The public finance staff of professionals at Southwest Securities not only has the capability to assist municipalities with their financing needs, but also has the expertise to develop financing programs for non-profit water supply corporations ("WSC"). The additional complexities associated with WSC financing require the knowledge and experience that Southwest Securities has gained by assisting water supply corporations with their financing needs. Southwest Securities was the leading investment banking firm in the State of Texas assisting water supply corporations refinancing their debt under the Farmers Home Administration discount purchase program.

In recent years a number of non-profit water supply corporations have converted to special utility districts ("SUD"). Converting to a governmental entity such as a SUD offers many advantages, the foremost of which is the ability to issue tax-exempt bonds thereby reducing borrowing costs by approximately two percentage points. A SUD will also no longer have to pay state sales tax on its purchases. Southwest Securities has assisted in the conversion process on several occasions and in refinancing or issuing new debt thereafter.

Southwest Securities maintains a close working relationship with the staff of the Texas Water Development Board, the state agency which is the primary funding source for the WSCs and recently- created SUDs. Being knowledgeable of the Water Development Board's programs and working often with its staff is critical in anticipating potential problems thus avoiding delays and complications in the financing program.