Kansas Municipal News
Fed Faces Tough Decision on Rate Increase
Central-bank officials must balance inflation concerns with new worries about spillovers from banking turmoil. Federal Reserve Chair Jerome Powell and his colleagues this week face one of their toughest calls in years: whether to raise interest rates again to fight stubbornly high inflation or take a timeout amid the most intense banking crisis since 2008. The decision over whether to raise interest rates by a quarter-percentage point is likely to hinge in part on how markets digest the forced marriage Sunday of two Swiss banking giants, UBS and Credit Suisse, and other steps to calm fears of contagion in the banking system. Fed officials’ two-day meeting concludes Wednesday.
Source: WSJ.com: US Business
Municipal Bond Trends for March 20, 2023
The interest rate table above illustrates recent changes in a sample of MBIS “investment grade” yields. Every issuer’s credit is different, and other financing sources may be available. To obtain comprehensive Financial Advisory services for your local government, contact your Ranson Financial Municipal Advisor, Larry Kleeman, Beth Warren or Henry Schmidt.
Valley Center Public Library is celebrating its 100th birthday
There have been many constants at the Valley Center Public Library over the years. Storytimes. Easter egg hunts. Best-selling novels. Newspapers. And the bell at the front door. “We still have it,” said Terry Foster, the library’s assistant director. “It’s a counter. It’s a patron counter,” Director Janice Sharp said. “And if you’re out in the stacks, you know somebody has come in,” Foster added. And they’ve been coming in for a century. The Valley Center Public Library is celebrating its 100th birthday this month with a party from 11 a.m. to 2 p.m. March 20 and with a look back at what got it here. “Libraries are for everybody,” Sharp said. “To me, every community should have a library.” Valley Center’s library started in 1923 with a trunk holding a few dozen books the Progressive Women’s Club bought from the state library board and kept in the homes of club members.
Source: AV News
Water Wise: Hays residents meeting challenges of water conservation, quality
Two water officials in Hays, Kansas say that policies put in place in the 1990s are still paying dividends for a city that is often seen as a model for water-use efficiency. Holly Dickman, a water conservation specialist with the City of Hays, said the nearly three-decade-old water policies are important because Ellis County relies on groundwater mostly from alluvial (shallow) aquifers around the Smoky Hill River and Big Creek, which flow near the city. “So, you can imagine that if it doesn’t rain, those rivers and creeks aren’t running quite as much as they would be and so our well levels can decline,” she said. “The city relies on those water sources for drinking water and more, so you get a little concerned when there’s no rainfall and the well levels begin to fall.” Dickman said drought conditions in the 1990s forced the city’s leaders to adopt several water conservation strategies to preserve what water was available.
Source: Hays Daily News
Municipal Bond Trends for March 17, 2023
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, Beth Warren and Henry Schmidt.
Fed poised to approve quarter-point rate hike this week, despite market turmoil
Even with turmoil in the banking industry and uncertainty ahead, the Federal Reserve likely will approve a quarter-percentage-point interest rate increase next week, according to market pricing and many Wall Street experts. Rate expectations have been on a rapidly swinging pendulum over the past two weeks, varying from a half-point hike to holding the line and even at one point some talk that the Fed could cut rates. However, a consensus has emerged that Fed Chairman Jerome Powell and his fellow central bankers will want to signal that while they are attuned to the financial sector upheaval, it’s important to continue the fight to bring down inflation. That likely will take the form of a 0.25 percentage point, or 25 basis point, increase, accompanied by assurances that there’s no preset path ahead. The outlook could change depending on market behavior in the coming days, but the indication is for the Fed to hike.
Source: Economy
Local Banks Could Leave Gaps That Are Hard to Fill
Tighter belts for smaller banks could count as a big problem for some parts of the U.S. The failures of Silicon Valley Bank and Signature Bank as well as questions about First Republic Bank’s future have cast a sudden pall on the banking sector. An emerging concern is that customers at community and regional banks, worrying that their deposits aren’t safe, might pull their money, putting it into money-market funds or accounts at bigger banks. Regulators’ move last Sunday to protect depositors at SVB and Signature, and big banks coming together on Thursday to shore up First Republic with a $30 billion infusion of deposit cash, were aimed at avoiding such an eventuality. With hope, these fire lines will hold. Even if any outflows are halted or reversed, small banks may now grow cautious, such as by simply sitting on more of their cash as a defensive measure. Doing so would effectively reduce their capacity to extend credit.
Source: WSJ.com: Markets
Smaller Banks’ Role in Economy Means Distress Raises Recession Risks
Main Street businesses and American families are likely to find it harder to get a loan because of turmoil in the banking industry, denting economic growth and raising the risk of a recession. “The risk in terms of the spark from SVB is real,” said Greg Daco, chief economist at EY-Parthenon, a strategy consulting unit of Ernst & Young LLP. The collapse of Silicon Valley Bank set off fear among depositors that led to the failure of Signature Bank and the move to rescue First Republic Bank.
Source: WSJ.com: US Business
Sedgwick residents turn out to defend their chickens
A full council room of residents concerned about a proposed city ordinance to regulate chickens convinced the Sedgwick city council to table the matter until further changes were made. City staff drafted the proposed ordinance and presented it in January to the council, who chose to hold off until they could get public input. The prior ordinance limited the number of fowl to six but didn’t address coop setback limitations, according to City Administrator Kyle Nordick. He said his research showed neighboring cities with coop structure regulations ranging from 30-50 feet from neighboring dwellings, regulations of the location to include only the backyard, and a required permit for ownership.
Source: Harvey County Now
Wichita looking at plan to shape downtown parking options
If you look around downtown Wichita and you’ll see cars parked everywhere, on the street or in lots. It is something that often goes unnoticed by most but the city of Wichita thinks about parking a lot. Councilman Brandon Johnson says the city has “been looking at downtown streets and parking for quite some time and trying to get more efficient. So looking at where parking is needed, compared to where all it is, what that looks like this plan.” On Tuesday the City Council will vote on a parking plan that looks to improve parking in the city, mostly in downtown. It’s a plan that was researched back in 2018 and 2019 but has been on hold since the pandemic.
Source: KAKE – News
Wichita just updated its tobacco ordinance. What’s changed?
Retail stores, not cashiers, will now shoulder fines and fees when caught selling tobacco to underage customers after the Wichita City Council voted unanimously Tuesday to update the city’s tobacco retail licensing. Previously, individual cashier clerks who sold tobacco, e-cigarettes or vapes to someone under the age of 21 were fined $55 for a first offense, $100 for a second, and $150 for any subsequent offenses — an approach that critics say inappropriately shifted blame away from management.
Source: KLC Journal
Why Sedgwick County plans to burn parkland
Sometime in the next three weeks, drivers may see smoke coming from the northeast corner of Sedgwick County. The Sedgwick County Parks Department plans to do a controlled burn at Northeast Sedgwick County Park, at 127th Street East and 77th Street North. Many people may not realize there is a park in that corner of the county. It’s 600 acres of grass and woods. The County website encourages people to use it for hiking, walking dogs, and riding horses. There’s even a YouTube video for the park.
Source: KSN-TV
Southeast Kansas museum celebrates railroad history
More people are now able to check out a museum in southeast Kansas that celebrates railroad history. The Heart of the Heartlands Railroad Museum in Carona has expanded its hours. It had only been open a few weekends during the summer. It’s now open 5 days a week — Wednesday through Sunday — 10 a.m. to 4 p.m. on those days. Museum Director John Chambers says the railroads played a important role in developing the area.
Source: KSNF/KODE
City of Emporia enters home stretch in search for next Assistant City Manager
The search for Emporia’s next Assistant City Manager has reached the final stages. Finalists for the position met with four panels as part of the selection process Friday morning. The city is not releasing the names of the finalists in order to protect current employment, regardless, City Manager Trey Cocking tells KVOE News this will not be an easy decision as each candidate brings a unique set of skills to the table. Cocking says the chosen candidate will be stepping into the role at a time when several large-scale projects are currently in the works or underway and will have to be ready to adapt to that environment.
Source: KVOE Emporia Radio
Residents of Lawrence’s Pinkney neighborhood concerned about plans for homeless shelter site
Residents of Lawrence’s Pinkney neighborhood and staff at a nearby preschool are questioning the site where the city plans to place a “village” for people experiencing homelessness, and how the project would be managed. The city has its sights set on the former location of Veritas Christian School, 256 N. Michigan St., for its Pallet Shelter Village. The land purchase and project, estimated at $1.84 million and to be paid from federal COVID-19 relief funds, is now on a timeline to provide temporary cabin-style sheltering for up to 75 people starting this July, pending Lawrence City Commission approval.
Source: The Lawrence Times
Local businesses playing a role in Hutchinson economy after recent layoffs
Recent closures and layoffs in Hutchinson have brought up questions about the local economy and the future of the town. The director at StartUp Hutch says that local businesses are often overlooked in how they drive the local economy, and those businesses are providing jobs that are different than those at a corporation. Jackson Swearer says the local businesses are typically run by people right there in the community, having an impact on more than just their customers.
Source: KSN-TV
Fed poised to approve quarter-point rate hike next week, despite market turmoil
Even with turmoil in the banking industry and uncertainty ahead, the Federal Reserve likely will approve a quarter percentage point interest rate increase next week, according to market pricing and many Wall Street experts. Rate expectations have been on a rapidly swinging pendulum over the past two weeks, varying from a half-point hike to holding the line and even at one point some talk that the Fed could cut. However, a consensus has emerged that Chairman Jerome Powell and his fellow central bankers will want to signal that while they are attuned to the financial sector upheaval, it’s important to continue the fight to bring down inflation. That likely will take the form of a 0.25 percentage point, or 25 basis point, increase, accompanied by assurances that there’s no pre-set path ahead.
Source: CNBC – Bonds
Municipal market contemplates fallout from banking crisis
“The failure of Silicon Valley Bank along with Silvergate Bank and the Signature Bank of New York has created what is possibly an inflection point in the bond markets,” John Mousseau, president and director of fixed income at Cumberland Advisors, wrote in a commentary Wednesday noting the flight to quality. “The effect on the fixed-income markets has been nothing short of astonishing.” The crisis cut a wide swath across the market with … daily shifts in tax-exempt movement sometimes aligned with Treasury fluctuations and sometimes against. Some believe regional banks could face intensified scrutiny that stands to impact their role in the municipal market, but that remains to be seen. … While federal intervention has managed to tamp down worries and the crisis doesn’t bear striking resemblances to the 2008 financial crisis — that took down Wall Street investment banking behemoths Lehman Brothers and Bear Stearns — it has stirred up painful memories.
Source: The Bond Buyer
One year after the first rate hike, the Fed stands at policy crossroads
The Federal Reserve is one year down its rate-hiking path, and in some ways it’s both closer and further away from its goals when it first set sail. Exactly one year ago, on March 16, 2022, the Federal Open Market Committee enacted the first of what would be eight interest rate increases. The goal: to arrest a stubborn inflation wave that central bank officials spent the better part of a year dismissing as “transitory.” In the year since, inflation as measured by the consumer price index has come down some, from an 8.5% annual rate then to 6% now and trending lower. While that’s progress, it still leaves the Fed well short of its 2% goal. “The Fed will acknowledge that they were late to the game, that inflation has been more persistent than they were expecting. So they probably should have tightened sooner,” said Gus Faucher, chief economist at PNC Financial Services Group. “That being said, given the fact the Fed has tightened as aggressively as they have, the economy is still very good.”
Source: CNBC – Bonds
Central Topeka Grocery Oasis to lease land for planned grocery store
A new agreement for a grocery store in central Topeka has been established. After the former Dillons, 1400 S.W. Huntoon closed its doors seven years ago, it left residents of the central Topeka neighborhood with nowhere to shop for fresh produce. GraceMed Capitol Family Clinic, purchased the then-vacant building and opened the facility almost two years later. Residents said Dillions served as the only full-service grocery store in the entire central Topeka area. The Capital-Journal reported in 2021 that leaders of Central Topeka Grocery Oasis Group and GraceMed were working on a location for a new grocery store, and they were still early in the planning process.
Source: CJonline