Summary of Moody's Ratings Action for Topeka, KS (August 9, 2024)

Rating Actions:

• Moody's affirmed Topeka, Kansas' Aa3 issuer and general obligation unlimited tax (GOULT) ratings.
• Affirmed Aa3 senior lien and A1 junior lien combined utility revenue ratings.
• Assigned Aa3 rating to $26.5 million Combined Utility Revenue Bonds, Series 2024-B.
• Total outstanding debt post-sale: ~$560 million (GOULT and utility revenue bonds).
• Outlook: Stable.

Rationale:

• Issuer/GOULT Aa3 Rating: Reflects Topeka’s economic growth, strong housing demand, and robust operating reserves/liquidity, supported by conservative budgeting. The state capital status offsets weaker per capita income and full value. Leverage ratio (~250%) aligns with peers, with planned $26.5 million debt issuance through 2028 expected to maintain this level.
• Senior Lien Utility Aa3 Rating: Driven by a large, stable service area, multiyear rate increases, strong liquidity, and infrastructure investment. Despite elevated debt, bond covenants (1.25x rate covenant, debt service reserve) are satisfactory.
• Junior Lien Utility A1 Rating: One notch below senior lien due to subordination and weaker covenants (1.05x rate covenant).
• Stable Outlook: Supported by regional importance, revenue growth from economic expansion and rate hikes, steady reserves, and moderate leverage.

Factors for Upgrade:

• Long-term liabilities ratio below 200%.
• Significant improvement in resident income and full value per capita.
• Utility debt service coverage exceeding 2x.

Factors for Downgrade:

• Operating reserve ratio below 40%.
• Long-term liabilities ratio above 350%.
• Utility debt service coverage below 1.5x.
• Utility days cash on hand below 185-day reserve policy.

Legal Security:

• GOULT Bonds: Backed by Topeka’s full faith, credit, and unlimited ad valorem property taxes.
• Utility Revenue Bonds: Payable from net system revenue; junior lien bonds (Series 2021-B) subordinate to state revolving fund loans and senior lien bonds.

Use of Proceeds:

• Series 2024-B bonds will fund improvements to the combined utility system (water, stormwater, wastewater) and a debt service reserve fund.

Profile:

• Topeka, Kansas’ state capital, population ~123,000 (2023), provides public safety, economic development, and utility services (water, stormwater, wastewater).

Methodologies:

• Issuer/GOULT: US Cities and Counties (July 2024).
• Utility Revenue: US Municipal Utility Revenue Bonds (March 2024).

So, the total rent expense (under "Occupancy") paid is $360,824.

Based on the provided Consolidated Statement of Functional Expenses for Growth Organization of Topeka/Shawnee County, Inc. and Subsidiary for the year ended December 31, 2022, the expense categorized under "Occupancy" (which typically includes rent) is:

• Economic Development: $248,124
• Events: $1,193
• ETLG: $16,942
• Marketing: $0
• General and Administrative: $94,565

Adding these amounts together:$248,124 + $1,193 + $16,942 + $0 + $94,565 = $360,824So, the total rent expense (under "Occupancy") paid is $360,824.

NGOs

A Non-Governmental Organization (NGO) is a non-profit, voluntary group organized at a local, national, or international level to address social, environmental, humanitarian, or developmental issues. NGOs operate independently of government control and are typically driven by a mission to promote positive change, such as alleviating poverty, protecting human rights, conserving the environment, or providing education and healthcare.Key Characteristics of NGOs:

1. Non-Profit: NGOs prioritize their mission over profit, reinvesting funds into their programs or operations.
2. Independent: They are not controlled by governments, though they may collaborate with them.
3. Voluntary: Often rely on volunteers, donations, and grants to function.
4. Mission-Driven: Focus on specific causes like disaster relief, gender equality, or climate change.
5. Diverse Scope: Can range from small community groups to large global organizations like Amnesty International or Doctors Without Borders.

Types of NGOs:

• Operational NGOs: Directly implement projects (e.g., building schools or providing medical aid).
• Advocacy NGOs: Focus on raising awareness, lobbying, or influencing policy (e.g., Greenpeace).
• Hybrid NGOs: Combine direct action with advocacy.

Examples:

• International: Oxfam, Save the Children, World Wildlife Fund (WWF).
• Local: Community-based groups addressing local education or health needs.

Funding:NGOs are funded through donations, grants, membership fees, or fundraising events. They may also receive support from governments or international bodies, but they maintain autonomy.Impact and Challenges:

• Impact: NGOs fill gaps where governments or markets fall short, providing aid, advocacy, and innovation.
• Challenges: Funding constraints, political resistance, and ensuring accountability or transparency.

If you’d like details on a specific NGO or their work, let me know!