June 2024 - Ehlers, Inc.

Get the Lead Out!

Local communities are responsible for the implementation and construction work to replace lead service lines (both public and privately owned) and now that many of the initial pilot projects are underway, we’re quickly learning the primary “dos and don’ts” relative to bringing these complicated initiatives to fruition.

New Kids on the Block

Congratulations, you’re the new kid on the block! Welcome to your new role in local government. Now what? Whether you’ve moved from a different entity, received an internal promotion, or transitioned into a brand-new role, you can feel overwhelmed about how to take on this new challenge. Fear not! By following a few simple, yet essential best practices, you’ll feel more secure in your position and be able to make meaningful contributions to your community.

Read on.

Can Taxable be Preferable?

Perhaps it is no secret to our readers, but the federal government provides state and local governments the privilege of issuing tax-exempt debt to finance the projects that deliver generational benefits to their communities. When you see the words “tax-exempt,” think of it as a tacit subsidy from the U.S. government, which ultimately reduces tax revenue flowing into federal coffers. As you might imagine, the Internal Revenue Service has a keen interest in limiting the amount of tax-exempt debt outstanding, so has established rules to make sure the privilege is only enjoyed when the proceeds of tax-exempt bonds are generally used for a public purpose and not for private benefit.

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Legislative Update for Minnesota Schools

As Minnesota school districts wrap up the 2023-2024 year, we recognize that many officials are trying to capture as much information on the legislative updates that the Minnesota Department of Education and various professional groups are offering. Fortunately, Ehlers has been following many of those revisions relating specifically to building projects, timelines, and elections. Based on the latest legislative action, there are certain deadlines and changes of which districts should be aware.

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It’s The Final Countdown!

Based on legislative changes introduced in Wisconsin Act 12 counties and municipalities will see reduced levy limit benefits for Tax Increment Districts created on or after October 1, 2024. In the same vein, the constraints of Wisconsin levy limits are now pushing more communities to pursue a referendum to raise funds to support existing or add new services.There is still time for you to pursue either (or both) of these important funding tools for 2024, but it’s the final countdown relative to compliance with state statutes.

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Market Commentary June 2024

If you’re a fan of roller coasters, you’ve likely enjoyed the past few months as the market seemingly can’t decide how many times the Federal Reserve’s (Fed) Federal Open Market Committee (FOMC) might reduce its target range for the federal funds rate in 2024, if at all. The market was expecting as many as six quarter-point cuts to the federal funds rate at the beginning of this year, but those expectations have recently shifted to align more closely with guidance of the voting members of the FOMC.

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Have questions or need more info?

Call 800-222-4545 or e-mail info@ehlers.com.

About Ehlers

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.