• Skip to main content
  • Skip to footer

Government Capital Corporation

Government Capital Corporatoin is a leading public finance firm offering its clients a broad range of financing solutions.

  • About Us
    • History
    • Public Sector Services
    • Vendor Services
    • Associations
    • Leadership
    • Read our Government Capital Corporation Blog
  • Markets
  • Industries
  • Representative Transactions
  • Securities Firm
  • Contact

GovCap

COLEMAN EDC ANNOUNCES NEW SPORTS FIELDS

August 17, 2020 By GovCap

COLEMAN, TEXAS (May 2020) – The Coleman Economic Development Corporation announced the construction of baseball, softball and t-ball fields, including parking for each field, located at 2916 5TH Avenue in Coleman, Texas. The new complex replaces sports fields which had served the community for fifty years. The project is scheduled to be completed Fall of 2020 with a Ribbon Cutting First Pitch ceremony. SW Architects was selected to provide the architectural design for the construction. Government Capital Corporation was selected as the most cost-effective financing solution for this project.

Kim Little, Executive Director of Economic Development Corporation of Coleman stated, “This project is a public-private partnership between the Coleman Youth Sports Association, City of Coleman, Coleman EDC and private donors. The youth of Coleman County and the City of Coleman will have first-class fields and facilities. This project was streamlined with the expertise and experience of our financing partner, Government Capital Corporation,” stated Kim Little.

This project is an excellent example of community leaders working together in collaboration for the youth of Coleman. I want to congratulate Kim Little and the Coleman EDC Board for their foresight and leadership in the implementation of this important project with the upgraded sports facilities. The Coleman county youth and families will enjoy these facilities for many years,” stated Drew Whitington, Client Services Associate of Government Capital Corporation.

About Coleman Economic Development Corporation
Coleman EDC is a Type A Development Corporation authorized to undertake Type B projects located in North-Central Texas, 52 miles northwest of Abilene. The Coleman EDC is proud to develop business opportunities for the more than 5,000 citizens of the City of Coleman. For more information visit colemanedc.com

About Government Capital Corporation
Government Capital Corporation is a leading public finance firm providing professional financial services to all local governmental entities. Since its founding in 1992, the company has successfully completed thousands of municipal financings exceeding $4 billion in Texas and across the country. For more information, visit govcap.com.

###

Filed Under: Economic Development, Press Releases

2020 – Adversity Builds Character

August 4, 2020 By GovCap

It’s difficult to believe we are only halfway through 2020 given everything the U.S. economy and our citizens have already endured. Many books will be written in the future about all the unprecedented events which occurred during 2020.

Economists currently estimate the U.S. economy will shrink roughly 4.5% this year. Unemployment is hovering around 11% and is expected to fall to 9% by the end of the year. The stock market has recently rebounded from its lows in mid-March as the unexpected job gains over the past two months have provided some optimism that our economy is recovering as more businesses continue to gradually open back up. Many economists are forecasting a more robust nearterm growth pattern as the various stimulus plans have been effective in saving many jobs which were quickly fading away once the shutdown began. Looking further out into the future, the 2021 forecast appears more moderate, with a slower and more sustainable growth pattern. The Fed has repeatedly stated the U.S. economic outlook remains uncertain and a full economic recovery hinges on the battle to control the spread of COVID-19.

Interest rates have remained near all-time lows over the past few months and aren’t expected to increase anytime soon. If the economy shows more improvement we may see interest rates tick up some, but the Federal Reserve has made it clear that their goal is to keep rates low until late 2021 or early 2022. In addition to the Federal Reserve cutting interest rates this year, the Central Bank has pumped trillions of dollars into the economy in order to keep credit flowing to businesses, municipalities, and households. The influx of money was in part triggered by the liquidity crisis in the municipal bond market which occurred back in March when investors moved to safer, more liquid assets as a result of increased coronavirus concerns.

The Municipal sector is currently facing economic headwinds and their revenue declines are constraining many budgets on the state and local levels. Municipal debt issuances have recently rebounded with the resurgence of both refinancings and new money issuances. Refinancings are up over 65% through the first half of the year and more than doubled in the month of June alone. New money municipal debt issuances are up 16% this year, which is the highest increase since 2016. This trend is expected to continue as rates will continue to stay low for the foreseeable future. Budgets for many of the nation’s state and local municipalities will continue to be under a large microscope as they try to recover from the pandemic-induced revenue shortfalls.

In summary, 2020 has been rough for many Americans and unfortunately, the disruptions and anxiety may not diminish soon. Political and economic developments are expected to continue clouding the longer-term outlook of the United States and rest of the globe. In difficult times it’s important for everyone to remember, adversity not only builds character, it reveals it.

Click here to read the entire 2020 Q3 MMB

Article provided by Zac Saldi
Government Capital Corporation

Filed Under: Muni-Market Bulletin

The Black Swan appeared in March 2020

April 24, 2020 By GovCap

The U.S. economy was off to a great start in 2020 continuing to grow in an un-precedented 11-year expansion cycle which is the longest cycle in our country’s history.  However, this cycle came to an immediate halt in March when the country’s economy was shutdown due to the COVID-19 pandemic.  This black swan event dealt a monumental blow to our economy across the board and has forced all of us to change the way we live.  Now, let’s dive into the vastly altered financial and economic landscape created by COVID-19 and how our country is coping with it.

Economic Impact Highlights:

* Prior to the shutdown the U.S. was essentially fully employed with the unemployment rate at 3.5%.  Subsequently, in just five weeks, over 26 million Americans lost their jobs and this number is expected to increase.

* Almost 70% of the U.S. economy is consumption based which declined sharply in March due to most Americans being quarantined.  Some experts are projecting this recent downturn could decrease our nation’s GDP by as much as 20%, far surpassing the 4.2% GDP decline during the Great Recession of 2008.

* The U.S. government has been forced to substantially increase our national debt which is now almost $25 trillion.  This has been a growing concern for many years prior to the COVID-19 outbreak.

* The oil and gas industry has tumbled dramatically in recent months, posing a major threat to many American oil and gas companies.  This industry, which employs millions of Americans is a huge part of our economic output and the resulting economic impacts will further constrain many municipalities revenues.  For example, of the $59 billion Texas collected in tax revenue in 2019, 10% came from oil and gas.

Next, let’s look at some of the recent monetary, fiscal and legislative actions taken to combat the pandemic in support of the economy during this very critical time of need.

* After intense and protracted bipartisan negotiations, the House and Senate have passed trillions of dollars in four separate relief packages.  These packages are intended to preserve jobs and provide a means to bridge the gap until the virus slows and our country can come back online.

* The Federal Reserve has stepped up big and shown they are willing to do everything in their power to support the economy.  Here are some highlights of actions taken by the Fed:

¨ Recently, the Fed announced the approval of several stimulus measures to provide over $3 trillion of loans to help support the economy, including lending facilities to support corporate debt, small businesses and many others.

¨ The Fed has slashed interest rates sharply and very quickly.  This quarter alone, the Fed Funds rate was reduced to almost zero from 1.75% at the beginning of the year.  This also resulted in a corresponding 175 basis point reduction in the prime lending rate which is now 3.25%.

Municipal debt issuances were off to a great start in 2020.  In the first two months, issuances were up over 30% compared to last year, with a robust visible supply in the coming months.  Once our economy comes back online, there should be a strong demand for municipal issuance.  Many municipalities are considering alternative financing structures to fund projects for which they initially intended to pay cash or issue traditional bonds to finance.  These structures can be rapidly deployed in this historically low interest rate environment for many essential equipment needs and capital projects.  Just as many homeowners have recently refinanced their mortgages to free up some cash flow, many municipalities will do the same as they look at all options to reduce costs during these times of uncertainty.  Even the federal government is planning to take advantage of these low borrowing costs to provide new infrastructure, much of which is outdated.

Despite all the negative effects the COVID-19 pandemic has caused, there is one important thing everyone should remember; Americans are extremely resilient, and we know failure is never an option.  Throughout America’s long history we’ve dealt with many obstacles thrown our way and as always, we will prevail through this one too.  We will learn from it and come back stronger because that’s what Americans do.

Click here to read the entire 2020 Q2 MMB

Article provided by Zac Saldi
Government Capital Corporation

 

Filed Under: Muni-Market Bulletin, Press Releases

CROOKED RIVER RANCH RURAL FIRE PROTECTION DISTRICT ANNOUNCES ACQUISITION OF NEW HORTON AMBULANCE

March 1, 2020 By GovCap

Terrebonne, OR (March 2020) – Crooked River Ranch Rural Fire Protection District is proud to announce the purchase of a 2019 Horton Ambulance complete with Stryker loading equipment. This addition to the fleet will allow for shorter response time to the constituents. The department has scheduled an apparatus housing ceremony for April 25, 2020. Additionally, the ambulance will be on display at the Oregon Fire Chief’s Conference the last week of April. Government Capital Corporation was selected as the most cost effective financing option for the acquisition.

“Our financing partner, Government Capital Corporation, made the process simple. Their customer care is outstanding, and they followed up regularly to ensure all my questions were answered. ” stated Harry Ward, Crooked River Rural Fire Protection District Fire Chief.

“I would like to congratulate Chief Ward, Dana Schulke and the Board on this important purchase. It brings us great satisfaction providing solutions which allow first responders to replace outdated equipment & bring increased safety to the area’s citizens and crews,” commented Jana Offutt, Government Capital Corporation Client Manager.

About Crooked River Ranch Rural Fire Protection District
Crooked River Ranch Fire & Rescue was organized in 1977 and has grown into a combination Fire District with 24-hour staffing with paid and volunteer personnel. The District relies heavily on its volunteers, which consists of men and women from all walks of life who want to serve their community and protect the lives and property of the citizens of Crooked River Ranch. Crooked River Ranch consists of approximately 16.4 square miles of rural residential, recreational, and commercial properties with over 5,000 permanent residents. The District also provides education and prevention services to their community. Learn more: crrfire.org.

About Government Capital Corporation: Government Capital Corporation is a leading public finance firm providing professional financial services to Fire Protection Districts and all other local governmental entities. Since its founding in 1992, the company has successfully completed thousands of project financings exceeding $4 billion dollars in Oregon and across the country. For more information, visit govcap.com.

###

Filed Under: Emergency Services, Fire Protection, Press Releases

CARENCRO UTILIZES LAMATS PURCHASING SERVICES FOR AN EQUIPMENT ACQUISITION

February 13, 2020 By GovCap

Carencro, LA (January 2020) – The City of Carencro announces the delivery of a new excavator for its utility department. The 2016 Gradall D-152 excavator provided by Scott Equipment represents a much needed addition to the fleet. The City selected the Louisiana Municipal Advisory and Technical Services Bureau (LaMATS) cooperative lease purchase program administered by Government Capital Corporation (GCC) as the most economical financing solution.

“The tax exempt lease purchase structured by Government Capital Corporation was the perfect solution. In addition to reduced interest cost compared to the lease offering provided by the equipment manufacturers, the process was quick, easy and enabled us to take delivery of the equipment on our schedule,” stated Mayor Glenn Brasseaux.

LaMATS Executive Director Cliff Palmer stated, “LaMATS continues to have complete confidence in Government Capital as our municipal finance partner. When a municipality is considering a lease-purchase of equipment, our cooperative program is a great option.”

About Carencro, Louisiana: The City of Carencro is eight miles north of Lafayette on Interstate 49. With a population of approximately 9,600, Carencro is a great place to live, work and play. Our community is united behind our Cajun and Creole heritage, and we pride ourselves in the preservation of our traditions while moving into the future. The heart of our city is its citizens, and Carencro offers resources for our citizens to enhance their way of life and come together as a community. www.carencro.org or Mayor Glenn Brasseaux, 337-896-7001.

About Louisiana Municipal Advisory and Technical Services Bureau (LaMATS): The Louisiana Municipal Advisory and Technical Services Bureau (LaMATS) was established in 1998 and is a wholly-owned subsidiary of the Louisiana Municipal Association (LMA). The mission of LaMATS is to bring economical and efficient services that assist the LMA membership with their day-to-day business. LaMATS offers a variety of services and programs including: Insurance Premium Tax Collection Program, Occupational License Program, LaMATS Purchasing Services, Millage Management, Municipal Debt Recovery, etc. For more information: lamats.net, or Cliff Palmer, Executive Director, 225-316-7157.

About Government Capital Corporation: Government Capital Corporation is a leading public finance firm providing professional financial services to municipalities, parishes, fire districts, schools and other local governmental entities. Since its founding in 1992, the company has successfully completed thousands of project financings in Louisiana and across the country. For more information: www.govcap.com, DC Greer or Marti Sauls, 800-883-1199 DC.Greer@govcap.com or Marti.Sauls@govcap.com

###

Filed Under: Facilities, Government, Press Releases

2020 – Year ahead filled with volatility?

February 6, 2020 By GovCap

The year 2019 ended up being a very good year for the U.S. economy.  In a year which included major international trade disputes and a weak global economy, American consumers demonstrated exceptional resilience and versatility.  As a result, the S&P 500 and Nasdaq surged roughly 30% for the year which are the largest annual increases in those indexes since 2013.  The U.S. labor market remained strong throughout the year with unemployment hitting a 50 year low of 3.5%, and a strong increase in new jobs at year-end, well exceeding analysts’ expectations.  The strong labor market has increased worker wages roughly 3% this year which is one of the largest annual increases over the past decade.  This has helped keep consumer spending at a robust level, helping to offset the recent trends of lower business investment, weaker exports and a contracting manufacturing sector abroad.

The Federal Reserve lowered interest rates three times last year in order to mitigate some risks posed by slowing global growth and international trade uncertainty.  December’s Federal Reserve Policy meeting minutes indicated most Fed officials don’t project any adjustments to the current monetary policy, which is to keep interest rates at their current levels.  Not one of the 17 officials currently envision any interest rate cuts in 2020 and only four project a potential rate increase by the end of the year.  The Fed indicated inflation will be one of their main areas of focus this year.  Inflation has been hovering around 1.6%, slightly below their 2% target.  The Fed has already been acting on the softer inflation rate by pumping money into the market thereby providing temporary liquidity.  Recently, the Fed has been buying roughly $60 billion of Treasury bills every month to help keep the economy’s momentum going.

This time last year, the Fed was under fire after they increased interest rates again in early December.  Their action essentially sidelined many market participants causing the domestic stock market to decrease roughly 20% in less than one month.  However, market participants were much more satisfied with the Fed’s actions (including three interest rate cuts) in 2019.  Municipal debt issuances exploded in the fourth quarter of 2019, increasing 55% compared to the fourth quarter of 2018. Annual municipal debt issuances increased from $346 Billion in 2018 to $423 Billion in 2019, a healthy 22% boost.  Many fixed income strategists believe this trend will continue in this current low interest rate environment and projections for 2020 debt issuances range from $400 Billion to $450 Billion.

Our economy’s robust growth is projected to moderate in 2020 as there are still concerns and headwinds facing the U.S. and rest of the world.  It’s increasingly difficult to project how the economy will perform, considering this is an election year where markets and business sentiment tend to be more volatile.  However, the general consensus is that interest rates should stay near their historical lows for the foreseeable future.

Click here to read the entire 2020 Q1 MMB

Article provided by Zac Saldi
Government Capital Corporation

 

Filed Under: Muni-Market Bulletin

  • Go to page 1
  • Go to page 2
  • Go to page 3
  • Interim pages omitted …
  • Go to page 11
  • Go to Next Page »

Footer

Corporate Office:

345 Miron Drive

Southlake, Texas 76092

817-421-5400
800-883-1199

info@govcap.com

Contact the winning team at Government Capital Corporation and put our expertise to work for you.

Contact Government Capital

Representative Transactions

Vendor Services

Public Sector Services

Blog

Copyright © 2023 ⋅ Government Capital Corporation ⋅ Disclosure

Powered byFunny Facts