THEY GANG'S ALL HERE LET'S GO AHEAD AND START ARE YOU READY 
          [00:00:03]
TO RECORD? WELL, OKAY I WOULD LIKE TO CALL TO ORDER THE MEETING FOR THE REDEVELOPMENT AUTHORITY AND THE DATE IS SEPTEMBER 17 AT 3:30 IN THE AFTERNOON. IN ATTENDANCE IN ADDITION TO ME IS HIM ONLY AND WE ARE IN THIS LOVELY ROOM FOR PURPOSES OF 
          [2. Approval of Minutes –May 3, 2024 meeting]
RECORDING THE MEETING SO WE ARE OFFICIAL. JAY AND MIKE HAVE YOU HAD AN OPPORTUNITY TO TAKE A LOOK AT THE MINUTES FROM LAST 
          MEETING? >> YES. 
          >> ANY COMMENTS OR DISCUSSIONS YOU WANT WITH REGARDS TO THE MINUTES OR THE NOTES THAT WERE CREATED? 
          >> NO QUESTIONS OR COMMENTS. >> NON-FROM ME EITHER. 
          >> DO I HEAR A MOTION TO APPROVE THE MINUTES? 
          >> SO MOVED. >> ALL IN FAVOR OF IMPROVING THE MINUTES? SO APPROVED. NEXT ON OUR AGENDA. SOME RESOLUTIONS 
          [3. Approval of Resolution CRA-2024-02 for 2024 Lease Rental Bonds (road improvements and 2014B Refunding) and form of Lease.]
WITH REGARD TO RENTAL BONDS DO WE HAVE SOMEONE A REPRESENTATIVE HERE WHO IS , WHO WOULD LIKE TO TALK TO US ABOUT THE BONDS AND THEIR PURPOSE? THANK YOU, BY THE WAY. 
          FOR ALL THE WORK THAT GOES INTO PREPARING THIS. 
          >> THANK YOU. >> THANK YOU FOR HAVING ME THIS AFTERNOON. GOOD TO SEE YOU, I KNOW I HAVE SEEN IT BEFORE, NICE TO MEET YOU, MICHAEL AND ONLINE. SO WE ARE THE FINANCIAL ADVISORS FOR THE REDEVELOPMENT COMMISSION AND THE CITY AND ASSIST THE CITY WITH FINANCING VARIOUS CAPITAL PROJECTS. SO WHAT IS IN FRONT OF YOU GUYS TODAY IS THE RESOLUTION THAT WAS INCLUDED IN YOUR PACKET FOR A LEASE BOND ISSUE. AS YOU KNOW I AM NOT A LAWYER I AM THE FINANCE PERSON BUT SINCE BRAD IS NOT HERE ONE OF YOUR ROLES IS TO BE THE ISSUER FOR THE PROPERTY TAX BOND ISSUE THAT THE CITY IS LOOKING TO ISSUE. 
          LAST EVENING AT THE COUNCIL MEETING THE ORDINANCE WAS INTRODUCED TO THEM AND THEY ARE KICKING IT TO THE FINANCE COMMITTEE WHICH IS STANDARD PROCEDURE FOR THEM ON SEPTEMBER 30. IT IS IN FRONT OF YOU TODAY FOR APPROVAL AND THEN IT GOES TO THE REDEVELOPMENT COMMISSION TOMORROW FOR APPROVAL. AND THEN IT GOES THROUGH A LONG TIMETABLE OF PROCEDURES AND, THIS IS YOUR ONLY STEP IN THE PROCESS. 
          >> UNTIL THE END. >> UNTIL THE END EXACTLY. SO WHAT THE CITY IS LOOKING TO DO IS BASICALLY MAINTAIN THEIR TAX RATE AT THE 2024 LEVEL AND SO WHAT I WILL SHOW YOU, IF YOU WANT TO FLIP TO PAGE 2. OF THE HANDOUT THAT I GIVE YOU. 
          >> OKAY THERE YOU GO. >> HOPEFULLY I CAN SEE THAT. 
          ZOOM IN HERE A LITTLE BIT. IF YOU ARE TALKING WE CANNOT HEAR YOUR. 
          >> OKAY GREAT. AS YOU CAN SEE HERE FROM 2024 THROUGH 2025 THIS VALUE REPRESENTS THE CITY THAT ASSESSED VALUE SO THE CITY WITH ASSESSED VALUE, YOU CAN SEE THE HISTORICAL TREND BUT HAS INCREASED 10% OF $2 BILLION INCREASE, WHEN YOU HAVE ASSESSED VALUES THAT GO UP THE TAX RATE COMES DOWN. TO GET YOU TO THE BUDGET OR THE LEVEE THAT THE CITY HAS TO WORK WITH, WHEN THAT OCCURS THERE IS AN OPPORTUNITY AND A POLICY DECISION TO BE MADE FOR WHAT THE CITY WANTS TO DO WITH THE TAX RATE IF IT WAS TO DROP OR MAINTAIN IT THE CITY HAS DECIDED IT WOULD LIKE TO MAINTAIN BECAUSE IT HAS A LIST OF PROJECTS TO FINANCE TO GET TAKEN CARE OF WHICH HAS BEEN A COMMON PRACTICE AT THE CITY OF CARMEL. SO THE COUNCIL IS WORKING THROUGH THE LIST OF PROJECTS THROUGH LAND-USE COMMITTEE THAT WILL OCCUR AND TO THE FINANCE COMMITTEE, BUT 
          [00:05:06]
ESSENTIALLY WHAT WE WILL BE DOING IN THIS PARTICULAR BOND ISSUE IS A TWO-PART SERIES. ONE IS REFINANCING OF AN EXISTING OBLIGATION IF YOU WANT TO FLIP TO PAGE 6. ONE IS A REFINANCING OF A 2014 OBLIGATION AND ESSENTIALLY THOSE BONDS ARE BEING PAID FOR , FROM THE INCOME TAX AND THOSE ARE FLIPPING OVER TO BE PAID BY THE PROPERTY TAX AND REFINING THOSE FOR A LITTLE BIT OF INTEREST RATE SAVINGS AS WELL. THAT RELIEVES THE BUDGET OF THE PRESSURE AND ALLOWS MORE FUNDS FOR OPERATING AND THE SECOND COMPONENT IS A NEW MONEY COMPONENT OF THE BOND ISSUE AND AGAIN TO KEEP THE TAX RATE ON 2024 WE BASICALLY BACK INTO THE BOND SIZE FOR WHAT IT NEEDS TO BE TO INFILL THE TAX RATE. SO YOU CAN SEE ON THIS PAGE RIGHT NOW CURRENTLY 100 MILLION OF THE PROCEEDS WOULD BE GENERATED FROM THE PROJECT TO DO A LONG LIST OF PROJECTS THROUGHOUT THE CITY. INCLUDING A LOT OF ROAD PROJECTS, A COUPLE OF PARK PROJECTS , SO ON AND SO FORTH. SO, YES. IN FRONT OF YOU THIS EVENING OR THIS AFTERNOON YOU HAVE A RESOLUTION BASICALLY APPROVING THE LEASE OR A FORM OF THE LEASE AND AS I SCROLL DOWN THROUGH THIS IT DOES LAY OUT IN THE FIRST SECTION THE REFUND COMPONENT OF THE 2014 B BONDS, LAYS OUT THE HISTORY OF THE BONDS, WHY THEY WERE ISSUED AND WHY THEY ARE REFUNDED IT IS ON PAGE 1 GOING INTO PAGE 2 IT DESCRIBES THE MAXIMUM PARAMETERS FOR THE BOND ISSUE AS A WHOLE YOU WILL SEE THE 110 MILLION AS THE MAXIMUM AMOUNT OF THE BOND ISSUE THAT WE PLAN TO STAY BELOW. AND THEN IT DOES STATE HERE EACH ONE OF THE PROJECTS HAS TO BE WITHIN THE CONTROLLED PROJECT THRESHOLD WHICH IS SOMETHING WHEN YOU ISSUE PROPERTY TAX BONDS YOU HAVE TO LOOK AT EACH PROJECT STAYING BELOW THAT. SO YOU DON'T HAVE TO GO THROUGH PETITION OR REFERENDUM. SO THAT'S NOT ANYTHING COMPLICATED HERE THAT IS A STRAIGHTFORWARD DEAL BOND ISSUE TO INFILL THE TAX RATE. THERE ARE LOTS OF OTHER TERMS AND PARAMETERS THAT I CAN ADDRESS 
          IF YOU WOULD LIKE. >> DO YOU HAVE A QUESTION? 
          >> THE ONLY THING I HAVE IS WHAT DO WE ANTICIPATE THE COUPON RATE TO BE WHEN WE GO TO MARKET? 
          >> THAT'S A GREAT QUESTION. ON THE SCHEDULE AND I APOLOGIZE I DID NOT SEND THEM AHEAD OF TIME FOR THE REFUND PORTION OF THE BOND ISSUE YOU CAN SEE THE COUPONS IN THE 4% RANGE. ON THE BIG BOND SERIES B WE ARE AT 5% COUPON BUT WE ARE IN A PREMIUM BOND ENVIRONMENT SO THE YIELDS ARE GENERATING PREMIUM. SO THE YIELD ON THE BACK END RANGE FROM 1.9% UP TO LIKE 3.2%. SO YOU WILL SEE, IF YOU FLIP BACK A COUPLE PAGES BACK TO THE SOURCE AND USES PAGE, YOU'LL SEE THE ESTIMATED BOND RE-OFFERING PREMIUM SO ESSENTIALLY THE BOND IS SOLD OUT TO THE MARKET FOR HIGHER INTEREST RATE AND IN TURN THE INVESTORS PAY YOU GUYS A PREMIUM FOR THE HIGHER INTEREST RATES SO THAT IS THE BOND MARKET WE ARE IN RIGHT NOW. 
          >> WHAT ARE THE REQUIREMENTS OF THIS KIND OF BONDING , IS THAT THE PROCEEDS ARE USED FOR PROJECTS FOR INFRASTRUCTURE BY NATURE, NOT THE YEARLY BUDGETS AND ISSUES LIKE THAT. WE DON'T HAVE A COMPLETE LISTING OF ALL THE PROJECTS GETTING READY TO BE DONE, THE COMMISSION IS STILL PROBABLY PUTTING THAT 
          TOGETHER. >> REDEVELOPMENT DIRECTOR, THE ORDINANCE DURING COUNCIL HAS A LIST OF PROJECTS AND THAT ORDINANCE THE REDEVELOPMENT AUTHORITY AND COMMISSION ARE HERE TO LINE THINGS UP FOR COUNCIL TO MAKE A DECISION. SO THAT LIST WILL STAY AT THE COUNCIL LEVEL NOT AT THIS 
          LEVEL. >> TO THE BEST OF YOUR KNOWLEDGE IS ANYTHING ON THE LIST NOT INFRASTRUCTURE 
          RELATED? >> THERE IS NOT AND THE CRC HAD NO EFFECT ON THIS LIST, THIS WAS GENERATED AT CITY LEVEL SO 
          [00:10:06]
THIS IS ALL INFRASTRUCTURE PROJECTS, NONE OF THIS IS 
          REDEVELOPMENT RELATED. >> JEREMY CASHMAN ENGINEER WITH THE CITY , DIRECTOR OF INFRASTRUCTURE, CHIEF OF INFRASTRUCTURE HE IS THE ONE THAT DEVELOPED THE MAJORITY OF THE LIST WITH THE MAYOR AND ZACH JACKSON THE CFO FOR THE CITY. THAT IS COUNCIL ORDINANCE THAT WAS INTRODUCED AND THAT'S THE LIST OF PROJECTS. SO THE LIST WILL BE CONSIDERED AT THE LAND-USE COMMITTEE ON THURSDAY OF THIS WEEK AND THE FINANCE COMMITTEE ON SEPTEMBER 30 WHERE WE TALK THROUGH THE NUMBERS. 
          >> OKAY I'M ONLY ASKING BECAUSE WE ARE RESPONSIBLE FOR MAKING SURE WE DON'T ISSUE A BOND THAT DOES NOT GO FOR THE RIGHT SOURCES. AND BECAUSE WE CONTINUE TO RAISE MORE TAXES IN A SENSE WE ARE BACKING INTO THIS SO WE DON'T HAVE TO LOWER THE TAX RATE. I PRESUME WE ARE STILL WITHIN THE CONFINES OF THE LIMITATIONS OF WHAT CARMEL IS ALLOWED TO OBLIGATE ITSELF. 
          WHERE UNDER THOSE THRESHOLDS. >> THIS IS THE LEASE FINANCING WHICH IS WHY WE USE THE REDEVELOPMENT AUTHORITY AS A BODY AND THE BOND ISSUER BECAUSE WE ARE EXCEEDING THE DEBT LIMIT FOR THE REDEVELOPMENT DISTRICT. AS YOU CAN SEE HERE, THE REDEVELOPMENT DISTRICT HAS A DEBT LIMIT OF 45.5 MILLION SO OF THE BOND SIZE WAS UNDERNEATH IT WOULD JUST BE A REDEVELOPMENT COMMISSION OR A CITY GEO BOND ISSUE BUT BECAUSE OF THE SIZE IT IS A LEASE STRUCTURE WHICH IS WHY WE ARE USING YOUR BODY AS A ISSUER. 
          >> THE RESULTING OBLIGATION BY THE CITY IS NOT USING THE WHOLE OF ALL THE MONEY WE GET FROM PROPERTY TAXES , FROM THOSE TAXES. I THINK WE HAVE A LIMIT TO HOW MUCH WE ARE ALLOWED TO 
          OBLIGATE. >> THE LIMIT IS RELATED TO GENERAL OBLIGATION BONDS. THIS IS NOT A GENERAL OBLIGATION BOND, THIS IS A LEASE RENTAL STRUCTURE BOND . THIS IS BACK TO THE STORY ABOUT INDIANA BUILDING CANALS 150 YEARS AGO AND GOING BANKRUPT AND EVERYONE DOING THE LEASE RENTAL STRUCTURE , SO THESE DO NOT INTERFERE OR INTERACT WITH THE CITY GEO LIMITS. THEY ARE RENTAL OBLIGATION. 
          >> ESSENTIALLY YES, THIS FORMULA THE STATE PRESCRIBES GOES WAY BACK AND HAS NEVER BEEN LOOKED AT AGAIN IN THE CITY GROWTH AT 10% AND CONSISTENTLY 7 TO 10% THE DEBT LIMIT WILL NEVER KEEP UP WITH A GROWING COMMUNITY SO THE LEASE BOND STRUCTURE IS VERY PROMINENT THAT IS USED THAT YOU ARE FAMILIAR WITH BECAUSE OF THE DEBT LIMIT NOT BEING LOOKED AT. AND ANOTHER THING WITH PROPERTY TAXES IN GENERAL IS THE CITY IS LIMITED IN ITS BUDGET AND HOW MUCH IT CAN RAISE SO FOR EACH ONE OF THE PROPERTY TAX FUNDS IT CAN ONLY GROW 4% THE LEVEE OR REVENUE CAN ONLY GROW BY 4% NOW AND THAT'S FROM THE STATE OF INDIANA THE MAXIMUM LEVEE GROWTH QUOTIENT. FOR COMMUNITIES GROWING AT 10% RATE THE 4% CAP ON REVENUE WILL NEVER KEEP UP WITH 10% GROWTH THAT YOU ARE GROWING AT. SO THE PROPERTY TAX BOND ISSUE IN THE STRUCTURE IS USED ALL OVER THE STATE FOR COMMUNITIES THAT ARE GROWING FASTER THAN 4% EACH YEAR THEY HAVE TO ISSUE PROPERTY TAX BONDS TO BE ABLE TO DO PROJECTS. BECAUSE THE CURRENT BUDGET CAN ONLY WITHSTAND OPERATIONS, THAT'S 
          IT. >> ANY OTHER COMMENTS YOU WANT TO MAKE OR INSIGHTS ABOUT THIS PROPOSAL? 
          >> FOR ANYONE WATCHING, OR ANYONE LISTENING THIS IS PRETTY STANDARD STUFF , WE DO THIS EVERY FEW YEARS. ONE OF THE MOST ILLUSTRATIVE THINGS ON PAGE 2 WHICH SHOWS THE HIT THE REDEVELOPMENT AREA WILL TAKE IF THE RATE DROPS IS MASSIVE. 
          SMOKE FROM YOUR PERSPECTIVE AND FOCUSING ON THOSE MATTERS IF 
          [00:15:02]
THE CITY WERE NOT GOING TO ISSUE A BOND THE TAX RATE WOULD DROP WHICH WOULD AFFECT THE GENERATED SIGNIFICANTLY REVENUE IN FUNDING FOR ALL SORTS OF PROJECTS THROUGHOUT THE CITY. 
          >> WE ARE STILL AA? >> YES. SO THIS BOND ISSUE WILL GO THROUGH THE RATE PROCESS SO AFTER IT GOES TO FINANCE COMES OUT WITH POSITIVE RECOMMENDATION TO THE COUNCIL AT THE OCTOBER 7 MEETING, THEN WE PUT TOGETHER A STATEMENT , THE OFFERING DOCUMENT GOING TO THE RATING AGENCIES AND WILL GO THROUGH THE PROCESS WITH THE MAYOR AND WITH ZACH KEEPING THE AA RATING AND WE WILL TAKE IT TO THE MARKET AND WE ANTICIPATE TO GET IT OUT BEFORE THANKSGIVING WITH SELLING THE OPEN MARKET DEAL SELLING ON NOVEMBER 21. AND THEN CLOSING 
          IN DECEMBER. >> I HAVE NO ADDITIONAL QUESTIONS. 
          DO I HEAR A MOTION WE CONSIDER APPROVING THIS PROPOSAL? 
          >> SO MOVED. >> ANY ADDITIONAL DISCUSSION YOU WOULD LIKE TO HAVE? IS THERE A SECOND? ALL IN FAVOR 
          SAY AYE. >> SO APPROVED. I DO NOT BELIEVE WE HAVE , IS THERE ANY OTHER NEW BUSINESS OR ANYTHING ELSE?
* This transcript was compiled from uncorrected Closed Captioning.