Kansas Municipal News
MSRB Report Reveals Significant Changes in Muni Market in 2022
The Municipal Securities Rulemaking Board (MSRB) has just released its 2022 Year-in-Review report, which reveals significant changes in the municipal bond market when compared to 2021 and prior years. Key findings include:
- Trading volume in municipal bonds soared, surpassing the previous record set in 2008 by 17% and up 66% from 2021.
- Individual investors flooded back into the market as interest rates rose, buying individual bonds and contributing to the dramatic increase in trading volume.
- Tax-exempt yields rose 160-260 basis points for the year, as inflation fears and Fed tightening drove rates in all fixed income securities higher.
- New issuance volume declined to the lowest level since 2018, with taxable and refunding deals down 57% and 65%, respectively, as higher rates made these deals less attractive to issuers.
- Tax-exempt mutual funds saw unprecedented outflows as interest rates rose, with approximately $144 billion in outflows, far outpacing outflows in the only other two years the market saw outflows from tax-exempt mutual funds.
- The market saw record inflows into tax-exempt ETFs, helping offset in part the dramatic outflows from tax-exempt mutual funds.
Read the report to learn more.
As inflation gauge falls 0.1% for the month, is it time for the Fed to declare victory on inflation? Not yet
December’s monthly decline in the consumer price index gets the Federal Reserve a step closer to beating inflation, though they’re highly unlikely to signal an easing of policy anytime soon. The key inflation gauge fell 0.1% for the month, in line with market expectations and the biggest drop since April 2020. Though the CPI for all items is still 6.5% ahead of where it was a year ago, the arc has been steadily lower — from its peak around a 9% annual rate in June 2022 to a steadily declining rate amid a sharp drop in gas prices and some serious interest rate increases from the Fed. The question now is how much more evidence policymakers will need to see before they take their foot off the brake. “If they’re doing a forecast, which is what they should be doing, it strongly argues that their rate increases should be coming to an end soon,” said Mark Zandi, chief economist at Moody’s Analytics. “There’s nothing not to like about this report. Inflation is going to come in here.”
Source: CNBC
Leawood creating wildflower haven for monarch butterflies
The city of Leawood is building a haven of wildflowers for migrating monarch butterflies. The Parks and Recreation department will plant a mix of wildflowers for the butterflies to pollinate as they pass through the region. The now-endangered butterflies are expected to migrate through Johnson County later this year, after the flowers are planted.
Source: Shawnee Mission Post
GCPD celebrating 100 years of service
One hundred years ago on Jan. 8, 1923, the Garden City Police Department was formed. On Jan. 9, 2023, GCPD held a Centennial Celebration to mark its 100th anniversary in Garden City Community College’s Pauline Joyce Fine Arts auditorium. Courtney Prewitt, GCPD Chief of Police, said 100 years is a long time and much has happened in the world since the department’s inception in 1923, including professional law enforcement. “One thing remains constant – the Garden City Police Department’s commitment to serving and protecting our community,” he said. Over the past century the department has grown and evolved, just like the city, Prewitt said. It’s adapted to the changing needs of the community and challenges that came with the change, but the department has remained “steadfast in our dedication to upholding the law and ensuring the safety and well-being of the people we serve.”
Source: Garden City Telegram
South Hutchinson City Administrator Joseph Turner makes ELGL’s Top 100 Local Government Influencers for 2022
… each year ELGL seek nominations for the Top 100 Influencers in Local Government. It is inspiring to read about these local government leaders, and we know even more superb public servants are doing incredible work across the country. … Joseph has developed a LinkedIn community aimed at helping aspiring city managers break into the field as well as supporting current managers.
Source: ELGL
KCK public school workers being trained to use Narcan for overdose emergencies
Preventative and proactive. That’s how educators in Kansas City, Kansas describe their training to use Narcan, the emergency spray that’s used to save anyone who’s overdosed on fentanyl. Fifty doses of the life-saving tool are now owned by KCK Public School administrators, 153 district employees have been trained to administer Narcan, including fellow nursing staffers and district police officers. “We want to make sure we have the necessary tools in place if we have a situation like this,” KCK Schools Police Chief Curtis Nicholson said.
Source: KSNT 27 News
Lawrence school district’s Futures Planning Committee favors 4-day weeks, closing 3 buildings
The Lawrence school district’s Futures Planning Committee on Wednesday in a preliminary vote advanced a budget scenario suggesting a four-day school week, closing two elementary schools and a middle school, and cutting a district administration position. The committee members, divided into small groups, reevaluated items in the current budget scenario, offering their own suggested changes to budget cuts in preparation for upcoming public input sessions. Each committee member was allowed to vote for two out of the seven groups’ scenarios. The scenario that won, receiving 20 votes, also includes utilizing renewable solar power — which would not save costs but would reduce emissions — and cutting two electives at each high school instead of cutting student programs. Altogether, the group’s proposed cuts would save the district an estimated $7.6 million to $9.6 million. The four-day school weeks would save an estimated $700,000.
Source: The Lawrence Times
Miami County looks for cure to voting machine hiccup
Miami County commissioners learned an additional investment would be necessary to correct a flaw in the county’s election machines that allows voters to change ballot styles — whether it be done by accident or misdeed. The county in May 2019 purchased 125 ExpressVote Tabulators for $685,220 from Election Systems & Software. Angie Frison, an ESS sales representative for the Omaha, Neb.-based company, attended the County Commission’s study session Dec. 21 to talk about a hiccup that allowed two voters to change their ballot styles in November.
Source: The Miami County Republic
Municipal Bond Trends for January 11, 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’s Collins leans toward downshifting to a quarter-point hike
Federal Reserve Bank of Boston President Susan Collins said she’s leaning toward supporting a quarter-point interest rate hike at the central bank’s next meeting ending Feb. 1 as officials near a peak in borrowing costs. Downshifting to a smaller move from the more aggressive rate increases the Fed rolled out last year would give officials more time to see how their actions are affecting the economy, Collins said Wednesday in an interview with The New York Times. The Fed raised its main rate by 50 basis points at the last meeting in mid-December, slowing down following four straight 75 basis-point increases. Inflation data due Thursday have the potential to make a quarter-point move more certain, if price gains continue to slow.
Source: The Bond Buyer
Hill’s Pet Nutrition to relocate HQ from Topeka to Overland Park
Hill’s Pet Nutrition will be shifting its global and U.S. headquarters to the greater Kansas City area later this year. An announcement from Hill’s reports that the company will be expanding in Kansas by bringing its headquarters to Aspiria Campus at 6180 Sprint Parkway in Overland Park towards the end of 2023. While the headquarters is moving, the company will continue to invest in its Topeka manufacturing hubs.
Source: fox4kc.com | FOX 4 – WDAF
Peabody revitalizing downtown with help of a grant
While many small towns in Kansas have their downtown districts emptying out and buildings falling into decay, Peabody is working on fixing theirs up. This is all thanks to the Peabody Main Street Association ((PMSA), a Kansas registered 501(c)3 non-profit community development organization, that focuses on downtown preservation and revitalization. “All the buildings in our downtown business district are on the National Register of Historic Places because of their unique architecture. Only a few of those even exist in the entire country. Our group’s focus is on preserving that architecture and also assisting commerce in that district,” said Morgan Marler board member for PMSA.
Source: Hillsboro Free Press
Newton City Commission debates changing government
Newton will have to wait a bit longer to know what its commission will decide in terms of government structure. The Newton City Commission reviewed the results of a resident survey conducted by the company FlashVote, but the results were not very definitive to some commissioners. The survey is covered at length in another article in this issue of the paper. Basically, 47 percent of the 229 respondents favored the city directly electing a mayor. However, 45 percent of respondents favored options where the mayor was chosen by commissioners to serve as mayor.
Source: Harvey County Now
Kansas 3rd graders design inclusive playground so they can play with their classmates
Third graders at Lansing Elementary School have come up with a solution to a problem. With two of their classmates in wheelchairs and a third who needs a walker, all their friends can’t enjoy their playground at recess. “I’m really mad about it because it’s not fair that not everyone gets to play on the playground,” third grader Finley Kowalewski said. The students went to their teacher Christina Mills with a solution, a dream playground all their classmates could use. This content is imported from Twitter. You may be able to find the same content in another format, or you may be able to find more information, at their web site. “We just like playing with them because they’re part of the class, and they’re our friends,” third grader Braiden Ling said Mills and another teacher at the school helped the students design their accessible playground.
Source: KAKE – News
$2 mil. Rural Home Loan Guarantee program to make rural housing more accessible
Keeping small towns in Kansas alive. A new program is putting millions of dollars into rural areas of the state and it’s expected to benefit thousands of homeowners. This $2 million Rural Home Loan Guarantee program is through the Kansas Housing Resources Corporation (KHRC). KHRC’s Executive Director said this will help small-town banks and families get into their dream homes. “There is a need for housing of all different qualities and sizes,” said Lyons City Administrator, Chad Buckley.
Source: KSN-TV
Topeka catalytic converter ordinance approved
Topeka city council unanimously approved a new ordinance Tuesday they hope will deter catalytic converter thefts. Just in the last couple weeks of 2022, Topeka saw more than 20 catalytic converter thefts. Tuesdays unanimous vote, which was taken just minutes after the issue was presented, shows just how much the city council wants to see this crime stopped in its tracks. It’s a costly crime, and the thieves work so fast, it’s almost impossible to catch one in the act.
Source: KSNT 27 News
‘The house shakes’: Residents sue Olathe, company over rock quarry near neighborhood
On a remote patch of land in the southwest corner of Olathe, an eruption breaks the silence. The explosion is a regular part of rock quarry Hamm Companies’ operations – blasts loosen the earth to allow for removal. But not everyone on a nearby residential street appreciates the activity taking place on the other side of a grassy berm. Residents Randy and Cynthia Kriesel are suing the City of Olathe and Hamm Companies for expanding the quarry’s property, which inches closer to a small neighborhood off West 167th Street near Interstate-35.
Source: KC Star Local News
Labette County hears about drug shortages
The Labette County Commission, meeting Monday as the Labette County Board of Health, heard from pharmacist-in-charge Tracy Gilmore that pharmacists and providers are seeing a lot of drug shortages and are hoping the Labette County Health Department does not see it in its daily work giving vaccines and antibiotics. For now, the Health Department reported no shortages. “It is kind of a scary situation in some aspects,” Gilmore said.
Source: Parsons Sun
Merriam reignites plan for old community center site
Merriam is relaunching efforts to transform the site of the former Irene B. French Community Center. A special committee previously charged with finding a use for the land at 5701 Merriam Drive is being reconstituted for the first time in four years and will work to finalize a design for the now-empty green space. Anna Slocum, parks and recreation director, told the city council on Monday that the committee, dubbed the 5701 Committee, would soon seek a landscape design architect for the project.
Source: Prairie Village Post
Manhattan city commissioners want to prevent members from holding 2 government positions
State Sen. Usha Reddi, D-Manhattan, said Tuesday she would “eventually” resign from the Manhattan City Commission as some suggested changing the rules to prevent a commissioner from holding another elected position. Last week, the Riley County Democratic party elected Reddi to fill in for the remainder of state Sen. Tom Hawk’s position after he announced his retirement. The Mercury previously reported that Reddi said she will resign a few days after she was elected, but on Tuesday, she didn’t commit to that timeline. But she said she doesn’t plan on staying on the commission for her entire term.
Source: themercury.com