Public Funds Management Seminar - PowerPoint Presentation

Slide1

Public Funds Management Seminar

May 19

th

, 2015Slide2

Overview of the Day

Part I: The Treasurer of the State’s Office and Investments

11:00 – 11:30 Registration

11:30 – 11:45 Opening Remarks: Welcome and Introduction

Kelly Mitchell, Indiana State Treasurer

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

1:00 – 1:30 Part II: Alternative Investment Option: TrustINdiana Cindy Barger, Director, TrustINdiana Chris DeBow, Public Trust Advisors, LLC

1:30 – 2:00 Part III: Option for Local Government – Indiana Bond Bank Ron Mangus, Executive Director Matt Zimmerman, Program & Marketing Director

2:00 – 2:30 Part IV: Keeping Local Funds Safe – Board for Depositories Diana Moers Davis, Executive Director

2:30 -2:50 Part V: Community Development – OCRA & IHCDA Gerry White, OCRA Community Liaison - NE Region, IHCDA Jake Sipe, Executive Director, IHCDA

2:50 – 3:00 Closing Remarks

Kelly Mitchell, Indiana State TreasurerSlide3

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 & IHCDAClosing RemarksSlide4

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 DepositoriesChairman of the 911 BoardMember of the State Board of Finance

Sole Trustee of the Indiana State Police Pension FundChairman of the TrustINdiana Advisory BoardMember of the Deferred Compensation Committee

Member of the Indiana Finance AuthorityMember of the Indiana Heritage TrustMember of the Indiana Cultural Arts BoardMember of the Indiana Grain Indemnity BoardMember of the Indiana Community Housing Development AuthorityMember of the Indiana Community Business Credit CorporationSlide5

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)Slide6

Authorized Bank Products

DDA Checking Accounts

Negotiable order of withdrawal (NOW) accounts

Passbook savings accounts

Certificates of Deposit (CDs)

Money Market AccountsAny interest- bearing account that is authorized and offered by a financial institution in the course of its respective businessSlide7

PDIF Insured Accounts

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

Make sure your deposit accounts are PDIF Insured

PDIF covers losses above FDIC limitsSlide8

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 Slide9

Transaction Accounts

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

Special Rules for Political Subdivisions

Does not apply to county hospitalsSee IC 5-13-9-4(b)Slide10

Certificates of Deposit Required Procedures

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)Every investing officer must obtain 3 quotes on the specific rate of interest for the term of the certificate of depositSee IC 5-13-9-4(a)Slide11

Money Market Mutual Funds

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 enterpriseMust be purchased through an institution on the state’s approved depository list

Must have a final stated maturity of one dayMoney market mutual fund requirements:See IC 5-13-9-2.5Slide12

Investment in Eligible Securities

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 backed by the full faith and credit of the United States Treasury or fully guaranteed by any of the following:See IC 5-13-9-2Slide13

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 Slide14

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 Slide15

Local Boards of Finance

See IC 5-13-4-19

Cities, towns, and county hospitals are exempt from meeting requirements

Local Board of Finance Members

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 5-13-7-7Review the overall investment policyThe report must contain a summary of all investments made during the previous calendar year

Consult your county attorney or counsel regarding this requirementCounty- Board of Commissioners & County TreasurerMarion County – County Treasurer, County Auditor, County Assessor, City Controller, Mayor, President of the School BoardCity – Executive & Fiscal Body

Town – Fiscal BodyOther – Fiscal body of each political subdivisionLocal Board of Finance ResponsibilitiesSlide16

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 officerProvide that the investments must be made in accordance with this articleLimit 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 yearsSlide17

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

Funds are directly deposited to operating acct

Quicker access to funds for investment purposes

Earlier notification of returned items

Online access to check images and deposits

A

mounts, payee names, serial numbers exhibitedPaper checks can be retained for 15 days then destroyed

Daily deposit deadline extendedSlide18

Banking Services: Positive Pay

Customer sends file to a financial institution

The bank compares the name, amount and check number

If a discrepancy is found the customer can deny the payment of the check

Positive Pay

Benefits

Reduces fraud

Financial institutions can return the images of questionable checks quicker to bank of first deposit

Reduction of customers collection itemsSlide19

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:

gkerr@idoa.in.gov Slide20

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 Klogan@tos.in.govSlide21

Questions or Comments

Kim Logan

Deputy Treasurer

Indiana Treasurer of State’s Office

302 W. Washington St., IGC-S E016

Indianapolis, IN 46204

317-233-0921Klogan@tos.in.gov

www.in.gov/tos/Treasury management , Banking products and services, or general operational questions.

Mike FrickDeputy Treasurer Indiana Treasurer of State’s Office200 W. Washington St., 242

Indianapolis, IN 46204317-232-0140mfrick

@tos.in.govwww.in.gov/tos/Investment ManagerSlide22

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 - IHCDAClosing RemarksSlide23

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 DevelopmentClosing RemarksSlide24

Contact Information

Troy Montigney, Executive

Director

Indiana Education Savings AuthorityOne North Capitol Ave., Suite 444Indianapolis, Indiana  46204

317-232-5259tmontigney@tos.in.govhttp://www.in.gov/tos/iesa/Slide25

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 & IHCDAClosing RemarksProgram Highlights

LGIP OverviewPortfolio Update

Market OutlookSlide26

TrustINdiana

:

An Alternative Investment Option for Local Governments

Presented by

Cindy BargerDirector, TrustINdiana

Indiana State Treasurer’s OfficeSlide27

Program Highlights

LGIP Overview

Portfolio Update

Market Outlook

SummarySlide28

General Information

Program Highlights

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 processTrustINdiana is open to all local units of government including the State of IndianaParticipants share a common pool of investments which stresses:

Safety – preservation of principalLiquidity – same day access to funds Yield – maximizes returns using economies of scaleSlide29

Safety

Program Highlights

With

TrustINdiana, the SAFETY of public funds is paramount

Invests strictly in securities allowable by Indiana lawAssets held by a third-party custodian (Bank of New York)Fund portfolio managed by professional team with over 20 years of experienceAnnual audit performed by an independent auditing firm

At least 50% of portfolio funds held in Indiana banksSlide30

Liquidity

Program Highlights

TrustINdiana

offers daily LIQUIDITY to all ParticipantsActively managed to ensure that cash is readily available

Dollars invested today are available tomorrow with interestNo withdrawal penaltiesNo transaction or wire fees

Maximum weighted average maturity (WAM) of 60 days or lessSlide31

Yield

Program Highlights

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 entitiesPortfolio managers have extensive fixed income/public sector expertiseReturns are calculated and paid dailySlide32

Convenience

Program Highlights

TrustINdiana

was designed with CONVENIENCE in mindMYACCESS

feature allows for fast, safe and secure online transaction processing and reporting accessFunds transferrable via wire or ACHExperienced and professional client service teamMonthly reporting, newsletters, economic updates and yield information all available online or via emailSlide33

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 ServicesAccount can be ready for use as soon as the next business day

For questions about the Registration Process, please contact: Cindy BargerDirector, TrustINdiana200 W. Washington St., Suite 242Indianapolis, IN 46204Phone: 888-860-6242

Email: cbarger@tos.in.govHow to open Your TrustINdiana AccountSlide34

Evaluating Cash Investment Options

Presented by

Chris DeBow

Managing Director

Public Trust Advisors, LLCSlide35

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

.

Introducing Public Trust Advisors, LLCSlide36

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.Public Trust’s Experience

* As of May 14, 2015Slide37

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.

The Importance of Credit ResearchSlide38

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.

Credit Process: A Team ApproachSlide39

Establishing an Approved Credit ListSlide40

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.

Mitigating Rating Agency Risk?Slide41

Asset Allocation (as of May 14, 2015)

TrustINdiana

Portfolio

Source: MFactSlide42

TrustINdiana Portfolio (as of May 14, 2015)

Source:

MFactSlide43

Yield: TrustINdiana vs. S&P AAA/AA GIP* (30-Day Average

Y

ield)

Source: Cutwater Asset Management, MFact and Bloomberg

*

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.Slide44

Participant Breakdown by Number of Accounts (as of May 14, 2015)

TrustINdiana

Source:

MShareSlide45

FOMC Dot Plot – March 2015

Source: BloombergSlide46

Cindy

Barger

Director

, TrustINdianaOffice of the Treasurer of Indiana

200 W Washington St., 242Indianapolis, IN 46204888-860-6242

cbarger@tos.in.gov www.trustindiana.in.gov Questions/Comments

Chris DeBowManaging DirectorPublic Trust Advisors, LLC999 18th Street, Suite 1230Denver, CO 80202513-252-3830

chris.debow@publictrustadivors.comwww.publictrustadvisors.comSlide47

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.DisclaimerSlide48
Slide49

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 & IHCDAClosing RemarksSlide50

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 debtSlide51

Indiana Bond Bank: Organizational Structure

Indiana State Treasurer

Chair

Indiana Bond Bank Board of Directors

Executive Director

Ron Mangus

Compliance OfficerAaron BarnettAdministrative AssistantSuzanne Hardy

Program & Marketing DirectorMatt ZimmermanSlide52

Program Highlights

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 memberThe Governor appoints five members

General InformationHoosier Equipment Lease Purchase Program (HELP)

Advance Funding ProgramFuel Budgeting ProgramInterim Loan Program

Other ProgramsProgramsSlide53

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 scaleSlide54

Bond Bank Debt

Fiscal Year *

# of Issues

Amount

2009

13

$1,696,373,000

2010

11

$893,961,704

2011

7

$524,264,923

2012

14

$331,355,000

2013

12

$510,778,260

2014

6

$218,210,000

2015

5

$130,793,823Slide55

HELP Program

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 applicationContact the Bond Bank for interest ratesRepayment flexibility (Annually, Semi-annually, quarterly or monthly)

Option to escrow

General InformationSince 1991Assisted over 200 communitiesOver $214 million in equipment

Six program underwritersTitle to asset passed to entity upon completion of lease term

OverviewSlide56

HELP Program Continued

Equipment Leased

Fire Trucks

Police Cars

Ambulances

Tandem Trucks ComputersPhone Systems

Safety/Security Equipment911 Emergency Equipment/SystemsGarbage TrucksSnow PlowsSewer

VacsRadio EquipmentVoting MachinesBuses

Portable ClassroomsBooksMuch more…Slide57

HELP Activity

*

Fiscal Year - July –June

Fiscal Year *

# of Leases

Amount

2009

12

$4,755,968

2010

16

$8,023,270

2011

14

$5,479,923

2012

10

$3,438,510

2013

13

$2,923,250

2014

17

$7,849,069

2015 (Partial)

18

$6,906,085Slide58

2015 Advance Funding Program

Borrow against property taxes (schools can borrow against tuition support)

Notes are repaid at year-end or end of

J

une

Assists local government with cash flow needs

Credit Application

Cash Flow ProjectionsLegal paperwork included in rate

Process for the Advance Funding Program38 participants qualified entities$76.4 million in notes$32.6 million interim borrowing with 13 QESAll in QE rate of 0.85%

2015 HighlightsApplications will be made available in early September

Closings in late January 2016Interim funds available January 4th

2016 Program DetailsSlide59

Historic Pricing Trends (1 year maturing) Advance Funding Program

Series

2010

Series

2011

Series

2012

Series

2013

Series

2014

Series

2015

Program Size in Millions

$297

$168

$116

$94

$82

$76

# of Participants

120

87

62

42

45

38

Entity Rate

All Inclusive

.98%

1.31%

1.05%

.85%

.76%

.85%Slide60

Fuel Budgeting Program: Diesel and Gasoline NYMEX PricesSlide61

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

$2.3180

$1.07901

Diesel collar

2.0752

$1.5605Gasoline collar

Fuel Budgeting Collars for 2015Slide62

Diesel cap and Floor with NYMEX AverageSlide63

Gasoline Cap and Floor with NYMEX AverageSlide64

Fuel Budgeting Program

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 2015Fuel Budgeting Program 2016Slide65

Continuing Disclosure

Track all Continuing Disclosure Agreements/Undertakings (CDUs)

Bond Bank files all necessary information to EMMA (electronic municipal market access) for its qualified entities

SEC Rule 15c2-12 – Continuing Disclosure Obligations for IssuersSlide66

Additional Programs

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

United States Department of Agriculture – Rural Development Interim Loan Program

Small borrower programSchool Severance Bonds – refunding of existing debtCommon School Fund

Other ProgramsSlide67

Contact Information

Ron

Mangus

rmangus@inbondbank.com

Matt Zimmerman

mzimmerman@inbondbank.comIndiana Bond Bank

10 W Market StreetSuite 2980Indianapolis, Indiana 46204www.in.gov/bond/Slide68

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 & IHCDAClosing RemarksSlide69

What is the BFD?

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 fundsThe Treasurer is the Secretary/Investment ManagerGovernor, or his designee, is the Chairman

OverviewSlide70

What is the PDIF?

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 assetsFunded by fees on banks that could be deducted from the interest paid to public funds depositors

Insurance Fund:Slide71

What are “public funds”?

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

Public Funds defined by IC 5-13-4-20:Slide72

Who is a “public officer”

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

Public Officer defined by IC 5-13-4-21

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 subdivisionTaxes and fees

Who is a “Public Officer”?Slide73

Who can become an approved depository?

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

Eligible Approved DepositoriesSlide74

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 Deliver40 – 99

0%N/AN/A20 – 39 50%Average Daily Balance for the previous quarterPledge

0 – 19 100%Actual BalanceDeliverSlide75

Department of Financial Institutions

Attorney General

Auditor of State

Department of Financial Institutions

Public Officer

Newspaper

Public Officer

Judge

Board for Depositories

Public Officer

Recovery Process for public funds in a closed depositorySlide76

Department of Financial Institutions

Attorney General

Auditor of State

Department of Financial Institutions

Public Officer

Newspaper

Public Officer

Judge

Board for Depositories

Public Officer

Indiana Department of Financial Institutions (DFI) will determine the amount of public funds on deposit at the closed depository and certifies that information to Indiana Attorney General’s Office, (AGO) the Indiana Auditor of State’s Office, (ASO) and the public entity, public officer, that has the funds in the depository

Recovery Process for public funds in a closed depositorySlide77

Department of Financial Institutions

Attorney General

Auditor of State

Department of Financial Institutions

Public Officer

Newspaper

Public Officer

Judge

Board for Depositories

Public Officer

Within 10 days after receiving certification, the public officer shall furnish to the AGO and the ASO the following:

Verified statements on the amount of their funds in closed depository

Certified copies of the resolutions under which the deposits were made

Additional information that might be requested by the AGO and ASO

Recovery Process for public funds in a closed depositorySlide78

Department of Financial Institutions

Attorney General

Auditor of State

Department of Financial Institutions

Public Officer

Newspaper

Public Officer

Judge

Board for Depositories

Public Officer

The Attorney General and Auditor of State will determine the amount covered by the PDIF, and provide their decision to the public officers, the DFI and the BFD.

78

Recovery Process for public funds in a closed depositorySlide79

Department of Financial Institutions

Attorney General

Auditor of State

Department of Financial Institutions

Public Officer

Newspaper

Public Officer

Court

Board for Depositories

Public Officer

The DFI Publishes the decision of the AGO and

ASO

After the publication, the Public Officer has 10 days to appeal to a court.

After the 10 days has expired, or a court rules for or against the AGO and ASO decision.

79

Recovery Process for public funds in a closed depositorySlide80

Department of Financial Institutions

Attorney General

Auditor of State

Department of Financial Institutions

Public Officer

Newspaper

Public Officer

Judge

Board for Depositories

Public Officer

20 Days

10 Days

50 Days

10 Days

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 court.

80

Recovery Process for public funds in a closed depositorySlide81

Contact Information

Diana Moers Davis, Executive Director

Indiana Board for Depositories

One North Capitol Ave., Suite 444Indianapolis, Indiana  46204

317-232-5257dmoers@tos.in.govwww.in.gov/tos/deposit/index.htmSlide82

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 & IHCDAClosing RemarksSlide83

Gerry White,

Community Liaison, NE Region

Indiana Office of Community & Rural Affairs

Hoosier

Artland

for Economic Growth May 13, 2015Slide84

@

OCRAIndiana

#

INOCRAconf

Hoosier

Artland

for Economic Growth May 13, 2015

OCRA is an agency within the Lt. Governor’s family of business.

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

. Slide85

@

OCRAIndiana

#

INOCRAconf

Hoosier

Artland

for Economic Growth May 13, 2015

Meet the TeamSlide86

@

OCRAIndiana

#

INOCRAconf

Hoosier

Artland

for Economic Growth May 13, 2015

Meet the Community LiaisonsSlide87

@

OCRAIndiana

#

INOCRAconf

Stellar CommunitiesSlide88

@

OCRAIndiana

#

INOCRAconf

Stellar CommunitiesSlide89

@

OCRAIndiana

#

INOCRAconf

Stellar Communities

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 receivedSlide90

@OCRAIndiana

#INOCRAconf

Hometown Collaboration Initiative

Hometown Collaboration Initiative Slide91

@OCRAIndiana

#INOCRAconf

Hometown Collaboration InitiativeSlide92

@OCRAIndiana

#INOCRAconf

Three HCI Building Blocks

Hometown Collaboration InitiativeSlide93

@OCRAIndiana

#INOCRAconf

Benefits to Communities

Hometown Collaboration InitiativeSlide94

2014 Hometown Collaboration Communities:

Corydon Pulaski County

Lebanon Rushville/Rush County

Perry County Seymour

Start thinking about Hometown Collaboration Round II – Fall 2015

@

OCRAIndiana

#

INOCRAconf

Hometown Collaboration InitiativeSlide95

@OCRAIndiana

#INOCRAconf

Community Readiness Initiative

Community Readiness InitiativeSlide96

Community Readiness Initiative

@OCRAIndiana

#INOCRAconf

Help communities understand

“

where they are

,

”

so they can develop grounded policies based on

“

where they can legitimately go” to sustain economic self-sufficiency

Community Readiness InitiativeSlide97

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

Community Readiness Initiative (CRI) Slide98

@

OCRAIndiana

#

INOCRAconf

Indiana Shovel Ready Designation Program

.  

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 opportunitiesSlide99

@

OCRAIndiana

#

INOCRAconf

Place Based Investment Fund

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 foundationsSlide100

@

OCRAIndiana

#

INOCRAconf

Place Based Investment Fund

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 Slide101

Ineligible Projects

@

OCRAIndiana

#

INOCRAconf

Place Based Investment Fund

Previously Funded Projects

Community and Event Center Improvements

Trails

Museum or Depot Centers

Historical Event Center Improvements

Amphitheaters

Greenways

Parks

Alley Activations

Important Note: Previously funded projects are examples of types of projects, but not necessarily what will be competitive in the future

Façade Renovations

Streetscape

Wayfinding

signage

Mural restoration

Building renovation for commercial or retail spaceSlide102

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

Community Development Block Grant (CDBG)Slide103

May 29

Wastewater Drinking Water (WDW) applications due

June 5

Stormwater Improvements (SIP) applications due & Main Street Revitalization Program (MSRP) applications due

July 10Public 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

Community Development Block Grant (CDBG)

Summer Deadlines Slide104

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

Main Street Revitalization Program (MSRP)Slide105

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

Indiana Main Street (IMS)Slide106

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.

Indiana Main Street (IMS)

30

th anniversary of IMSSlide107

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

Downtown Enhancement Grant (DEG)Slide108

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

Downtown Enhancement Grant (DEG)

Eligible ApplicantsSlide109

One competitive funding round

Applications will be available fall of 2015

IMS will host an instructional webinar/conference call

Please contact

Shae Kmicikewycz or your Community Liaison if you have questions

For more information about training sessions and workshops, visit www.in.gov/ocra/files/IMS_2015_with_map.pdf

Downtown Enhancement Grant (DEG)

Application ProcessSlide110

1.  The maximum award amount cannot exceed $10,000.00

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

4.  Federal and other state funds may not be used as local match

5.  Philanthropic foundations, especially community foundations, are strongly encouraged to participate and provide cash match

Downtown Enhancement Grant (DEG)

Funding and DistributionSlide111

@

OCRAIndiana

#

INOCRAconf

Contact Information

Office of Community and Rural Affairs

Questions?

Gerry White

GeWhite@OCRA.in.gov

317.694.8372 Slide112

www.ocra.in.gov

Facebook.com/

IndianaOCRA

@

OCRAIndiana

#

StellarCommunitiesSlide113

Public Funds Management Seminar

J. Jacob Sipe,

Executive Director

,

jsipe@ihcda.in.gov

May 19, 2015Slide114

Vision & Mission

OUR VISION FOR INDIANA

An Indiana with a sustainable quality of life for all Hoosiers in the community of their choice.

Our Mission

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.Slide115

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/Slide116

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 structuresSlide117

Blight Elimination Update

Division

Population

Total Award

Amount

Division One1,406,854$16,259,000Division Two907,837

$ 9,241,000Division Three1,728,962$15,497,000Division Four759,293

$10,821,000Division Five1,215,296$ 9,724,000Division Six498,680

$ 4,607,000Slide118

Owner Occupied Rehabilitation

Eligible Applicants: NFP & LUGs

Maximum request: $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 31st

Awards Announced: October 22nd Slide119

Multifamily Housing

2016 Rental Housing Tax Credit Timeline

Event

Date

Release of QAP 1

st DraftMay

15, 2015QAP 1st Public HearingMay 21, 2015End Comment PeriodMay 29, 2015Release of QAP 2

nd DraftJune 12, 2015QAP 2nd Public HearingLate June

End of Comment PeriodJune 26, 2015Release of Final QAPLate July/Early August 20152016 Application DeadlineFirst Week of NovemberSlide120

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 - IHCDAClosing Remarks