Even as America’s states and cities brace for hundreds of billions of dollars tax collections to disappear, the two biggest credit-rating companies have been slow to downgrade municipal debt amid increasing risk for the $3.9 trillion market. Since the pandemic raced through the U.S., S&P Global Ratings Inc. and Moody’s Investors Service have downgraded about 1% of the municipal borrowers they rate, even as sports stadiums close, college towns and dormitories are emptied after some campuses canceled in-person classes, and the steep drop in travel batters airports and tourism-driven cities. Halfway through September, Moody’s has cut the ratings of about 125 of the approximately 12,000 public finance entities it tracks, 90 fewer than the second and third quarters of 2018, when the economy was eight years into a record expansion. S&P lowered those on 175 of about 20,000 borrowers since late March.
Source: Bloomberg.

City leaders will soon discuss additional provisions of a nondiscrimination ordinance meant to create transparency regarding how the police interact with undocumented immigrants. As part of its meeting Tuesday, the Lawrence City Commission will consider adopting the ordinance on second reading following some changes the commission directed city staff to make in July. At that time, the commission approved the ordinance on first reading but requested that city staff draft language to incorporate one addition and further review another. Both additions were requested by the local immigrant advocacy group Sanctuary Alliance, which began the conversation last year by calling for the city to adopt sanctuary policies for undocumented immigrants.
Source: LJWorld.com.

The City of Lawrence will soon be starting a conversation about systemic racism to help inform potentially fundamental changes in policing and other city functions — with the city’s multimillion-dollar police budget in the balance. Following local and national protests this year over police killings of Black people and systemic racism, Mayor Jennifer Ananda in June called for the city to consider about a dozen reforms, including reallocation of some police funding for social services. The Lawrence City Commission later agreed to consider the changes and to create a process for residents to weigh in on the discussion.
Source: LJWorld.com.

United States Department of Agriculture (USDA) Deputy Under Secretary for Rural Development Bette Brand today announced that USDA released a final rule to allow the use of funds under select programs to help expand access to broadband services for America’s rural businesses and residents. Effective immediately, entities may be eligible to use up to 10 percent of a loan, grant or loan guarantee to build, improve or acquire rural broadband facilities and equipment in areas not served by a minimum acceptable level of broadband service which is 25 megabits downstream and 3 megabits upstream for both mobile and fixed service. Eligible programs are…
Read more: USDA.

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.