Okay, this is the uh meeting for the Indianapolis Bond Bank.

Uh we're gonna start with the approval of the minutes from the March 16th.

Uh April was canceled.

Move to approve the minutes is presented, Mr.

Chairman.

Do you have a second?

All in favor.

Approval of the minutes.

Uh the next issue for business.

Is the Indy Hub presentation?

Uh thank you, Mr.

Chairman.

Uh, today we have uh familiar face uh Greg Stowers.

Um I think we all uh know Greg who was uh the chief administrative officer and policy director for the council.

Um now he is uh the vice president for local government affairs at the Indy Chamber.

He's also the board chairman of Indie Hub, which brings him here today.

Um Indy Hub is a local organization that works to attract and retain uh talent.

Um Indianapolis, um so it does dovetails nicely with um the um uh uh with with the bond bank and that that's a critical area to uh maintain our uh our credit ratings, which is is obviously important for for the city and our other qualified entities.

Uh so the Indie Hub um will receive a $50,000 um amount in uh qualified entity support, which is in line with uh support that has been granted the organization previous years, and so we asked Greg uh to come today to talk about um how that uh how that uh money will be allocated.

So, Greg, thank you so much for joining us.

Well thank you.

Um thank you for the opportunity to be here today.

Um, as Joe said, my name is Greg Stowers, and I'm a native son of Indianapolis.

Um I lead with all tourism, build for what's next, and calculate every step.

I'm grateful for the opportunities I've had throughout my career across campaigns, nonprofits, the corporate sector, and public service.

Um, but I tell many people success, rather the idea of success is often like a general gem and is not as linear as it seems.

Today I have the privilege of serving as the board chair of Indy Hub, which makes uh this moment especially meaningful, meaningful for me personally.

Back in 2015, I was trying to figure things out like many young professionals.

Uh, but during that time, Indie Hub provided a space for me to better understand the civic dynamics of our city, build meaningful relationships, and grow both personally and professionally.

What stood out to me was that Indie Hub made Indianapolis feel more accessible, it created opportunities to connect, engage, and see a pathway forward.

That experience is a big part of why this work matters uh to me today, and is a big part um about uh how I've uh arrived at the spaces that I'm in today as well.

A little bit of background.

Uh, Indie Hub exists to help people connect Indianapolis in meaningful ways.

At its core, this organization is about creating belonging.

We know people are far more likely to stay in a city when they feel connected to it socially, professionally, and civically.

Indie Hub helps bridge that gap by creating pathways for young professionals and emerging leaders to plug into Indianapolis to see a future for themselves here.

That work sits at the intersection of talent retention, civic engagement, and long-term city growth.

Some of our programming uh Indie Hub's programming is designed to move people from connection to leadership and evolved, which is our uh signature program.

Introduces residents to nonprofits, volunteer opportunities, and community organizations across the city.

1828 is our leadership development cohort.

Uh, has developed more than 200 alumni uh leaders and continues to build a pipeline of emerging civic and community leaders in Indianapolis.

Welcome Party helps new residents build relationships early, create stronger long-term connections in the city, and the Shape Our City Summit creates space for residents to engage directly with conversations about Indianapolis' future.

Together, these programs help turn engagement into long-term investment in the city.

This work uh is ultimately about the future competitiveness of Indianapolis.

Cities across the country are competing for talent, and the cities that succeed are the ones where people feel connected and invested.

And he helps Indie Hub helps create that sense of belonging.

When people build relationships, uh engage civically and see opportunities for leadership, they are more likely to stay contribute and invest in Indianapolis long term.

That creates stronger neighborhoods, stronger civic participation, and a stronger city overall.

Vision 20.

So uh Indie Hub has IndieHub was started in 2005, and we reached 20 years.

So uh part of the board's uh charge for me is is thinking about the future of the organization, and that's where we get to vision 20, uh, which is where this investment will be incredibly helpful.

Vision 20 um represents a long-term vision for Indianapolis's next generation of leadership and growth.

The goal is to create a city where people choose to build, lead, and stay.

Vision 20 focuses on talent attraction and retention, civic leadership development, cross-sector collaboration, community, and community belonging.

Uh, this work is about ensuring the next generation sees opportunity leadership and a future here in Indianapolis.

Um retention is I have economic development here, but retention is economic and workforce development.

Strong cities keep their future leaders engaged locally and create environments where people can build careers, community, and purpose all in one place.

And he helped helps create pathways from connection to leadership through programming, civic engagement, and professional relationships.

The goal is not simply to attract people to Indianapolis, it is about creating opportunity and belonging that people choose to stay and invest in the future of this city.

Uh I want to thank you again for the opportunity to share more about IndieHub's work and vision.

Uh, this investment will go to uh operational dollars for organization from us from staffing to outreach and community uh related leadership development opportunities.

Again, I want to thank you all for the opportunity to speak to you all today, and I'm happy to answer any questions.

Does anybody have any questions to for Greg?

Maybe so.

Thanks, Greg.

Um could you sort of characterize how you communicate or reach out to young professionals?

Yeah, so we are on all social media channels.

Um we've taken a bit of a break to be uh really intentional around what that's what that looks like, but we're on uh we're on all major social uh social networking platforms, have um have a newsletter that we have access to to send out information as well.

Uh, but I think as much as it's about young professionals, I think it's also about some of our more seasoned professionals playing a role.

Um, you know, I'm I'm not that old but not that young anymore.

Um so you know, as much as it's it is about targeting uh young professionals.

I think folks who are um longer in their careers can certainly be helpful from an engagement standpoint too.

Anyone have any questions?

Thanks, Greg.

All right, thank you all.

Thank you for coming, Greg.

Yep, y'all have a good day.

You need your pen.

I don't know where your pen is.

I create the budget to change it.

All right, uh our next item is uh the presentation for our audit.

And so I call the auditors from CBIZ, Becky Quintana, and Sharon Lynnville, good.

Do you all have a copy of this statement?

I'm sure you read them.

So closely.

Very long.

Um as the uh chairman noted, my name is Becky Quintana.

I'm the shareholder signing partner on Bond Bank's financial statement audit.

Um I've been on this engagement uh off and on through the years, probably for the last 15 years in various capacities, starting as like a senior, the person who is doing the work all the way up through uh now kind of managing from the top level the engagement and signing it.

Um our EQR's name is Daniel McAlewee.

He's out of the East Coast office of CBIS, and he's a GASPE expert, which is why we've gone outside of our office to make sure that we had a very robust EQR.

Kind of takes a second look at the engagement at like the 10,000 foot, um, to make sure we're not getting comfortable with the engagement since we are long-time engagement members.

I'm Sharon Lindville.

I've uh similar to Becky, been on the engagement for a lot of years, and um have done most roles except hers.

So again, we have I think you know, every year we we improve on, you know, the management improves on what's being said in the financial statements.

The management discussion and analysis has evolved over time, and I think it is a very informative document for those who are interested in in the bond bank.

It's a unique entity.

Yep.

Um so you have the draft statements in front of you.

What is removed from those statements are our audit reports?

We're not in allowed to include those in our draft statements, but we are prepared to issue an unmodified or clean opinion, which essentially says to the readers of the financial statements that everything is materially accurate.

This may be too audit-ish, but I do think it is a unique component of the bond bank and our audit approach is that we use two different materiality levels, which is not something that is done for most audit engagements.

We look at bond operations based on a bond materiality and then non-bond or more administrative functions at a much lower level of materiality.

Um any questions on that before we really get started.

Okay.

So I'm going to cover the nitty gritty of the financial statements and give kind of a top side financial highlights.

Um net position increased from 7.1 million to 8.4.

That's about a 1.3 million increase from 2024 to 2025, which that's a significant improvement compared to 2024, which had a 2,034 increase from the year prior.

So net assets, or for those of you that are more for-profit people, that's basically the equity that has built up in a company or an organization.

It doesn't surprise me in 2024 when bond bank had a 234,000 net position because bond bank's nature is the flow through.

It's in and it's out.

It just so happened that there was an increase this year just as a result of some things dealing with timing.

The balance sheet for you for-profit people are the statement of financial position, that's where your asset and liabilities are.

Um total assets about five billion up from about 80 million from the prior year.

This is largely driven by the increased loans receivable tied to the new bond issuances.

You guys are flipping pages, sorry, might have lost you.

Thanks.

Okay.

So I'll just recap since you guys were all turning pages.

Total assets five billion, 80 million increase from last year, really driven by uh the loans receivable that increase tied to the new bond issuances.

As I mentioned, uh bond bank is a conduit issuer, so just a flow through organization.

So the assets and liabilities will largely offset each other.

The next page is your profit and loss or your statement of activities.

That's where you have your revenues and expenses.

Total operating revenues are 193 million, primarily comprised of interest income, and then expenses are 190 million, primarily interest expense.

So again, mostly offset because of the conduit nature of the bond bank.

Um I think a key point for us to emphasize and for us to communicate to the board is that the bond bank earns the spread of the fees, so the margins are usually low.

Net income increased in 2025.

So really the net position, uh insurance income declined slightly, but it was really driven by a lower interest expense, and then uh operating costs, so not necessarily tied to any revenue change.

And then some key facts, and this is probably review for you guys since you vote on all this stuff.

But bond bank issued approximately $867 million in bonds and notes in 2025, which was compared to 252 million in 2024.

So 2025 was a very busy and active year for bond bank, and a lot of those uh 2025 issuances is really financing of existing debt, and um some key projects funded was the indie go blue line, the Indianapolis Air Airport Authority, Eskenazi, some various capital improvements, uh, outstanding debt, uh bonds payable was about 4.993 billion, very large, but debt is matched by the loans receivable.

So again, offsetting nature.

Any questions on the balance sheet or PNL?

And if not, I'll move to the cash flow.

Anybody have any questions?

Okay, it's cash flow page 11.11.

Thank you.

So operating cash flow, which should be about mid-page, is a positive 2.7 million.

That's a key indicator that we look at across all organizations: public, private, not for profit, governmental.

It's just something as auditors we look at.

Um cash decreased overall from 2024 to 2025 by about 11 million, primarily due just to financing activities, so that's just mostly timing.

Um so really the the changes in cash, as I mentioned are timing driven, not necessarily performance driven.

Um that is the bulk of the financial statements because the footnotes and we can roll through them if you want, but there's really no major changes in the footnotes.

So it's up to you guys if you want us to peruse through those.

So we had any issues about what's going on on Wall Street and where we should look and not look.

So obviously the rating of the organization is super important, and the market's the market.

I mean, none of us can control what the market is doing.

So those are things that we sat down with with Joe and Karen and Lori during field work.

Uh, you know, do they have controls in place?

Do they have the right professional service team, whether it's in-house or out, to help management uh react to those?

They feel good about it, so we feel good about it.

Um, bond bank is one of the audits we really look forward to every year because it's we're coming off kind of our winter busy season, so we're we're used to work sliding, you know, clients not being responsive, and that's just not the case with bond bank.

We show up on Monday, 99% of the audit uh docs are ready for us.

Um, you know, we didn't have any audit adjustments.

We rarely rarely do over the 15 to 20 years I've been a part of this audit.

Um, even though management has changed through the years, what I found is that they're very uh talented, very smart, and they really understand the nature of the operations with bond bank.

And obviously, you guys work with a ton of bankers and attorneys and financial advisors, and you know, we that's a management and board decision, not up to us, but we've never seen anything overly concerning with management or any really concerning at all with management not reacting to what they need to react to.

I think a number of years ago, you the airport authority had issued a few bonds with some swap agreements, some derivatives that are a little more risky than not.

But since then, those those bonds were refinanced, and the airport got out of those, and there has not been a similar derivative at the bond bank for a number of years.

Yeah, yep.

Any questions?

Any more questions?

Well, I don't have any other questions too, but Mr.

Janatus, do you have any?

Absolutely not.

Okay.

Sounds like a good audit.

You have enough gas in your car to get home?

Well, it's all electric, so it's all fine.

Okay.

Thank you for coming.

We have one more thing.

Sorry about that.

I'll make it short.

The second uh piece of the audit is the letter of those charged with governance, which is you guys and the members of management.

I'm gonna cover it super fast because it's a lot of boilerplate language, but there are things that we should talk about.

Um as I mentioned, no audit or proposed adjustments.

That indicates that controls are very, very strong.

Uh no uncorrected misstatements, those are ones that we would propose to management, not necessarily material, but as part of our due diligence or obligations, we have to at least discuss it.

None of those, so uh that's good.

Um, no disagreements with management.

Uh, even though 2025 was a busy and active year, nothing unusual happened outside of the normal operations of the bond bank, um, no fraud or illegal acts identified.

That is something we sit down with Karen Lori and Joe about to see if they have any concerns about internal controls, fraud, uh weaknesses, any potential areas that they might want us to dig into.

Um nothing of note was was brought up.

Um, as part of our audit, we do unpredictable procedures.

We change those every year to keep these guys on their toes, so uh we didn't find out anything unusual from from those procedures either.

Um there's some key estimates that we always take a look at.

Uh estimates are always risks for auditors because it's management can manipulate those those estimates.

Um we didn't find anything uh notable that uh would lead us to believe any sort of management manipulation.

Um, let's see.

New accounting uh developments, we should probably talk for just a couple of minutes about or a couple of seconds.

GASBY 103 is uh required to be adopted for bond banks year 2026.

Um it primarily just changes uh the MDNA presentation.

Right now, there's kind of a loose set of framework that um has to be followed.

Uh the GASB 103 makes it very concise.

So uh if the reader wanted to go look at a bunch of different bond banks uh in DNA, there would be similar components of it.

So there's gonna be four main components that need to be talked about, including the financial highlights, instead of just explaining the change or the variance year over year, number wise, they actually have to include the underlying reason, all without duplicating the information in the audited financial statements that we report on.

So I did want to mention that because it is a change, and you may see different things in the MDNA next year.

We've always done a great job, for sure.

Um it's not an easy job.

We appreciate all the work you guys put into it.

Thank you.

Okay, I'll now call on Joe Grass uh to provide updates on current projects we're looking at.

Thank you, Mr.

Chairman.

Um thank you, Sharon and Becky.

And thanks to our staff for their great work, headed by our CFO Lori Canadsi.

So some new projects.

That's part of DPW's uh capital plan.

Um it's actually already been approved by council, so we'll need um approval by uh the Board of Public Works, and we'll likely be coming back to the bond bank for approval in uh August or September.

Um the other project is um the Health and Hospital Corporation will be looking to issue about 20 million dollars in bonds um for some capital investments, um primarily um building three new um ambulance bays for uh emergency uh medical services.

Um and we uh the timing of that will be will be similar, we'll will be um coming to the bond bank board uh likely in in late summer or early fall for final approval there.

Um so those are our main projects.

Happy to answer any questions.

Okay, anybody have any questions about it?

The roads will be what two weeks or three weeks, and then we'll be done.

We'll be making some critical improvements, Mr.

Chair.

Okay.

Uh with no further business, the chair will entertain a motion uh to adjourn.

Let me just say one penny.

Okay, sorry.

Um, let me just recognize uh Joe one second uh because he was recognized last month, I think, by IBJ 40 under 40.

It's obviously nice recognition for Joe, but it was also I had the pleasure of being there.

It was a nice promotion of the bond bank and the work that it does.

So uh thanks, Joe.

Thanks, I think.

Thank you.

It is a well-deserved honor, for sure.

Motion to adjourn, second.

All in favor, please say aye.

Aye.

The board is adjourned.

Thanks for everybody coming.