MINUTES OF

THE INDIANAPOLIS LOCAL PUBLIC IMPROVEMENT BOND BANK

 

Minutes of the Regular Meeting of the Board of Directors

 

July 20, 2009

 

 

MEMBERS PRESENT:           Briane House                                       

            Sahara Williams

                                               Fred Miller

                                               Justin Christian

 

MEMBERS ABSENT:          Jim Carr

                                              

                                                BOND BANK PRESENT:

                                    Kevin Taylor

                                    Deron Kintner

                                    Jacqui Coe

                                    Laurie Canatsey

 

Isaiah Kuch                          

Kyle Willis

Dario Requiz

 

                                   

                                                     OTHERS PRESENT:

                                               

          Greg Reynolds, SBK Brooks Inv. Corp           Arnivan Choudhury, Katz, Sapper & Miller                      Kim Wilson, UMB Bank                              Molly Williams, IDI                                                                  Jason Roetgerman, Chase Bank                  Tamara Zahn, IDI

          Hans Steck, Bingham McHale                            Bob Kocher, Bank of NY Mellon

          Brian Shaw, Hilliard Lyons                                  Jay Ryals, Fifth Third Bank

          Sue Beesley, Bingham McHale               Clayton Graham, Graham & Hurley

          Tom Guevara, Crowe Horworth             Angie Steeno, Crowe Horworth

          Eric Green, Backstrom, McCarley & Berry         Terry Leffew, Raymond James

          Ryan Grand, Mesirow Financial              Katie Aeschliman, KeyBank

          Kim Wilson, UMB Bank                                    Emily Loeher, Sycamore Advisors

          Philip Woodbury, Katz, Sapper & Miller            Clayton Graham, Graham & Hurley, PC

                                               


            A Regular Meeting of the Indianapolis Local Public Improvement Bond Bank (“Bond Bank”) convened at 12:00 noon, Monday, July 20, 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 first asked for the approval of the minutes from June 15th, Mr. Christian made the motion to approve, seconded by Mr. Miller. He then asked for a motion to approve the June 29th minutes. Mr. Christian made the motion to approve, seconded by Mr. Miller. All voted in favor and the motion passed.

 

 

 

             Mr. House first asked Mr. Kintner to give a brief summary on Resolution No. 11– 2009B & 2009C Refunding Bonds. Mr. Kintner stated that the bond issue will refund the outstanding 2002F bonds, which were issued to refund the original Circle Center Mall bonds. He then stated that the bonds will be secured by the Downtown Consolidated TIF revenues. He explained that the Bond Bank is in the process of refunding due to the increase in the variable-interest rate on the bonds, which is attributable to the ratings downgrade on the bond insurer, MBIA, and the expiration of the Standby Bond Purchase Agreement. He stated that the current resolution contains two alternatives for the refunding: one option is to remain in variable-rate mode, while the other option is to issue fixed-rate bonds and terminate the swap agreements connected to the 2002F Bonds. The current expectation is to proceed with a fixed-rate refunding. He then explained the reasons for proceeding with this option are the lower cost and less risk to the City.

 

            He stated that the resolution authorizes $210 million for the 2009B tax-exempt portion and $24 million for the taxable 2009C portion of the issue. However, the current expectation is that the total bond issue will be approximately $175 million. Mr. Miller asked about the cost saving. Mr. Kintner stated that the refunding is not as much for a cost savings, but more so due to the expiration of the Standby Bond Purchase Agreement. He stated that although there would be some savings, he did not have the precise amount available. Mr. Miller asked about the cost-of-issuance. Mr. Kintner stated that it would approximately $1.7 million.

 

            Mr. House asked for a motion to approve Resolution No. 11. Mr. Christian made the motion to approve, seconded by Mr. Miller. All voted in favor and the motion passed.

 

            Next, Mr. Taylor presented the Bond Bank’s 2008 audit for the Board’s acceptance after the Board had the opportunity to review the information that was presented at the June meeting. The audit was accepted by the Board.

              

            Mr. Taylor then updated the Board on the status of the ratings on Waterworks bonds. He stated that Moody’s has downgraded the bonds to A- and Fitch downgraded the rating to A3. Additionally, both retained the negative outlook. He stated that the ratings have the potential to go lower. S&P retained its rating of AA- with a negative outlook.

 

            Mr. Kintner then informed the Board of the upcoming items for the August 2009 meeting.  He stated that the Bond Bank intends to submit a Swap Policy for approval and a potential action item relating to the Capital Improvement Board.

 

            There being no further questions, Mr. House asked for a motion to adjourn. Mr. Christian made the motion to adjourn, seconded by Ms. Williams. All voted in favor and the motion passed. The meeting was adjourned at 12:20 p.m.