Ranson Financial Consultants L.L.C.

SECURITIES AND EXCHANGE COMMISSION – ETHICAL STANDARDS

An independent financial advisor is a company or individual who provides your local unit of government advice independently from the purchasing or underwriting of its debt. Why is this important? The answer is money and the Securities and Exchange Commission (SEC) requirements.

Money – Traditionally, a company will receive higher fees serving a local unit of government as its underwriter rather than its financial advisor. For example, Kansas law requires that general obligation bonds in excess of $100,000 be sold at public sale unless associated with a refunding bond issue. If a municipality has $80,000 in debt outstanding and a new money project of $1,000,000, then financial advisor can resign and serve as underwriter. Fees received serving as underwriter rather as financial adviser are typically twice as high or more. Plus, your local unit of government receives non-competitive interest rates, which is what really costs you more money over the life of the issue.

The Securities and Exchange Commission has rules regarding this conflict of interest.

Rule G-23(d)(i) requires a financial advisor wishing to underwrite or place an issue of municipal securities on a negotiated basis to: (i) terminate in writing the financial advisory relationship with respect to such issue and the issuer has expressly consented in writing to such acquisition or participation; (ii) disclose in writing to the issuer at or before such termination that there may be a conflict of interest in changing from the capacity of financial advisor to purchaser of or placement agent for the securities with respect to which the financial advisory relationship exists and the issuer has expressly acknowledged in writing receipt of such disclosure; and (iii) expressly disclose in writing to the issuer at or before such termination the source and anticipated amount of all remuneration to the dealer with respect to such issue in addition to the compensation as financial advisor, and the issuer has expressly acknowledged in writing receipt of such disclosure. If such issue is to be sold by the issuer at competitive bid, the issuer must expressly consent in writing prior to the bid to the financial advisor's acquisition or participation.

See http://www.msrb.org/msrb1/archive/g23no2approval.htm.

Having Ranson serve as your financial advisor precludes your local unit of government from having to deal with Rule G-23(d)(i). Our sole purpose is to act as your financial advisor. We never underwrite your local unit of government’s debt. Economically, having Ranson serve as your financial advisor guarantees your local unit of government will receive the lowest interest rate on its debt on any given day. Negotiating a transaction with your “Financial Advisor” will cost you money.

specializing in public and corporate finance, financial consulting and strategic planning