Vermont is accepting proposals for financial advisory services.
Treasurer Jeb Spaulding said the state is “looking for someone to continue our cautious and conservative approach to debt management.”
He added that he and Gov. Jim Douglas have a shared interest in maintaining the state’s high bond ratings, and they will be looking for an adviser that “wants to work with a state like that.”
State officials want proposals filed by March 27.
Spaulding said he intends to involve the director of finance and investments in the selection process, but added that he will ultimately decide which firm is chosen.
Vermont has put out the request for proposals for financial advisers as part of a regular process, consistent with state law, in which the state accepts proposals about every four years. The state last put out an RFP in 2002, when New York-based Government Finance Associates Inc. retained the position it has held exclusively since 1994.
Public Financial Management Inc., Corbin Capital Markets Inc., ARD Inc., and Columbia Equity Financial Corp. had all sought to advise the state during the 2002 process. Calls to those firms were not returned. Spaulding said they are encouraging as many firms to submit proposals as are interested.
Government Finance Associates has a long history with Vermont. It was first hired by the state in 1991 in a limited role, working on the state’s cash flow. GFA chairman J. Chester Johnson said his firm is “very hopeful of being re-appointed.”
“It’s not like we’ve been unhappy” with their current FA service, Spaulding said, “but this is a way to ensure the taxpayers are getting the best service at the best value.”
Interested firms can obtain a copy of the RFP at www.vermonttreasurer.gov, and apply through the Web site.
Spaulding said that once the deadline passes, the proposals will be graded, and two or three finalists will be invited to interview. From there, no timetable is set on the appointment of the FA.
The state — with about $485 million of outstanding general obligation debt — is rated Aa1 by Moody’s Investors Service and AA-plus by Standard & Poor’s and Fitch Ratings.
Spaulding said earlier this month that Vermont is “very happy to have the highest bond rating of any New England state.”
However, he added that the Green Mountain State has a “long-term goal of joining the triple-A states,” calling it a “continuing priority.
“We have made presentations to all the agencies and we will be continuing to work with them.”
