Senate Bill 4 – signed into law by Governor Hickenlooper on Feb 27th, permits the State Board for Community Colleges and Occupational Education to establish technical, career, and workforce development bachelor of applied science degree programs at state-supported community colleges.
House Bill 1013 – would create the Advanced Industries Workforce Development Program in the Colorado Office of Economic Development and International Trade.
House Bill 1085 – would create an adult education and literacy grant program in the Adult Education Office at the Colorado Department of Education.
House Bill 1012 – would repeal the Colorado Innovation Investment Income Tax Credit and replaces it with the Advanced Industry Investment Income Tax Credit.
House Bill 1040 – killed Mar 5th – would have established two new unclassified petty offenses and fine penalties related to defrauding a drug test.
Get Ready for Rising Interest Rates in Manufacturing
It’s Time to Protect Interest Expense and Structure Balance Sheets
Sean Nohavec,UMB Bank
There is one other factor that may be the most important for manufacturers to consider when planning for the future-interest rates. With historically low interest rates currently being offered for operating lines as well as some floating rate term debt financing that has been put in place during the last four to five years, many people have been lulled into forgetting that interest rates can change fast and dramatically.
As the American economy improves and the Federal Reserve Bank looks at beginning to ease its security purchasing, the stage is set for a return to “normal” interest scenario during the next couple of years. As that happens, manufacturers with large floating rate exposure can expect to see their interest expense double or even triple during that time frame. The spread between fixed and floating rates will also expand, regaining its historical gap. When that happens, borrowers with purely floating rates will be at the mercy of the financial markets in terms of controlling their interest expense.
Reviewing balance sheets and future cash flows now – with an eye toward the next several years – can both yield large potential interest expense savings and protect against possible loan repayment problems.
As manufacturers look ahead, here are four steps to better financial planning:
Review all current debt and forecast projected debt levels for thenext four years. Include amounts, repayments required, current rates, and most importantly, whether the rates are fixed or floating.
Optimize utilization of fixed assets for securing the minimum level of total debt anticipated each year. This should be done regardless of whether it is presently for revolving/working capital lines or fixed assets.
Determine available cash flow for debt service during the next four years.
Structure new fixed-rate debt now by using a conservative debt service coverage ratio (1.3 to 1 or greater).
By fixing rates now, with proper use of fixed assets as collateral, and carefully forecasting future operational cash flows, businesses can effectively lock in today’s historically low rates, save themselves thousands of dollars or more in interest expense, and be far better prepared to effectively manage other variables that may come into play.
1) Safety: fracking is well managed and very low risk. Most aspects of our lives have some risk – we all use air travel because the tremendously high benefit and extremely low risk makes it an easy decision. Even after a plane crash, we say, “that will just make it safer going forward” and we keep on flying. I’ve concluded that fracking fits that model – very safe and getting safer.
2) How fracking impacts on the community:
Fracking and drilling operations are VERY organized and safe, and while noisy and disruptive, that part is short lived – way shorter than I realized – days to a few weeks.
Remaining footprint: on-location processing of the extracted resources requires occasional vehicle traffic and on-site equipment while the well is producing. Technology improvements are allowing that equipment to be placed further and further from objectionable locations.
Fracking creates jobs and huge economic benefits: jobs, indirect jobs, royalties for those with mineral rights, and financial benefit to all residents in the form of lower property taxes, and taxes collected that support schools and more.