E-Quarterly Newsletter


Market Commentary

Market Commentary
The Next FOMC Meeting is September 20, 2023 with an 97.0% probability of no rate hike and 3.0% chance of a 25 basis point rate change according to CME Group's FedWatch Tool. Although the Fed is likely to leave the fund rate unchanged next week, many economists anticipate a continued hawkish Fed stance with the possibility of another hike before year-end. In a research note, asset manager BlackRock sees opportunities for investors to buy state and local debt at attractive prices over the next few months with yields climbing higher this year and seasonally-driven unfavorable supply and demand factors ahead.
Market Commentary
The Next FOMC Meeting is July 26, 2023 with a 92.4% probability of a 25 basis point hike and 7.6% chance of no rate change according to CME Group's FedWatch Tool. Treasury yields rose across the curve after the ADP jobs report and extended their climb after data showing the service sector expanded in June at the fastest pace in four months. Municipal-bond issuance nationally started to recover in June, marking the first month in 2023 where new issue sales rose year-over-year. Municipalities were likely waiting to see if rates would come down but eventually needed to tap the market for impending project needs.
Market Commentary
The Next FOMC Meeting is July 26, 2023 with a 92.4% probability of a 25 basis point hike and 7.6% chance of no rate change according to CME Group's FedWatch Tool. Treasury yields rose across the curve after the ADP jobs report and extended their climb after data showing the service sector expanded in June at the fastest pace in four months. Municipal-bond issuance nationally started to recover in June, marking the first month in 2023 where new issue sales rose year-over-year. Municipalities were likely waiting to see if rates would come down but eventually needed to tap the market for impending project needs.
Market Commentary
Updated for June 15, 2023: The FOMC Meeting announced no increase to the targeted Fed Funds rate after its policy meeting this week.

Press Releases

Press Releasle
Ehlers' Board of Directors appointed Senior Municipal Advisor and firm Principal Greg Crowe as its next President.
Press Releasle
Ehlers was named to Minneapolis Star Tribune's list of Top 150 Workplaces for 2020. It was the first year the firm participated in the program.

In the News

Market Commentary
Minnesota Association of School Administrators (MASA)

Dr. Jeffrey Olson Receives MASA Polaris Leadership Award Sponsored by Ehlers

MASA is grateful to Ehlers for our ongoing support of the Polaris Award. Check out MASA's press release on this year's recipient.
Market Commentary
The Municipality: Your Voice. Your Wisconsin

COVID-19 & Maintaining Fiscal Stability

Ehlers' Financial Specialist Jonathan Schatz discusses how Wisconsin Municipalities can maintain financial stability while facing the challenges posed by the COVID-19 Pandemic. Read the article on Page 8.
Market Commentary
Country News Review

Ehlers’ Jessica Cook Updates North Branch City Council on Utility Rate Studies

Well managed utility funds were the topic of discussion during the city of North Branch's work session on March 17, along with a presentation of the city's Utility Fee Study by Ehlers. Jessica Cook, Economic Development Advisor with Ehlers Inc. provided council with the update. "I have the pleasure of sharing some good news with you this evening, especially in the difficult time it's nice to have, as it relates to the storm water fund and the sewer fund," Cook began.
Market Commentary
Sun This Week

MN School District 196 Approves Financing Bids For New Artificial Turf Fields

Ehlers' client, the Rosemount-Apple Valley-Eagan School District, approved financing and awarded bids April 13 for construction of artificial turf fields at Eagan and Rosemount high schools. Jodie Zesbaugh, Ehlers' Senior Municipal Advisor serving the district, detailed the positive sale results for the District's School Board.

Client Alerts

Press Releasle
The recently enacted local government funding legislation (2023 Wisconsin Act 12) imposes significant changes to the shared revenue program, eliminates the personal property tax, and creates an innovation fund to encourage consolidation and transfer of services to promote cost savings. However, as a late-session compromise to gain the support needed to pass this legislation, Act 12 was amended to include provisions for how construction in tax incremental districts (TIDs) will be treated under levy limits that will impact newly created TIDs beginning next year.

Events

Friday, March 31, 2023
Crowne Plaza Minneapolis West

Ehlers’ 2023 Minnesota School Finance Seminar

Explore a variety of topics including capital project financing, budget and enrollment projections, the importance of effectively managing bond proceeds in today's interest rate environment and much more at Ehlers' 2023 School Finance Seminar!
February 16-17, 2023
Kalahari Resort & Convention Center

Ehlers’ 2023 Wisconsin Public Finance Seminar