Public Funds Management Seminar May 19th, 2015 Overview of the Day 11:00 – 11:30 Registration 11:30 – 11:45 Opening Remarks: Welcome and Introduction Kelly Mitchell, Indiana.
Download ReportTranscript Public Funds Management Seminar May 19th, 2015 Overview of the Day 11:00 – 11:30 Registration 11:30 – 11:45 Opening Remarks: Welcome and Introduction Kelly Mitchell, Indiana.
Public Funds Management Seminar
May 19 th , 2015
Overview of the Day
11:00 – 11:30 1:00 – 1:30 Registration 11:30 – 11:45 Opening Remarks: Welcome and Introduction
Kelly Mitchell, Indiana State Treasurer
Part I: The Treasurer of the State’s Office and Investments
11:45 – 12:15 Part I: The Treasurer of State’s Office and Investments
Kim Logan, Deputy Treasurer & Director of Operations
12:15 – 1:00 Lunch/ College Choice 529 Savings Plan
Troy Montigney, Director
Part II: Alternative Investment Option: TrustINdiana
Cindy Barger, Director, TrustINdiana Chris DeBow, Public Trust Advisors, LLC
1:30 – 2:00 2:00 – 2:30 2:30 -2:50 2:50 – 3:00 Part III: Option for Local Government – Indiana Bond Bank
Ron Mangus, Executive Director Matt Zimmerman, Program & Marketing Director
Part IV: Keeping Local Funds Safe – Board for Depositories
Diana Moers Davis, Executive Director
Part V: Community Development – OCRA & IHCDA
Gerry White, OCRA Community Liaison - NE Region, IHCDA Jake Sipe, Executive Director, IHCDA
Closing Remarks
Kelly Mitchell, Indiana State Treasurer
Agenda Part I: The Treasurer of the State’s Office and Investments
Lunch College Choice 529 Savings Plan Part II: Evaluating Cash Investment Options- TrustINdiana Part III: Option for Local Government – Indiana Bond Bank Part IV: Keeping Local Funds Safe – Board for Depositories Part V: Community Development - OCRA & IHCDA Closing Remarks
The Indiana State Treasurer’s Office and Responsibilities
The Indiana State Treasurer has official duties granted by the Indiana Constitution and varies duties assigned by the legislature.
By Indiana Constitution, the Treasurer serves as the State’s Chief Investment Officer Additional duties assigned by the State Legislature:
Chairman of the Indiana Bond Bank Chairman of the Indiana Education Savings Authority Secretary of the Investment- Manager Board for Depositories Chairman of the 911 Board Member of the State Board of Finance Sole Trustee of the Indiana State Police Pension Fund Chairman of the TrustINdiana Advisory Board Member of the Deferred Compensation Committee Member of the Indiana Finance Authority Member of the Indiana Heritage Trust Member of the Indiana Cultural Arts Board Member of the Indiana Grain Indemnity Board Member of the Indiana Community Housing Development Authority Member of the Indiana Community Business Credit Corporation
Legal Aspects of Public Investing Goals for investment of public funds:
Safety, Liquidity and Yield Diversification of investments Legally eligible investments that comply with Indiana Code (IC 5-13 et. Seq)
Authorized Bank Products
DDA Checking Accounts Negotiable order of withdrawal (NOW) accounts Passbook savings accounts Certificates of Deposit (CDs) Money Market Accounts Any interest- bearing account that is authorized and offered by a financial institution in the course of its respective business
PDIF Insured Accounts
Make sure your deposit accounts are PDIF Insured
Are they public funds? (IC 5-13-4-20) Fees and funds in the possession of a “public officer” by virtue of that office Is the financial institution an approved depository? www.in.gov/tos/deposit/files/approveddepositories.pdf
PDIF covers losses above FDIC limits
How to maximize your FDIC Insurance
FDIC coverage of $250,000 per depositor Certificate of Deposit Registry Service (CDARS) Allows a depositor to receive more than $250,000 in FDIC Coverage Allowed by IC 5-13-9-5.3
Funds placed in CDARS depository are then exchanged with other participating depositories in lots of $250,000 to maximize FDIC coverage
Transaction Accounts
See IC 5-13-9-4(b)
Special Rules for Political Subdivisions
Must establish transaction accounts in depositories with branches within political boundaries Exception for political subdivisions that cross county lines or those without a depository within its boundaries (or only one), or if no depository will offer a transaction account
Does not apply to county hospitals
Certificates of Deposit Required Procedures
See IC 5-13-9-4(a)
Every investing officer must obtain 3 quotes on the specific rate of interest for the term of the certificate of deposit
The quote may be taken by phone The quote must be recorded in a memorandum The quote must be retained as a public record If the deposit is not placed in the institution quoting the highest rate, the fiscal officer must note the reason why Can invest in CDs from any depository on state’s approved list if county commissioners or political subdivision’s fiscal body passes resolution authorizing it (renewed every two years)
See IC 5-13-9-5 (A)
Money Market Mutual Funds
See IC 5-13-9-2.5
Money market mutual fund requirements:
Must be rated AAA, or its equivalent, by Standard & Poors or Aaa, or its equivalent by Moody’s Purchase, sells, or holds direct obligations of the United States Treasury or other obligations issued by a federal agency, a federal instrumentality or a federal government sponsored enterprise Must be purchased through an institution on the state’s approved depository list Must have a final stated maturity of one day
Investment in Eligible Securities
See IC 5-13-9-2
Securities backed by the full faith and credit of the United States Treasury or fully guaranteed by any of the following:
The United State’s Treasury (Notes, t-bills, and bonds) Federal agency (Government National Mortgage Agency) Federal Instrumentality Federal government sponsored enterprise (Federal Home Loan Bank) Discount notes issued by a federal agency, a federal instrumentality, or a government sponsored enterprise) Certain municipal securities - See IC 5-13-9-2 (a)(3)
Securities - Critical Criteria
Use of a broker-dealer that is SEC licensed Use of a custodial bank that is on the state’s approved depository list or has combined capital and surplus of at least $10 million Securities may have a maximum maturity of 2 years unless authorized (up to 5 years) by a properly adopted investment policy under 5-13-9-5.7
Securities lending Securities may be lent for extra income as long as its collateralized by cash or securities issued, insured, or guaranteed by the federal government or a federal agency
Repurchase agreements
See IC 5-13-9-3
An agreement involving the purchase and guaranteed resale of securities Can be a one time commitment or an ongoing commitment Must have a final stated maturity of one day (overnight) Must be fully collateralized Must be made through a depository on the state’s approved depository list
Local Boards of Finance
See IC 5-13-4-19
Local Board of Finance Members
County- Board of Commissioners & County Treasurer Marion County – County Treasurer, County Auditor, County Assessor, City Controller, Mayor, President of the School Board City – Executive & Fiscal Body Town – Fiscal Body Other – Fiscal body of each political subdivision
Local Board of Finance Responsibilities Each local board of finance SHALL meet annually after the first Monday on or before the last day of January to complete the
following:
From the board’s membership, elect a president and a secretary Receive and review the report required by IC 5-13-7-7 Review the overall investment policy The report must contain a summary of all investments made during the previous calendar year
Consult your county attorney or counsel regarding this requirement Cities, towns, and county hospitals are exempt from meeting requirements
Political Subdivision Investment Policy
See IC 5-13-9-5.7
The fiscal body of a subdivision may adopt an investment policy authorizing the investment of public funds of the political subdivision for more than 2 years and not more than five years.
The policy must:
Be in writing Be adopted at a public meeting Provide for investment of public funds with the approval of the investment officer Provide that the investments must be made in accordance with this article Limit the total investments outstanding under this section to not more than 25% of the total portfolio of public funds invested by the political subdivision including balances in transaction accounts AND State a date on which the policy expires, which may not exceed four years
Banking Services: Remote Capture
Remote capture/Image Transmission is the process of scanning and transmitting electronic images of paper checks to financial institutions
Report is created by batch
Amounts, payee names, serial numbers exhibited
Funds are directly deposited to operating acct
Paper checks can be retained for 15 days then destroyed
Quicker access to funds for investment purposes
Daily deposit deadline extended
Earlier notification of returned items Online access to check images and deposits
Banking Services: Positive Pay
Customer sends file to a financial institution
Positive Pay
The bank compares the name, amount and check number If a discrepancy is found the customer can deny the payment of the check
Benefits
Reduces fraud Financial institutions can return the images of questionable checks quicker to bank of first deposit Reduction of customers collection items
Banking Services: Charge Card Processing Charge card payments can be accepted by county organizations, schools, or towns by joining the State of Indiana’s charge card contract with Value Payments System, Inc.
Contact:
Gina Kerr Financial Portfolio Contract Manager Indiana Department of Administration Indiana Government Center South 402 W. Washington St., RM W468 Phone: 317-234-4998 Email: [email protected]
Banking Services & Treasury Management
Questions on banking services: deposit accounts lockbox, remote capture positive pay ACH and wire transfers Charge Cards processing E-Check payments direct deposit Suggestions on improving the processing of revenue or payments. Way to decrease bank fees. Possibly earn interest on checking accounts to help offset fees.
General operation questions both for accounts receivable and accounts payable. Contact Kim Logan at 317-233-0921 or email
Questions or Comments
Mike Frick Deputy Treasurer Indiana Treasurer of State’s Office 200 W. Washington St., 242 Indianapolis, IN 46204 317-232-0140 [email protected]
www.in.gov/tos/ Investment Manager
Kim Logan Deputy Treasurer Indiana Treasurer of State’s Office 302 W. Washington St., IGC-S E016 Indianapolis, IN 46204 317-233-0921 [email protected]
www.in.gov/tos/ Treasury management , Banking products and services, or general operational questions.
Agenda
Part I: The Treasurer of the State’s Office and Investments
Lunch
College Choice 529 Savings Plan Part II: Evaluating Cash Investment Options- TrustINdiana Part III: Option for Local Government – Indiana Bond Bank Part IV: Keeping Local Funds Safe – Board for Depositories Part V: Community Development - IHCDA Closing Remarks
Agenda
Part I: The Treasurer of the State’s Office and Investments Lunch
College Choice 529 Savings Plan
Part II: Evaluating Cash Investment Options- TrustINdiana Part III: Option for Local Government – Indiana Bond Bank Part IV: Keeping Local Funds Safe – Board for Depositories Lieutenant Governor’s Office – Community Development Closing Remarks
Contact Information Troy Montigney, Executive Director Indiana Education Savings Authority One North Capitol Ave., Suite 444 Indianapolis, Indiana 46204 317-232-5259 [email protected]
http://www.in.gov/tos/iesa/
Agenda
Part I: The Treasurer of the State’s Office and Investments Lunch College Choice 529 Savings Plan
Part II: Evaluating Cash Investment Options- TrustINdiana
Program Highlights LGIP Overview Portfolio Update Market Outlook Part III: Option for Local Government – Indiana Bond Bank Part IV: Keeping Local Funds Safe – Board for Depositories Part V: Community Development - OCRA & IHCDA Closing Remarks
TrustINdiana:
An Alternative Investment Option for Local Governments
Presented by
Cindy Barger Director, TrustINdiana Indiana State Treasurer’s Office
Summary • • • • Program Highlights LGIP Overview Portfolio Update Market Outlook TrustINdiana Public Funds Management Seminar, May 19, 2015 27
Program Highlights General Information • • • • Authorized by the Indiana General Assembly’s passage of Indiana Code 5-13-9-11 during its 2007 session TrustINdiana opened in February 2008 after an extensive due diligence and development process TrustINdiana is open to all local units of government including the State of Indiana • • Participants share a common pool of investments which stresses: • Safety – preservation of principal Liquidity – same day access to funds Yield – maximizes returns using economies of scale TrustINdiana Public Funds Management Seminar, May 19, 2015 28
Program Highlights Safety • • • • • With TrustINdiana, the SAFETY of public funds is paramount Invests strictly in securities allowable by Indiana law Assets held by a third-party custodian (Bank of New York) Fund portfolio managed by professional team with over 20 years of experience Annual audit performed by an independent auditing firm At least 50% of portfolio funds held in Indiana banks TrustINdiana Public Funds Management Seminar, May 19, 2015 29
Program Highlights Liquidity • • • • • TrustINdiana offers daily LIQUIDITY to all Participants Actively managed to ensure that cash is readily available Dollars invested today are available tomorrow with interest No withdrawal penalties No transaction or wire fees Maximum weighted average maturity (WAM) of 60 days or less TrustINdiana Public Funds Management Seminar, May 19, 2015 30
Program Highlights Yield • • • • Program optimizes YIELD while maintaining safety TrustINdiana has maintained a competitive yield despite recent economic turbulence Serves as a diversification tool and offers larger scale investment options to smaller entities Portfolio managers have extensive fixed income/public sector expertise Returns are calculated and paid daily TrustINdiana Public Funds Management Seminar, May 19, 2015 31
Program Highlights Convenience • • • • TrustINdiana was designed with CONVENIENCE in mind MYACCESS feature allows for fast, safe and secure online transaction processing and reporting access Funds transferrable via wire or ACH Experienced and professional client service team Monthly reporting, newsletters, economic updates and yield information all available online or via email TrustINdiana Public Funds Management Seminar, May 19, 2015 32
How to open Your TrustINdiana Account • • • • No Resolution or Ordinance required See Registration Forms in packet provided (or online), and complete: • Account Setup, Key Contact/Authorized Signers, Bank Authorization, Subaccounts Finalize with authorized signature and email or fax paperwork to Client Services Account can be ready for use as soon as the next business day
For questions about the Registration Process, please contact:
Cindy Barger Director, TrustINdiana 200 W. Washington St., Suite 242 Indianapolis, IN 46204 Phone: 888-860-6242 Email: [email protected]
TrustINdiana Public Funds Management Seminar, May 19, 2015 33
Evaluating Cash Investment Options
Presented by
Chris DeBow Managing Director Public Trust Advisors, LLC
Introducing Public Trust Advisors, LLC • • Founded in late fall 2011, Public Trust Advisors, LLC (Public Trust) is a United States Securities Exchange Commission registered independent investment advisor with headquarters and operations in Denver, Colorado. Public Trust has offices in Michigan, New York, Florida, Texas, Ohio, and New Mexico.
• Public Trust is a leader in client-focused, cost-effective and value-driven administration of local government investment pools (LGIPs). • Our approach is to align our goals with our clients’ expectations, and to build relationships that provide for a mutual level of trust while providing timely execution.
The Public Trust model is simple: Provide high quality, efficient services to our clients by utilizing our experience combined with state of the art, fully integrated technology, leading to better performance while maintaining our primary investment objective, safety of principal.
TrustINdiana Public Funds Management Seminar, May 19, 2015 35
Public Trust’s Experience • • • • • The Public Trust team is a proven leader in all aspects of managing local government investment pools.
Public Trust has demonstrated its abilities to reverse investment performance, improve client relations, introduce new services, measurably increase sales and marketing efforts, and explore and develop new products.
Public Trust has significant experience working with Indiana local units of government, many of the key members of our team managed Invest Indiana and went on to serve the Indiana Treasurer of State (TOS) in the establishment and co-management of TrustINdiana until late 2011.
The Public Trust team completed successful 60-day transitions of COLOTRUST, NYCLASS, Texas CLASS, Michigan CLASS and TrustINdiana with more than 2500 shareholder accounts whose combined assets total more than $8 billion*.
Public Trust maintains a dedicated fund-accounting / client service team whose primary objectives and responsibilities focus on the satisfaction and comfort of our LGIP Participants.
TrustINdiana Public Funds Management Seminar, May 19, 2015 * As of May 14, 2015 36
The Importance of Credit Research
A rigorous credit research process controls volatility and drives risk adjusted return.
• Proper credit research requires an exceptional amount of expertise and time. • Credit research does not stop, it is an ongoing and active process.
• We believe in outsourcing with an investment management firm to conduct the credit research required to maintain your LGIP’s primary investment objectives.
TrustINdiana Public Funds Management Seminar, May 19, 2015 37
Credit Process: A Team Approach
A credit committee should build the approved lists and meet regularly to monitor and discuss appropriate actions.
• Credit analysts come together with the portfolio managers to create the credit committee.
• Credit committee reviews issuers (at a minimum) quarterly as results are released.
• Approved lists evolve to reflect changes in markets, especially banking credits, and opportunities.
• Committee monitors and discusses the approved credits and makes appropriate updates to the list of approved securities.
TrustINdiana Public Funds Management Seminar, May 19, 2015 38
Establishing an Approved Credit List Market and Macro Condition Observations •Portfolio managers observe and trade in the markets daily (Bloomberg) and see where opportunities lie to improve yield within risk parameters.
Suggested Names •Credit team performs research on suggested credits, using a variety of credit research tools, company financials and general media.
Credit Committee •Credit Committee discusses whether credit meets client’s safety standards and they assign a “hold code”.
Present recommended list to Treasurer TrustINdiana Public Funds Management Seminar, May 19, 2015 39
Mitigating Rating Agency Risk?
What is Rating Agency Risk?
Rating agency risk is the risk that an issuer is suddenly downgraded by one of the Nationally Recognized Statistical Ratings Organizations (NRSROs) to a level below the highest rating category. This scenario could force portfolio management to sell a security at an inopportune time when the pricing of the security would most likely be negatively impacted.
A Disciplined Credit Team Can Mitigate Risk…
If your credit team is diligent with regards to headlines and market signals related to the approved insurers then they can greatly decrease your fund’s chances to be negatively impacted by ratings agency risks. TrustINdiana Public Funds Management Seminar, May 19, 2015 40
TrustINdiana Portfolio Asset Allocation (as of May 14, 2015) Money Funds 2% Treasuries 4% US Gov't Agency 10% Commercial Paper 27% Certificate Deposit 2% Bank Deposit 55% TrustINdiana Public Funds Management Seminar, May 19, 2015 Source: MFact 41
TrustINdiana Portfolio (as of May 14, 2015)
Portfolio Holdings Bank Deposits
PNC Bank Deposit Wells Fargo Bank US Bank Deposit Fifth Third Bank Huntington Bank
Commercial Paper
A-1+/P-1 A-1/P-1
U.S. Instrumentalities
Federal Agricultural Mtg Group Federal Home Loan Bank Notes
U.S. Treasuries
Treasury Notes/Bonds
Certificate Deposit
Bank of America NA
Money Market Funds
GS Financial Square
Total Portfolio
TrustINdiana Public Funds Management Seminar, May 19, 2015 Source: MFact
Market Value $ 225,469,944.00
100,821,102.46
34,535,047.63
30,113,793.91
30,000,000.00
30,000,000.00
$ 112,953,092.30
4,998,733.00
107,954,359.30
$ 39,989,000.00
9,991,900.00
29,997,100.00
$ 15,008,202.00
15,008,202.00
$ 10,000,000.00
10,000,000.00
$ 9,935,488.36
9,935,488.36
$ 413,355,726.66
% Portfolio 54.55%
24.39% 8.35% 7.29% 7.26% 7.26%
27.33%
1.21% 26.12%
9.67%
2.42% 7.26%
3.63%
3.63%
2.42%
2.42%
2.40%
2.40%
100.00%
42
Yield: TrustINdiana vs. S&P AAA/AA GIP* (30-Day Average Yield) TrustINdiana vs. S&P AAA/AA GIP (30-Day Average Yield) 0,07 0,06 0,05 0,04 0,03 0,02 0,01 0 S&P US AAA & AA Rated GIP All 30 Day Net Yield TrustINdiana *The benchmark, the S&P US AAA & AA Rated GIP All 30 Day Net Yield (LGIPG30D) is a performance indicator of rated GIPs that maintain a stable net asset value of $1.00 per share and is an unmanaged market index representative of the LGIP universe. The S&P benchmark utilized in this comparison is a composite of all rated stable net asset value pools. GIPs in the index include only those rated based on Standard & Poor’s money market criteria. Pools rated ‘AAAm’ provide excellent safety and a superior capacity to maintain principal value while those rated ‘AAm’ offer very good safety and a strong capacity to maintain principal value (Source: Standard & Poor’s website, 9/27/2013.) The comparison between this index and the portfolio may differ in holdings, duration and percentage composition of each holding. Such differences may account for variances in yield. Public Trust Advisors, LLC took over the management and advisory services effective May 1, 2015. All data prior to this date is from the previous Investment Advisor. As both Investment Advisors adhered to the investment policy there may be variances in yield, weighted average maturities and portfolio composition due to differing investment styles. Past Performance is no
guarantee of future results. Any financial and/or investment decision may incur losses.
TrustINdiana Public Funds Management Seminar, May 19, 2015 Source: Cutwater Asset Management, MFact and Bloomberg 43
TrustINdiana Participant Breakdown by Number of Accounts (as of May 14, 2015) Other 16% Cities 29% Counties 21% Townships 4% TrustINdiana Public Funds Management Seminar, May 19, 2015 Source: MShare School Districts 30% 44
FOMC Dot Plot – March 2015 TrustINdiana Public Funds Management Seminar, May 19, 2015 Source: Bloomberg 45
Questions/Comments Cindy Barger Director, TrustINdiana Office of the Treasurer of Indiana 200 W Washington St., 242 Indianapolis, IN 46204 888-860-6242 [email protected]
www.trustindiana.in.gov
Chris DeBow Managing Director Public Trust Advisors, LLC 999 18th Street, Suite 1230 Denver, CO 80202 513-252-3830 [email protected]
www.publictrustadvisors.com
TrustINdiana Public Funds Management Seminar, May 19, 2015 46
Disclaimer • The materials in this presentation are opinions of TrustINdiana and Public Trust Advisors (the administrator) and should not be construed as investment advice.
• The investment advisor providing these services is Public Trust Advisors, LLC (PTA), an investment adviser registered with the SEC under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. Additionally, this registration provides no guarantee of return or protection against loss.
• The information presented is unaudited and is deemed to be accurate to the best of our knowledge.
• Performance comparisons will be affected by changes in interest rates. Investment returns fluctuate due to changes in market conditions. Investment involves risk, including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. Past
Performance is no guarantee of future results. Any financial and/or investment decision may incur losses.
TrustINdiana Public Funds Management Seminar, May 19, 2015 47
Agenda
Part I: The Treasurer of the State’s Office and Investments Lunch College Choice 529 Savings Plan Part II: Evaluating Cash Investment Options- TrustINdiana
Part III: Option for Local Government – Indiana Bond Bank
Part IV: Keeping Local Funds Safe – Board for Depositories Part V: Community Development - OCRA & IHCDA Closing Remarks
Indiana Bond Bank Mission The primary mission of the Indiana Bond Bank is to assist local government or qualified entities with the process of issuing debt
Indiana Bond Bank: Organizational Structure
Indiana State Treasurer
Chair
Indiana Bond Bank Board of Directors Executive Director
Ron Mangus
Compliance Officer
Aaron Barnett
Administrative Assistant
Suzanne Hardy
Program & Marketing Director
Matt Zimmerman
Program Highlights
General Information
Created by the General Assembly in 1984 (IC 5.1.5) Self-supporting quasi-governmental entity Seven member board governs the Bond Bank The State Treasurer statutorily serves as the Chairman of the Board The Director of the Indiana Finance Authority statutorily serves as a board member The Governor appoints five members
Programs
Hoosier Equipment Lease Purchase Program (HELP) Advance Funding Program Fuel Budgeting Program Interim Loan Program Other Programs
Debt Issuance The Indiana Bond Bank has issued nearly $21.14 billion in bonds/notes since its inception $1.34 billion outstanding Financing Conduit The Bond Bank purchases bonds/notes from communities and in turn sells its own obligations to the open market The pooling process allows communities to realize savings that are achieved by sharing of fixed costs and economies of scale
Bond Bank Debt Fiscal Year *
2009 2010 2011 2012 2013 2014 2015
# of Issues
13 11 7 14 12 6 5
Amount
$1,696,373,000 $893,961,704 $524,264,923 $331,355,000 $510,778,260 $218,210,000 $130,793,823
HELP Program General Information
Lease Purchase essential equipment Competitive interest rates Bond Bank exempts entity from bidding the financing (IC 5-1.5-8-3c) Simple process – one-page application Contact the Bond Bank for interest rates Repayment flexibility (Annually, Semi-annually, quarterly or monthly) Option to escrow
Overview
Since 1991 Assisted over 200 communities Over $214 million in equipment Six program underwriters Title to asset passed to entity upon completion of lease term
HELP Program Continued
Equipment Leased
Fire Trucks Police Cars Ambulances Tandem Trucks Computers Phone Systems Safety/Security Equipment 911 Emergency Equipment/Systems Garbage Trucks Snow Plows Sewer Vacs Radio Equipment Voting Machines Buses Portable Classrooms Books Much more…
HELP Activity Fiscal Year *
2009 2010 2011 2012 2013 2014 2015 (Partial)
# of Leases
12 16 14 10 13 17 18 * Fiscal Year - July – June
Amount
$4,755,968 $8,023,270 $5,479,923 $3,438,510 $2,923,250 $7,849,069 $6,906,085
2015 Advance Funding Program
Assists local government with cash flow needs
Borrow against property taxes (schools can borrow against tuition support) Notes are repaid at year-end or end of June
Process for the Advance Funding Program
Credit Application Cash Flow Projections Legal paperwork included in rate
2015 Highlights
38 participants qualified entities $76.4 million in notes $32.6 million interim borrowing with 13 QES All in QE rate of 0.85%
2016 Program Details
Applications will be made available in early September Closings in late January 2016 Interim funds available January 4th
Historic Pricing Trends (1 year maturing) Advance Funding Program
Program Size in Millions Series 2010 $297 Series 2011 $168 Series 2012 Series 2013 $116 $94 Series 2014 $82 Series 2015 $76 # of Participants Entity Rate All Inclusive 120 87 62 42 .98% 1.31% 1.05% .85% 45 38 .76% .85%
Fuel Budgeting Program: Diesel and Gasoline NYMEX Prices
Fuel Budgeting Program
Purchase fuel from current supplier Entities can hedge up to 80% of estimated fuel costs 2015 Administration fee $0.032 – $0.034 per gallon Estimate against pump price by using approximately $0.50 for taxes and distribution Diesel collar
Fuel Budgeting Collars for 2015
$1.07901
$1.5605
Gasoline collar $2.3180
2.0752
Diesel cap and Floor with NYMEX Average
Gasoline Cap and Floor with NYMEX Average
Fuel Budgeting Program
Fuel Budgeting Program 2016
Fuel applications for 2016 program will be available in late September 2015 Actual fuel usage for prior year and through August 15 Project fuel usage for the rest of 2015 and all of 2016 Bond Bank will provide legal paperwork to participate in the program Bond Bank will enter into the hedge for 2016 in December of 2015
Continuing Disclosure SEC Rule 15c2-12 – Continuing Disclosure Obligations for Issuers
Track all Continuing Disclosure Agreements/Undertakings (CDUs) Bond Bank files all necessary information to EMMA (electronic municipal market access) for its qualified entities
Additional Programs
United States Department of Agriculture – Rural Development Interim Loan Program
Approved by IBB Board on August 26, 2014 Simple process – two page application Provides interim financing for entities that have received approval from USDA-RD construction projects during construction period Competitive interest rates – 1.95% last transaction
Other Programs
Small borrower program School Severance Bonds – refunding of existing debt Common School Fund
Contact Information Indiana Bond Bank 10 W Market Street Suite 2980 Indianapolis, Indiana 46204 www.in.gov/bond/ Ron Mangus [email protected]
Matt Zimmerman [email protected]
Agenda
Part I: The Treasurer of the State’s Office and Investments Lunch College Choice 529 Savings Plan Part II: Evaluating Cash Investment Options- TrustINdiana Part III: Option for Local Government – Indiana Bond Bank
Part IV: Keeping Local Funds Safe – Board for Depositories
Part V: Community Development – OCRA & IHCDA Closing Remarks
What is the BFD?
Overview
Quasi-Governmental Agency Created by 1937 by IC 5-13-12 in response to bank failures during the Great Depression Keeps a list of approved depositories Manages the operation of PDIF Manages collateral to protect public funds The Treasurer is the Secretary/Investment Manager Governor, or his designee, is the Chairman
What is the PDIF?
Insurance Fund:
Covers the full amount of public funds over and above the amount covered by FDIC Deposit Accounts Unique to Indiana and a benefit to public entities 0.2% - 0.4% higher interest rate on public deposits $300 million in assets Funded by fees on banks that could be deducted from the interest paid to public funds depositors
What are “public funds”?
Public Funds defined by IC 5-13-4-20:
Sec. 20. “Public Funds” means all fees and funds of whatever find or Character coming into possession of any public officer by virtue of that office The term does NOT include: support payments made to the clerk of a circuit court under IC 31-16-9 (or IC 31-1-11.5-13 before its repeal) OR proceeds of bonds payable exclusively by private entity
Who is a “public officer”
Public Officer defined by IC 5-13-4-21
Sec. 21. “Public Officer” means any person elected or appointed to any office of the state or any political subdivision.
“Public officer” includes any officer of all boards, commissions, departments, institutions, and other bodies established by law to function as a part of the government of the state or political subdivision that are supported wholly or partly by taxes or fees.
“Public officer” does not include an officer of an independent body politic and corporate set up as an instrumentality of the state but not constituting a political subdivision
Who is a “Public Officer”?
Any person elected or appointed to any political subdivision An officer of all: Boards, Commissions, Departments, Institutions, other bodies that function as a part of political subdivision. Supported wholly or partly by: Appropriations from the treasury of the political subdivision Taxes and fees
Who can become an approved depository?
Eligible Approved Depositories
A bank headquartered in Indiana or a national bank with a branch in Indiana A federal chartered savings association with a headquarters in Indiana or a branch in Indiana A federal chartered savings bank with a headquarters in Indiana or a branch in Indiana A state chartered credit union in Indiana that has assets of 3 million dollars or more with a headquarter in Indiana or a branch in Indiana
Collateral Requirements Collateralization Matrix (Based on Bank Insight National Ratings gathered from SNL Financial) Bank Insight National Rating Collateral Rate Collateral Basis Pledge or Pledge and Deliver
40 – 99 0% N/A 20 – 39 0 – 19 50% 100% N/A Average Daily Balance for the previous quarter Actual Balance Pledge Deliver
Recovery Process for public funds in a closed depository
Department of Financial Institutions Public Officer Attorney General Auditor of State Department of Financial Institutions Newspaper Public Officer Judge Board for Depositories Public Officer
Recovery Process for public funds in a closed depository
Department of Financial Institutions Public Officer Attorney General Auditor of State
Indiana Department of Financial
of Financial Newspaper
Institutions (DFI) will determine the amount of public funds on deposit at the closed depository and certifies that information to Indiana Attorney General’s
Judge
Office, (AGO) the Indiana Auditor of State’s Office, (ASO) and the public entity, public officer, that
Board for Depositories
Recovery Process for public funds in a closed depository
Department of Financial Institutions Public Officer
Within 10 days after receiving certification, the public officer shall furnish to the AGO and the ASO the following:
Attorney General of Financial Institutions Newspaper •
Verified statements on the amount of their funds in closed depository
Public Officer
which the deposits were made
Judge •
Certified copies of the resolutions under
State • Board for Depositories
requested by the AGO and ASO
Public Officer
Recovery Process for public funds in a closed depository
Public
The Attorney General and Auditor of State will determine the amount covered by the PDIF, and provide their decision to the
Department
public officers, the DFI and the
Institutions
BFD.
Attorney General Auditor of State Department of Financial Institutions Newspaper Public Officer Judge Board for Depositories Public Officer 78
Recovery Process for public funds in a closed depository The DFI Publishes the decision of the AGO and ASO
Public Officer
After the publication, the Public Officer has 10 days to appeal to a court.
Department of Financial Institutions Attorney General Auditor of State
After the 10 days has expired, or a court rules for or against the AGO and ASO decision.
Department of Financial Institutions Newspaper Public Officer Court Board for Depositories Public Officer 79
Recovery Process for public funds in a closed depository
Department of Financial Institutions Public
While we will attempt to provide the funds as quickly as possible, it could take up to 90 days after a depository is closed to receive funds. It could be longer if the decision is challenged in
Auditor of
court.
State Department of Financial Institutions Public Officer Board for Depositories Newspaper Judge Public Officer 20 Days 10 Days 50 Days 10 Days 80
Contact Information
Diana Moers Davis, Executive Director Indiana Board for Depositories One North Capitol Ave., Suite 444 Indianapolis, Indiana 46204 317-232-5257 [email protected]
www.in.gov/tos/deposit/index.htm
Agenda
Part I: The Treasurer of the State’s Office and Investments Lunch College Choice 529 Savings Plan Part II: Evaluating Cash Investment Options- TrustINdiana Part III: Option for Local Government – Indiana Bond Bank Part IV: Keeping Local Funds Safe – Board for Depositories
Part V: Community Development – OCRA & IHCDA
Closing Remarks
Hoosier Artland for Economic Growth May 13, 2015
Office of Community and Rural Affairs
The Indiana Office of Community and Rural Affairs’ (OCRA) mission is to promote rural community prosperity to strengthen Indiana’s economy by providing capacity-building solutions to assure ready, marketable and competitive opportunities for economic growth. For additional information on OCRA and its programs visit
www.ocra.in.gov
. OCRA is an agency within the Lt. Governor’s family of business.
@OCRAIndiana #INOCRAconf
@OCRAIndiana #INOCRAconf
Meet the Team
Meet the Community Liaisons
@OCRAIndiana #INOCRAconf
@OCRAIndiana #INOCRAconf
@OCRAIndiana #INOCRAconf
New Stellar Divisions
Division I: Communities w/population above 6,000 Division II: Communities w/populations 6,000 and below Three finalists and one designee from each division will be selected as long as eligible and qualified letters of interest and strategic investment plans are received @OCRAIndiana #INOCRAconf
Hometown Collaboration Initiative
@OCRAIndiana #INOCRAconf
@OCRAIndiana #INOCRAconf
Three HCI Building Blocks
@OCRAIndiana #INOCRAconf
Benefits to Communities
@OCRAIndiana #INOCRAconf
2014 Hometown Collaboration Communities: Corydon Lebanon Perry County Pulaski County Rushville/Rush County Seymour
Start thinking about Hometown Collaboration Round II – Fall 2015
@OCRAIndiana #INOCRAconf
Community Readiness Initiative
@OCRAIndiana #INOCRAconf
Community Readiness Initiative
Help communities understand
“
where they are
,
”
so they can develop grounded policies based on
“
where they can legitimately go
”
to sustain economic self-sufficiency
@OCRAIndiana #INOCRAconf
Provides insight into the strengths and opportunities within a community to determine the best course of action to foster better community planning and growth for the future
.
The purpose of the working group is to ensure the program remains nationally competitive.
The goals and objectives are: Continual adaption and evolution of existing tiers, Identifying additional tiers, Developing a building ‘business ready’ certification, Increased marketing opportunities @OCRAIndiana #INOCRAconf
Place Based Investment Fund (PBIF)
$20,000 - $50,000 grants PBIF focuses on quality of place Competitive projects will be multi-purpose, non-traditional, crowd-building venues or gathering places for locals and visitors alike Local partnership between at least two of these: LEDOs, CVBs, schools, Main Street organizations, community foundations @OCRAIndiana #INOCRAconf
PBIF: An Overview
The grants are targeted toward “quality of place” initiatives across Indiana, which improve both the quality of life and tourism experience in a community. The agencies are seeking applications for projects that will develop multi purpose, unique community gathering places Applications are closed for the 2015 round of the Place Based Investment Fund, but it’s never too soon to start forming partnerships Applicants are required to leverage local funding and partnerships Some requirements: There is a 1:1.5 match requirement A total cash match minimum of 1:1 An in-kind match of no more than 1:.5
@OCRAIndiana #INOCRAconf
Previously Funded Projects
Community and Event Center Improvements Trails Museum or Depot Centers Historical Event Center Improvements Amphitheaters Greenways Parks future Alley Activations Important Note: Previously funded projects are examples of types of projects, but not necessarily what will be competitive in the @OCRAIndiana #INOCRAconf
Ineligible Projects
Façade Renovations Streetscape Wayfinding signage Mural restoration Building renovation for commercial or retail space
Funded by the U.S. Department of Housing and Urban Development
Meant primarily for rural communities that can allocate dollars to programs that promote livable communities and community revitalization by addressing unmet needs and promoting activities that enhance local economic development efforts
Summer Deadlines
May 29
Wastewater Drinking Water (WDW) applications due
June 5
Stormwater Improvements (SIP) applications due & Main Street Revitalization Program (MSRP) applications due
July 10
Public Facilities Program (PFP) applications due & Blight Clearance Program (BCP) applications due For more information on deadlines and funding related to CDBG, visit
www.in.gov/ocra/2331.htm
Funded with federal Community Development Block Grant (CDBG) dollars with the goal of encouraging communities with eligible populations to focus on long term community development within the downtown area
Encourages economic development, redevelopment, and improvement of the downtown areas of Indiana cities and towns, which serve as the traditional hubs of government, commerce, justice, and social interaction Must apply to become an IMS community First step: Contact your community liaison
30
th
anniversary of IMS
As the traditional
heart and hub
of commerce, social interaction, entertainment and government,
downtowns
play a fundamental role in the overall image and livelihood of a community.
Designed to foster innovative approaches to downtown development activities that support and promote community partnerships, projects, and programs to revitalize the downtown area Eligible applicants for the Downtown Enhancement Grant are current participating Main Street Programs that have been an active Indiana Main Street community for one year The 2015 Application Round will begin in fall of 2015 For more information about the downtown enhancement grant program,
visit www.in.gov/ocra/2362.htm
Eligible Applicants
The Main Street organization would be the lead applicant The organization must be a current participating Main Street Program that has been active in the Indiana Main Street Program for at least one year Partnerships between the Main Street organization and other organizations and entities within the community is strongly encouraged
Application Process
One competitive funding round Kmicikewycz or your Community Liaison if you have questions Applications will be available fall of 2015 IMS will host an instructional webinar/conference call For more information about training sessions and workshops, visit
www.in.gov/ocra/files/IM S_2015_with_map.pdf
Please contact Shae
Funding and Distribution
1. The maximum award amount cannot exceed $10,000.00
4. Federal and other state funds may not be used as local match 2. The required local match for a project is dollar for dollar of the amount of the grant funds requested 3. A maximum of 10% properly documented in-kind match may be applied toward the total project match 5. Philanthropic foundations, especially community foundations, are strongly encouraged to participate and provide cash match
Office of Community and Rural Affairs Questions?
Gerry White [email protected]
317.694.8372
@OCRAIndiana #INOCRAconf
www.ocra.in.gov
Facebook.com/IndianaOCRA @OCRAIndiana #StellarCommunities
Public Funds Management Seminar
May 19, 2015 J. Jacob Sipe, Executive Director, [email protected]
V
ISION
& M
ISSION
OUR VISION FOR INDIANA
An Indiana with a sustainable quality of life for all Hoosiers in the community of their choice.
O UR M ISSION
To provide housing opportunities, promote self-sufficiency, and strengthen communities.
TO ACCOMPLISH THIS WE WILL:
• Promote place-based initiatives that will allow Hoosiers opportunities to improve their quality of life.
• Create and preserve housing for Indiana’s most vulnerable population.
• Enhance self-sufficiency initiatives in existing programs.
• Improve our efficiency by expanding Continuous Improvement, including LDMS, to all of IHCDA.
MY COMMUNITY, MY VISION
• Youth should not have to leave their hometown in order to live out their dreams • MCMV give students and opportunity to shape their future of their community • Partnership with Ball State Department of Urban Planning • 2014-2015 Plans: Hanover, Rushville, Bedford, Washington County, Switzerland County • Select 5 Schools to create their community plan • Application is due May 31 st • http://www.mycommunitymyvision.org/
Blight Elimination Update
• Over 68 large and small communities received BEP funding awards • Awards ranged from one home to well over 350 homes • Communities have reformed old and created new partnerships with NFP & individuals in their respective communities • Communities have created new programs and found new stakeholders to assist with salvage and deconstruction • Incentivized to economize funds to demolish other additional qualifying structures
Blight Elimination Update
Division
Division One Division Two Division Three Division Four Division Five Division Six
Population
1,406,854 907,837 1,728,962 759,293 1,215,296 498,680
Total Award Amount
$16,259,000 $ 9,241,000 $15,497,000 $10,821,000 $ 9,724,000 $ 4,607,000
Owner Occupied Rehabilitation
• Eligible Applicants: • Maximum request: NFP & LUGs $350,000 • Max per unit: $25,000 • Beneficiaries must own and live in their home • 10% Match • Priority Repairs: Health & Safety, Structural, Aging in Place Improvements, Energy, Misc. (windows, doors, floor coverings, siding, etc.) • Application Deadline: July 31 st • Awards Announced: October 22 nd
Multifamily Housing
• 2016 Rental Housing Tax Credit Timeline
Event
Release of QAP 1 st Draft QAP 1 st Public Hearing End Comment Period Release of QAP 2 nd Draft QAP 2 nd Public Hearing End of Comment Period Release of Final QAP 2016 Application Deadline
Date
May 15, 2015 May 21, 2015 May 29, 2015 June 12, 2015 Late June June 26, 2015 Late July/Early August 2015 First Week of November
Agenda
Part I: The Treasurer of the State’s Office and Investments Lunch College Choice 529 Savings Plan Part II: Evaluating Cash Investment Options- TrustINdiana Part III: Option for Local Government – Indiana Bond Bank Part IV: Keeping Local Funds Safe – Board for Depositories Part V: Community Development - IHCDA
Closing Remarks