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MAC Elects New Board Members

From the

Executive Director

Holiday Greetings! This year has really flown by. As we look back at 2010 so much has happened, including one of the busiest years for bond issuance of all times. Record low interest rates and the federal Build America Bond Program have contributed to the strong issuance we have seen throughout 2010. To date our database contains over 1,525 issues totaling $45.4 billion that sold in 2010 and that number is increasing every day. Please see the article in this issue by Duncan Lamme of RBC Capital Markets reflecting on his year of serving as the MAC Chairman. As we welcome three new members to the board, we also want to express our gratitude to the three members that left the board in October: Doug Whitt of Southwest Securities, Andy Bynam of Citigroup Global Markets, Inc. and Doreen Fisher of UBS Securities LLC. They dedicated many hours of service to our organization and the public finance industry and we will miss their presence on the board. This issue includes a nice recap of our Annual Conference and Meeting held at the beautiful JW Marriott Hill Country Resort in San Antonio. It was so nice visiting with everyone in October. We will soon be planning for our next Conference and Annual Meeting that will be held on October 20-21, 2011 at the Westin La Cantera in San Antonio. We always appreciate your feedback and suggestions, so send ideas for 2011 our way. This edition also includes a recap of the bond elections held in 2010. Voters across Texas authorized over $4.1 billion in new bond issues, virtually the same amount that was approved in 2009. From all the MAC staff, we thank our board and our membership for their dedication to our great organization. Happy Holidays to all!


L to R: Ron Caloss, Curt Shelmire & Julie Villarreal

AC members elected three new board members during the 56th Annual Meeting on October 15, 2010. Each of these new members will serve a three year term on the board. Dr. Ronald Caloss - Morgan Keegan & Co., Inc. Dr. Caloss, a Senior Vice President, joined Morgan Keegan in June 1999. Ron brings over 34 years of Texas ISD experience (11 years as a public finance banker with Morgan Keegan) and over 23 years of Texas public school district experience as a superintendent of schools for HurstEuless-Bedford ISD, Lamar Consolidated ISD, Southwest ISD, and Bandera ISD. Dr. Caloss holds a doctorate in Educational Administration from Nova Southeastern University, a Master of Education in Guidance and Counseling from Our Lady of the Lake University in San Antonio, and a Bachelor of Arts from St. Mary’s University. Curt Shelmire – Bank of America Merrill Lynch Curt Shelmire has a total of 19 years of public finance experience. He originally began his career in public finance at BofA Merrill Lynch in 1991 in its New York headquarters. Mr. Shelmire has executed a variety of transactions including fixed rate bonds, commercial paper, VRDO’s,


escrow restructurings, fixed payer and fixed receiver swaps, knockout swaptions and basis swaps. His client base includes general municipal governments such as cities, higher education authorities, river authorities and state agencies. In August 2004, he served as special advisor to the City of Arlington in its negotiations with the Dallas Cowboys Football Club and advised the City in regard to the financial feasibility of the club’s stadium proposal. Mr. Shelmire has a BS from the University of Virginia. Julie Villarreal - Southwest Securities Ms. Villarreal is a Senior Vice President, National Municipal Syndicate Manager at Southwest Securities where she manages the municipal underwriting staff which includes personnel in Texas, New York, Florida and California. She oversees and coordinates underwriting, operations and accounting efforts for the municipal bond division. Ms. Villarreal has been with Southwest Securities since 1985. Ms. Villarreal underwrites negotiated and competitive municipal new issues. Her experience includes tax-exempt, taxable, Build America Bonds and bank qualified underwriting with emphasis in Texas, New Mexico, Oklahoma and other states in the southwest region. Go to page 12 for more information on incoming and outgoing officers of the MAC.

2010 Annual Conference October 14-15, 2010

JW Marriott San Antonio Hill Country Resort & Spa

San Antonio, Texas

New MSRB Chairman Addresses MAC Conference By MAC Financial Analyst, Will Harper


he first speaker to address the 2010 MAC Conference was Mr. Michael Bartolotta. Mr. Bartolotta is the Vice Chairman of First Southwest and Chairman of the Municipal Securities Rulemaking Board (“MSRB”). He also serves on the Board of Directors of First Southwest, First Southwest Holdings, LLC and PlainsCapital Bank. Mr. Bartolotta began his presentation by discussing the DoddFrank legislation, recently passed into law on July 21, 2010, and the effect it will have on the MSRB’s jurisdiction over the municipal markets. According to Mr. Bartolotta, the DoddFrank will expand the MSRB’s protection of both state and local governments as well as protecting the investors. In order to increase this protection, the MSRB’s board composition has changed – it now includes twenty-one members with three municipal advisors serving on the board. According to Mr. Bartolotta, “This new board now reflects the participation of municipal advisors within the municipal market place, thus will create a better protected and regulated municipal market place.” Mr. Bartolotta also said, “The goal of regulation is to achieve the most efficient marketplace possible in order to increase the likelihood that the investing public and the issuer community realize the best possible outcome.” He believes that with this new legislation the MSRB has the ability, through new regulation, to make the municipal market more efficient and thus more successful. In order to do this, Bartolotta

L to R: Duncan Lamme and Michael Bartolotta

stated that the MSRB should concentrate on the industry’s customers, because “without them our market would not exist.” He also acknowledged the importance of creating fair and easily understood rules whereby market professionals can conduct and grow their businesses with confidence. The MSRB, stated Mr. Bartolotta, plans to undertake its rulemaking process for municipal advisors once the full Board convenes in late October. According to Bartolotta, they intend on seeking facts and information from many market participants in order to fulfill the goal of investor and issuer protection.

Dave Barry Provides Comic Relief By MAC Financial Analyst, Josh Traner


nown as a humor columnist and author, Dave Barry provided some comedic relief for conference attendees. Dave has been a syndicated humor columnist (or as he puts it, he “sits around in his underwear and makes things up”) for 25 years. His work has been in more than 500 newspapers in the United States and abroad. Dave gave some valuable advice to this year’s MAC conference; do not mess with North Dakota. After writing some unflattering comments about the state in one of his columns, Dave was “honored” by having a sewage-lifting plant named after him. Dave Barry Lift Station No. 16 can still be found in Grand Forks, North Dakota. With other stories ranging from exploding whales to driving the Oscar Meyer Weiner-mobile, he kept the tone of the conference light and fun, and offered his unique insights to our world.

Dave Barry signs his book “I’ll Mature When I’m Dead.”


Continued on next page

2010 Annual Conference October 14-15, 2010

JW Marriott San Antonio Hill Country Resort & Spa

San Antonio, Texas

Dave Barry Provides Comic Relief - Continued from previous page Some of Barry’s quotes from his works include: “I can win an argument on any topic, against any opponent. People know this, and steer clear of me at parties. Often, as a sign of their great respect, they don’t even invite me.”

several million sperm cells to locate a female egg, despite the fact that the egg is, relative to them, the size of Wisconsin.” “Guys are simple... women are not simple and they always assume that men must be just as complicated as they are, only way more mysterious. The whole point is guys are not thinking much. They are just what they appear to be. Tragically.”

“Gravity is a contributing factor in nearly 73 percent of all accidents involving falling objects.” “Scientists tell us that the fastest animal on earth, with a top speed of 120 feet per second, is a cow that has been dropped out of a helicopter.”

In 1988 he won the Pulitzer Prize for Commentary. Dave has also written a total of 30 books, although virtually none of them contain useful information. Two of his books were used as the basis for the CBS TV sitcom “Dave’s World,” in which Harry Anderson played a much taller version of Dave.

“It is a well-documented fact that guys will not ask for directions. This is a biological thing. This is why it takes

Economist Details Problems with Economy By MAC Financial Analyst, Cameron Thatcher


magine you’re at a party blindfolded with a bat in hand and are ready to swing away at the piñata hanging in front of you. Of course you would wail on it until it broke open and all of the goodies waiting inside spilled out. Now imagine that the government is the one holding the bat, except they aren’t blindfolded, and you, the taxpayers, are the piñata. They swing away year after year, but there are only so many times they can hit the taxpayer piñata until it breaks and there is nothing left inside for them to gather up. This is one of the many examples Dr. Mark Dotzour used to explain the problems in our current economy. “We need public servants to fix these problems, not politicians.” Dr. Dotzour is the Chief Economist and Director of Research for the Real Estate Center at Texas A&M University in College Station, Texas. He earned his Ph.D. in the Department of Finance at the University of Texas at Austin in 1987 and served as Associate Professor of Real Estate and Finance at Wichita State University for 10 years. In his speech, Dr. Dotzour pointed out indicators or decision markers that entrepreneurs, investors, and business people are looking for before they move forward. The government needs to give us a “Go” so the economy can get back on track. There are four problems related with the skepticism for recovery of the economy. The first problem is that small businesses are reluctant to hire. They are afraid of the high taxes that they might have to pay. Although their revenues might be up they are saving their money as opposed to hiring more people. Tax credits don’t boost employment, profits do. Second, the banking crisis hasn’t been solved. We are currently in the biggest credit reduction since 1948. People are tightening up and using less credit to purchase things. Banks aren’t lending as much which is creating what is called a Liquidity Trap. This is the result of the printing of more money and the banks hoarding it instead of lending it out.


Dr. Mark Dotzour

“The chief business of the American people is business.” - Calvin Coolidge inauguration speech on March 4, 1925 The third problem is that states, counties, cities, and school districts need to “right-size” their budgets. Could you imagine a world in which people spent less than they earned? People do it every day, why shouldn’t municipalities? The fourth and final problem Dr. Dotzour spoke about was the need for China to become a true equal trade partner, not just a free trade partner. Here is an idea, we can sell our products to pay off our debt rather than sell more debt to pay other debt. Dr. Dotzour also spoke about how well Texas is doing compared to other states. Last year the country created approximately 278,000 new jobs. Of those Texas created 133,100 jobs, about 48% of the country’s new jobs were in Texas alone. Revenues are up. Spending is going up due to lower taxes. Texas is back in business and according to Dr. Dotzour, Texas has been out of the recession since 2007. If you want to do business, come to Texas.

2010 Annual Conference October 14-15, 2010

JW Marriott San Antonio Hill Country Resort & Spa

San Antonio, Texas

Sileo Teaches Conference Attendees to “Think Like a Spy” By MAC Financial Analyst, Shane Sellstrom

“Identity theft can completely redefine you,” says John Sileo. And he would know. Sileo’s first encounter with identity theft was when so-called “trash men” sifted through his garbage and accessed bank statements, credit card offers, and other personal information. Years later, John Sileo’s friend and business partner used the computer in Sileo’s office to embezzle nearly $300,000 from their company, all of which was tracked back to Sileo. After losing important time with his family spent restoring his identity, John Sileo has gained valuable insight into the crime of identity theft, as well as a desire to help others avoid the same misfortune. While attendees at the MAC’s 2010 Annual Conference took a break for refreshments, John Sileo walked around the room, pausing to touch laptops, cell phones, and purses left unattended, all of which contained personal information. Although he did not take anything, this action demonstrated just how accessible personal identifying information can be for a thief. In the following conference session, Sileo also explained that one must be fully aware of personal privacy issues before he or she can effectively implement those strategies within a business setting.

John Sileo

This means stopping to think about any situation in which one is asked to share private information. The next step is to ask aggressive questions about the situation: Who is in control of the flow of information? Can the person requesting the information justify his or her purpose? Are there other, more secure options? And are those options more beneficial? Finally, Sileo offers practical strategies to target the enemy and stop the flow of private information. These include identity monitoring, reviewing free credit reports (www.AnnualCreditReport. com), and opting out of junk mail offers (www. In addition, Sileo recommends a credit freeze as “the most powerful method of stopping” private information from reaching the wrong hands. For more identity protection strategies, visit John Sileo’s website at

Sileo compares identity protection to a tennis match: your information (the “ball”) can be in either “your court” or “theirs.” When the ball is in your court, it is in your control, and by focusing your efforts on the privacy factors within your control, you can avoid the shift in power whereby your personal information leaves your hands. According to Sileo, the first important step in identity protection is learning to identify “hogwash.”


2010 Annual Conference October 14-15, 2010

JW Marriott San Antonio Hill Country Resort & Spa

San Antonio, Texas

SIFMA Addresses MAC Members By MAC Financial Analyst, Will Harper


he MAC’s 56th Annual Meeting included a presentation given by Mr. Michael Decker, Managing Director and co-head of municipal securities at the Securities Industry and Financial Markets Associations (“SIFMA”). Mr. Decker’s speech focused on the importance of SIFMA and the municipal bond legislation regulation. The first topic discussed by Mr. Decker was the Build America Bonds. With this program expiring after December 31, he stated that the best hope for the extension of these bonds would be during the congressional “lame duck” sessions. He also acknowledged that Texas was a very important component because of the amount of BABs issued, it is the 3rd largest BABs state. In addition to Build America Bonds, Mr. Decker stated that other tax-exempt bond provisions are also up for renewal such as, Recovery Zone Bonds, Federal Home Loan Bank letters of credit as well as the AMT holiday and the $30 million bank-qualified limit. The implications of the new Dodd-Frank legislation were also discussed. Mr. Decker called this new law the “landmark legislation”. DoddFrank mandates the registration and regulation of all “municipal advisors”, according to Michael Decker. These advisors included financial advisors, swap advisors, GIC brokers, and placement agents. The registration deadline for these advisors was October 1. This deadline was mandated under the SEC’s temporary rule. Derivative regulations as well as the MSRBs changes were also topics discussed by Mr. Decker while talking about the Dodd-Frank. With an amended Rule G-23 proposed, Mr. Decker discussed some of the effects that this new ruling might have within the municipal markets. The current rule states: a dealer who serves as FA can resign as FA and then underwrite the deal or can

Michael Decker

bid on competitive auction. Under the new rule dealers would not be able to serve as FA and underwrite or bid on competitive auction. According to Mr. Decker, “the current Rule G-23 has worked well.” He stated that this decision should be up to the issuer because they are in the best position to make that decision. Another regulation discussed during the presentation was the MSRBs proposed mending of the A-13 rules and their transaction fees. Currently, the transaction fee charged per bond is $0.05. According to Mr. Decker, these fees are applied to both interdealer trades as well as sales to customers. However, the new proposed rule intends to double the transaction fee as well as impose a new $1 “technology fee” for every trade. Because of this huge spike in revenue for the MSRB, Mr. Decker believes that issues of transparency and fairness will arise. Decker stated that “thus far they have not been very transparent” on how the new revenue will be used. Mr. Decker ended his presentation with a simple message to all in attendance promoting communication. “SIFMA encourages your feed back to better understand what is most important to you so we can better represent our constituents as effectively as possible.”


2010 Annual Conference October 14-15, 2010

JW Marriott San Antonio Hill Country Resort & Spa

San Antonio, Texas

L to R: Dan Schroeder, Brandon Walker, Curt Shelmire & Curtis Harris, all of Bank of America Merrill Lynch.

L to R: Shannon Straty, Michelle Baldwin, Rosalyn Davis & Liz Power, all of BNY Mellon.

L to R: Allen Westerman of SAMCO Capital Markets, Inc., Krystal Petty of Texas MAC, Shelly Hamilton, Mike Hamilton and Duane Westerman of SAMCO Capital Markets, Inc.

L to R: Tim Kelley of Piper Jaffray & Co., Laura Slaughter of Texas MAC, Steve Sledge of SAMCO Capital Markets, Inc. and Andy Barrett of Barrett & Smith.

Lynnette Hotchkiss of MSRB & Terrence Spencer of Texas MAC.


Duncan Lamme of RBC Capital Markets and Anne Burger Entrekin of First Southwest Company.

2010 Annual Conference October 14-15, 2010

JW Marriott San Antonio Hill Country Resort & Spa

San Antonio, Texas

L to R: Jose Gaytan, Jr. of Wells Fargo Public Finance, Mark McLiney of Southwest Securities & Jim Hilmer of Comerica Securities.

L to R: Larry Groppel of Wells Fargo Public Finance, Doug Whitt of Southwest Securities and Kirk London of Raymond James & Associates, Inc.

Karl Biggers and Stanley Grayson of M.R. Beal and Company.

Helene Maham of Texas MAC and Duncan Lamme of RBC Capital Markets.

L to R: Larry McCormick of SAMCO Capital Markets, Brent Rivard of Piper Jaffray & Co. and Buddy Kempf of Morgan Keegan & Company, Inc.


L to R: Karlos Allen of Rice Financial Products Company, Gary Utkov of First Southwest Company and John Robuck of RBC Capital Markets.

2010 Annual Conference October 14-15, 2010

JW Marriott San Antonio Hill Country Resort & Spa

San Antonio, Texas

L to R: Alan Raynor of McCall, Parkhurst & Horton, Ron Morrison of RBC Capital Markets and Bob Collie, Jr. of Andrews Kurth, L.L.P.

Anne Burger Entrekin of First Southwest Company.

Jerry Kyle of Andrews Kurth and Chris Allen of First Southwest Company.

L to R: Andy Barrett of Barrett & Smith, Devin Phillips of Hayman Captial and Jim Gotti of Bank of America Merrill Lynch.

Elissa Boeshart of Texas MAC and Leslie Lukens of Moody’s.

L to R: Carlos Sharpless of Sterne Agee, Jorge Rodriguez of Coastal Securities, Ricardo Villasenor of Cabrera Capital Markets and Gary Rehm of Sterne Agee.


MAC Golf Tournament October 15, 2010

JW Marriott San Antonio Hill Country Resort & Spa

1st Place – Mike Goin and Wilkes Coleman (not pictured: Bill Stowasser, Jake Sorensen).

San Antonio, Texas

2nd Place- Chris Human, Buddy Kempf, Chris Whitlock & Charles Massaro.

3rd Place – Will Osborne, Larry McCormick, Andy Jackson and Mike Manley.

Longest Drive #2 John Leatherberry, Closest to the Pin #4 Andy Barrett, Longest Drive #15 Chris Whitlock, Closest to the Pin #13 Charles Massaro.

MAC Financial Analyst Golfers: Cameron Thatcher, Will Harper and Josh Traner.

MAC Board Member, Tom Nolan.


Duncan Lamme’s Year as MAC Chairman


s I look back on the year, I am surprised at how fast it has gone by. All in all, it has been a fairly quiet year but certainly a productive one. I am pleased to report that the MAC should finish this fiscal year in the black once again. Laura Slaughter and the MAC staff have worked hard to implement new projects while at the same time finishing up existing projects. Most notably was the implementation of the new EMMA continuing disclosure filing system and the new filing requirements which went into affect this year. In order to make that process run smoothly, the MAC worked closely with the MSRB staff to ensure that our Texas issuers and their consultants had a smooth transition to the new system. We can be especially thankful to Rick Weber and Fulbright & Jaworski for their assistance in providing a legal opinion that keeps our Texas SID filers from having to file with both the Texas MAC as the SID as well as EMMA. Another feature that was added to the MAC website this year is the inclusion of out-of-state filings. Continuing on the technology front, Terrence Spencer and his staff were able to roll out Phase 1 of a project with the Texas Education Agency (“TEA”) that is designed to update the Permanent School Fund (“PSF”) database and provide the TEA with a more accurate and efficient means of tracking the PSF capacity. Phase 2, which is currently being tested, includes the addition of an online application form for the PSF guarantee that MAC members will be able to access through the MAC website. It is anticipated that this format will greatly reduce the time required in the application process and make life easier for our membership. Once an application is completed, it will automatically go to the TEA and the applicant will have the ability to track the progress of the application online via the MAC website. Phase 3, which is currently under design, is a project that will allow the TEA to better track the Instructional Facilities Allotment program. Additional technology updates include the implementation of the New Issue Information Distribution (“NIIDs”) data feed from DTC and the ability for MAC members to run debt service on the MAC website and download the results to Excel. The NIIDs data feed has benefited the MAC in that it has reduced the amount of new issue information to be keyed in by MAC staff; thereby freeing up staff to concentrate on other tasks such as TMR production. This year, the MAC produced 3,794 TMRs, approximately 10% over the targeted quota. As you know, the next Texas Legislative session will begin in January 2011. Since this was an in between year, Laura, with the help of Andy Barrett, was able to take advantage of the down time and continue to make her presence known at the State Capitol. I think that this involvement has helped Laura to better understand what is going on in the Legislature and thus be able to pass such information on for the benefit of the MAC’s membership. Additionally, Laura has had the opportunity to testify before the State Board of Education regarding the PSF guarantee and how such applies to technology purchases as well as the Senate Finance Committee’s study on public debt. All of this effort is an attempt to make sure that the MAC has a seat at the table when issues that affect our industry come up.

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Duncan Lamme

One of the continuing goals of the MAC is to stay in touch with the membership so that the industry fully understands all that the MAC has to offer and help make our services more user friendly. We have attempted to accomplish this in several ways. Through MAC training days, held in November, February, April, May and August, we have been able to educate 55 industry professionals from 25 different firms in the services provided by the MAC. Beginning in September of 2009 and again in April/May of 2010, Laura and key staff traveled the State holding cocktail receptions for members and subscribers in Dallas, Houston, San Antonio and Austin. A total of 297 people attended the most recent round of receptions and I hope that each of you had an opportunity to attend at least one of these events. I have found that it is an excellent format to catch up with colleagues that you may not have seen in a while. Another very important way for the MAC to stay in touch with the membership is through the analyst training program. I was fortunate to start my career at the MAC and I am happy to report that this year, the MAC placed two analysts with member firms. As previously mentioned, I started my career at the MAC and not only was I trained by Laura but also had the privilege to work for Danny Burger. It is therefore very meaningful for me to pass the baton to Anne Burger Entrekin, Danny’s daughter and the first female Chairperson of the MAC. I want to thank Anne and my fellow board members for their support this year. It has been an honor to serve with each of you. Among the many things that I have learned this year is that we are very lucky to have this institution and its staff, lead by Laura Slaughter. Thank you all for allowing me to have this opportunity and best wishes in 2011.

MAC ANNOUNCEMENTS The MAC Welcomes New Member BBVA Compass BBVA Compass is a leading U.S. banking franchise located in the Sunbelt region. BBVA Compass is the 15th largest U.S. commercial bank based on deposit market share and ranks as the third largest bank in Alabama, fourth largest bank in Texas and fifth largest bank in Arizona. Headquartered in Birmingham, Alabama, it operates more than 720 branches throughout Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. Through three major business units – Corporate Banking, Retail Banking, and Wealth Management – Compass offers customers unique and industry-leading products and services with a focus on providing customers with financial solutions to fit their lives. These products and services include commercial and wholesale banking, treasury management, Small Business Administration loans, international services, merchant processing, retail banking services, consumer loans, mortgages, home equity lines and loans, credit cards, personalized Visa® Check Cards, securities brokerage, mutual funds and annuities, financial counseling, wealth management, pension plan management and insurance.



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Economic Recovery ...Made in Texas Texas cities make up an unprecedented 11 of the top 25 metropolitan areas ranked in the Milken Institute’s Best-Performing Cities Index, which evaluates the metro areas best able to create and sustain jobs. This is the second year in a row Texas has dominated the list. The report also cites Texas’ energy exploration and alternative fuels research, along with its aggressive recruitment of businesses from other states as reasons for Texas’ continued economic strength. How did they do it? And can the state sustain its momentum? For 15 years, this event has grown alongside the Texas municipal bond market. The Bond Buyer’s Texas Public Finance Conference boasts a portfolio bursting at the seams with content driven sessions, dynamic speakers, networking opportunities that are a proven catalyst in making the deals, and much more. You cannot afford to pass up this opportunity!

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New MAC Chair and Vice-Chair Elected The MAC Board of Trustees elected Anne Burger Entrekin, Managing Director for First Southwest Company in San Antonio as Chairwoman for 2010-2011. Thomas B. Nolan III, Managing Director with Estrada Hinojosa & Co., Inc. in Dallas, has been elected by the Board to serve as Vice-Chair.

Anne Burger Entrekin

Thomas B. Nolan III

Many Thanks to Departing Board Members We would like to thank the three members who left our board at the end of this year. Doug Whitt of Southwest Securities served for 4 years, including serving as Chairman in 2008-2009. Also leaving the board this year are Doreen Fisher of UBS and Andy Bynam of Citigroup Global Markets, Inc.. We would like to thank our departing board members for their commitment to the MAC. Special thanks goes to our 2009-2010 MAC Chairman, Duncan L. Lamme of RBC Capital Markets. He joined the Board in 2007 and served as Vice-Chair of the MAC for 2008-2009. He will continue to serve on the board as Immediate Past Chairman for the current year. His continued support in his 4th year on the Board is greatly appreciated.

Doug Whitt

Doreen Fisher

Andy Bynam


Focus on MAC Staff

Cameron Thatcher Joins the MAC By MAC Financial Analyst, Will Harper

Cameron Thatcher joined the MAC as a financial analyst in July of 2010 and is one of two new analysts that have become part of the MAC family within the past six months. Cameron graduated from Brigham Young University - Idaho in April 2010 with a Bachelor of Science in Business Finance and a minor in Russian. Cameron heard about the MAC through his father, Ed Thatcher the City Manager of Heath. “I feel very privileged to have such a great job at an organization like the MAC. The MAC provides me with great exposure into the municipal finance industry.” Originally from Greenville, Texas, Cameron is the fifth of six boys; four of whom are in the public industry here in the State of Texas. Cameron is also an Eagle Scout and enjoys playing golf and baseball in his spare time. After graduating high school, he spent

Cameron Thatcher

two years in Ukraine as a missionary for his church. While living abroad, Cameron became fluent in Russian and learned Ukrainian. He and his wife Chelsea have been happily married since late May.

MAC Training Days Our first Training Day of the new Fiscal Year was November 18, 2010. Three other Training Days have been scheduled for 2011. They are on February 10th, May 12th and August 11th. If you are interested in attending a future Training Day, please contact Elaine Galloway,

Seated L to R: Benjamin Benzaquen, Texas Water Development Board; Rebecca Daniels, Kelly Hart & Hallman LLP; Kristina Eckerling, Texas Education Agency Standing L to R: Rob Alston, Braymen, Lambert and Noel Securities; Tim Meinardus, BBVA Compass; Edwin Clark, Citigroup Global Markets, Inc.; Blake Roberts, Fitch Ratings; Jamie Colvin, Moody’s Investors Service

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The Game Board is Set, Let the Games Begin By MAC Legislative Liason, Terry Franks, Barrett & Smith

A quick review of Election Results: STATEWIDES All GOP statewide candidates win easily Perry 55, White 42 SENATE Partisan balance remains 19 GOP, 12 DEM after all incumbents win easily, Dems retain open seat easily TEXAS HOUSE GOP gains 22 net seats to take historic 99-51 advantage 21 House Democrats are defeated: Bolton, Cohen, Dunnam, England, Frost, Gonzalez Toureilles, Heflin, Herrero, Homer, Kent, Leibowitz, Maldonado, McReynolds, Miklos, Moody, Ortiz, Pierson, Rose, Thibaut, C Turner, Vaught Democrats lose open seat in Wichita Falls Democratic leader Dunnam loses in Waco On a sad note, Rep Kuempel from Seguin who won reelection, passed away before he was able to be sworn in. House members not returning in 2011 (38): Bolton, B Brown, Chavez, Cohen, Corte, Crabb, Dunnam, Edwards, England, Farabee, Flores, Frost, Gattis, Gonzalez Toureilles, Heflin, Herrero, Hodge, Homer, Isett, Jones, Kent, Leibowitz, Maldonado, McCall, McReynolds, Merritt, Miklos, Moody, Olivo, Ortiz, Pierson, Rios Ybarra, Rose, Swinford, Thibaut, C Turner, Vaught, Kuempel

Terry Franks Travis County is the bluest county in Texas, but even we got a light shade of pink after Paul Workman knocked off Valinda Bolton in South Travis County. Dan Neil, who challenged Donna Howard in Austin, has lost via recount. However, there is still the question of straight ticket votes from overseas, which he says were not counted properly. This will all get hashed out, but it seems for now the GOP will not get to 100 seats in the Texas House. Out in Hays County, Patrick Rose was knocked off by Jason Isaac, which was amongst a litany of surprises on election night. As we prepare to go to press, it seems that two current D’s are on the verge of switching parties and becoming R’s. Representative Allen Ritter (D-Nederland) and Representative Aaron Pena (D-Edinburg) have made overtures to joining the Republican Party. This would give the R’s 101 in the House, but getting them all in lock step in one direction remains to be seen. This is certainly something to watch, because getting to that 100 threshold could be monumental for the upcoming Session. The Texas Senate saw little change at all, but there will be at least two new faces for the 82nd Session. Jose Rodriguez replaces retiring Senator Eliot Shapleigh and will represent the farthest point of West Texas. The Ds holding this seat keeps them squarely in play in the Texas Senate, which requires a 2/3 vote on any legislation to be heard in the body. Additionally, Brian Birdwell, who replaced Senator Kip Averitt who retired for health reasons, was elected in a special election and will serve in his first legislative session. One of the big questions heard around Austin is, “Will there be a Speaker’s race?” First off, there IS a Speaker’s Race. Rep Warren Chisum from Pampa has fully committed to a run for Speaker. Additionally, Rep Ken Paxton, of Collin County, has entered the race. Unlike a general election, a Speaker’s race is a very personal and internal matter in the Texas House. Only members of the House can vote for a Speaker and the members generally keep their play very close to their chests. This gives us one more nugget for political season, but it will not be completely played out anytime

The elections of 2010 will certainly go down as “historic”. The Tea Party effect was felt all over the United States, in Texas and even in Travis and Hays Counties. No one in Austin or across Texas could have even begun to have predicted what occurred on election night. Now that the board has been set, it is important for all of them (Rs and Ds) to get to work…there is much, much work to be done. Governor Perry wins his record third term (Texans are not known for giving Governor’s second terms). The first to get back to back terms since Texas went to 4 year terms? Then Governor George W. Bush. Governor Perry will launched a nationwide book tour immediately after the election to promote his new book “FED UP!” which is squarely aimed at the poor track record of Congress in recent years. He is still mum on the possibility of a Presidential bid in 2012; he does not say yes, but he does not say no. The Railroad Commission will have a new member as well, with the election of David Porter. He is a CPA from Midland and has extensive dealings with the oil and gas industry. From his surprise upset of Chairman Victor Carrillo, he went on to capture 60% of the vote and a seat on the Commission. We have had opportunities to meet with him several times and his free market, pro business principles should serve Texas well.


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The Game Board is Set - Continued from previous page soon. The actual election of Speaker takes place on the opening day of Session, once all the members are officially sworn in and can legally vote. That said, generally someone will come forward shortly before Session with the numbers needed and claim victory. This election could very easily go all the way to the wire, however.

diately for a 30 day Special Session (he can call as many as needed to get the job done). Since Texas prides itself on its fiscal restraint and commitment to doing more with less, this deficit will certainly test the wills of our legislators. They will leave no stone unturned and, from what we are seeing early on, even Medicaid and education funding are items being considered. These are normally “sacred cows” as Medicaid is an entitlement program and education is, well, usually untouchable. Other major items on the table are Redistricting, immigration reform, Voter ID legislation, dealing with the onslaught of the EPAof Texas and our environmental laws and the usual bevy of ideas to make Texas just a little bit better. The 82nd Legislative Session begins on January 11, 2011, at 12:00 PM. For additional information on these bills, to find your State Senator or State Representative, or to learn more about the legislature and its process visit:

ON TO SESSION With the exception of the Speaker’s Race, all the other pieces are in place and ready for the upcoming Session. We are just about a month away and there will be monumental issues facing all those recently elected members and their new colleagues. Amongst the most daunting tasks will be to cover the budget shortfall which is now being estimated as high as $28 billon. The Constitution requires a balanced budget in Texas, and this has to happen before our lawmakers leave town (unlike Congress). If they should fail to do so, the Governor will be forced to call them back imme-

Review of 2010 Bond Elections By MAC Senior Financial Analyst, Krystal Petty


Constituents notably voted against a $375 million authorization for Midland County Fresh Water Supply District #1. The election was the 4th largest in the state to be considered. A $180 million bond proposal for Cypress Waters Municipal Management District did pass. Cypress Waters MMD is the City of Dallas’ first supplemental utility service district which has the power to levy taxes and issue bonds. Water Districts had the lowest approval of all types of bonds voted on in 2010. A combined 43.25% of the total $344.7 million of the $796.9 million bond authorizations voted on passed. In 2010, voters approved $440 million for cities. The City of San Antonio passed a $135 million bond package in the November election. This was the third largest bond proposal in the City’s history. A combined $39.6 million in bonds were voted on and approved for Texas Counties. Odessa Junior College and Temple Junior College both held elections that passed for a total of $81.5 million in new bonds. The economy again greatly affected the elections this year. Texas voters approved bond packages cautiously throughout the year. Texas continues to grow and the need for additional schools, roads, streets and infrastructure is still apparent. It remains to be seen in 2011 if the number of elections presented to the Texas constituency will continue to increase.

ith the close of 2010 near, Texans have seen an increase in the number of elections held this year. The elections, although higher in number, were not indicative of voter approval. A combined $4.1 billion in bonds were authorized out of the $6.1 billion that voters considered. The approval rate was a mere 67.49%, the second lowest in the past decade. Within the State, 109 School Districts held elections, a significant increase from 2009’s 79 elections held. Only 70.53% of the proposed bonds carried. Additional elections held within the state included 25 cities, 10 water districts, 5 counties and 2 junior colleges. The largest elections held this year were for School Districts. On May 8, 2010 voters approved a $535.1 million bond package for Northside Independent School District. Northside ISD is the 5th largest District in the state and the bond package was the largest in Northside’s history. On the same scale, San Antonio ISD and Katy ISD held $515 million and $459.8 million election, respectively, during the November 2, 2010 voting. All three of these elections passed in their entirety and were the largest in the history of each ISD. Voters in five other ISDs in the state passed their largest bond packages to date including the Deer Park, Georgetown, Harlingen, Liberty Hill and Pharr-San Juan-Alamo Districts. A total of $3.2 billion in ISD bonds received support in 2010.


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February 3-4, 2011 NFMA Advanced Seminar on Electric and Water Utilities The Lodge at Torrey Pines La Jolla, CA

June 14-16, 2011 SFIMA 31st Annual Financial Services Technology Expo Hilton New York New York, NY

February 14-15, 2011 Bond Buyer Conference Barton Creek Resort Austin, TX

September 30 - October 2, 2011 TASB/TASA Annual Convention Austin Convention Center Austin, TX

May 1-4, 2011 SIFMA Operations Conference & Exhibit 2011 Boca Raton Resort & Club Boca Raton, FL May 3-6, 2011 NFMA 28th Annual Conference Charleston Place Charleston, SC

October 11-14, 2011 TML Annual Conference Houston, TX October 20-21, 2011 Municipal Advisory Council of Texas 2011 Conference and 57th Annual Meeting The Westin La Cantera Resort San Antonio, TX

May 22-25, 2011 GFOA Annual Conference San Antonio, TX


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