The National Federation of municipal Analysts recently set up a program to recognize municipal bond issuers that meet, and continue to meet, high standards of disclosure. In the following letter, Robert W. Doty, chair of the NFMA's Certificate Committee, discusses the program and lists recipients of the group's Certificate of Recognition for continuing disclosure.

The National Federation of Municipal Analysts is pleased to honor the recipients of the Federation's Certificate of Recognition. The Certificate of Recognition is granted to those state and local government securities issuers who have evidenced a commitment to continuing disclosure.

Continuing disclosure is vital for the efficiency of the municipal securities market. Many municipal securities are illiquid; when their investors seek to sell them, a pricing discount occurs due to the absence of adequate information. Investors often must go to great lengths to obtain information even on bonds they already own. The Certificate of Recognition Program targets these and other inefficiencies. NFMA believes that, by identifying cooperative issuers, it will be able to highlight the positive issuers in the market. NFMA recognizes that there are many, many cooperative issuers who deserve to be recognized; we ask only that they identify themselves to us by contacting Deborah A. Doty, Program Administrator, 2500 Marconi Avenue, Suite 202, Sacramento, CA 9582 1, telephone (916) 974-7910, fax (916) 482-3291.

NFMA's Certificate of Recognition Program is new, but has proven to be highly successful in identifying cooperative municipal securities issuers. Although in its infancy, the Program now has over 80 awardees. These cooperative issuers cover a broad range of credits and geographic regions from the State of Florida to the Municipality of Anchorage, Alaska, the Louisiana Public Facilities Authority and the City of Euless, Texas, to the City of Chicago. and the Sanitation Districts of Orange County, California, to the Massachusetts Water Resources Authority. In terms of their commitment to market improvements and their investors, the Certificate recipients are among the cream of the crop. The issuers recognized through May 1, 1993 are:

State of California (G.O. securities)

State of Florida

State of Louisiana

State of Minnesota

State of Washington

Florida Department of


Florida Municipal Power Agency

Intermountain Power Agency

Kentucky Housing Corporation

Louisiana Public Facilities Authority

Massachusetts Muni. Wholesale Elec. Co.

Massachusetts Water Resources Authority

Minnesota Housing Finance Agency

Municipal Electric Authority of Georgia

New Mexico Mortgage Finance Authority

Power Authority of the State of New York

North Carolina Eastern Muni. Power Agency

North Carolina Muni. Power Agency No. 1

Port Authority of New York and New Jersey (General obligation securities)

South Dakota Housing Development Authority

Wyoming Community Development Authority

City of Akron, OH

Municipality of Anchorage, AK

Anchorage (AK) Municipal Light & Power

Anchorage (AK) Parking Authority

Anchorage (AK) Telephone Utility.

City of Antioch. CA

Bakersfield (CA) Memorial Hospital

County of Broward, FL

Village of Buffalo Grove, IL

CGH Med. Ctr. (Sterling, IL)

City of Chicago, IL (Except private activity securities)

City of Cleveland, OH

City of Euless, TX

County of Forsyth, NC

City of Fort Worth, TX

City of Gardner, KS

Grand River Dam Authority

City of Grass Valley, CA

County of Greene, OH

County of Harford, MD

Houd County (TX) Hospital District (Hood General Hospital)

Jacksonville (FL) Electric Authority

City of Ketchikan, AK

City of Kirkland, WA

City of Leawood, KS

City of Lenexa, KS

County of Los Angeles, CA

Los Angeles (CA) Dept. of Water and Power

Lower Colorado River Authority (TX)

Metropolitan Transportation Authority (NY)

Town of Milford, CT

Minneapolis Community Devel. Agency

County of Nevada, CA

Omaha Public Power District

County of Orange, FL

Orange County, CA Sanitation Districts

Greater Orlando (FL) Aviation Authority

City of Overland Park, KS

City of Philadelphia, PA (G.O. securities)

Philadelphia Gas Works

Philadelphia Water Department

Piedmont (SC) Municipal Power Agency

City of Pittsburg, KS

Prince William County (VA) Park Authority

County of Richland, SC

City of Rock Hill, SC

Sacramento Municipal Utility District

City of Salina, KS

City of Sandy City, UT

Saratoga (MI) Commun. Hosp. Obligated Grp.

Sisters of Charity Health Care Systems, Inc. Obligated Group

Sunnyvale (CA) Financing Authority

City of Tallahassee, FL

Triborough Bridge and Tunnel Authority (NY)

Tualatin Valley (OR) Fire and Rescue

City of Virginia Besch, VA

Metro. Washington (DC) Airports Authority

County of Wood, OH

County of Wyandotte, KS

[More to come.] In a recent NFMA survey, two-thirds of the respondents representing institutional investors stated that they always or frequently reject securities of, or require additional yield from, noncooperative issuers. The foregoing issuers have the comfort of a more positive market reception.

The award of Certificates of Recognition is based on information and representations obtained from state and local government securities issuers or their officials or representatives as to certain continuing or periodic disclosure procedures followed by those issuers, which information and representations the National Federal of Municipal Analysts believes to be reliable. The Federation does not, however, guarantee the accuracy of the information or representations so received by it. Neither the award of a Certificate of Recognition nor any listing of Certificate recipients constitutes a solicitation of the purchase or sale of any securities. Certificates 6f Recognition do not relate in any way to the accuracy or adequacy of the content of any disclosure by any issuer.

Awards of Certificates of Recognition are made based upon resolutions, ordinances, official statements, letters, other documents, or demonstrations of established practices indicating a commitment to provide (a) audited financial statements and (b) certain other pertinent credit information (as determined by the issuer) relevant to an issuer's outstanding securities, or specified categories of those securities. The information is to be provided (i) upon request; (ii) to one or more major information providers in the state and local government securities market; and (iii) to nationally-recognized rating services (if any) rating the securities. NFMA requests that it be notified of problems in these regards. Certain charges for information may apply.

Yours very truly,

Robert W. Doty

Chair, NFMA Certificate Committee

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