“The muni market is on fire,” Ashton Goodfield, head of municipal bonds at DWS, said on Thursday, noting that tax-exempt valuations versus taxable alternatives have been holding near record lows. Goodfield said investors have built cash balances over the last year as demand for income was high and interest paid on cash investment was near zero. In addition, other supporting factors are the high credit quality nature of the muni market, recently buffeted by fiscal support, as well as the demand for tax-exempt income at the same time the notion that tax rates for wealthy individuals could increase during the current administration. There seems to be no end in sight to the healthy demand for municipal bonds in the primary market as evidenced by recent and new fund flows, agreed a New York manager of underwriting and trading.
Source: Bond Buyer.

The Kansas Supreme Court earlier this week issued administrative rules for Kansans who want to sue over a COVID-19 order under newly passed law Senate Bill 40. The new emergency rules took into account that some may not be represented by an attorney, a news release said. But those who fail to follow the rules in requesting a court hearing shouldn’t be rejected and be given opportunity to comply. SB 40 lets any person who is aggrieved by a COVID-19 order or restriction to bring to court a request to get relief from the order. Such a hearing would have to be held within 72 hours and a decision be made within a week after that. In cases like this, the government would have to prove the high standard that the order was narrowly tailored and was the least restrictive means; otherwise, relief is granted.
Source: CJonline.com.

The interest rate table above illustrates recent changes in a sample of MBIS “investment grade” yields. Every issuer’s credit is different. For rates that may be applicable to your municipality, contact our Municipal Bond Advisors, Larry Kleeman and Beth Warren.

The Kansas Association of School Board Boards has hired an attorney to look into possible price gouging. The Newton school district, which saw a gas bill more than six times what it usually receives, is among the districts planning to fight back. …The attorney looking into schools’ gas bills will potentially represent up to 178 public school districts across the state. Kansas has 309 public school districts. There is also word that the University of Kansas and Kansas State University are involved in the case. With what it’s facing, the fear for the Newton school district is that ultimately, students could pay the price. “What we want the public to understand (is) the ultimate losers are students because when there’s less money within the school district, there’s less money to fund programs. There’s less money,” the Newton school district explained.
Source: KWCH.

The State of Kansas, Community Development Block Grant – CV3 (CDBGCV3) program has been awarded an additional $4.5 million in addition to CARES Act funding. This program has been a powerful tool in helping Kansas communities retain jobs and businesses during the pandemic.
CDBG – CV3 Program:
• This program will award an additional $4.5 million in CARES Act funding.
• CDBG – CV3 eligibility will be limited to community Economic Development projects that are retaining jobs.
• Awards will be made in accordance with federal CARES Act funding and HUD.
• Awards are made when no other funds are available.
Eligible applicants:
• All cities and counties in the State of Kansas that were not awarded CDBG – CV1 and CV2 grants.
• All cities with a population under 50,000 and all counties with a population under 200,000.
*Cities and counties including Kansas City, Wichita, Topeka, Lawrence, Leavenworth, Manhattan, Overland Park and Johnson County are not eligible to apply.
Application Process:
May 1, 2021 – Application available online
June 1, 2021 – Application deadline
July 1, 2021 – Awards announced
The Department of Commerce will present an Informational Webinar for CDBG – CV3 funds, which will be held via Zoom on April 21 from 10:00-11:30.
Registration is required. Sign up here: us02web.zoom.us/meeting/register/tZUpf-mqrDosH9XEYMhGe4BnGgX0N_2ewzDJ.
If you have questions or need assistance with grant applications and administration, contact Rose Mary Saunders or Crystal Hinnen.