Bond Rating Conference with Moodys

     Well this is my final required posting for my internship.  What a way to end it!  I was included in this teleconference between the Assistant City Manager (Director of Finance), the Deputy Director of Finance, the City Clerk, and a bond analyst from Moodys.  This is done annually and Newton currently has an A1 rating which is the best rating for a community of its size.
     The first thing the agent wanted to discuss was the local economy.  Newton is part of the Wichita Metro area with an economy that is aviation-based.  Newton School District, with 850 employees, is the largest employer and second is Newton Medical Center, with 575 employees.  Newton has a 6% unemployment rate.  The City experienced 2.2 million in new residential construction in 2011. 
     MAJOR PROJECTS
     The Newton airport, jointly owned by the City and Harvey County, has a $2.3 million annexation scheduled for September as part of the overall Master Plan.  The City has an Airport Fund has the following funding structure:  95% by the FAA, 2.5% by Harvey County, and 2.5% by Newton.  Hangars are leased and the revenues derived from this are used to pay the debt.   
     The Kansas Logistics Park (KLP) is a 400-acre industrial park project that is under construction with commitments from two tenants.  At a cost of $66 million, KLP will be the site of the 6th largest facility of the Tindall Corp, a manufacturer of elevated concrete bases for wind turbines.  Tindall plans to employ 405 within 3 years.  The other construction project in this area is a $20 million facility for the New Millennium, a manufacturer of wind turbines.  It expects to have 350 employees by year 4.  In all, this is expected to create 800 jobs in the local economy with the only top management personnel being transferred in from other locations.  Although both of these corporations are related to wind energy, the focus of the KLP is logistics as Newton is centrally located in the U.S. with accessibility by rail, roadway, air, and water.  Yes, water here in the middle of Kansas as they have entered into an agreement with Port of Catoosa, the largest U.S. inland port with waterways leading to the Gulf of Mexico.
    The Meridian Conference Center has been a useful marketing tool in bringing events to Newton.  The Meridian, the KLP and the expanded airport combine to make Newton a marketable force nationally.  This is further enhanced by the new Holiday Inn Express and Comfort Inn motels.  Bed taxes have increased 25% since the construction of these facilities.   
     Newton has entered into numerous partnerships on the federal and state levels focused on economic development.  The federal government contributed $63 million to the KLP in the form of road upgrades and repairs.  KDOT has spent $49 million on KLP related projects.  The FAA spent $7.6 million to renovate and remodel the runway at the airport and another $500,000. on the airport master plan.  
     Well, this is only about half of my notes on the teleconference with the bonding analyst.  I will have to say that I was most impressed with the ease Assistant City Manager Lunda Asmani handled any questions as he was very well prepared.  He closed with comments about the management of Newton.  He said some might say that Newton was "lucky" to have garnered so much in grants, but he felt it was the result of strategic financing.  Newton has greatly benefited from good management as Randy Riggs, the City Manager is a credentialed City Manager with 23 years experience and Tim Johnson (the other Assistant City Manager) is also credentialed with 20 years of experience.  Lunda has had 10 years of experience with a focus in the financial sector of Public Administration.  Management is conservative with a look to the future. 
     I have had a wonderful experience.  I believe I currently have completed approximately 250 hours.  This is a wonderful place to work as everyone gets along well and they are doing exciting things!  I hope you all are enjoying your internships too!