Tax Reform Update
Both the House and Senate tax reform proposals repeal advance refunding bonds after 2017. Public water and sewer utilities issued about $45 billion in advance refunding bonds from 2012 to 2016. According to some bond writers’ groups, if advance refunding bonds are repealed, “municipal bond issuers would be challenged to manage interest rate risks and the cost of borrowing for state and local governments would skyrocket,” and would “likely drive many issuers into the swaps and derivatives mar