Kansas Municipal News
Municipals sell off hard, 30-year muni nears 4%
Municipals sold off Friday with losses of up to 18 basis points, with the damage felt across the curve, and the 30-year triple-A yield closed just shy of 4%. U.S. Treasuries ended mixed after the 10-year rose to levels not seen since 2007 earlier in the session, and the reversal led to an equity rally to close out a tumultuous day and week. Triple-A yields rose 10 to 18 basis points, moving the entire curve above 3%. Short UST made gains while the long bond saw losses of up to 11 basis points.
Source: The Bond Buyer
Andover Breaks Ground on New Fire Department
The Andover Fire Department along with mayor Ronnie Price, Crossland Construction and the Andover Area Chamber of Commerce held a ground breaking ceremony to commemorate the construction of a new fire department and remodel of the current house on October 11. The new building will be located south of US 54 at the corner of Andover road and Minneha road. ‘They have made the best out of this fire department for many many years,’ said Mayor Price. ‘We realized just how much we need a prompt response, and that’s what this is about, getting our citizens in the south a response time that will save lives.’
Source: Andover American
Betting on downtown buildings
Two vacant buildings in the heart of downtown Arkansas City will soon be back in business. Andrew Iverson and his partner, John Schamahorn of I.S. Investments LLC, have purchased 206 S. Summit St., the former home of Flawed Perfection, and 208 S. Summit St., which housed the Cowley Antique Mall and Used Book Cafe. Iverson said the 208 S. Summit St., location is undergoing an aggressive renovation. The main floor will become a public venue.
Source: Cowley CourierTraveler
Emporia Fire Department going red this week
The Emporia Fire Department is going red to honor the U.S. Armed Forces. According to city communications manager Christine Johnson, EFD personnel will participate in R.E.D. Fridays beginning this week. “R.E.D. stands for ‘Remember Everyone Deployed,’ created to remind communities of our heroes overseas and to show support for those deployed and their families,” Johnson said in a written release. Firefighters will wear red shirts on Fridays as part of the campaign. Many Emporia firefighters have served or have family members who served in the military. “As an agency representing the founding city of Veteran’s Day, this campaign became even more important to show support for those community members that are deployed,” Johnson said.
Source: Emporia Gazette
State of the City address gives overview of projects
Garden City mayor and city staff presented at the 2022 State of the City Address Wednesday. The annual presentation was part of the Garden City Area Chamber of Commerce’s October Chamber Membership Breakfast.
Source: Garden City Telegram
Lawrence library’s Civic Engagement 101 series to wrap with talk on city and county governments
The Civic Engagement 101 lecture series at the Lawrence Public Library with wrap with a talk on the roles of city and county governments in Kansas and how they’re financed. Hannes Zacharias, professor of practice in public administration at the University of Kansas, will lead the discussion — “a timely topic, as ballot measures this November may reshape the governmental structures of both the City of Lawrence and Douglas County,” according to the library. “This presentation will explore how Kansas counties are different from cities, what each does, and how they are financed,” according to the event page. “Attendees will learn about the history of these local governments and reflect on their own city and county. This presentation will cover issues like budgets, taxation, planning, zoning, economic development, and public health. Come hear about the often-unknown inner workings of the most impactful government in daily life … local city and county governments.”
Source: The Lawrence Times
The undead invade downtown for 15th annual Lawrence Zombie Walk
Hundreds of goblins and ghouls gathered Thursday at the South Park gazebo in anticipation of the 15th annual Lawrence Zombie Walk. The horde of zombies started their walk down Massachusetts Street at sunset. Spectators gathered on the sidewalk in folding lawn chairs and on restaurant patios, cheering and taking photos all the way to Seventh Street. Residents showed off their creative costume skills, with characters ranging from undead Girl Scouts to zombie killers.
Source: The Lawrence Times
If Chiefs decide to relocate to Kansas, here’s the most likely stadium site and the top incentives for moving
Speculation about a Kansas City Chiefs relocation took off in late March after President Mark Donovan said developers had pitched him on stadium options in Kansas. Among hypothetical Kansas sites, the top several contenders almost certainly sit on parcels in the Village West area, said Jon Stephens, CEO of the Port Authority of Kansas City and a former economic development director for the Unified Government of Wyandotte County/Kansas City, Kansas.
Source: Kansas City Business Journal
Ottawa city manager to retire in March
After 15 years serving the City of Ottawa, City Manager Richard Nienstedt will retire March 31. Nienstedt made the announcement during a special Ottawa City Commission meeting Wednesday morning. Fifteen years ago, the city commission then honored me and humbled me by asking me (wife) Rita and I to be a part of this community, he said. And this is a great community. It has had the best leadership on the elected level and on the appointed level that I ever had in my almost 43 years of doing this. The next five months, Nienstedt told commissioners, will be a busy time for them and city staff, especially as the city begins making the transition to a new city manager.
Source: The Ottawa Herald
Municipal Bond Trends for October 21, 2022
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.
Fed Set to Raise Rates by 0.75 Point and Debate Size of Future Hikes
Federal Reserve officials are barreling toward another interest-rate rise of 0.75 percentage point at their meeting Nov. 1-2 and are likely to debate then whether and how to signal plans to approve a smaller increase in December. “We will have a very thoughtful discussion about the pace of tightening at our next meeting,” Fed governor Christopher Waller said in a speech earlier this month. Some officials have begun signaling their desire both to slow down the pace of increases soon and to stop raising rates early next year to see how their moves this year are slowing the economy. They want to reduce the risk of causing an unnecessarily sharp slowdown. Others have said it is too soon for those discussions because high inflation is proving to be more persistent and broad.
Source: Wall Street Journal
Wichita City Council approves ordinance to fight catalytic converter thefts
A new city ordinance aims to crack down on the soaring rate of catalytic converter thefts by allowing Wichita police to seize parts they believe to be stolen. According to police, 1,360 catalytic converters were reported stolen from Wichita vehicles in 2021. This year, there have been nearly 950 thefts so far. The new ordinance makes it illegal to possess, receive, reuse or collect the parts without proof of ownership or other documentation, including a service order requiring the removal of the part or a letter from the Wichita Police Department allowing possession of the catalytic converter.
Source: Wichita Eagle
10-year Treasury yield climbs to fresh 14-year high
Yield on the 10-year Treasury hit a fresh 14-year high on Friday, while the 2-year note traded in territory last seen in 2007 as signs of a recession worried markets. The 10-year Treasury yield was last at 4.2843%, after rising by close to six basis points. This marked the highest level the benchmark note has traded at since 2008. The yield on the 2-year Treasury climbed to a new 15-year high of 4.639% on Friday. It was last almost flat at 4.609%. … Market concerns about a recession have been growing stronger in recent weeks, as data is reflecting signs of economic contraction, while the Federal Reserve continues to strike a hawkish tone. Speaking at a panel discussion of business leaders on Thursday, Federal Reserve Governor Lisa Cook said inflation was “too high” and that the central bank would continue to take measures to throttle it “until the job is done.” A 75 basis point rate hike is widely expected to be implemented at the Fed’s November meeting. Central bank speakers have said rate hikes will likely continue in 2023.
Source: CNBC – Bonds
Lawrence leaders seeking public input about potential changes to sidewalk repair program
City leaders are asking Lawrence residents to weigh in on whether changes should be made to the city’s sidewalk repair program. The program requires certain property owners to pay part of the costs to make repairs, and has been controversial with some residents, who say the city should treat sidewalks like other infrastructure and take full financial responsibility. The format of the current program has so far resulted in the city paying about 70% of repair costs, with the remainder being paid by property owners.
Source: LJWorld
Municipal Bond Trends for October 20, 2022
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.
Fed’s Harker sees ‘lack of progress’ on inflation, expects aggressive rate hikes ahead
Philadelphia Federal Reserve President Patrick Harker on Thursday said higher interest rates have done little to keep inflation in check, so more increases will be needed. “We are going to keep raising rates for a while,” the central bank official said in remarks for a speech in New Jersey. “Given our frankly disappointing lack of progress on curtailing inflation, I expect we will be well above 4% by the end of the year.” The latter comment was in reference to the fed funds rate, which currently is targeted in a range between 3%-3.75%.
Source: CNBC
Garden City approves sales tax exemption extension for Sports of the World
An extension for the Sports of the World sales tax exemption was approved by the Garden City Commission on Tuesday at its regular meeting. Danielle Burke, Assistant City Manager, said several actions have already been made on the project, dating back to 2017. One of which was the 2019 approval of a development agreement with GC Investments, Inc. A component of the agreement was an industrial revenue bond providing an exemption from applicable retail sales tax on construction materials, equipment and furnishings that are allowed by state statute, Burke said. An expiration date was included in the resolution when it was adopted three years ago, so it needs to be extended.
Source: Garden City Telegram
Kansas Water Office Releases 2022 Kansas Water Plan
The Kansas Water Office (KWO) released the finalized 2022 Kansas Water Plan (KWP) this week. This is the first comprehensive water plan for the state of Kansas to be released since 2009 and provides a roadmap for navigating the vast array of water issues throughout the state. The water plan provides an outline for management, conservation and development of the state’s water resources. To do so, it names five guiding principles – conserve and extend the High Plains Aquifer; secure, protect and restore our Kansas reservoirs; improve the state’s water quality; reduce our vulnerability to extreme events; and increase awareness of Kansas water resources.
Source: Fort Scott Biz
Hoisington meeting challenge of rising electric costs
… the price of natural gas — one of many factors going into the cost of electricity — is expected to spike again during the winter months of 2023. City officials in Hoisington and across the state are resorting to a variety of measures to mitigate the increasing cost of purchased power, a big chunk of a monthly electric bill. Hoisington City Manager Jonathan Mitchell said that some of those out-of-the-box measures have been going on for a while. “A thing that we’ve done internally is to make changes to our staffing structure,” Mitchell said. “We’re reducing staff; trying to be as lean and mean as we can and still get things done.” Fifteen years ago, Mitchell said, city employees numbered 41 in the community’s various departments. That number has since been reduced to 27. “We’re always taking costs and purchases very seriously,” he said. “But prices are rising everywhere; it’s across the board.”
Source: Great Bend Tribune
10-year Treasury yield tops 4.2% for first time since 2008
Treasury yields rose on Thursday after surging to highs not seen in more than a decade in the previous session. The benchmark 10-year Treasury yield climbed 9 basis points 4.22% in midday trading, hitting its highest level since 2008. The yield on the policy-sensitive 2-year Treasury traded up nearly five basis points to 4.601%. Yields and prices move in opposite directions and one basis point equals 0.01%. Many investors been concerned about the economy contracting as the Federal Reserve has been hiking interest rates to fight persistent inflation. Another 75 basis point hike is expected from the central bank at its next meeting on Nov. 1 and 2.
Source: CNBC – Bonds