MINUTES OF

THE INDIANAPOLIS LOCAL PUBLIC IMPROVEMENT BOND BANK

 

Minutes of the Regular Meeting of the Board of Directors

 

October 19, 2009

 

MEMBERS PRESENT:         Briane House  

                                               Fred Miller

                                               Jim Carr

 

MEMBERS ABSENT:         Justin Christian

                                               Sahara Williams

 

                                              

                                                BOND BANK PRESENT:

                                    Kevin Taylor

                                    Jacqui Coe

                                    Laurie Canatsey

                                    Monica Durrett                   

Kyle Willis

Dario Requiz

Brad Busse

Clayton Graham, Bond Bank Rep.

                                   

                                                     OTHERS PRESENT:

                                               

          Jean Landy, U.S. Bank                                                 David Girton, Liger Securities

          Kim Wilson, UMB Bank                                  Diana Hamilton, Sycamore Advisors

          Curt Fritch, CRF Group                                   Tamara Zahn, IDI

          Hans Steck, Bingham McHale                          Brian Shaw, Hilliard Lyons   

          Jay Ryals, Fifth Third Bank                              Greg Reynolds, Blaylock Robert Van 

          Sharon Karst, Bank NY Mellon                       Steve Meno, Fifth Third Bank

          Dawn Tabler, KeyBank                                    Jean Landy, U.S. Bank          

          John Kirkwood, Kreig DeVault, LLP              Sandra Mowell, Citizen

         Eric Green, Backstrom, McCarley & Berry       Nathan Flynn, William Blair & Co                

         Jim Merten, City Securities                                Kim Wilson, UMB Bank                                 

         Maria Quintana, Chase                                       

                                      

                                               


            A Regular Meeting of the Indianapolis Local Public Improvement Bond Bank (“Bond Bank”) convened at 12:00 noon, Monday, October 19, 2009 in the City-County Building, 200 East Washington Street, Suite 107, Indianapolis, Indiana, pursuant to notice given in accordance with IC 5-14-1.5. Mr. House called the meeting to order after determining that a quorum was present.

                       

            Mr. House asked for the approval of the minutes from September 21, 2009. Mr. Miller made the motion to approve, seconded by Mr. Carr. All voted in favor and the motion passed.

 

             Mr. Taylor gave a brief overview of the preliminary 2010 budget to the Board, stating that the Bond Bank was still finalizing some numbers. He then covered the 2009 year-to-date budget through the end of the third quarter. He explained how the Bond Bank is inline with expenses as adopted for the year and that the revenues are where they were expected and in some cases, have exceeded anticipated amounts. He stated that the 2009 budget looks good nearing the end of the year.

 

             He then reviewed the preliminary 2010 budget of $2.5 million, stating that the revenues are based on a 10 basis-point fee charged to the qualified entities. He anticipates the revenues to be flat compared to the current year. The Bond Bank is budgeting a 7.2% reduction relative to the 2009 adopted budget, due in large part to the line item for Union Station. The Bond Bank expects payments to Union Station to be well below what was budgeted for 2009. He discussed the salaries and benefits, stating that the Bond Bank is proposing $615,000 which includes a budget for an open position for a project manager. Mr. Jim Carr asked if the 10 basis points were the same as 2009. Mr. Taylor stated that the Bond Bank was proposing the budget at the same rate.

 

            Next, Ms. Diana Hamilton, Sycamore Advisors, gave an update and brief background on the Sanitary District and SRF. She discussed the proposed financings of the planned projects and how DPW had drafted a 5-year budget on estimated projects to cover all funds for all projects. Ms. Hamilton stated that the best course of action would be to look at cash flow and try to match the financing of the project to the actual percentage of the cash. She then discussed the actual cash flows and capital available. She discussed measures used to pay for many of the projects.

 

            Ms. Hamilton estimated that within the next 12 - 14 months DPW will need approximately $85 million on a cash flow basis and possibly $20 million before end-of-year 2009. She mentioned the 12 outstanding SRF loans, with 11 having bond insurance for the debt service reserve funds. Due to the exposure DPW will come before the Bond Bank Board within the next month for approval of a bond financing issuance of $38.3 million to replace the outstanding sureties.

 

            Mr. Taylor stated that Ms. Hamilton has done a tremendous job as the financial advisor of Sycamore Group in working with the Sanitary District. He stated that the Sanitary District was recently upgraded to AA+ by Standard & Poors. Mr. Clayton Graham informed the Board that Indianapolis was the only city in the Midwest to have utility districts with such a high rating.

 

            Mr. Willis gave a brief update on the upcoming Tax Warrant issuance. He stated that the Bond Bank is looking to issue warrants for all of the qualified entities. He then stated that the Bond Bank would come back before the Board before the end of the year for the issuances.

 

            Mr. Taylor then reminded the Board that Mr. Clayton Graham was present in the absence of Mr. Deron Kintner, the Bond Bank’s Deputy Director and General Counsel.     

 

            There were no other questions, Mr. House asked for a motion to adjourn. Mr. Carr made the motion to adjourn, seconded by Mr. Miller. All voted in favor and the motion passed. The meeting was adjourned at 12:20p.m.