Good evening, everybody.

Welcome to tonight's municipal corporations committee meeting.

I am Chairman Jared Evans.

We're going to begin with introductions, starting with the bottom left, Councillor Hart.

Thank you, Mr.

Chairman.

My name is Michael Paul Hart, representing District 20.

Thank you, Mr.

Chairman.

Mike Dill, District 24.

Thank you, Mr.

Chairman.

Josh Bain, District 21.

Thank you, Mr.

Chair.

Brian Mowra, District 25.

Thank you, Mr.

Chair.

Renee Allen, District 15, the far east side.

Thank you, Mr.

Chairman.

Jesse Brown, District 13, near North Near East Side.

Thank you, Mr.

Chairman.

Kristen Jones, District 18.

Thank you, sir.

Allie Brown, District 10.

Thanks, Mr.

Chairman.

Good evening, everyone.

Keith Graves, District 9 on the Indianapolis side.

Thank you, colleagues.

And again, I am Chairman Jared Evans.

With consent committee, I would like to move the uh budget hearing of the Indianapolis Airport Authority to right now since we are missing someone from the uh library board.

All right, airport authority.

You guys are you're up.

Tonight we'll be hearing proposals number 280 and 281 from the library board once they're here.

Chair, members of the committee.

Uh my name is Mario Rodriguez.

I'm the executive uh director of the Indianapolis Airport Authority.

With me we have Holly Harrington, and I'll let her introduce herself uh once she goes up to speak.

We're gonna do a couple of some musical chairs and our exceptional staff is gonna come up here and go through the budget, but my job is really easy.

I'm gonna show you what has happened.

We look back the last decade, it's gonna be very short, but I'll show you what happened because it it is it is very striking how the airport has moved forward today.

If you look back 10 years, we have more nonstops than ever before by a long shot.

We have more airlines, we have less debt and more assets.

We have about half a billion dollars more in assets and a hundred million dollars less in debt.

We have more passengers than ever before, ten and a half million passengers, and we've increased our reserves by 88 percent.

So that means the airport could operate without a penny of revenue for over 530 days.

That means we have about 350 million dollars in the bank, which is not a bad amount of money.

We also have more debt coverage.

We went from about 1.6 to nearly 2.0 in debt coverage, which is a big deal.

That increased our bond ratings from negative A to A plus, more investments locally, which is something that our exceptional staff has concentrated on.

Um during last year.

Last year, 91% of everything we spent, we spent locally.

That's 211 million dollars, which is a big amount of money.

So, in other words, our job is not to export economic impact outside of the state, it's to keep it right here.

And all of this without tax dollars, and this is all due to this exceptional staff that surrounds me.

And I'm gonna turn it over to Holly Harrington right now, and um we'll move on to the next part of the presentation.

Thank you, Mario.

Oh, by the way, I forgot.

We got all these awards, and I forgot the awards because they're really a byproduct of this exceptional staff.

It's not what we aim for.

We've got six JD powers, and if you wouldn't mind keeping it a secret, September 17th will be announced that we will get our seventh JD power award.

So, and you know, it's just an amazing, an amazing staff, and like I said before, this isn't the goal.

This is just a byproduct of what we do.

So that's why I forgot about it.

Thanks, Mara.

Oh, I need to shift.

No, I can forget.

This is good, yeah.

Okay, thank you.

Um first thanks, Mario.

Um, and I would like to say good evening, Chairman and Counselors.

I'm Holly Harrington, Senior Director of Strategic Alliance.

And on this slide, again, we wanted to highlight that we were named uh bless best places to work.

Um, and that is something that we get from our employees, and we are the best airport because we have the right people, and many of you know our values and our culture.

Right means respect, integrity, trust, and excellence.

And we believe if those are our foundation, everything we do as we treat passengers, our staff, and businesses that we partner with, we're going to be successful.

We're focusing on optimizing the quality of life of our people by investing in them.

And examples of them are providing meaningful benefits, including a focus on professional development as well as internal trainings.

We also offer educational assistance.

One has received a hospitality award, and another Mario had the pleasure of watching them graduate, getting their associates' degree from Ivy Tech.

So we just want to emphasize our people, our people, our people is what makes us great.

And it's not just the people that are currently at the airport, we're doing a lot to build the our future pipeline.

We are committed to developing our people through our summer internship program.

We've had years where we've developed interns, several of our interns are now working with the organization.

In the next picture, you can see Vicki and Morgan in our map program.

Vicky has received awards within the industry for not only the work she's done at the airport but throughout her career to mentor and develop people from what we say recruitment through retirement.

So it's great to try to attract people, but then what do you do to keep them there and then help them through their journey?

Vicki uses her skills and perspectives to set up the IA for the future.

The picture of the students on the escalator are our work study programs and the many, many tours that we partner with different organizations throughout the community to expose them to the airport.

We say it's a city within a city, and while many people think the only jobs are our pilots and with the airlines, as you can see with us all represented here, it's from engineering, administrative air service, maintenance.

There are just a lot of opportunities, and we're bringing people into the airport so they can get a better perspective and see themselves and then contribute.

We want to make sure everyone in the community knows.

The last picture is the fellows, and one of the students uh one was a student, and now Ted actually works with us.

So we've had a lot of success in giving the next generation access to opportunities at the airport and then bringing them in.

This next slide highlights our people, and again, we talk about we have award-winning people, and when they bring that value, their values to the airport, it demonstrates our focus on everything we do, and that's from individuals in our parking who meet many passengers as they are as they're leaving, and they can direct them to our sensory rooms.

It is from when you stop at guest services.

Some of the individuals there have been nominated or award winners for the Rose Award in our community, and then in our administrative staff, it's not just people who have been there like me over 55, but we have individuals who are under 20 and under 40 who are also receiving awards for the work that they do and the outreach within the community.

Another thing we wanted to highlight as it relates to community engagement is places.

I think many of you can think about when you travel to a new city and you're like, What can I do here?

We think it's our role to play and provide examples of some of the highlights and things that people can do in our community.

And this is more examples of our partnership with the children's museum.

You can see we've got a kind gallery where we've partnered not only with the children's museum but many institutions with the uh Indianapolis Arts Council as well as the Madam CJ Walker have had opportunities to feature events there.

We've partnered with Girl Scouts to help welcome passengers, and you can see we had the mascot of the dinosaur and partner with individuals in the community.

So as soon as people come in, they get exposure to what Indianapolis may look like.

So as we continue to grow our air service, in March, we were able to partner with Joseph Newgarden and IMS.

They actually launched the ticket for that year, as well as there were passengers that were flying out to Nashville and back into Indianapolis.

This inaugural flight, there's an individual with Southwest that we learned was really into racing, lives in speed way, and they were able to get him a suit and make him a part of it.

I think everyone knows when you're able to participate in something you really care about, you really do your best.

So it's the IA employees, and then we partner with the organizations at the airport to provide the best experiences.

We listened to the community, we worked hard post COVID to gain this access.

But this flight also connects us to 20 other key locations throughout Europe, which is a huge ask of the traveling public here.

So we were excited that we were able to partner with many folks throughout the community to make that happen.

Sorry, community leaders and organizations, and we welcomed our global travelers with the green carpet at IMS.

Our air service is another example of how we deliver public value through our focus on creating positive customer experiences and leveraging that with community engagement.

This is my last slide.

Even today, we uh had a somber moment at the airport as we honor Patriot Day, the annual remembrance for the victims of uh September 11th, and a lot of our employees have direct connections either through public safety, um, and it was just an amazing and and and heartfelt experience.

And that's just another example of making sure you understand your people and and doing the things that's important to them as as well as our our community.

Um this slide in addition highlights partnerships with Ball State Tours.

Um we've talked and shared with you about our sensory rooms, and this is a real family actually leveraging uh those rooms, and uh we do partnerships with uh art with um and our in the committee with uh disabilities.

You can see the Girl Scouts came in and helped us with Taylor Swift, and I have boys, but didn't realize the the impact of just seeing little girls crying and excited about the opportunity, so you would be shocked at the things that you can do to make a difference in in the community.

And we do have a shameless plug regarding uh voting for the airport relative to art, so you'll see a lot of art in the airport.

But if you want to help us, there's an opportunity to vote for us between now and October 6th on being the best airport for art.

And with that, I'll pass it over to Jared.

So good evening, Councillor Evans and members of the committee.

Uh, my name is Jared Kloss.

I'm the senior director of planning and development for the airport.

I have the honor of leading the engineering design and capital construction side of the house at the airport.

So appreciate being here today.

So, as I prepared to come talk about numbers, and I will get into a few of those and talk about a few key projects that I thought you might find interesting.

I want to start with this slide.

So I want to tag on to something Mario said in the very beginning.

If you were to ask me, I was limited to tell you one thing tonight, what we know, and you asked me what I'm most proud of in this past year.

It would be the work we've done in the community to make sure that we have spent so much of our capital resources locally.

Mario said we've spent 91% locally.

That is correct.

On the capital side of the house that I have responsibility for, that 211 million spend, uh 91% of that was local.

So you know, approximately 192 million dollars was turned locally just from the capital side and the projects that we completed last year.

However, because that money was spent locally, it didn't feel locally like 192 million, it felt more like 422 million because when you look at the power of spending money locally as opposed to you know in another state that that's magnified.

And so to really be part of the community and make that kind of impact, I think is I would say was an honor and is the most important thing that we did as a team this year at the airport.

So a few of the projects though, I will highlight briefly.

Um the parking garage expansion.

You can see this is the uh a picture of the site of the garage that we did the expansion.

You can see the solar covered uh rooftop that we have included.

Um that was uh about a half a million square foot uh expansion of parking, about 1,500 spaces uh in total.

Um the canopy, the solar canopy will generate enough electricity uh to power the lighting in the entire garage, not just the new wing.

So uh that's uh noteworthy.

And uh the other improvement that came along with this, of course, was we looked at the operation in the garage and asked ourselves how can we make this better for the people that use the garage.

So, you know, the valet parking, you know, the valet runners, they run the cars to this new area predominantly.

Uh we opened up a lot of what used to be valet parking on level three and opened that up, as many of you you may have noticed uh to self-parking.

So that primary um uh you can call it premium uh location to park and walk straight into the terminal is now uh used by self-parkers, so they can just come into the terminal.

So we're really proud of that.

Um we brought that project in a little bit under time and under the the 76 million dollar uh budget.

So the um the biggest project that we've been working on the last uh three years was the full reconstruction of the southern uh primary runway, the one that's uh adjacent to FedEx near I-70.

Uh that project was uh 315 million dollars.

Um, a couple things that are interesting about that.

Um is we you know looked at how much uh you know, of course, keep in mind there's you know a little less than two miles in length uh for that runway and taxiway system, uh, but because of the um robustness of that pavement, it's much thicker than what you know you would see, of course, on the highway.

Um and I I share this because I've had a lot of people come to us and say, well, it's it's not that much different than an interstate, right?

Um, but it is.

There's enough concrete in that two miles of pavement to pave two lanes of I-70 all the way from Indy to Terre Hope.

So there's a lot that goes into uh building those types of pavements to uh making them robust to last for uh you know 20 to 40 years.

So it's uh it's a it was a really neat project.

A lot of folks don't get a chance to do a project like that in their entire uh in their entire career.

The uh runway has won several awards.

Uh there are a lot of uh unique features about what we did, but the envision platinum certification, we are the first airport in the entire world to receive such a certification for a runway uh for any airport anywhere in the world.

Um there were several attributes.

I could entertain you for 30 minutes about all the things that went into that, but uh suffice to say at no extra cost, we were able to uh do carbon sequestration so capture carbon into the mix into the concrete to the tune of about 1.2 million trees worth of carbon that is now locked away, you know, forever in that concrete.

So pretty proud of how that went.

To work with FAA to work with all the folks that we had to work with to make that happen.

It was a challenge, but one that we uh were proud of.

So next up, uh talk a little bit about some things yet to come.

Uh certainly the most exciting project at the airport right now is uh delivering uh a very beautiful uh hotel, airport uh terminal connected hotel uh for the the citizens in the community.

So this will uh as we say be the front door to the front door, and we look at the airport as the front door to uh Indianapolis.

Uh we will be bringing online a uh uh Marriott uh Weston hotel, uh 253 guest rooms.

Uh we'll have about 10,000 square feet of meeting space in total.

Uh the as you can see in this picture, uh you can see that roof overhang that seventh floor is a a bar and lounge, and it should be the signature piece uh to that building.

Uh we thought a lot about the fact that uh a lot of folks uh are really in love with the park and walk lot, and we didn't want to interfere with that.

So there's actually a corridor on the first floor of this that allows all that pedestrian traffic to still flow through the hotel and into the garage and into the terminal.

Um so there's uh there's also going to be a uh location in that hotel that you can check your bags and not have to take those into the terminal with you when you go.

They'll get picked up and run through the scanners and onto your plane for you.

So a lot of neat features.

We look forward to uh sharing that as it gets closer to uh completion.

And then the other yet to come but uh critical piece of infrastructure.

I know uh all of you here and see about infrastructure in the city.

A lot of times the things that are most important, uh like the CSOs are things that you don't see.

Um similarly, our baggage processing system is in the belly of the terminal.

Uh you don't see that, uh, but it's critical for everybody being able to get their luggage, uh check bags onto the aircraft.

Uh we were uh as many of you know, the first airport out of the gate post-9-11.

So there are some benefits to that.

Uh there are also some drawbacks because we are not new anymore.

Um we are now confronted with a requirement to uh wholesale replace and upgrade the explosive detection equipment.

Uh we uh absolutely agree that that is the right and best thing to do to stay cutting edge and and security enhancements.

But that new technology does not play well with the existing system.

So uh we have a 140 million dollar project in which we are going to uh construct a brand new uh baggage handling system in around and through the existing system and still never miss a beat and never have a bag go out late.

So uh we are going to uh we're currently in design, and then there's about a two-year construction on that.

But that again it positions us not only to continue to be among the safest airports in the country, but it allows us to position ourselves for uh additional air service development that that you know growth in uh new destinations and new flights that we want to make sure we can continue uh to serve the public.

So I am nearly done.

Um so I talked about what the capital team did with that money and that local spend.

The organization is a whole operating in capital side of the airport last year.

Uh we told 220 million spent locally.

So again, if you apply that same logic to uh the feels like number, what it feels like in the local economy because we spent so much locally, that 222 is more like 488 million is what it feels like when you look at that money turning over multiple times uh locally as opposed to somewhere else.

So then a short list to give you a little bit of flavor from uh for the capital side of our uh our budget and our appropriation.

So, of course, the uh the proposed hotel uh 81 uh million.

Now, the overall hotel is more than that, but this of course we're looking at the spend in 2026 because that's the budget that's up for approval.

Uh only one of those, but uh but some of these other items like asset preservation projects and then a couple others down, safety and security.

Uh each of those categories, there's there's approximately 40 plus projects going on next year.

Um, the other categories, uh not quite as much as those two, but the runway uh APRA and the airfield projects, there'll be about 15 of those next year.

Um, you know, the baggage uh system, uh, some energy, uh, some additional solar projects, uh, just a few of those, and uh and a handful of parking projects.

All told, approximately 100 projects, uh, the appropriation request on the capitalist side is 330 million for next year.

So with that, Robert.

Hi, I'm Robert Thompson.

I'm the senior finance director and treasurer, board reporting treasurer of the authority, and um I have been with the authority since 2020, and I've uh got to be before this body with the different members as its constituents for uh a long time.

So uh I wanted to introduce and take you through, be the professor basically.

Got one slide, and I want to talk about airport finance because airport finance is not intuitive, it doesn't work the way most other corporations do, and I want to hammer home that there are no local taxes that support the Indianapolis airport.

It is all user fee driven.

Now you're gonna be dynamic at the next uh party when you play that that game of trying to bring something forward.

But on this slide, if you look at the left side, that's expenses.

We start with expenses actually.

We are looking to be the most prudent to make sure that we're investing and relevant with the people, the staffing, and we have one goal as we are going through that process to ensure we're gonna deliver the highest level of customer service and value to the citizens of central Indiana.

And let me tell you why that works so eloquently when we go to the revenue side.

So you heard about local impact.

Where does the money come from?

The money comes from that right-hand side.

So we have non-airline revenue, parking, building rent, land rent, we have reliever airports.

Then we end up with PFCs and CFCs, two programs.

One is federal uh mandated and controlled, that's the PFC program that really allows us to invest in airfield infrastructure and things in the terminal, and it's a program you have to go to the FAA and you have to it's a complicated process.

We're gonna actually begin another one in the end of this year and beginning of next.

The other one is a capital uh a customer facility charge, and that is uh an arrangement with the car rentals, and it really is to benefit them in facilities, and it is a way to have the best facilities to meet the needs of the traveling public and the citizens of central Indiana.

Then the last one is the one that's not intuitive.

Everything else is made up by the airlines, and it's done under a strict formula by the FAA, so it's not just oh, it's done, you have to do that cost recovery methodology, but the the whole picture of this provides the airport with a stable and sustainable financial model to the point where just recently, earlier this year, and the most of the projects that you just saw, except for the baggage system, all the debt is issued.

So when Mario said we have less debt and more assets, the baggage system will be the next item as we go forward.

And that won't uh we won't go to the bond market until 26, end of 26, beginning of 27, some point for that.

But the airlines that we pay, they don't pay to access our market.

The FAA says they can only pay for what they use on a cost recovery basis.

But this is a picture of stability.

I wanted to let you know how long I've been here because some of those stats Mario said about increasing our balance sheets so we have more stability, about having an appropriate measure of our debt.

The other thing that wasn't discussed is been able to simplify our debt profile.

We used to have a little bit risky profile with some swaps.

That's gone now.

Take this whole basis, and that's how we operate.

That's how we're able to continue to have our basis B delivering value to the citizens.

Elias has got two slides.

He's gonna hit revenue, he's gonna hit expense, and then we'll uh stop subjecting you to the Indianapolis Airport.

But I know there'll be time for questions.

Hello, I'm Elias Maqueda, accounting director for the hello, I'm Elias Maqueda, accounting director for the Indianapolis Airport.

This first slide, it's very similar to the prior one you saw, but this shows you the numbers.

So you can see a hundred million in airline revenue, you divide it by the 250 million, that gives you that 40% that is the amount that is funded by the airlines.

What I can tell you about this uh this estimate for our budget for revenue in 2026, where we we're a little bit conservative.

It's it's uh a way that we are budgeting our revenue, and it is there's a reason why to do it in in our field.

What is the second the second biggest revenue here, revenue producer?

We you can see parking.

And you see how we are also investing in parking when you saw that expansion of the parking garage.

If we see the next slide, that it is our operating expense appropriation.

That's the 247 million 423.

And you see also we're trying to put this in in one page, the whole picture.

Also the other appropriation that Gerard talked about, that is 330 million for the capital uh improvement fund.

Now the details from the 247 million, you can see the main the main areas where that are increasing.

The larger number from that it's being debt service, being the character three.

This is just the normal increase from some of the projects that Jarrett highlighted, like for example, the parking garage expansion and then also the the runway.

Now we start seeing some of that dev service from some from those uh projects that are already in place.

The second largest uh investment, you can see character one, that is people per people, it's personal services.

That is the area that is the most important for the for the airport authority.

Whenever we look at risk out of everything, people is the main area where we invest.

People is the main area that we're looking at.

This increase is not because we are adding an army of people, no, actually, when you when you look at all the pluses and minuses within within our departments, it the full-time headcount only increases by one.

So it is not that we're adding a lot of people, but we are we're investing, we're putting we're putting maybe whenever we go and talk to our community, we talk to our vendors, we try to see what are the increases and in areas uh either from contracts or either from union negotiations, like for in a case of police and fire, or either from health care.

I can tell you maybe some of the increases so that can give you an idea of what is included in the 66 million.

But we did put an increase of 10% in medical benefits.

We have a 15% increase in worst case comp.

The merit and CPI, it's only a 5%.

That is what we are what we're including for 2026.

And the normally the process, the way that it is in our budget, we create all of this is the max spend, the 247 million.

But when we're when we're talking about the people cost, it's the human resource committee that will end up making the decisions in what what will be the final increase for the wages of the people for 2026.

But that gives you the idea of the of some of the components that are in including that 66 million.

The next item that is character three, that is uh services and charges, which includes multiple items, includes utilities, includes uh a lot of the contracts that we have with the escalators, with in some of these contracts we're already known.

It's uh a known amount based on the contracts that is the increase.

Some areas, there's a few contracts where we we didn't know the exact amount, and we just put a placeholder amount into what may be the increase for some of those agreements.

And uh some of the areas where we are planning to invest is uh when we're looking at now having record passengers, higher level of passengers, we see, for example, restrooms is an area where we're investing with with people where a lot of the times like okay, we are maybe it we cannot go fast enough to either replace toilet paper, replace soap.

I think things like that where we're looking into maybe some supplemental supplemental uh headcount to help with with with on those bigger loads of of passengers.

So some of some of the things when you're looking at 2026 that we're trying to look at what are the needs of of the airport.

So we we we're trying to invest in the right places in the right areas.

Cybersecurity is one of the areas where we we are investing also in 2026 and also as well in 2025 that we have started those investments.

So again, what we have in front of you as a as a whole, we're bringing for a proposal for approval for the airport system fund 247 million, four hundred and twenty-three thousand dollars, and for the capital improvement fund 330 million.

And the next slide.

Thank you.

Um thank you to the all the the staff that are here from the airport authority.

Appreciate you guys coming down here.

Uh colleagues, any questions for these individuals?

Councilor Brown.

Thank you, Mr.

Chairman.

Uh I just wanted to say looking at my calendar for the month, this was the uh meeting that I knew would be the least heartburn out of I think all the municipal corporations and all the agencies and departments right now.

Um you didn't get affected by SB1 to the extent that almost anybody else did, and that's really great to hear.

Um I I did have a question about 91% of capital funds spent locally.

I I was just curious, how do you spend capital funds non-locally?

Like what was that nine percent?

Is that just hiring contractors based out of state to do remote services or it's it's the so it's uh it's actually pretty common for airports to use uh national companies when they're doing work at airports.

I mean, that work is specialized to a large degree.

Um so yes, some of the the materials uh come from out of state in a typical setting as well as uh particularly the contractors.

Um we are actually blessed here locally.

We have a lot of good engineering and architectural firms that do airport work here.

Uh a lot of folks don't have that.

Um but predominantly is is you you guys know from a lot of the work at the city.

Um engineering costs money, but it's pales in comparison to the construction costs.

So that would be where most of it is.

As I said, normally airports are using companies.

Instead of growing those um capabilities here, I mean, for I've been at the airport for 14 years.

I mean, that entire time, we have really had an effort, um, a push to train the contractors to get people brought along to um, you know, we look at we look at our contracting community and we advocate that they come together as a team when they come do these projects.

So that transfers those skills.

We have a lot of folks that have been trained up over the years and are now prime contractors on some of the projects.

Um we're also out in the community a lot talking about the projects, convincing people, it's not so hard to work for us.

Um, you know, a lot of the security, a lot of the things that's a little intimidating to work at an airport.

So it takes a little bit of work out in the community to help get folks acclimated to come work with us.

So that's I mean, that's uh that's the long-term gig, and it's been successful as you can see by last year's results.

It's culminated in some nice work.

Thank you very much for that.

And this is more just uh attaboy and keep it up than uh you know anything else.

But you know, the I was thinking about how the airport can better impact the city, and obviously spending those dollars locally has a huge impact.

We thank you for that.

And then I know you're already doing this, I know you're working on you know work study programs, etc.

But the more we can have an upward lift on wages from the airport.

I know you have to justify to the FA and to everybody else.

Uh you can't just give everybody a million dollars, but the more you can help with wages, uh, which I know you're already doing is greatly appreciated.

I just had one final question, Mr.

Chairman, if that's okay.

I I don't want to you know be all happy talk given you know economic situations, you know, jobs numbers are looking a little scary.

What keeps you up at night?

I know you've got plenty of reserves, what 500 four days, 540 days.

Um but yeah, what what what worries you the most about anything potentially with the economy?

Uh there's a lot of things to worry, yes.

But having said that, we mitigate the worry.

I will um challenge you to find another organization that has over 500 operating days of reserve.

Those worries are mitigated with 500 operating days of reserve.

Uh this exceptional team behind me went through COVID without missing a beat.

We went into COVID with over 400 operating days of reserve, and the federal government, because other airports weren't as prudent as us, decided to give the entire industry a lot of money.

We took it obviously.

Now we have 530 days of reserve.

Thank you very much.

Councilor Hart.

Thanks, Mr.

Chair.

Um, and I'm I'm always pleased to see you know you guys present and uh happy to to congratulate you guys on another award that's coming up, even if it's a premature congratulations.

Uh, but I think it's really interesting, and it's a good, you know.

I don't call it a litmus test, but it's a a good indicator for Indianapolis as a whole that I think you guys have the info.

But it would be the number of inbound flights year over year and the percent of growth.

I would assume there's growth, but it that could be a false assumption.

I'm just considering that there's increased revenue and airline uh dollars, but there could be changes in airline fees and too.

Um you could take us as a barometer of the economy and a barometer of the community.

So this increase in passengers and inbound flights is a very good indicator of what's happening with the economy.

Now we do understand that the economy is cyclical.

That's why we have 520, 530 days of reserve.

But as of now, and as of now and looking backwards, the economy has been doing very well, and our non-stop destinations.

Most people think that we like take a guess at stuff.

We don't.

When you have a flight coming in, it's data driven.

So the flight to Ireland was completely data-driven.

So upon its launch, we knew it was going to make money.

And it is making money.

All the flights, all the non-stop destinations are data-driven.

And we've got more than ever before.

I'm not saying that that'll stay forever because of the economy is cyclical, but as of now, we're in good shape.

So it is it safe to say or true statement that we have more people coming to Indianapolis?

We have more people coming to Indianapolis than ever before.

Beautiful.

Which is which is a fantastic thing.

And also, one data point from the flight of Ireland, for example.

Last year, the United States in let me rephrase that.

Last year, Indianapolis imported from Ireland $30.1 billion dollars worth of goods.

One out of every four dollars coming into the United States is coming directly into Indianapolis.

That's why these flights make sense.

So awesome.

Thank you, sir.

Thank you.

Any other questions?

Councilor Brain?

Thank you, uh Mr.

Chairman, and thank you, uh Mario and your team uh as someone that represents the Southwest side where um I know the airport's split between two council districts, but I'm proud to claim majority of the footprint of the airport is in District 21.

And uh it's a blessing to have such a well-run entity there calling the Southwest side of Indianapolis home.

Um couple quick questions.

When we look at the local spend, what do we define as locally?

Is that the entire state of Indiana?

Is that Marion County?

Is that Central Indiana?

How do we come up with locally?

It's we try to we try to focus in on the state of Indiana.

So everything from a it's it's the entire state.

That's the focus.

So we could isolate it a little bit more, but we chose to then take the entire state.

Okay, and then just one follow-up question.

You know, having 350 million dollars of cash on hand, very impressive.

Um do you guys have a community reinvestment budget or some sort of community impact budget, specifically geared towards the Southwest side.

No, we do not.

But having said that, we're bounded by a lot of federal regulations when it comes to the version of revenue.

Comes from moving revenue to one place to the other.

The challenge for us, realistically, if it would be easy to take 300 million dollars or 350 million dollars and transfer it, right?

We can't do that.

So the way we monetize the investment that all of you have in the airport is by focusing in on making sure that our dollars are spent locally, making sure that we support community groups, making sure we support the chambers and things of that nature.

Um there's a lot of federal regulations that prohibit us from moving money, cash money from point A to point B.

I appreciate that.

Thank you.

Any other questions?

I'll take uh not so quick.

Oh, okay.

I'm gonna ask a couple questions.

I saw that you were uh in New Orleans.

Yeah, it's a wonderful city.

I'm on my way down there in a few weeks.

I'll give you a couple of restaurants to go to.

We gotta get a direct flight.

Yes, we do.

I don't want to fly to Houston, go to New Orleans.

You should not have to fly to Houston.

I we will start working on that one.

Um quick question, and if you could just speak to this, you had an incident not too long ago at the airport, some firefighters were hurt.

I think one was Wayne Township, one was uh airport.

Just can you speak to that and how that was in that the reason why I'm thinking of that because I'm thinking about this hotel coming up and is the airport, I would assume preparing making preparations.

Don't tell us uh the the airport takes uh public safety incredibly incredibly uh it's basically what we do.

That is without public safety and without a safe airport.

What do you call those table stakes?

Without that, that's if we don't do that right, we can't do airport.

So we take that incredibly incredibly um seriously.

Our our aircraft rescue and firefighting units are probably the best trained in the nation and have the best equipment.

All our equipment is brand new.

Our police officers are incredibly well trained to such a degree that we have programs that are both developed by IDF and Disney combined to train our police officers.

So it goes up to a higher level.

So all our public safety is incredibly well trained.

The new hotel will add a little bit more complexity, but we were already taking care of it.

And you'll probably see in the next couple of years, augmentation to our ARF to our firefighting units to handle that hotel.

And the two firefighters, they the two firefighters, we will get back to you on the two.

I believe they're fine, but I don't want to I want to check with the chief before I get back to you.

Sure.

Any other questions?

DP Brown.

Sorry, just curious on this because we're dealing with this in other parts.

Do you guys are are the firefighters there part of 416?

Are they in the collective bargaining unit or they're in a collective bargaining unit?

And we're at present time uh speaking to them about their contract.

So okay.

Are they in the so you guys are in negotiations?

Yes.

And will that affect the budget at all?

Or you it should not.

And we're taking that into consideration.

So they operate, I hate to ask this because it's confusing sometimes with our fire service.

They operate kind of like a Wayne Township or Lawrence, where they're part of 416 but not part of IFD.

They're they're not part of IFD because they're they're uh they're trained specifically for aircraft fires.

Okay.

We you know, we have structural units, but it's very few comparatively speaking.

Okay.

I'd love to take you all out to the to the airport and show you the difference because the difference between the fire, even if you look at the fire apparatus, you'll get it.

It looks like nothing that you've ever seen on the streets of Indianapolis.

It's specifically designed to fight a fire.

So in other words, once they take off from one one great data point, is they are expected to take off from the fire station from the farthest fire station and get to the farthest farthest point at the airport in three minutes.

Pierce the skin of an aircraft, fill it up with foam with about 150, I think it's either 1500 or 3,000 gallons of foam.

That's what they're supposed to do.

So that's completely different to to a firefighter in in Indianapolis.

And their equipment is designed to that call it kind of like a Ferrari of of fire equipments.

Each piece of equipment is over a million dollars.

Wow.

Yeah, I know.

I I I personally would love to do that.

But we get invited oftentimes as as counselors to go through the 416, the I Indianapolis Firefighters Training Center and get to see all the apparatus.

That would be really cool.

Um and then just because Wayne Township was also involved in that.

Do just sorry, my stepdad's a firefighter.

This is very interesting to me.

Um are they inside of do they get training also if they also have to co-respond those close stations?

There we have mutual aid agreements.

And yeah, everybody kind of if something happens at the airport, everybody comes to the airport.

As a matter of fact, the airport helped uh outside units.

It was a little bit long ago, and I I forgot the actual details of it, but it was a it was a fire that was in uh was that the Walmart logistics cinematographic.

No, no, no, it wasn't logistics, it was a tire fire.

Yeah, yeah.

And and and the they didn't have the right equipment, but with our equipment and with the phone that we use for aircraft, it kind of put it out.

So they were on 465 not too long ago and addressed the situation there as well.

Cool.

Sorry.

Councilor Jones.

Thank you.

Thank you very much for your presentation, and kudos to all your staff for your wonderful awards.

Um on the firefighter question, um one last question or at least for me a question.

It's on the pension.

Would you know if your firefighter, if you airport firefighters are in the same pension fund as the rest of the no, they are not, and that's part of the negotiation that we're talking to our firefighters about.

Okay, okay.

Thank you very much.

I appreciate that.

And thank you very much for being here.

Thank you.

Thank you.

Seeing no further questions, I think we're gonna move on to our next item.

Thank you.

I appreciate you all for being here this evening.

Um committee, we're now gonna go ahead and hear proposals number two eighty and two eighty-one, if the library would like to come up.

If the library would like to come up, we don't think we'll just double check the uh statement.

While they're preparing, just to read for the record, in case anybody's watching on TV, proposal number two eighty and two eighty-one approves the issuance of the Indianapolis Marion County Public Library General Obligation Bonds, and an original aggregate principal amount not to exceed 15 million.

Proposal 281 approves the appropriation of the proceeds and investments earnings of the Indianapolis Marion County Library General Obligation Bonds.

The floor is yours.

My name is Lilith.

Good afternoon, Chairman.

My name is Lolita Campbell.

I'm the chief financial officer here at um Indianapolis Mary County Library.

I'm here today to present the proposals 280 and 281, and that's the insurance of the $15 million long-term capital multi-facility bond.

Um here with me, I have Jason Tansell.

He is with um Baker Tilly.

Uh I'm sorry, I went blank.

That's how stressful this today was some ones uh one.

I want to apologize for being late.

But anyway, um I have Jason Tansell with me.

He is with um Baker Tinley, and um he is our municipal advisor, and I also have Hannah Kleinerman.

She is with Barnes and Thermsborough, and they are um counsel for our bond.

Um, here on our presentation.

Let me get this started.

Jason.

Jason will go through uh a couple of slides of the presentation, then we'll come back to the proposal if that's okay with you.

Okay.

Good evening, committee members.

Thank you for having me.

It's tonight's meeting.

My name is Jason Tantle with Baker Tilly.

We represent the library as its municipal advisor.

Tonight before you, we have a presentation that summarizes the library's 2025-2026 long-term capital improvement plan bonds and how the library would anticipate paying for this project through the issuance of a property tax supported bond not to exceed 15 million dollars.

As we review this presentation, it's important to keep in mind that the library does not anticipate increasing its debt service tax rate from the issuance of this bond.

Uh, we will be at the longstanding target of 3.18 cents in the debt service tax rate fund.

Here on slide two, we have a visual of the 10 bonds currently outstanding and payable from property taxes.

Uh go back to five two.

Uh payable from property taxes.

You can see that annual payments in 2025 are roughly 21 million dollars, and that every single year thereafter, payments are declining until all debt is repaid by 2030.

Uh, because the library has obligations coming to maturity, it does have the potential to replace these payments uh without increasing its debt service tax rate.

Next slide, please.

The bonds being discussed tonight are general obligation bonds, and there is a limitation as to how much uh the library can issue.

This limitation is two percent of one-third of the most recent net assessed value, which for 2025 is 59.8 billion.

Factoring in the roughly 43 million dollars that the library has outstanding, you'll see that there is approximately 355 million uh under this limitation.

So the 15 million dollars being discussed tonight fits well within this parameter.

Slide four is a summary of the uh pertinent financial information.

Again, this is a borrowing amount not to exceed 15 million dollars.

Uh we anticipate that the library would be able to issue these bonds this year by December, first hitting the tax rolls next year in 2026.

Estimated repayment term is three years, and based upon a five and a half percent interest rate, we are estimating an interest expense of roughly 1.5 million.

But as we have discussed, there will not be a tax rate increase from the issuance of this bond.

So we will be at the 3.18 cent target that the library has been uh adhering to.

And then on our final slide, we have another visual of what this proposed three-year repayment term might look like.

In gray, those are the 10 bonds currently outstanding from slide two.

Blue represents the proposed three-year repayment term for this $15 million bond where you can see debt service payments would still be declining in 2027, 2028, and we would not be extending the maturity of these bonds beyond the 2030 uh year that we have already outstanding.

And so with that, I would turn it back over to Ms.

Kim.

Thank you, Jason.

Um incorporating this 15 million dollars, um about 60 percent of it would be spent on the renovation of West Indianapolis branch, and the remaining well, about 20 more percent would be spent on multi-facility um capital improvements from other um branches of the library, and the remaining would be spent on miscellaneous um like collection material and um IT um refresh and stuff like that.

So um this is uh something that is needed for the library.

So that's why we bring forth the proposal of 280 and 281.

Okay, thank you.

Counselor Pierce, can I take uh both proposals 280 and 281 together?

Or do they need to be separate?

You can.

Okay.

Um counselors with your permission, I'd like to take proposals 280 and 281 together.

Are there any comments or questions for the library?

Counselor Brown.

Thank you, Mr.

Chair.

And thank you both for being here tonight.

Um I just wanted to kind of briefly give comments and ask a question, and if you don't have the answer tonight, I'll take it later.

Um I I know when I was new to the council last year, I was a little surprised because there was a similar proposal last year, and you know, generally it seems like it's good public policy for the library in terms of predictability to the public to keep that tax rate the same, meaning, as we just described, as bonds fall off, we issue new bonds, right?

So that we're always paying the same amount, no sticker shock to the tax bill.

But it strikes me that you know when you have to hire multiple different advisors and pay interest on all of these bonds, that does end up impacting taxpayers as well.

Um God knows the library can use every dollar we can give you, and so you know, I will be happily voting for this no matter what your answer is.

But I'm just curious, is this you know, and maybe the question is more for Baker Tilly if you have the answer.

Is this how all cities do this?

I know it's not necessarily standard for a municipal corporation, public private partnership for a library system.

Uh, but yeah, is this common across the Midwest, across the United States?

To the extent you can answer just off the top of your head, sorry.

Uh absolutely, and I guess to answer the question, I will just speak from a library perspective.

Um for capital improvements of this size and magnitude, uh, libraries can only use property taxes to repay these types of bonds.

And so um, as far as is this normal for Indiana libraries, I would say uh this is a very commonly used mechanism for libraries to uh pursue these types of projects in capital nature.

I don't want I won't necessarily speak to other uh you know other states or other municipalities, but for libraries, um this is relatively common.

Got it.

So just not not to twist your words at all, but it seems like it's kind of an artifact of the way taxes work and and statutes applying to libraries, so you know we can't just say, hey, we need X amount of dollars to run our library, instead we can just say, well, the public's obligated to pay back these bonds for capital improvements, and so we have to do this kind of roundabout way.

Is that is that a fair analysis?

I'm not positive I fully understand the way you're asking that.

So maybe potentially after would it be possible to connect after that?

Absolutely.

Yeah, and like I said, I'm voting yes either way.

Um was just kind of curious because uh got questions from constituents, and I found myself trying to explain, and I I felt like I got them there, but then confused myself.

So thank you.

Thank you.

Thank you, counselor.

Counselor Gibson.

Thank you, Mr.

Chairman.

Um I uh frequently uh go to your libraries on that this summer.

My son made his tutor at the Glendale Library uh twice a week all summer.

So I was in the library all summer.

Yesterday I was in my library, East 38th Street Library.

Okay.

And um it's a mess when you compare the two.

When you compare the two.

Um I've asked uh last year in the budget session when we were going to have some upgrades at the East 383 library, and I I haven't got an answer from you or your CEO uh yet.

Um the carpet is completely soiled.

You walk in the building.

Uh it's obvious that there's not maintenance upkeep on that location.

People hanging out in front of the library.

And um that's a staple in my in our community, and uh I just believe that we can do better than that.

So you're coming asking for additional approval for bonds up to 15 million dollars.

My question is when can we expect some improvements with East 383 library?

Well, we uh recently, I think a couple years ago we had a facility assessment performed on all the branches, and this is how we came up with West Indianapolis for this year's um bond.

So there are scheduled for each branch for renovation.

Um but as far as the carpet and you say people hanging out, uh, have to bring that to our CEO so we can address that.

But um East 38th Street is up for a uh renovation.

I think within the next couple of years, I don't have it in front of me, but each branch has a certain year that it gets renovated.

Yeah, I I I appreciate that.

And I I um I'm hoping that's not the worst library in the city, but it feels like it is.

Um I think it's reason to expect that um there should be some parity of service across the city.

You shouldn't go into my neighborhood and feel like you less less less than and that's what I feel like when I walk in that library.

And maybe I'm maybe pretty critical, but it it is serving critical needs too, and I'd like to see now I will say that I I think uh the technology is there.

I I I believe the books are there because my son can find books that he wants.

So I I believe the technology, but in terms of uh you know amenities and appearance, upkeep, cleanliness, safety.

I I I I question that.

And it it'd be uh I'm I'm being pretty as calm as I can about this, but I I I don't don't feel like you guys are hearing the urgency here, and it's feels feels feels like a need that's not being met.

I do hear you, Counseling Gibson.

I would make sure that um I have a discussion with our CEO, and we're both of us will send you an email.

Thank you.

Uh-huh.

Counselor Gibson, they'll be presenting their budget next week.

Yes, on this.

At that time with the CEO.

Thank you.

Counselor Hart.

Thanks, Mr.

Chair.

And just a quick question, because I may have missed it, and that that could be completely on me.

Uh are these bonds for improvements?

I I think I heard you say West Side facilities.

West Indianapolis branch.

So just one branch.

One branch for the majority of the 50 million, about 60 percent of it, and then the remaining would be mu you know, like miscellaneous multi-facility branches.

So it just depends on which ones needed at the time.

Okay, so 60 percent go into the West Indy branch, and then sounds like 40 percent that can be moved around and maybe some carbon fix.

So uh thank you for the clarification.

Counselors, any other questions?

Seeing none, is there anybody in the audience who'd like to speak to proposals 280 and 281?

Seeing none, counselors would like to take a vote on this proposal.

All those in favor say aye.

Aye.

All those opposed, same sign.

Can we get a motion?

Yeah, we do, and we need a second too.

I was gonna see if you're gonna let me skip the whole thing.

So uh let me do it properly.

Counselor's uh counselor graves, uh Mr.

Chair.

I move that proposal 280 and 281 that have been combined uh by consent be moved to our uh next full council meeting with the due pass recommendation.

Thank you, sir.

Second it's been moved and seconded.

All those in favor say aye.

Aye.

All those opposed.

Thank you.

Thank you.

We'll see you next week.

Yes, thank you very much.

All right, CIB, let's roll.

Come on, Andy.

Oh, they sharing like CFO duties with the airport or what?

Are they sharing like CFO duties with the airport or what?

You just don't want to leave us, do you?

I personally liked your presentation on airport finance.

Thank you.

Thank you.

Goodbye.

Thank you.

The floor is yours.

CEO Mallon.

You've got it.

All right.

Good evening.

We will try to take as little of this time as possible, but wanted to give you the opportunity to understand the 2026 Capital Improvement Board budget.

Quick overview.

We are a creature of statute, like all the municipal corporations.

We began operations in 1966, 60 years ago.

So this next year will be our 60th birthday.

We were created and we are authorized to finance, construct, equipped, operate, and maintain capital facilities or improvements, general benefit or welfare, which would tend to promote the convention cultural entertainment and civic well-being of the community.

We began first with our world-class facilities by constructing the Indiana Convention Center, which opened in 1972.

Since then we've opened a number of facilities currently, we oper own and operate the Indiana Convention Center and Lucas Royal Stadium.

Hudnut Commons Garage, which is next to uh it's that garage that's uh by the Weston, and then also numerous surface parking lots.

Um our board is comprised of nine members, uh, one appointed by the council, obviously, uh, five appointed by the mayor, two appointed by the governor, and one appointed by county commissioners of each county that has a view food and beverage tax um surrounding uh Marion County.

Um we have 175 employees, full-time employees, um, and our departments include or our staff include pipe fetters, electricians, carpenters, painters, telecommunications techs, field techs, housekeepers, grounds set up in all in its man, all sound and light, or stage hands, um, and so on and so forth.

But that's gets you that's um before we even start getting to our administrative and legal staff.

Um next slide.

Uh community impact generally um comes in the form of being stewards of the hospitality industry event and hospitality industry in Marion County.

Um most specifically um in downtown Indianapolis.

Um some examples of the impact attendance in Lucas Royal Stadium in the and the Indiana Convention Center in 2023 was 1.9 million.

2024 jumped to 2.6 million.

Um direct visitor spending in Marion County in 2023 was 3.8 billion dollars.

Um we generated or tourism uh generated uh roughly 430 million dollars in state and local taxes in 23.

Um and this it comprised just in Marion County, uh 47,000 tourism jobs and over one or nearly 1.9 billion dollars in annual wages just in Marion County alone.

Uh we also contribute back to the city of Indianapolis through public safety grants, which is a direct um percentage of the admissions taxes that we collect, and in 2024 that was 3.6 million dollars.

Um we also support numerous community partners thanks to Judy Thomas, who's here um is one of the partners that we uh uh help um and to steward the this industry and the the tourism industry in in downtown Indianapolis in Marion County.

Um past year our successes 2024 was a record breaking year in nearly every respect.

Um total revenues was over 238 million dollars again.

Record attendance at LucasOil and the convention center.

We added translators for workers, we implemented um numerous uh security changes based on a review I'll talk about in a second.

Um a chiefs sustainability certification in Lucas Royal Stadium and began um in earnest working on an overall comprehensive sustainability uh program in uh both the convention center and Lucas Royal Stadium.

Um we are continuing to fine-tune internal reporting and um are recognized as a uh top convention city in the country.

Um a year ago today, you'll recall we had a heartbreaking tragedy where we lost one of our employees, and we talked about it at this meeting.

Since then, we um and as I described in that meeting, we implemented um various security changes mostly regarding personnel.

Um those continued have continued, those personnel changes.

Um I think in the convention center, if you were to walk in today, you'd see a much different security profile just um at first blush.

Immediately after, as we promised you we would, we engaged a um a world-renowned uh consulting company named Tenio.

Um Tenio is run by uh Commissioner Bill Bratton, who is former commissioner of New York City Police Department and Los Angeles Police Department.

Um they have done conducted similar security reviews for following tragedies, most notably um the Las Vegas shooting.

So what would I I want to say that was 10 years ago now, but did its very similar review and most recently were brought in to address the security uh incidents that have happened in Nashville and most recently in New Orleans.

Um they can they worked with us at very uh very diligently at the end of last year, but after this meeting, and after we had a chance to talk to you and at the beginning of last year, uh came up with and developed a series of recommendations that we have begun a very methodical um implement it implementation program for.

Um first of which was to hire a um professional security uh security professional completely dedicated to the convention center.

We our our staff had been bifurcated as between Lucas Oil and the Convention Center.

Now we have a former IMPD Homeland Security Officer who is running convention center security solely.

Um we hired him specifically to help us implement the plans.

In the budget, we also have um uh we've increased our budget to accommodate not just the increased staffing but also capital improvements such as Bollard's um looking at improvements in cameras and and the like.

So um we've begun that that process.

Um it will it's not something you snap your fingers.

Um it is as we discussed at the time um a balance between how do you have a very accessible um and pleasant visitor experience at the same time that you're having a very secure um and safe visitor experience.

The safest convention center is one that's locked and nobody in it.

Um so we have to figure out that balance between the two, and we have the staff and the resources to do that.

Um moving to goals for 26.

Um, I can't uh tell you the concerts we're bringing, but we're bringing more concerts next year than we had this year.

Um we had a great year in 2025, especially early with um uh it was Sting and Billy Joel, and then we also had WWE, which is a sports, but also a concert.

Um and uh we have very good leads on um concerts in 2026.

There will be more stadium concert tours around the United States than there were in 2025.

So we're gonna um pick up we're gonna pick up on those um in 2026.

We have the 2026 NCAA men's final four.

We also have division uh two and division three um championships at the same time, as well as the NIT championships all in April of 26.

Um we have uh the American Society of Association Executives.

That is the supervolle for folks like Visit Indy, right?

Um it's the association execs who decide where to hold annual conventions for their associations, and so they will all be gathering um in one spot um in Indianapolis in and the Indiana Convention Center next year.

This is a meeting that Visit India has been trying to land for decades.

And we've we were lucky to land it and now we're executing it on it in 2026.

The Society for Hispanic Professional Engineers, as well as our normal stable of 20 plus annual clients, including firefighters and structors conference, Gen Con, FFA, PRI, and volleyball and all the like.

Again, maintaining a high level of safety, security on aging buildings and fake fulfilling commitments regarding the convention center expansion and hotel project.

Again, we're going to continue to foster economic growth and develop and serve the city's convention, cultural entertainment and recreational activities.

Our overview is that we will have we are budgeting revenues of around 212 million, which are 10% down, which we will explain in a second, or 24 million dollars from the 2025 budget.

Our expenses are 247 million, which are again down 9% from the 2025 or 25 million from the 2025 budget.

We have a budget of a net amount of negative 35.5 million, which is about a million dollars better than last year.

But that gets to our next slide about budget funding.

Historically traditionally has budgeted with a significant amount of contingency baked into our budget.

And then coming to you with a fiscal ordinance to again get your approval, get it introduced, get it heard, get it approved, rather than just going and doing it and then being able to continue to host meetings while we're doing those repairs.

That's on the negative side, the positive side.

Sometimes we will book a concert, for example, that will require a bunch of upfront spending on our part, but that we don't get paid until we get the taxes, say in 2026 or 2027 in this case, right?

So we will spend that upfront money, pay the stage hands, pay everybody, but the revenue from the the build or from the event itself and admissions taxes and hotel taxes, we wouldn't realize necessarily until 2027.

So it allows us to do that additional spending without coming back to you, but also do it in real time so we can take advantage of business opportunities as they come.

Our performance over the last couple years has reflected this.

Um in 2023, our budget was about two and 2.4 million dollars in the red.

Our performance, however, was two point or 26.8 million dollars in the black.

Similarly, in 2024, our budget was negative, very similar to this budget, negative 55.5 million dollars, and we were 20 we ended up 29 million dollars in the black.

So again, we we budget for contingencies, we budget for uh uh problems, and then um traditionally have overperformed significantly.

Uh I I one of the reasons 2024 was so good is we had scheduled a bunch of capital projects in 2024, but we were so busy we couldn't get to them.

So we we've spent that money in 2025.

Um I don't think uh 2025 is not gonna be as good as these other years, um, but it'll be significantly less spending than what we budgeted for in 2025.

Um so that's how we do it.

Um as of importantly, at the end of June, we had um unrestricted operating reserves of about 239 million dollars.

If we were to spend every dollar of the budget for 2026, we would be at 209 million dollars at the end of 2020.

Or no, at the end of 2025, we were expected to be at 209 million dollars.

So take that negative 35 minus or 209 minus the 35, and that's where we expect to be at the end of next year.

But again, we plan to significantly overperform our budget.

Next, I'll hand it over to Tim to go through the highlights of each character first revenue and then each character on spending.

Sure.

Thank you.

In your packet, you did get an Excel spreadsheet that has all the detail, but I don't want to go over all the detail.

So I'll just hit some of the highlights.

So it's a it's a pretty conservative forecast there on the tax revenue side.

Looking at the operating revenue, uh it forecasted or the budget is fit just over 51 and a half million dollars.

Um that is a decrease of about 34 and a half million dollars.

Uh the main reason there is in the miscellaneous income line item there.

You'll notice there's a $34 million uh decrease between 25 budget and 26.

There's just a potential infusion that we had in the 25 budget we don't have in the 26, so that's what's causing that to be down there.

Um the expense side, the character one uh we budgeted just over 32 million dollars.

Um that is about an eight percent increase.

There for our full and part-time employees, we do have like a three percent increase, but we're not increasing head count at all.

Um, but there is also like a union uh wage and benefit increase due to the the most recent contract negotiations.

Um of the other increases come with like perf and training increases that we have there.

Character two on the supply side, um, we see an increase there.

Um the budget is just over eight million dollars.

Uh it's just due to the increasing costs that we uh are experiencing now, and we anticipate to continue next year.

Um character three uh budgeted just over 140 million dollars.

That's about a 24 percent increase there.

Um, some of the items there, um, the security costs that Andy has already um mentioned um you know, just to continue to keep our best in class security for our facilities and based off of that security review that we did hold.

Um repairs and maintenance just to keep our aging buildings to the the level standard that we were accustomed to.

Um we do have a long-term plan maintenance plan that um we have developed and you know, kind of monitoring that um as well as um keeping maintenance on those facilities so that we can keep those um long-term fixed asset costs down, um and then the other grants line is is up about 11 and a half million dollars, and there's um some grants for the hotel um Pan Am Tower, and then also visit Indy for the ASAE, which is the Super Bowl of conferences that Andy was talking about as well, um, kind of supporting that uh um so that when they bring in we can put our best foot forward and um show them how good Indianapolis is.

Um so there we're you know investing back into the future of Indianapolis with the hotel and the the ballroom and so that we can bring bigger and better vents into the city.

Um capital investments character four uh budget is just over 35 million dollars.

Um that is actually a decrease from the prior year in 2025.

We did have a pretty significant amount on the hotel and construction.

Um so we're not doing that this year, so it's down for because of that.

Um some of the bigger projects in 26 though, we do have three sky bridges.

Um, one of the items that we hear um very often from our surveys of our clients is that the walkability of Indianapolis is one reason that they love it, um, and that is due to some of the sky bridges that we have.

Um, so um building more of those sky bridges, and you can see um you know which ones they are um and then also reinvesting back into some of our facilities.

So the Wi-Fi at Lucas Oil Stadium is a seven million dollar project there, and then the seating at Victory Field replacing that is a four million dollar project there.

Um the the renovation at the Indiana Convention Center, the lobby and the boardroom office is there that came out of the security review as well.

So the debt service 2026, that is just over 31 million dollars.

That's actually a decrease, but that is right in line with our budget uh or our payment schedules and the amortization schedules.

So I think I need to turn it over to Kobe Wright.

Oh, yeah, nobody was.

I'm sorry.

Sorry, that was on me.

That's on me.

Uh turned over Cobby Wright for the equity portion of this.

Good evening.

I'm Kobe Wright, Chief Legal Officer for and Business Operations Director for the Capital Improvement Board.

Three years ago, I assumed the duties of uh diversity equity and inclusion as the executive for that matter for the CIB, and this is consistent with what we've done in the past year.

Uh you'll see on page 17 uh some of the accomplishments that we've undertaken, some of which are similar to the prior two years.

Number one is uh the quarterly DEI training of salaried and CBA staff.

Three years ago that was non-existent.

That's now uh a part of our regular course of business.

Uh we also have a continued membership in the diversity round table with the Indy Chamber, which we started I believe two and a half years ago.

Um for the third year in a row, we are sponsoring a two uh students, high school students, at Providence Crystal Ray High School, which is just on the south side of town, and uh they come on I think Wednesda Monday and Wednesday.

Um, and that's worked out well.

We've had I think three different students in that program thus far.

Uh where we've been working to do, you would think it would be easier.

You would think it would be easy to just implement a procurement system, at least I thought it would be.

Uh, and uh I should have known better.

Uh because I think about a couple of years ago I had mentioned that we were trying to put in place a procurement software or trying to identify one.

We thought our procurement folks already had identified one, and it turns out that was not the case.

Uh, but we're now uh implementing a procurement software that the city of Indianapolis uses with an entity called BTG now, and that will allow us to track our spend right now.

We're like uh IBM 1950s mainframe that you have to you know kick to start.

There are three different people that track our XBE spin to compile it.

Uh I shouldn't say track it, they compile it together, and it's just because the system isn't set up for it to push a button and know uh how we're spending based upon our our vendor community.

Uh but BTG now that's what they do.

Um, and so we're putting that in place, and that'll take about a year apparently uh working with them to make that actually home.

Um we hired this year as last year, a John McClendon uh minority leadership fellow at Lucas Oil Stadium.

Um I think the gentleman who was hired last year or the student uh actually left because he got a job offer uh somewhere in New York.

Uh so that turned out to be uh a success story.

Uh we continue to uh sponsor uh a number of different community-based entities that are in the DEI space, the Indie Black Chamber of Commerce, uh the Indiana Latino Expo, which just had an event last maybe two weeks ago that we were at, uh, and employee Indy as well.

And then here's the nuts and bolts of our spend, as I mentioned before.

Uh in the I've been at the CIB for eight years now, and I am confident that that I can say that I've never that I have not seen our report a report that had us spending 17% of our uh of our spin on MBE.

We've come around 12 to 15, but not not 17.

And I think some of the spin this year, I think in March it was at 21% and uh for that month, and then 22% the next month.

And then we have for the WBE spin that's at 9%.

I think that got up as high as 11% in April.

Uh BBE has a spin, but it's not a uh it's a negligible percentage.

And then DOBE, which is where we've been for the past three years at 0.1%.

So Mallins at the end of your guys' presentation.

Yeah.

Okay.

Um before we get started with questions, I do want to recognize former deputy mayor uh Judith Thomas here.

I I had to leave early before our parks committee the other day, and uh otherwise I would have told you how much I appreciate the arts and uh happy to see that we're still supporting them.

Uh counselors, any questions for Councilor Hart?

Councilor Bain.

Thank you, Mr.

Chair.

Um just a couple here.

Uh first, you know, we were just in public safety last night, so it's front of mind, and one thing that came up from multiple counselors was uh the spend and cost to IMPD for you know, helping to keep events safe, essentially.

And that was in a uh you know a broader context term of really they're trying to get some vehicles and are talking about where to find funding and things of that nature.

Um I did see in this presentation there's three point six million that it says goes to a public safety department.

So yeah, this is this is a uh uh uh uh a deal we've done with the city for since the Ballard administration since I think 2012-2014, um, where by um the CIB contributes a percentage of the annual admissions taxes that we get um back to the city to cover those costs.

Um so we've been doing that for over 10 years.

Um so at and it's tied to the admissions taxes, so as we sell tickets and and visitors increase um the the reimbursement back to the city um grows.

So do you know what fund it comes to at the city?

It comes it I I mean it used to be to the public safety department.

Um we write the check to the city of Indianapolis, so it's part of the revenue stream that comes.

I I don't know where it comes.

I don't know where it goes once it gets here.

I'll work with our CFO to work with the the city to figure that out.

And then Mr.

Chairman, the other one is uh in years past, I believe I I recall seeing and and there's a chance I overlooked it.

There's a lot of numbers on these pages, um your reserve balance year over year.

Yes, it is in in there.

Um the is it in our ordinance it is it's also on page if I can find it real quick page nine shows the reserve balance as of June 30 30th it was 239 million dollars, and I'm forecasting that at the end of 2025 to be about 209.

So thank you.

And that's the unrestricted reserve balance.

Okay, perfect.

That's healthy.

Perfect.

Thank you, Councillor Brain.

Thank you, Mr.

Chairman.

Thank you for the presentation tonight.

On the 239 Um operating reserves, where is that money sitting?

Uh I imagine it's not just like in a bank account not doing anything, or do you invest that?

Oh, yeah.

No, we have an investment policy and it is in banks and it is invested very similarly to other municipal corporations in the city on various types of investments.

So it's um about what I can tell you the banks, but I mean it's uh you don't do you know what your return on that is uh right now we're getting about mid-4 percent right at the top end it's about four and a quarter percent.

Um there's it it varies uh between some of the banks, but um that I mean it's about four and a quarter.

It's usually tracks with the treasury right there.

There's a lot of money market funds and um there's some longer term stuff too, but all right, thank you.

Any other questions from the Councillor Gibson?

Uh thank you, Mr.

Chairman.

Um Director, you guys do accept our job, and I'm very proud of what you guys do there.

How many employees are employed with uh CIB?

175 full-time equivalents.

And what percentage of those a union?

Oh man.

Majority of home.

Oh, yeah, no, it's it's probably over.

That's the answer I was looking for.

I would say it's over 100.

Okay.

100 of them of the 175.

That's my gut.

Good.

Counselor Gibson, the entire non the entire non-salary workforce is you.

Okay.

So if you're paying getting making hourly wages in the in the center um as a full-time equivalent, your your union.

Good to hear.

Um I'm very impressed with your um your diversity dollars.

Uh congratulations on getting over your goal, and uh you probably uh uh example to set for other departments to see, uh especially when we we you know more than 30 percent of our residents are are minorities and uh uh veterans and uh uh uh other um needed areas in terms of getting opportunities out.

So I really appreciate that.

My question is about any of Black Expo.

And um are you are you invested in it at all?

Uh we don't I mean, yes, we contribute significantly to Indiana Black Expo.

Um we have have a ever since I started at the CIB, um we started with a unprecedented deal with Black Expo um to make sure that that they were getting the best kind of deal that we give at the at the convention center.

And we we work annually to kind of tweak it and extend it, but um yeah, I mean it it has to do with rent abate abatements and trying to to work through all of those things.

Yeah, but we're we're heavily invested.

Um Kobe Wright is on the board, um, and so we are we are great partners with them.

You know, I um like Keith Gray's I'm born and raised in Indianapolis and know Expo very well.

Um I just feels like it's a dying sword.

Um I know we've had some public safety controversies come out of it years ago, but for the most part recently it's a pretty we've pretty got done pretty well at making sure we didn't have um those events.

But I I wondered if we could do more to help it.

Um and I'm not asking you to uh make that decision today, but um it just seems like it's it's it's probably one of the longest serving expos in the country.

And um people used to come here from all over the country.

And I I imagine you could tell me that that's probably dropped down.

I bet you're not even I I bet you I don't know if you've got even got a um uh uh a pretty uh healthy uh return on investment with for it, to be honest with you.

Uh you know, I I think um what we've been able to do with Black Apps Expo is give them what they need um to put on the show that they want to put on, right?

And we work with them on that and and they're really strong community partners.

They of all people um understand the value of um having annual meetings in in Indianapolis.

And so when we go to them and say, hey, will you work with us, say for example, on the WMBA All-Star game, and let's let's let's figure out how we can share the convention center with this really strong opportunity, and how can we integrate what Black Expo and Suburbs Celebration does with what WMBA All-Star game wanted to do.

They were all all for it.

Um and we were able to integrate those.

We were able to brand the buildings, you know, in a way that we hadn't done before.

Um and so I uh you know I think we we all made it work, and that's really the definition of a strong partnership.

So I'm happy to help them at as they are as uh as they want to be helped and and um now we do need to make sure that we're we're maintaining our um our investment and that it it doesn't uh that we are able to get a return back.

Yeah, well I appreciate that.

I I think I think you're doing everything you can.

I I just was trying to get more in insightful about any black expo because it it it it needs some help uh in terms of uh staying alive in in my opinion.

And I'm not in I'm not in the no, but I I know enough to know in my community it is not being utilized.

Um and I want to switch gears on you.

Uh I don't know if you can talk any publicly about where we are on a stocker stadium.

So yeah, I mean there's been some reporting on it, and I'm happy to share where where we are.

Um we have begun the initial stages of design work on a potential stadium at the site that that you all um approved.

Um the uh what we're really engaged in right now, two things really is this design and deciding what we're gonna build, right?

Um we have to do that if we're gonna stay on any type of schedule consistent with what we had talked about with you all before.

Um there have been some some delays and hang ups um, you know, trying to get all the I could I always say trying to get all the planes to land at the same time, whether it's the state house and the MLS and the ownership group and and the design of the stadium, the design and construction of the stadium.

So we're trying to get all those of the land.

The only one I can control is the design and construction of the stadium.

And sort of order to stay consistent with the kind of schedule we were talking about, we had to start.

Um I think it also benefits the discussion to know exactly the type of stadium we're gonna build.

Um, and you know, how many seats?

Is it 23,000 or is it 25,000, or is it 30, or is it 19, right?

Like what kind of premium spaces are there gonna be?

What you know, how are we gonna sell it?

Those those questions are being answered as part of the design process.

And we'll get to a point where we know the stadium that we're going to build.

We're not gonna have all the drawings etched out, we're not gonna know the exact mechanical electrical plumbing systems or anything like that, but we'll know what the seats are, where they're gonna be, and and how it's gonna essentially look.

Um we also need to have a contractor that we know that you know, when we do get the funding that they're gonna be with us and they're gonna help build the stadium, and I want them there with the designer as part of this initial design phase so they can assist.

And so we're really working together as opposed to designing something that is hard to be constructed, and now we're having to go back and redo budgets, right?

So I'd rather everybody be on the same page, work with us as a strong team to get to that cons concept, get an initial sense of what what's the rough order of magnitude of what the spend is, and then we can then we can talk about it.

So many things in these stadiums depend on the what you're building, right?

Are you building 20% premium?

Are you building 15?

Are you building 40?

Right?

That changes the dynamic.

So that's what we're doing now.

We'll probably get through the end of the year.

I don't want to spend a ton on design.

We have a couple million dollars in our budget for that.

Again, I don't want to spend a couple million dollars.

I'd probably like to spend half that um just to get just to get to where we need to be.

Um I'm not gonna go design a building that ultimately doesn't get built.

Well, thank you for your foresight.

Uh you you're doing wonderful work, and I appreciate that.

Thank you.

So hope and I hope that uh we get a major lease talking.

So we'll see.

Same.

Thank you.

Thank you.

Counselors, let's be precise with your questions.

We're closing in on two hours.

VP Brown.

Super quick.

Interpreters, staff or outside people that you bring in.

Uh staff.

Amazing.

That's what I wanted to hear.

Thank you.

Counselor Brown.

Thank you, Mr.

Chair, and uh thank you for your presentation.

I'll try to be quick.

Uh, as Council Hart mentioned, you know, there was substantial conversation last night at the public safety meeting about the amount of overtime uh we're needing to pay for IMPD officers to handle public events.

Um I guess I a quick question about pardon me.

Quick question about do you directly hire IMPD officers as the CIB, or is that done like is that you know Gambridge does that separately or you know, the Simons do that separately?

Right.

So the the what we have built in Indianapolis as a community um and and is really the special sauce of why we punch above our way class in these in the event industry, right?

Why we have cities like you know, Cleveland and in Chicago to some extent, like chasing Nashville chasing us and trying to ask themselves why is Indianapolis getting these events is and we are not.

And it's the reason is because we're built on this notion of a very compact, connected downtown where every part of the city contributes, right?

And it's DPW, it's IMPD, it's the CIB, Visit Indy, Sports Corp, Um, downtown Indy, everybody we all get on the same local organizing committees, we all have the same public safety briefings.

Um frankly, we're really good at it.

Um the IMPD presence isn't directed by the CIB, it's not directed by the sports corp.

It's not built.

What happens is you is IMPD looks at the program of events.

So for example, the final four that's coming up in 26.

We have essentially four event spaces.

We have Lucas Royal Stadium, convention center, we'll have uh activate on Georgia Street with a tip-off tailgate, and then we'll have a music venue.

And then in independently and with the or with the the um event, NCAA or Turner in this part in this instance, um, we'll understand what IMPD needs to do in order to have a safe event.

And they do the same thing with IMS, right?

They they know every year 350,000, they know exactly what we need to do staffing-wise and logistically, which which roads need to be one way in, which roads need to be one way out.

So they plan all of that and decide how they're gonna staff it.

That's helpful.

Yeah, I I'll just be like d the direct feedback I got from several constituents after the public safety meeting last night is wow, it seems like you know, billionaire sports team owners, you know, the Penske Simons uh Ursa have done very, very well for themselves in the last five years, and the security costs are going up and up as we have fewer officers, and so we're needing to pay more overtime.

And so to what extent could we ask those billionaires to pay a little bit more?

So I don't think that's under your purview, though, is that right?

No, well, so let me let me let me explain a little bit further.

Where we need a a specific event needs uh uh an IMPD officer, right?

Um it it's it varies, right?

So the deal that Game Ridge may have to turn the street lights on and off on on Alabama and Maryland when Pacers Games let out, you know, they they may pay for some off-duty cops and then they may have and then IMPD assigns folks to be the ones that actually turn them on and off because they're not gonna give the keys to some off-duty.

You know what I'm saying?

Um we uh have off-duty officers that we pay about a $800,000 a year to patrol the skywalks and parking garages attached to the convention center, right?

To your point, we have better borne that cost it came out of this review, and um and we ac actually no, it didn't.

We actually started that before the review and all the the problems.

So um we've asked the hotels to contribute to that um and the parking garages, and none of them have.

So we are continuing to fund that and will until until we can't.

So um we hire sworn officers to be inside our buildings and provide security, armed security inside our buildings.

That's a cost that we bear, that's a cost that our clients bear.

Um that's a cost that the Colts bear during Colts games.

What happens outside um is what IMPD and and basically decides what it's necessary to be safe.

Um and and look, the Colts say, look, we're gonna close South Street and we're gonna have touchdown town and we're gonna do that.

And you know, the IMPD says, okay, we need officers there.

And I guess my question was like, as the CIB, what role do you have in saying, well, Colts you need to cough up more money to make that happen?

Is that you?

I mean, we have a lease with the Colts.

And we we live live out that lease to uh to a T.

Um, and there you know, there's uh 40 years of experience dealing with the Colts um uh and and dealing with that that lease.

Um and so we often get it out and say who's who has to pay for what.

Um and that's really the limit of what we decide.

I'm not characteristically going back to the Colts and say, hey, look, you need to write a check.

Um I I think what was intended and what has happened with the the public safety payments starting in 20, I forget when it was, I think it was 2014, so over 10 years ago, um, that we have been paying um uh not all, but obviously I think that's I IMPD would know the numbers for the overtime specific to the events, but um trying to make that contribution back based on the deal we did back then.

Thank you.

And Mr.

Chair, I'm sorry, I know it's getting late.

Um just the last quick question, you know, you mentioned the sky bridge to the Signia, thank you for doing that.

It struck me does the CIB not have the ability to issue revenue bonds?

Like could that have been a CIB project, or is it just a matter of you don't have as much so yeah, so the CIB is building the cig the the Sky Bridge, right?

And so that's what I forget, was 10 million, eight million, eight million.

So we are building we are building that out of um our operating reserves.

We did not borrow, we don't we don't borrow money.

Um I wasn't clear my question.

I'm sorry.

So since the city issued the revenue bonds, as I understand.

Oh, for the same yeah, could that have been a CIB thing?

I know the city's got a bigger budget.

Yeah, that was um conceivably it could have.

I think the city wanted to own the hotel because it it kind of decides its own the city decides its own fate, and um I think there was uh you know, I have two governors appointees on my board, and and I think the city wanted to maintain uh control, political control over the project.

I appreciate that.

Sorry, all my questions were just trying to figure out like what can the CIB do versus what does the C B.

Yeah, no, we could have we could we could have been the owner of the property and and done the deal as opposed to the um city.

City had a has a better bond rating, but you know I can go on all day.

I know you can, and you have.

Uh last question for the night, counselor graves.

And and this is a really important thanks, Mr.

Chair.

Um I I my mentee is having this 18th birthday party and I need to be there, so I'm missing out on that.

Uh but I do have some important stuff I want to ask.

Um CEO, Kobe, and the CFO.

Uh first of all, let's talk about the XBE spend.

Um I I you know, I see you have 40 million in total payments.

Um just real quickly, if you can give me some estimates.

How many XBE uh firms would be represented within that 40 million approximately?

I have feedback at all in the actual.

Okay.

So now what are some of the projects that were was it all capital projects?

Was it professional services?

Was what what are some of the things that we have?

That would be capital projects, maintenance projects.

That's the main, I mean, it's that's what we do.

Okay, and and uh of that uh 40 million, um approximately what's your total spend that would be comparison to the 40 million that went to XBE.

So you got XBE at 40 million.

What would your expend be to elsewhere?

You have to gross up from the total XBE spend.

Right.

Again, I don't have it right in front of me, but I don't um Yeah, I'd have to I'd have to do that.

Yeah, my my concern is that um while the 17 percent does look attractive, it actually may not really be 17 percent in in my opinion and my calculation.

And I don't want to say that you guys are doing 40 million.

Yeah, 17 percent of 40 million, absolutely, 6.8 uh is 17 percent of 40 million.

Right.

But when we're talking about, first of all, we're we're only talking about uh MBE spend on the 40 million.

Actually, that's not true.

The total the total uh uh now I understand your question.

That's the total spend to date for the CIB.

And that's due July 20 2025.

Right.

Right.

So I would love to have the full numbers July 2025 for everything.

So we can have a real number and then we get a real uh percentage spend in the in the XBE world, uh specifically MBE.

Because I think the victory lab might be pre premature at this point because we're we're touting that 17 percent, but it's 17 percent of what was spent in the C in the in the XBE world, that's only 40 million.

I love to see what percentage in your overall.

That is overall.

This is so all your business was done with XBE firms.

No.

Total spend is 40 million of XBEC all XBE.

But I'm saying your entire all all I really want to point out before we get out of here is that I think through CIB guys, I think we're missing an opportunity to really benefit veteran businesses, women businesses, and minority businesses in a bigger way than we have.

I know my colleague gave you guys a lot of credit, and I do too, because you do a lot, but I do notice those numbers are you know, they're not really changing the lives of those minority veteran and women-owned businesses.

That 40 million, it is it pales in comparison to your overall spend.

And yes, it is 17 percent of 40 million, but it probably is less than one percent of your overall spend.

That's all I need, Mr.

Chairman.

So the 2025 budget is 112 million in cap in uh character three.

It's it's um seven million in care in in parts and supplies, so you have to use a broker for that.

So you're not gonna get you're gonna get a fraction of of that from XBE spend.

So you're really looking at other services and professional services.

Um is characteristically underrepresented as far as capacity, right?

With uh law firms, architect firms, engineering firms, those sorts of things.

So the amounts we spend on that is is hard.

We try to make it up on our on our capital spend, which is uh 2024 or 2025 budget was 84 million.

Um we will look at those numbers and and get back to you, but um we are absolutely committed to get uh to ringing out every possible way to involve MBE firms.

We um have minority uh you you guys do a good job over the time that I've been around, Andy.

I really appreciate that.

Um, but I do know that there are certain areas that can be expanded, for example, as specification level, um when we're talking about only having uh one or two firms that provide a certain item that you need and they're not in the XBE world, so now that narrows the the availability of opportunity for XBE uh participants.

Um but I do know that there are certain areas that can be expanded for example at specification level um when we're talking about only having uh one or two firms that provide a certain item that you need and they're not in the XBE world so now that narrows the the availability of opportunity for XBE uh participants right okay I hear you yeah so I think that there's just opportunity for our city we're seeing billions across the the the city in our expenditures and you guys are doing a great job and doing some of that you're making our city super attractive but I just think that there's an opportunity through your doors Kobe over there you guys can probably uh really change the trajectory of some of our XBE businesses in the city of Indianapolis fair and I I I agree with you and we've been trying and growing every year.

I want to draw a distinction this is what we spend as a out of our budget this does not include contractors that come in and work on events.

So if we have for example a security firm that gets hired by um the NCA Final Four to come in right they're gonna bring that firm in and they're gonna do that stuff.

That is that is a whole nother that's way more money on security than for those that those two weeks than we will spend but you know they're they're hiring their own security firms right so I there is there's a lot more spending that happens in our buildings that we don't control.

But I hear you no I agree with you too.

I'm team CIB man thanks Scott thanks Mr.

Chair thank you.

Thank you almost two hours two minutes to go we were of cl we were a lot faster in the airport I'm just saying there are no more questions so I thank you uh we'll see you guys here in a couple weeks for your review analysis we are adjourned.

Thank you