Memorandum

City of Lawrence

Finance Department

TO:	Tom Markus, City Manager
CC:	Bryan Kidney, Director of Finance
FROM:	Nate Blum, Senior Accountant/Fiscal Analyst
DATE:	September 28, 2016
RE:	City of Lawrence Project Wins Neighborly Bonds Challenge

Background

Neighborly Securities, a public finance startup and underwriting firm from San Francisco, held a national bonds challenge in September. The challenge was open to public entities from across the country who submitted community projects wishing to finance them through local bonds. Neighborly specializes in issuing mini-bonds in lower denominations and marketing them directly to individuals in the community.

The winning projects were chosen based on innovation, impact on the community, credit rating and community engagement. The winners will have their bond issuance fees waived by Neighborly and be given access to Neighborly’s technology-based platform which includes a bond counsel opinion from an outside firm, investor marketing assistance, pricing, sale and closing services, investor relations and continuing disclosure.  

City of Lawrence Fire Truck Project

On May 17, 2016 the City of Lawrence Commission adopted resolution no. 7163 giving the Lawrence-Douglas County Fire Medical Department authority to purchase a fire truck and issue General Obligation Bonds as funding for the project. City staff selected the project to be submitted to Neighborly for the bond challenge.

Bond Challenge Results

The results of the bond challenge were announced by Neighborly at the annual California Bond Buyer Conference. The proposed bond issuance for the purchase of the fire truck was chosen as one of five winning projects from across the country and given the small issuance award, for issuances of less than one million dollars. By working with Neighborly to issue bonds for the purchase of the fire truck, the City will have certain issuance fees waived, access to cutting-edge technology, be able to offer low-denomination bonds and target individuals in the local community for funding of the project.

More information on Neighborly and the bond challenge can be found at: https://neighborly.com/challenge