Municipal News & Jobs

Over the past few years, the city, working with the Kansas Municipal Energy Agency, has secured lower energy costs through new power supply contracts and taking advantage of the integrated power market.
Each month the historical and current operating expenses, plus revenue and expense projections, are reviewed to forecast required energy rates accurately. In October 2019, this monthly review indicated the base energy rate could be lowered. To confirm this indication, a $0.01 energy cost adjustment (ECA) credit began to be applied to customer’s bills, effectively reducing their energy rate and cost. Customers would see the credit on their monthly bill listed as “ECA Credit.”
Following six months of the ECA credit applied to customer’s bills, forecasts indicated a$0.0125 per kWh decrease is sustainable. At their April 7, 2020 meeting, the City Council adopted an ordinance lowering the base energy charge to all customer classes by $0.0125 per kWh. This base rate decrease will provide even lower energy costs to our customers. Beginning with the April 30, 2020 billing, the $0.01 ECA credit customers saw on their bills between October and March, will be replaced with a $0.0125 per kWh reduction in the base energy charge.
In these uncertain times, this action should provide a level of certainty to our customers that their energy rates will remain at the reduced level they’ve seen the past six months, plus an additional quarter-cent reduction.
Source: City of Russell.

Just as the $349 billion set aside to help small businesses hurt by the coronavirus shutdown exhausted its funds Thursday, more questions were being raised about how the federal government intends to extend more aid to prevent more jobs from being lost.
Among those most concerned are leaders in small towns across the country staring down massive budget shortfalls due to a drop in tax revenues as unemployment rises and sales of just about anything beyond food fall off a cliff.
According to a recent survey from the United States Conference of Mayors and the National League of Cities, nearly 90% of leaders in cities and towns in the U.S. signaled they expect a revenue shortfall. But with much of the $150 billion in the federal stimulus bill solely set aside for municipalities with more than 500,000 inhabitants and specifically earmarked for efforts tied only to mitigating the spread of coronavirus, small town leaders say they are being hung out to dry.
Read more: Yahoo News.

With the possibility of shrinking tax revenues, some Kansas municipalities are wondering what there options are if there is a budget shortfall. There are a number of possibilities, including:
• Refunding or Restructuring Debt – refunding existing debt (even just one maturity) can help ease cash flow problems.
• Public Assistance Grants – Grants may be available through Federal Emergency Management Agency (“FEMA”) for unexpected costs.
• Health Facilities, Library, or Museum Assistance – The CARES act made assistance available to these entities through several different sources.

Call or email us today for assistance in exploring the options available to your community.

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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.