Knight Advisory & Planning announces the municipality partnership program ready for 2019!

Knight Advisory & Planning Municipality Affairs Division

Knight Advisory & Planning (KAP) to offer Municipality solutions in project management solutions

KAP development group takes careful time to ensure that all its clients are properly advised in the most fiscally responsible manner. As such for informational purposes only (not to be construed as specific project management advice) KAP provides the following basic guidelines on municipality solutions in the United States, Texas and Florida:

 

Who we are to Municipalities

KAP has partnered to expand the services as a collective team. KAP provides professional services. Namely we provide portfolio management services, project management services, quality assurance, technical feasibility studies, and financial analysis. We have board certified personnel by the American Academy of Project Management (AAPM) and the International Project Management Commission (IPMC). Our list of competencies include: Master Project Managers(MPM), Certified Markets Analysts (CMA), Master Quality Managers (MQM), Certified International Project Managers (CIPM), and Certified Project Portfolio Managers (CPPM) to name a few.

In our scope of finance we have Financial Industry Regulatory Authority (FINRA) recognized personnel who hold distinct international accreditation in finance. Among the international accreditors are the American Academy of Financial Management (AAFM), Global Academy of Financial Management (GAFM), Arab Academy of Banking and Financial Sciences (AABFS), & UAE Government Securities Regulators to name a few. We have personnel who hold an Accredited Financial Analyst (AFA) designation, and Master Financial Planner (MFP).

 

Three Distinct Goals We Strive To Achieve With Our Client-Partners

1) Improve Banking Relationship

 

Item one focuses on an institutional bank that will work with various municipalities to establish basic needs such as: unsecured lines of credit, structured products, wealth management products, improved customer service.

 

2) Redemption, Renegotiation and Restructuring of Current Municipal Bond Debt held by municipalities.

 

Item two focuses on placing client-partners with a designated Institutional Grade Fund Manager. The Fund Manager will work to manage the existing coupon payments of selected municipal bond debt, and redeem each series of municipal bonds as they come due.

 

3) Expansion Capital for municipality implementation of city infrastructure and financial needs.

 

Item three is the primary focus of an Advisory Proposal. Item three focuses on designing a non-debt based scenario to raise the required capital for municipalities. It fits into the “Fixed Income Alternative” space. This space allows municipalities to service an equity like a municipal bond but with none of the downside. Money is not recorded as a liability and payments can be “skipped” with no risk of default. Simply resume dividend payments when it is ideal for the municipality at no penalty.

 

A New Beginning for the Municipalities World of Global Business

KAP provides solutions for "Conventional Out of the Box Solutions". We are aware that most municipalities are accustomed to a municipal bond market that services "fixed income". There is a well established market for these instruments and investors have historically always purchased them for "Safety".

 

In light of the recent mutual bond crisis difficulty has been created to municipalities that do not offer the esteem as "The Big Apple" (think New York, Miami, Los Angelas, Houston). A vast majority of smaller cities are experiencing extreme bond purchase reluctance due to this dramatic shift in the market.

 

As a result we are required to rethink the approach of municipal approaches going into the 2020's. 

 

KAP provides this solution. Our solution is dynamic, new, supportive of new legislation, but not so different where the traditional fixed coupon cycle is tossed out.

We provide a new dynamic opportunity that allows those willing to participate in our structure obtain the familiarity of a fixed income, with the possibility of market appreciation.

Key Project Management Areas we focus on:

Public Budgets

A public budget is a plan of expected incomes and expenditures for the upcoming fiscal year, which is a twelve-month period that may or may not correspond to the calendar year.

 

Local Revenue Structures

Revenue is the income a local government needs to pay for all of the services it provides. A revenue structure describes the many sources of income a local government receives. The major sources of revenue include taxes, other revenue sources and intergovernmental transfers, which are defined processes.

 

Revenue from Taxes

Taxes are an essential source of revenue for all levels of government. Like other parts of the revenue structure, tax revenue setting by municipalities is restricted by state governments. States are not uniform in their approach to allowing municipalities to utilize the three major sources of tax revenue - property, sales and income taxes - usually permitting some combination. States assign a portion of state tax revenues to those municipalities with a substantial share of the state population, reliant on one tax with only a limited degree of reliance on a second or municipalities rely on only one revenue source, usually the property tax.

Although the details of the budget process vary significantly from city to city, there are four main sequential stages in the lifecycle of a public budget:

 

  • Preparation: the budget involves the development of expenditure estimates for departments in light of available revenues.

  • Approval: budget estimates are then submitted to a city council or board for review and modification, often with citizen input from public meetings. The budget is then legally approved and adopted.

  • Implementation: the budget is then implemented by municipal departments throughout the year.

  • Evaluation/Audit: the performance of all governmental units is monitored and measured throughout the fiscal year. Those indicators are evaluated at the year's end to inform the budget process for the following year.

A L T E R N A T I V E

The Preferred Share Structure

At KAP we strive to show prospective purchasers of fixed income alternatives how a Corporate Preferred Share is a better performance marker for payment than a conventional bond. We do this by working with licensed promoters of financial products who assist in the deployment of Direct Public Offerings (DPO) between their own communities. These shares are set a low initial purchase of anywhere between five hundred and a thousand dollars subscription amount. The C Corporation formed is a local domestic issuer (in the community) that is a wholly owned subsidiary of the Municipality. A more competitive rate is offered than the existing municipal bond pool, and it is marketed as a fixed income alternative.

 

Advantages to the Municipality

Dividends pay similar to coupon payments (quarterly, bi-annually, or annually); however it is an "equity" not a "debt". This unique advantage means that if the municipality decides not to "declare" dividends; no payment is made. There is no penalty for not paying dividends, as the market value is always "par" (meaning face value). This unique flexibility also translates to the fact that no "liability" is recorded on the books. The municipality raises capital for its needs without the burden of default, late payments, or blows to it's Standard & Poor's rating. The preferred share structure carries all the familiarity of a municipal bond but none of the downside.

 

Revenue from Projects in lieu of General Obligations

Taxes are an essential source of revenue for all levels of government; when a default occurs the municipality must pass on this burden to its constituents. Like other parts of the revenue structure, tax revenue setting by municipalities is restricted by state governments. This also means that there is bureaucracy involved, and potential negative political back lashes. The ability to design a structure where investors assume the risk with the municipality means there is no obligation to pay through General Obligations. Part of purchasing an "equity" is you "speculate" it will perform. For this reason various investment stakeholders are willing to take the risk of non payment to obtain higher payments. By setting it in the "fixed income" space, it simply qualifies for a more aggressive coupon rate (to use the analogy). The obligation lives and dies with the project; however, there is no recourse to liquidate the project to redeem the investors either. It is the most flexible structure we believe can be offered in the municipality box.

 

KAP DOES NOT PERFORM SECURITIES RELATED ACTIVITIES, GENERAL SECURITIES ADVICE, OR SECURITIES RELATED CLEARING FOR MUNICIPAL SECURITIES (ALTERNATIVE OR OTHERWISE). KAP EXCLUSIVELY PROVIDES PROJECT MANAGEMENT SERVICES, AS SANCTIONED BY ITS ACCREDITATION AGENCY THE AMERICAN ACADEMY OF PROJECT MANAGEMENT (AAPM). KAP MAY PROVIDE FINANCIAL ANALYSIS AS IT HAS ACCREDITED FINANCIAL ANALYST ON STAFF TO PERFORM THIS FUNCTION. ALL SECURITIES RELATED TRANSACTIONS ARE HANDLED BY LICENSED PERSONNEL.

Knight Advisory & Planning Key Points:

    (1) Quality Networking Opportunities That Yield Profitable Partnerships.
 

    (2) Knight Advisory; an Authorized Florida Business Agent.
 

    (3) Florida: Helping Women Design Business Blueprints.
 

    (4) Knight Advisory holds a seminar on opportunities in the Florida-National relationship.
 

    (5) Team Proposal.
 

    (6) Emerging Markets.

    (7) Independent Entity not affiliated with any other entity discussed.

Additional Information

For more information email: info@knight-planning.com
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Knight Advisory & Planning 2006 - 2020

© 2020 by Knight Advisory & Planning. All rights reserved

Staff are members of the American Academy of Project Management (AAPM), American Academy of Financial Management (AAFM), International Project Management Commission (IPMC). All rights reserved. Use of a logo does not imply an endorsement or recommendation of any kind. Knight Advisory & Planning (KAP) is not a registered AAPM, GAFM, AAFM or IPMC entity. KAP employs the use of registered members of the AAPM, AAFM, GAFM and/or IPMC.

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