicated financing, or is developing a strategy to accommodate additional debt, you need a Plan of Finance. Depending on your specific requirements, the Plan of Finance assesses the cost and attributes of available financing options and determines how best to incorporate the new obligations into future budgets. In developing the Plan of Finance, our Municipal Advisors compare various financing scenarios, loan structures, and modes of financing.
Whatever financing option you select, VML/VACo Finance can put it all together for you. Financing Implementation may entail coordinating the municipal bond issuance team; soliciting bids and managing the closing for your bank loan or equipment lease; or guiding you through the steps to obtain financing through state loan programs. We also offer two in-house programs not available from other sources – see below, “Two financing options exclusive to VML/VACo Finance.”
VML/VACo Finance believes financial policies should be tailored to the individual requirements of each locality or authority. No off-the-shelf set of policies is appropriate for all local governments or authorities. Our work focuses largely on policies for establishing appropriate fund balances, planning for economic downturns, and setting aside funds for asset maintenance and replacement. Additionally, we assist clients in determining policy goals for managing debt and debt service levels.
VML/VACo Finance’s financing options include two programs you won’t find anywhere else. They both offer the ability to finance with no program closing costs.
The Fixed Rate Loan Program enhances the attractiveness of bank loans for projects over $2 million. Participants can take advantage of a convenient online payment interface with loan servicing, no-cost arbitrage monitoring and rebate reports, and no wire fees. Participants who select this program pay an annual fee instead of a program fee at closing, plus they automatically qualify for at $5,000 grant from the Virginia Local Government Finance Corporation – see below, “About VML/VACo Finance’s automatic grants.”
VML/VACo Finance’s pooled Commercial Paper program provides floating-rate loans at competitive rates for low-cost interim and long-term financing. Established in 2005, VML/VACo Commercial Paper has been used by local governments and authorities of all sizes, with loans up to $120 million. There are no program closing costs on loans over $500,000.
The non-profit Virginia Local Government Finance Corporation (VLGFC) has authorized automatic grants of $2,500 for each of the following deliverables:
Participants are eligible for one grant per 12-month period.
Additionally, participants in the Fixed Rate Loan Program are eligible to receive a grant of $5,000 per loan closing per 12-month period.
Funding for grants was generated over VLGFC’s 18-year history, primarily from earnings of its legacy pooled bond programs. VLGFC’s mission is to assist governmental units throughout the Commonwealth of Virginia in financing their capital and other project needs. To further this mission, the VLGFC Board of Directors, composed of local government officials, voted to make these grant funds available to Virginia localities and authorities. Grants may be applied to the cost of deliverables, other closing costs, or for any governmental purpose.
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When a conduit issuer is required, municipal bonds and notes of the VML/VACo Finance program are sometimes issued by the Industrial Development Authority of the County of Stafford and the City of Staunton, Virginia (IDA). This joint IDA was established solely for the purpose of serving as the Issuer for VML/VACo Finance. The dozens of VML and VACo member localities that have benefitted from VML/VACo’s pooled financing programs since 2003 are grateful to the Board of Supervisors of Stafford County and the City Council of Staunton for their invaluable roles in creating VML/VACo Finance and for their continuing support of the program.
The IDA is organized and exists as a political subdivision of the Commonwealth. Its Board of Directors consists of seven (7) directors, three (3) of whom are appointed on a continuing basis by the Board of Supervisors of Stafford County, and three (3) of whom are appointed on a continuing basis by the City Council of Staunton. The remaining position is appointed on a rotating basis between the two localities.
City of Staunton
City of Staunton
City of Staunton