It’s Not Personal, It’s Just Business.
In our prior Newsletter, we showcased the failure of Silicon Valley Bank (SVB) and used it as a cautionary tale of why public funds depositors should ensure the funds they hold with depository institutions are not subject to the risks associated with such crises. As we stated, the rapidity at which a bank’s financial condition can deteriorate won’t likely offer ample time to react, as depositors can withdraw funds at the speed of a mouse click or tap on a smartphone. In the matter of a little more than a business week, SVB went from a headline to receivership administered through the Federal Deposit Insurance Corporation (FDIC), ultimately resulting in the second largest bank failure in U.S. history.
Housing Update & Potential Impacts
Housing, primarily affordable housing, has been a focal point at both the state and local level in Minnesota for many years. Rising interest rates, inflationary pressures on construction costs, perpetually high rents, and a general lack of housing availability have made it increasingly difficult for Minnesota communities to deliver critical housing resources to their constituents. However, this year’s sweeping legislative session resulted in a comprehensive suite of programs intended to address the production and preservation of affordable housing, rental assistance, and down payment assistance for first-time homebuyers, just to name a few. This year’s package of housing legislation will have wide-ranging and direct impacts on local resources – some for better, and likely some for worse.
Guidance for Minnesota School Districts
“You work for a school district; you must have the summer off!” Certainly, this is not the case for school district officials completing their 10-year Long-Term Facilities Maintenance (LTFM) plan.
The Minnesota Department of Education (MDE) requires four key pieces of information as part of your School Board’s approval of the annual LTFM program in order to qualify for LTFM revenue in the following year.
The Fed Hits Pause…For Now.
Three months ago, this market commentary observed that predictions for future Fed tightening had greatly diminished in the wake of the collapse of Silicon Valley Bank. That commentary went to print while the SVB news was still fresh, and potential contagion across the banking system was the topic of the day. Three months later and that seems almost like ancient history. Not only has the market moved on from fears of a systemic banking meltdown, but we have survived the rise and fall of another “crisis” entirely in the form of the debt ceiling impasse in Washington.
Getting the Most From Your Banking Relationship
Do you ever open your community’s bank analysis statements and wonder if you’re getting the best value or benefit from your current banking relationship? Are your interest earnings competitive? What are your total hard charges per month? Does your bank provide the latest in fraud protection services? For many, the potential benefit of conducting a more thorough study of those questions is often overshadowed by the convenience and familiarity of “just staying put” with your current banking services provider. Yet, as the steward of public funds, you have an obligation to review banking service contracts periodically.
Can You Hear Me Now?
“Can you hear me now?” That catchy tagline from Verizon wireless commercials years ago often comes to mind when I think about communication. The ability to effectively communicate a key component relative to how leaders are perceived. It’s an impactful way to build trust and credibility with others and it represents the heart of executive presence.
A pioneer and regional leader in municipal advisory services since 1955, Ehlers helps clients build strong, vibrant and sustainable communities by delivering independent, integrated advice across all areas of public finance. We work with more than 1,500 local governments, schools, and public agencies across five states; placing our clients’ needs and best interests at the center of everything we do.