Having a quorum, we will all go ahead and begin the meeting.

This is the 2025 Board of Finance meeting for the consolidated city of Indianapolis in Marion County.

Today is Wednesday, January 28th, and we are in room 260 of the city county building.

I will call this meeting to order and let's begin.

I am Barbara Lawrence.

I am the Marion County Treasurer, and this is my favorite meeting of the year.

Joe.

My name is Joseph O'Connor.

I'm the county assessor.

Controller Abby Hansen.

Question Young, CFO for IPS, representing IPS.

Joe Glass, director of the Indianapolis Bond Bank.

Okay, let's begin with every year.

We have to elect the board president and secretary of the board.

I am perfectly willing to serve again unless someone wants to take over the duties and responsibilities of getting this meeting together.

I nominate Barbara Lawrence to be the board president.

I second.

Okay.

Moved and seconded all in favor, say aye.

Aye.

Aye.

Opposed.

I'm not sure how I want to vote on this one.

Okay, next up is the position of board secretary.

I would like to nominate Joe O'Connor.

Second.

Moved and seconded all in favor, say aye.

Aye.

Aye.

Opposed, same sound.

Here's your chance.

Okay.

Let's begin.

Let's move on with approval of the minutes from the January 31st, 2025 meeting.

I love these minutes because they are so thorough and they have been vetted and reread.

Rodney read them, I read them.

Allison Sandoval in our office does a great job of putting these together.

So if you have any comments, corrections, additions, or other editorial comments, please let me know.

I think I had one comment on the IPS update.

The last line where it says last year I addressed pending Indiana General Assembly legislation that will pass IPS for the next fiscal year.

That is something that did have great impact.

So there probably could be many, many, many, many pages written on what the impact of that is.

But to capture that in one line, probably need that same line again this year in the minutes at some point.

Okay.

Well, we can we can do that.

Okay, so was there any correction to it or just okay?

So uh you've had the chance to read the minutes.

Do I have a motion to approve the minutes?

I moved to approve.

Second.

Moved and seconded.

All in favor say aye.

Opposed, same sound.

Minutes are hereby approved.

Moving right on to the meet of the matter, the presentation of investment reports and review of investment policy.

Let's start with the city of Indianapolis.

And if everyone who presents could introduce themselves at the top of their presentation.

Good morning.

Good morning.

Good morning.

Everybody's been staying warm.

My name is uh Janae Rotan.

I am the deputy controller over financial reporting and accounting uh within the Office of Finance and Management.

Today I'm joined with my colleague Sierra Leith, who is our administrator of accounting.

This morning we will be covering the City of Indianapolis's annual investment report for fiscal year ending uh December 31st, uh, 2025.

I'm gonna turn it over to Sierra to cover the first few pages of our presentation.

All right, good morning.

So we're gonna start on page two.

So on page two, you will find the city's financial institutions and investment relationships.

We have nine total accounts with JP Morgan Chase.

Um seven of them being our ZBA accounts.

We have 17 Trust Indiana accounts.

Um JP Morgan also serves as our safekeeping agent, and at the end of the year we had 10 treasuries.

We also have a money market account with Huntington that we opened in 2023.

And Chase, Huntington, and Trust Indiana are all on the Indiana approved depository list.

Alright, so the next couple of pages goes over the city's investment policy.

I'll just kind of skip through there.

Don't want to read it to you.

Um, but the investment policy was formally adopted by city county council in accordance with state statute.

The policy was most recently renewed on December 1st of 2022, and is actually set to expire December 1st of 2026.

The city plans to renew the policy with the council this year, and because there have been no changes to state law, the renewal will involve no material changes.

Additionally, there have been no changes to the city's investment policy since the last uh the 2025 board meeting.

I would also like to quickly highlight the primary objectives of the city's investment policy and priority order.

One is safety, protecting public funds from investments that could cause potential losses, is our most important objective.

Uh, two liquidity, making sure that we have enough cash on hand to pay our bills and timely, and then three rate of return.

The policy allows us to invest public funds in a way which will provide the highest investment return with the most security while meeting daily cash flow needs and demand and conforming to all state local laws governing the investment of public funds in accordance with Title 5, Article 13 of the Indiana Code.

Now moving on to page seven.

So page seven, you'll find our average monthly balances as well as our ending cash balances for 2025.

And you see that okay.

So our Chase pool account, which is our ZBA account, ended with a 26.7 million ending cash balance with the average monthly balance of 21.2 million.

Our Chase HUD account ended with a 205,000 dollar cash balance and a 206,000 average monthly balance.

Our savings account ended with a $53,000 ending cash balance with an average of $442,000 monthly.

Our trust Indianna, those accounts ended with a $526 million cash balance and an average monthly balance of $452.8 million.

And then our securities had a $350 million Indian cash balance with an average monthly balance of $337.6 million, and then Huntington had an ending cash balance of $56 million and an average monthly balance of $54.8 million.

Now I would turn it over to Janae, who will finish the rest of our report.

So the next page here covers the monthly interest income report.

For our pooled account, we earned a total of 770,000 of interest, which averaged out to be about $64,000 a month.

For our HUD account, we earned a little under $8,000 for the year, an average of about $600 a month.

Our savings account, we earned a total of $11,000 for the year and a little under $1,000 per month.

At Trust Indiana, the total interest earnings was $19.1 million for the year with an average monthly interest income of $1.6 million.

Our investments with our safekeeping agent, those are U.S.

Treasuries, earned a total of $14.4 million for the year or average of $1.2 million per month.

And then for our Huntington money market account, we earned a total of $2.5 million, and then for an average of $212,000 per month.

That gave us a total investment earnings for the year of $30.36.9 million dollars or an average of a little over $3 million a month.

Turn to the next page here.

Alright, so this page shows that our total interest earned was $36,906,891, which gave us a combined yield of 4.26% for the year.

By comparison, total interest earnings in the prior year in 24 were 45.5 million with a combined yield of 5.1%.

The decrease in interest earnings in 25 is primarily attributable to the declines in the Federal Reserve interest rates.

During 2025, our investments consisted mainly of the deposits held with Trust Indiana, which is a local government investment pool.

We earned an average yield of 4.2% in 2025 with Trust Indiana, which was down from 5.2% in 24.

As of this week, the yield at Trust Indiana is one uh around 3.6%.

We also held United States Treasuries, which are laddered to mature over the next three to 24 months.

Effective rates range from 3.5% to 4.67%.

We ended the year with a portfolio of $319 million, slightly down from the 2024 portfolio of $354 million.

You can see at the bottom of the chart, we just have a line just visually showing uh the interest earnings over the last um almost nine years.

Take it to the next page.

We like to include this um illustration just to show you that the change um over the the last few years of the federal fund rate changes.

Um this shows from 2017 through 25 to illustrate the interest rate environment, especially since the onset of COVID, the COVID-19 pandemic.

The chart shows the sharp declines in rates in March of 2020, um, followed by a period of stay uh stability and stability in 2021 and significant rate increases during 22 and 23 to address inflation.

Um has inflation has moderated the Federal Reserve began reducing rates late 2024 and into 2025, uh bringing the target federal funds rate to approximately four uh percent to 3.75% at the end of uh 25.

Overall, out of the 36.9 million dollars of interest earnings, 15.6 million of our earned interest was in budgeted funds.

We had a budget of 10.8 million dollars based on projections that we made in July of 2024 uh before we introduced the budget.

Uh with anticipated rate decreases that started in 24.

We did adjust our budget for 25.

We always take a conservative approach from budgeting interest, and then the other interest that um was earned that's not in budgeted fund is typically in funds such as our capital capital project funds.

And then the last page of our presentation just shows our investment portfolio with our treasury notes, which um so we held all treasury notes at the end of 25, which are all backed by the full faith and credit of the United States Treasury.

The city only had one investment as of the end of the year that was um had an outstanding maturity of greater than two years.

If you don't have any questions, um that concludes our presentation, but we're happy to take any questions you may have.

I do have a question.

Uh um this is on page two.

Uh um I'm not uh fully familiar with the bank rate, safe and sound rating.

Is it is that a measure of it's on the third chart.

So for JP Morgan Chase, it's 3.5 and Huntington, it's 4.2.

Okay.

Is that a measure of the bank's performance or financial standing?

I honestly I don't remember.

Okay.

Do you remember what that is?

I know it's something that we've reported on in prior years, but I don't remember off the top of my head.

Okay, I assuming it has something to do with it goes hand in glove with uh CRA, maybe measure of the bank performance okay.

Uh other questions from the board.

Thank you.

Thank you.

Next up we have the capital improvement board of managers in the Arianne County.

Good morning.

Good morning.

Um my name is Tim Kier.

I'm the CFO with the Capital Improvement Board.

I'm with uh Caroline Chang, who is our financial controller.

Um briefly uh just uh to remind you guys who Capital Improvement Board is.

Um so we own and operate both Lucas Oil Stadium and the Indiana Convention Center.

We also own and then lease out um the operations to Gambridge Field House, Victory Field, Virginia Avenue Garage, Hudnut Commons, and then various other parking facilities throughout the city.

Um our investment policy is to act responsibly with due care and prudent judgment in order to maintain the public's confidence.

Um we have a four-prong investment objective, and that is to comply with statutory requirements, preserve principle, maintain liquidity and meet our cash flow needs, and then also to maximize return investment.

That final objective shall never take precedence over the other three.

All of our investments are with approved depositories per IC 5-13 and are included in the Indiana board depository listing.

Um except for the funds with Trust Indiana, and then also the computer share, which I'll point out when that those were put in that account.

It was what was Fargo at that time and it's been purchased since by computer share.

Um those are with um that was part of the hotel construction, and um so those funds are locked in there, and we didn't pick that, pick them, so uh we had to put that in there.

So majority of our investments have maturities of less than two years.

Um we limit our investments with maturities of excess of two of less than 25 percent of our investable funds.

Um both in accordance with the fifth um IC5-13-12.

Um currently we have some U.S.

treasuries at about 14 million, which is about five percent of our investable funds.

Um the the farthest out we go right now is just under three years.

Um our annual investment um report um is attached as well as our investment policy.

Um we renewed our investment policy at our February 2025 um board meeting.

Um there have been no changes um since we last met.

Um and it is up for renewal again in 2027.

Um as we look at the presentation, page two shows all of our um banking recogn uh relationships.

Um our main operating accounts are with Regions Bank, um, where we have short-term and long-term investments as well.

First Internet, BNY Mellon, um, Trust in Indiana, and then JP Morgan Chase have some of our operating funds, and mainly they invest in money market um accounts, their local government investment pool, and then um government money market accounts.

Um Trust Indiana, Key Bank, and Computer Share have funds in restricted accounts, um, and those are all invested in money market accounts as well.

Um BNY Melon is our uh trustee for our bonds, um, where they they are invested in government money market accounts as well.

Um three shows our average balances by month.

Oh, I would have to do that.

So thank you.

Um page three shows the average balances by month.

Um there uh the beginning we had about 271 million dollars at the end of the year it was 248 uh for average per month of about 278 million dollars.

Um, some of the bigger items that the flow, um, a large outflow in November, about 71 million dollars, and that had to do with uh construction for the hotel.

Um there was also uh inflow of about 30 million dollars in December, and that had to do with some concerts that um ticket sales that went on sale at that time, and so um we we hold those funds until the concert happens and uh then that gets settled with the promoter at that time.

Um so we hold those in case the concert doesn't happen so that we can re reimburse those to the ticket holders.

Um page four um shows interest income um by um by account by month.

Um there the total interest for the year is just under 10 million dollars at 9.97 million dollars.

Um our budget for the year was uh just over 10 million dollars at 10.25 million dollars.

So we were a little under budget at 279,000 or 2.7 percent.

Um I don't think that's too far off.

Um for 26, we're budgeting a little more conservative there at just under $8 million.

Um we're expecting the interest rates to be down a little, but also with that 70 million dollar outflow we had the rate or the balances are going to be lower too.

Um next page is um the average interest rate.

So overall our average interest rate came in at 3.58.

Yep, that was right.

There you go.

So 3.58.

Um that's about a percent lower than last year, um, largely due to the interest rates that we everybody incurred um over the year.

Um then on the last page there.

Uh I just put down uh the Fed funds rate compared to our rate, and you can see that that we just track right with it, especially this past year uh as it decreased, so did our rates as well.

Um for our 26 outlook.

Um, I think we we're gonna continue to investigate um some longer term interest rates with uh the decreasing interest rate environment.

We need to um look at that um as we have started to already um and then also look at other opportunities or other investments that um you know as they come available uh the rates uh and see what else we can put our money into and stay within our investment policy.

So open to any questions at anyone questions from the board.

You did such a great job silence even the silence.

Thank you very much.

Next up, we have the health and hospital corporation of Mary Ann County.

Good morning.

Morning committee.

So first off, just like to say thank you for this opportunity to present our 2025 investment report.

Um my name is James Simpson.

I'm the interim CFO and assistant treasurer with Health and Hospital.

I'm accompanied by our assistant accounting manager, Andrea Morrow.

Andrea's been with HHC since uh May of 2023, but she is taking on more responsibilities overseeing cash, so I wanted to give her the opportunity to come and experience this, and we'll look probably in the future for her to get more of the the speaking role.

So I'm gonna I'm gonna take the lead today, but we wanted her to have the opportunity to experience today.

Um advance one slide.

Thank you.

So slide two.

This is our banking investment relations.

Um very little has changed from 2024 into 2025 for HHC.

Um our investment report includes the consolidated view of our banks and investment accounts that include our governmental funds, which is our general fund, debt service, and cumulative building, as well as two enterprise funds, Eskenazi Health and Long-Term Care.

Uh, the Trust Indiana and Piper Sandler are two institutions that are not on the Indiana board for depository listings.

Piper Sandler is the investment bank that was utilized to purchase convention center hotel junior bonds back in 2023.

Um see a lot of fifth third accounts on the next slides.

And then also we use Trust Indiana to access the uh the local governmental investment pool for both our general fund, our debt service cumulative building and Eskenazi Enterprise Fund.

Our long-term care fund does not use uh Trust Indiana.

Give me that's one slide.

Slide three is the summary of our average balances and total earnings.

So HHC's 2025 average monthly balance was just under 1.4 billion.

That's just slightly above the 2024 average monthly balance of 1.32 billion.

Um this equates to about 190 days cash on hand for the the CIS for the Health and Hospital Corporation.

Um these balances include again all four divisions, which do include the Marion County Public Health Department as well in our general fund, um, which the health department does receive Health First Indiana funding from the state.

Uh it includes our Eskenazi Health Division as well as the Indianapolis Emergency Medical Services or IEMS and then the long-term care fund.

2025 interest investment earnings were just under 56 million, and that was a decrease of 7.5 million from 2024, a decrease of 7.5 million.

This is a result just like the the previous two presentations with the Fed's funds rates lowering in December 24, and then I think it was three times in 2025.

We saw a decrease in our in our returns as well.

We had budgeted 40 million, so we we do typically budget conservatively.

We've we've gotten much more try to get in line with what we expect to see just to um to bridge that any sort of uh budget deficit um when we're doing the statutory budgeting process.

And then also HHC's average rate of return in 2025 was at 4%, which is down from 4.8% in 2024.

Next slide.

Slide here is our average monthly balances.

So our average monthly balance uh we're relatively steady throughout the year.

You we will see you know, in in certain months, I I have you know, June, August, October, December.

What we will see a bump.

That's typically cash or sorry, taxes being received and and and deposited HHC.

Or if we get supplemental funding, could be for the hospital or for the long-term care division.

Those also are larger deposits where though those will impact our our average monthly balances.

Looking ahead, when we see this slide, we do see our monthly balances here, but also when we look at 2026, when I look at our statutory budget, we did um budget a deficit in both our general fund, approximately 25 million, and a deficit in our Eskenazi fund of approximately 25 million.

So we do expect cash cuts could take a slight downturn in 2026, not significant, but we we did we did budget for a deficit there, and we're actively working with um consultants for bus is um working through a strategic planning, a five-year plan for HHC so we can stabilize our day's cash on hand and improve them.

But I did want to bring it to the board that or this committee that that was a budgeted deficit, and other just the headwinds HHC is facing in 2026.

Um we got to back up just a little bit once.

We did lose the HCI funding from the state in 2025.

That was a 30-38 million dollar uh reduction in appropriations.

The Health First Indiana funding was reduced by the state from HHC, the health department received about 23 million in 2025, and they're expected to receive about six million in 2026.

So there's about a 17 million dollar decrease there.

Um other headwinds on the hospital side that we're monitoring the state directed payment plan, 340 B program changes.

You know, that's that's both at the state and federal level, and then also supplemental funding with dual eligibility um requirements.

So the hospital has a couple different headwinds they're monitoring, and we're baking those into that five-year strategic plan.

You know, if if we do see some reductions in revenue, how do we how do we deal with those and not take a significant hit on our day's cash on hand?

So the HHC board in February, or sorry, in January approved phase three of the long-term strategic plan.

And so that plan, you know, what we're focusing on is financial improvements for the next five years, while we're also looking at operational improvements as well.

Um then uh also in these average monthly bounds.

I just I did want to point out that HHC committed 35 33.5 million in transfers from the general fund to our cumulative building fund in 2026 to continue our renovations for the Indianapolis EMS headquarters, and then also our our primary office at 3838 North Rural, which we call the Hasbrook Building.

We're gonna start renovations on that at the end of this year.

And so we've we've budgeted those construction costs for 2026 without raising taxes for those projects as of now.

Uh next slide, please.

Slide five is our investment or interest and investment income.

Like I said previously, HHC earned just under 56 million investment in interest income.

The average monthly uh income was 4.7 million.

And then we have also we're actively working with fifth third.

Um they they manage a few investment accounts with us to look in that two to five-year investment opportunity range, because like we're seeing what everyone else is seeing short-term rates have always been more attractive, but now the short-term rates are dropping some, and so we want to we're considering locking in some of those rates in that three to five year range.

And just you know, what happened with COVID where rates drop almost overnight.

If if something like that was to happen again, we we would like to have some of those rates locked in, so we don't see our interest rate drop significantly quickly.

Um, and then we are also working with the the bond bank to renew the first term on the uh the the junior bonds was two years.

So we've you know we've sent in notification that we would look to increase those to a five-year term for the the second term on those, so we don't have to you know come back in another two years to extend that again.

Um more slide, please.

And and also just we are focusing, we understand our our policy is we cannot invest more than 25 percent for that out past two years.

And last or slide six here, we do have graphs similar to the the previous uh present presenters.

And so the first graph on the left illustrates investment interest and investment earnings and the rate of return from 2021 to 2025.

This also shows our average monthly balances.

So you'll see in 25 we did see a slight drop in both the total interest earnings as well as the average rate of return.

And then on the right is our average monthly balances, and so those did see a slight uptick from 24 to 25.

So even with the increased balances, we still saw less in interest and then our uh due to our rate of return.

And then um HHC's um our board's approved investment policy.

So our original or our current investment policy was approved by our board on resolution five-2023, and that was in March of 23.

And then in 25 we completed the annual review, and there were no changes on resolution six-2025.

So our investment policy follows similar objectives.

Uh in priority order one is legality, two safety, three liquidity, and then the fourth objective is yield.

If there's any questions, we'd be happy to address those.

Oh, just on your um is it the 3838 North Rural Are you just doing a refresh rehab on the building?

I know it's an old building, building 68 or it's a pretty much complete renovation.

We're gonna be the idea that we're gonna have to be out of the building except for on the the fifth floor.

We do have like a data center there, but uh my my understanding is the other floors will be empty and vacant for it's it's like an 18-month to two-year project.

Yeah, this will be after the public health lab opens, so some of our like the services that are public facing will already move to the lab building, which is on the on that campus, yeah.

Yeah, thanks.

Thank you.

Thank you very much.

Indian uploads airport authority.

Good morning.

Morning.

Um, I'm Joshua Hurd, uh, financial analyst at the airport authority, and I'm joined here today by Brittany Hanson, who is also one of our financial analysts.

Uh the first page in our packet is a list of the 37 accounts that are managed by the authority held at four different institutions.

Because the authorities governing agreement, we have to think in t in terms of different buckets of money, and they have to be segregated.

For example, the passenger facility charge that is collected has to be received in a separate bank in a separate bank account and can only be used for what was approved by FAA.

Same as same for the customer facility charge.

Those funds collected can only be used for what has been agreed to with the rental car companies on page two.

We had interest earnings of 21.7 million in 2025, and with an average interest rate of 3.93 percent.

This exceeded our budget interest earnings by nine by nine million on the next page.

We have provided a chart um showing our average monthly balance by institutions.

Most of our funds are held at Bank of New York and Fifth Third Bank.

The debt service reserves held at Bank of New York are backed by forward delivery agreement, which have a guaranteed yield of just five percent.

On page four, we have provided a graph comparing actual interest income against budgeted interest income for the last seven years.

The authority authority exceeded budgeted interest income of 12.7 million by nine million for 2025.

The majority of this deviation can be attributed to interest income earned from bond proceeds, bond proceeds, which can be seen in red on our graph.

The authority did not take interest earned from the 2025 A bond proceeds into consideration during the 2025 budget process, as the structure of the 2025 A bond transaction was not known at the time we were creating our budget.

On page 16 of our report, you'll see a list of all investments we held at December 31st, 2025 with a maturity of greater than two years.

We actively manage our investments using a rolling investment strategy.

We set liquidity targets by quarter and by fund, and as investments mature, those funds are rolled forward to the next quarterly target.

The last part of our packet is our investment policy, which we recently updated portfolio diversification, and this was approved by our board of directors in January of 2026.

Are there any questions?

Questions from the board.

Hearing that thank you very much.

Thank you.

So okay.

In accordance with Indiana Code, Indianapolis Public Schools uses only state approved depositories and currently holds accounts with six different financial institutions.

Our primary banking relationship is with JP Morgan Chase.

Where at the end we held two district level accounts.

Our interest bearing operating account and our zero-based non-interest bearing payroll account.

In addition to these, each of the four each of our 47 district managed schools has its own interest-bearing, not actually non-interest bearing checking account to be used for athletic events, uh, concessions, clubs, donations, and other activities.

Okay.

Our pay card or pay card account with ADP is used to facilitate bi-weekly payroll payments via debit cards for employees for employees who are able to be paid through direct deposits for 2025 of investment relationship included liquid money market type accounts with merchant bankier fund trust Indiana, as well as certificate of deposits with merchant bank, BMO highest bank, flagstar bank, stockyard bank.

So these are some of our banks that we we have uh strong relationship with for 2025 our combined monthly bank balances average 25 million our total of and our total monthly investment balances average 153 million and our all combined total for all accounts average 178 million per month.

Our total interest on was 7.6 million with a monthly average of 700,000.

Annualized yield for our bank accounts was three point 3.4%, 3.43%.

Annualized yield for our investment accounts was 4.41%.

Our overall combined annualized yield was 4.2%.

Beginning with January yield of 4.9 4.49% and peaking in April at 4.94%, and actually ended the year at 4.2% after Feds after after the rate cuts by the Feds.

I think we're gonna you know Weston is probably gonna sit and do it sometime soon to review it and renew it.

So that's what's going on there.

Um like to read.

Oh, this is well, we're gonna look at the doab, which is the this the distress unit appeal board, and the doab presentation of this wanna tell you about the doab.

Um the reports the report is required by all school district.

It's an annual report and presented to local finance board.

It's posted to the IPS website.

policy if you like to read oh okay this is well we're going to look at the doab which is the this the distress unit appeal board and the doab presentation I've recently put on to tell you about the doab the reports the report is required by all school district it's an annual report and presented to local finance board is posted to the IPS website you can learn more about IPS financial conditions of both school are on the district's website a wide range of reports to get up to speed on historical current projected financial conditions of the district the report highlights how IPS pursue best class financial report in it also highlights our students and staff it also looks at our major major initiative and which includes proven what's possible and initiative to recruit and retain more diverse high quality teachers for our classroom it also looks at how we can rebuild stronger which is like reinvented rebuild redesign and retake the district boundary schools how it spends its resources and how we effective how we effectively leverage our facilities the do app also report do I report fiscal indicators are reported on the DUAP website the indicators include the enrollment it shows fund balances it looks at annual deficit and surplus it also looks at fund balances as a percentage of expenditures the doab also looks at revenue revenue by type it looks at re operating referendum revenue as a percentage of total revenue so that's all that's part of our doab uh report and it's a distress unit appeal board and if you guys have questions you could ask Weston or I can help as well questions from the board thank you very much all right so early good morning good morning I'm Steve Vice I'm the director of finance for the Indianapolis Marion County Building Authority and I will be presenting our annual investment report this morning our financial institution investment relationships we have basically checking accounts at uh jp morgan chase and we have investment and investment at Trust Indiana our checking accounts we have that we have 22 checking accounts and 14 saving accounts we have checking accounts for each of the each of the properties that we manage and trust Indiana is uh the pool of investments as many of the other uh folks have investments in as well the current building authority uh investment policy was uh actually in place in march of eight march eighth of twenty twenty two we uh recently had that put before the board we it was uh reviewed uh discussed and approved with no changes in our December 10th 2025 uh board meeting summary of our of the of our uh bank balances investment balances this year uh our average uh balance our average uh investment balance is actually down almost 20 percent from from 2024 we had um about 37 million dollars of uh debt service reserve that was uh uh entrusted to us to uh manage several large projects the CCB uh parking garage the uh corner uh building and the uh demolition of the um APC jail uh jail two project those throughout 2024 were basically finished and and paid for so those balances are no longer sitting in our in our in our cash balances so throughout the year um we actually were about overall seven million dollars on average uh per month less than last year's uh balances on hand so based on that the overall uh interest income for the building authority this year is down almost 47 percent the fact that we don't have didn't have as much cash on hand throughout the year coupled with the fact that as has been mentioned before uh through throughout the other presentations the interest rates for deposits are down almost a percent uh per month so uh

So based on that, the overall uh interest income for the building authority this year is down almost 47 percent.

The fact that we don't have didn't have as much cash on hand throughout the year, coupled with the fact that as has been mentioned before uh through throughout the other presentations, the interest rates for deposits are down almost a percent uh per month.

So uh that in in uh between those two things, our uh interest income is down from 1.4 million last year to the 735,000 dollars that you see uh on this particular slide.

As I mentioned, the average interest rate now this year for the bank balances of 2.75 is down from 3.697 last year, and our overall combined is down from uh or from the 3.698 overall these issues.

Yes, I have a question.

How do you decide how much you keep in um JP Morgan Chase versus Trust Indiana essentially?

Um we don't spend a lot of time looking at that from the standpoint that we have to be sure that our our funds are very fluid liquid because of the number of different types of in uh uh payments that we are asked to make at different times.

Some are very large, some are not so large, but we basically um started with Trust Indiana to be sure that we had two bank accounts.

Um we will start to look at that a little more, but we haven't really spent a lot of time trying to to decide which one is which.

The the interest rates are are not obviously they're not the same.

Uh in Trust Indiana is is right now is almost up, probably a percent and a half better.

Um, but we have not we have not done that, we've not spent a lot of time on that.

Anything else?

Other questions.

Thank you.

Good morning.

Good morning.

My name is Lolita Campbell.

I'm the chief financial officer for the Marion County Public Library.

Um I'm not sure how this happens.

Okay.

Sorry, I hate them.

Okay.

Thank you.

Um we'll be presenting the investment report for year ending December 31st, 2025.

Our investment policy has not changed since 2024.

We review it every four years.

So the next time that we need to review and approve it is in 2028.

Um the liquidity, the um objective still still stays the same, which is legality, uh safety of principal, liquidity, and return of investment, which is the yield.

So it stays the same until something happens, you know, that's um policy or something like that.

We will review it.

But in the meantime, we won't be reviewing until 2028.

Um this slide was um it shows the relationship, our banking relationships.

We have um JP Morgan Chase, which holds our majority of our operating um revenue, which covers our operating expense.

This is our business high yield savings accounts, and we have fifth third, which is our liquidity management account, who's your fund, which is our um in trust Indiana, which is which is the um government investment pool.

Then we also have the U.S.

bank, which is our money market capital deposits.

Um in fact, our banking relationship that we have, we have a good relationship with Hannah Amore.

She's back there.

Um there she is.

So we have a well um good relationship with her.

So um here on this slide shows the 2025 average monthly bank investments.

This is what I shouldn't get first.

Um for um JP Morgan Chase, um, the total amount is uh 48.8 million.

Um that's our average monthly balance with the total amount of um 66.6 million, and then for the remaining of the other uh investment relationships, we have um a total of 31 million with an average of um 31 million.

And the reason that those still stay the same is just that um that money stays in there to accumulate interest and um the 2025 interest income uh JP Morgan Chase um along with our sweep account, the total amount for the year was one point six point one point six five million with the average monthly income of 138 million, um 138,000.

I'm sorry, and then the remaining um bank relationship we had a total of 1.2 million with an average monthly income of 96,000, and the total amount of interest earned for the year is 2.8 billion.

On this slide, you'll show the um interest um by the bank of relations, and um for the interest yield for um JP Morgan, the average interest was 3.39 for the total amount of 1.65 million, and then um the average interest for the other remaining is 3.78 for the total of 1.15 million, and total together is 2.8 million with the average yield of 3.54.

On this slide, you'll show that monthly average yield um per each banking relationship we have.

So um, as you can see, um that every month it declined based on the federal yield.

Um however, you know, it's still looking good.

And on this slide, you'll show I show the um a graph where we have Chase holding 62 percent of our funds, and that's again mainly because that's our operating fund to keep it liquid, and the remaining um goes into Hoosier Fund is 13 percent and trust 11 percent, fifth third, eight, and US bank seven.

This slide shows the investment behavior, the total amount earned of interest in the percentage per that earnings for the year.

Again, um at JP Morgan was um 1.65, and that's 59% of our interest, and um the investment pool of 804,000, that's 29 percent, and our liquid liquidity is 260,000, and that is 99 percent, and the our money market is 89,000, which is three percent.

This slide shows a comparison between 2024 and 2025.

Um there's a slight decrease in our chase um for 68 percent to 62 percent, and that's mainly because of the um the yield uh reducing, and that is our liquidity, which um shows our major, our mainly our operating funds is in there, so that of course the balance monthly balance is varies, so therefore that interest would be a little less each month.

And here's the benchmark yield comparison from 2024 and 2025.

Um, as you can see, the library still remains within the yield um average per year.

And I know that's question 30, but any questions?

Questions from the board.

Oh, just are you looking to move more money out of Chase into better paying interest accounts?

Well, Chase holds our operating funds, and that mainly pays all our bills, and um we would have to really look at that and see if that is really feasible to move the majority of our funds out.

Chase holds our operating funds, and that mainly pays all our bills, and we would have to really look at that and see if that is really feasible to move the majority of our funds out.

And I do understand that makes um more interest.

That's something we have to look at in the future when we look at our investment policy again.

So when you decrease the investment from 2024 from Chase, was that you had just less need for liquidal liquid funds, and you were able to invest more into Trust Indiana or actually we didn't invest more interest in the end, that funds remain the same, so as we incur interest, um it just developed more money because it is set there, but in our JP Morgan is more fluid and more, you know, the interest.

I mean the um operating funds was there to make it more fluid to pay RBLs.

So therefore the monthly um balance um varies, which makes the interest varies as well.

Thanks.

Thank you.

Was there an investment policy provided?

I just want to make sure if there's anything as far as approval.

The last time the investment policy was approved was in on November 2024 and hasn't changed, and it will be reviewed again in 2028.

But it was not included.

I didn't know if it was included in the package.

It was it wasn't included.

I can say the board.

Could you send it?

Yes, yeah.

It's still the same.

But you should have the outless sentence email.

Yes, I do.

Allison can get it out to all of us.

Yes, I can send.

Thank you.

Thanks for the work that the library does.

I think it's the out of all the organizations doing great work.

Uh I I want to highlight the partnership that IPS has had with the library going fully in with the shared system.

Yes.

I think it's that's available to a lot of public schools and other schools in the Marion County area.

Um I think outcomes matter.

I think just highlighting I read scores the whole focus on early literacy and in uh passing I read at third grade to then pass the fourth grade.

It's maybe not di attribution, but it's just one of the many, many, many tools that we have as partnerships with with the library to you know help our students and many other students uh you know pass that test and and just enjoy life, you know, experience life in a new way.

So appreciate that partnership.

Thank you.

Uh second thing is I think I've asked in the past about the cafe at the central library, and I'm really pleased that it's there, and I've been going to lunch there.

So highlight uh T Street Eats if you're ever in the central library area, they have a really good chicken salad.

Yes, really good chicken salad.

So they do don't know if you concur, but that that's something I occur.

I love it.

Good.

Thank you very much.

Okay, thank you.

Thank you.

Good morning.

Morning.

And I believe the uh okay.

Morning, I'm Rodney Schein, Chief Deputy with the Marion County Treasurer's Office, and I'll be presenting for Marion County.

Um the first slide lists the financial institutions that Marion County has relationships with.

Uh there are 12 financial institutions that are approved by the Indiana Board of Depositories.

We also have Trust Indiana.

Um we look at the borrower rating.

The borrow rating is an independent rating service that rates the financial health of financial institutions, and all of the ratings were either four or a five community reinvestment act.

Really look at how uh banks and financial institutions, how they uh give out loans and what banking relationships they have with low to moderate income individuals, and all of them had either a satisfactory or an outstanding rating.

Next, in making investment decisions, uh we spent a lot of time looking at the federal funds rate.

And last year, the federal funds rate, the top of the range went from four and a half percent at the beginning of the year to 3.75 at the end of the year, which which affected the uh deposit rates and also short-term investment rates.

Um here's the uh Fed dot plot.

Also something I like to take a look a long look at.

It shows where the Fed governors are when they look at projecting future interest rates, and you can see that for 2026 through 2028, they're looking for rates to be around uh the targeted Fed Fed funds rate to be between three and three and a half percent.

So most are projecting one or two rate cuts for 2026.

Uh the next slide shows holdings, uh investment holdings for Marion County.

Um at the end of the year, we had 61 million dollars, and the average maturity was 665 days, so a little a little less than two years.

And you can see uh because understanding that we were in a rate cutting environment uh in the middle of the year, we we expanded our our investments and the maturities out to uh three years, so we were able to capture um yields of in the uh low to mid four four percent prior to the reduction in rates.

The next slide uh shows the average balances uh for the for 2025, and uh Mary Marion County Treasurer's Office is pretty unique in that we start off the year with fairly low fund balances, our our our total balances the first four months of the year between 250 and 300 million, and then we spike up at the time of property tax collections in May and June.

Our our average balance gets over 800 million, and then after uh settlement funds go out at the end of June, the balances go down again in July, August, and August through October to three to three hundred and fifty million, and then they spike up again at the end of the year.

And because of this, we most of the funds are invested uh in liquid funds that we can have access to for distributions in June and December.

The next slide shows the average balances uh for 2025, and it's it really is aligned with the funds that we have as we as we receive more funds our our interest income goes up, and as we have less on hand, our interest income goes down, but we we generated almost 20 million in interest income for the year with with the average monthly uh interest income generating about 1.6 million dollars a month.

The next slide shows a summary of average average balance, uh interest earnings, and the yield for both liquid and non-liquid uh investments.

And I really like to distinguish on the on on the left-hand side, those are all liquid investments that we have access to every day.

So we want to pull pull out funds, those are liquid investments.

On the right hand side, those are investments that we're investing typically between between one and three years.

So we uh we generated on our liquid investments for 2025, the uh average yield was 4.23 percent, and it was 4.61 percent on on our non-liquid investments.

Our average balance for the last five years is actually even at a rate environment where where we're now the rates are are are going down.

We we've had fairly similar um interest income for the year, 19.8, almost 19.9 million in accrued interest for 2025 and 19.3 million in uh 2024.

Uh one thing that that has happened over the last few years is is with the levy increases and and and license income tax increases, our our average balance has increased, which which has enabled the uh interest income to stay fairly high.

Uh with our investment policy, our our investment policy was last renewed in uh December 2024.

There were there were no changes last year, and uh we were really not expecting changes uh next year.

Uh entertain any any questions.

Uh uh for the board's notification, we have this discussion every year, but MBGO has through uh uh through the ability that's given to them through statute, they do not present to the board because their board of finance or their board is their board of finance, so they report to them, but we do get their reports and they are included in your packet.

Um give any of the members an opportunity to speak.

Anybody have anything to say on the any go?

Is there a specific date that they record back to us to say this was the date they presented this information, or are they just saying hey, we present to the board regularly, and that is that is what I seem to recall that it was mentioned in there that they presented this to their board in December?

Or I'm sorry, MJ any wheely.

I I'm happy to follow up.

I just didn't know if that's something we would want to minute and say the indigo transportation we presented at their board of finance on the stage.

Okay, very good point.

Uh but it has been presented to them, and he sent it to me last week.

So does Bart Brown their CFO.

Uh Joe, anything?

Yeah, I think for me.

Madam Controller.

Just want to congratulate the uh Indianapolis Public Schools for their highest average rate of return.

That is correct.

Above the city and Marion County, so good for you all.

Mr.

Assessor, anything?

Okay, hearing no other business to come before this meeting, I would entertain a motion for adjournment.

So moved.

We offer adjourned.

Thank you.