About

News & Events

Learn about the latest News & Events for The Indianapolis Local Public Improvement Bond Bank, and sign up up to receive news updates.

Upcoming Events

December 16, 2019

Board Meeting (December 2019)

News & Press Releases

November 1, 2019

News
Bond Buyer announces finalists for 2019 Deal of the Year

November 01 2019, 9:50am EDT- The Bond Buyer Friday announced the recipients of its annual Deal of the Year awards, marking the 18th year that it has recognized outstanding achievement in municipal finance.

This year, The Bond Buyer increased to 10 the number of categories of deals eligible for awards. The 2019 awards, which considered deals that closed between Oct. 1, 2018, and Sept. 30, 2019, includes three new additions: ESG/Green, Public-Private Partnership (P3), and Innovation, the last of which replaces the Non-Traditional category, which has been retired.

All 10 award winners are also finalists for the national Deal of the Year Award, which will be announced at a Dec. 4 ceremony held at the Conrad New York Downtown in lower Manhattan. The winner will also be revealed at BondBuyer.com later that evening.

“This year’s lineup reflects the full range of communities and public purposes this market comprises,” said Mike Scarchilli, Editor in Chief of The Bond Buyer. “The deals honored vary in size, complexity and structure -- as were the nominations we received, which were deeper and more diverse than ever.”

The Bond Buyer’s editorial board considered a range of factors when judging entries, including: creativity, the ability to pull a complex transaction together under challenging conditions, the ability to serve as a model for other financings, and the public purpose for which a deal’s proceeds were used.

For the ninth year, the Deal of the Year gala will also include the presentation of the Freda Johnson Award for Trailblazing Women in Public Finance. This year marks the fifth in which the organization is honoring two public finance professionals; one from the public sector and one from the private. The 2019 honorees are public finance professional Ritta McLaughlin, most recently the MSRB's Chief Education Officer, and Courtney Shea, owner and managing member of Columbia Capital Management LLC.

Here are the 2019 Deal of the Year award winners:

INNOVATIVE FINANCING
The first recipient of the Innovative award is the Cities of Dallas and Fort Worth, Texas’ nearly $1.2 billion taxable refinancing. DFW’s plan to discontinue issuing alternative minimum tax bonds and focus entirely on taxable debt resulted in the largest ever taxable airport deal and international orders totaling 39% of the deal size.

ESG/GREEN FINANCING
The inaugural winner in the ESG/Green category is the Los Angeles County Metropolitan Transportation Authority’s $545 million offering of Proposition C sales tax revenue bonds, which included $418.5 million second-party-verified green bonds. The transportation issuance was the second largest green deal in 2019, and the second largest green offering in California history.

PUBLIC-PRIVATE PARTNERSHIP FINANCING
The first-ever honoree in the P3 category is the Virginia Small Business Financing Authority’s $262 million offering to fund its Fredericksburg Extension project. The deal, a partnership between the authority and 95 Express Lanes LLC, will help finance the development, design, construction, maintenance and operation of a 10-mile extension of the 95 Express Lanes.

HEALTH CARE FINANCING
The Health Care winner is the $6.5 billion CommonSpirit Health financing, the largest ever by a not-for-profit health system. The financing consisted of both a complex debt restructuring of nearly 50 series of debt and new money reimbursement. It generated the largest order book for a municipal not-for-profit transaction, with $40 billion in orders.

SMALL ISSUER FINANCING
The Vermont Municipal Bond Bank is the Small Issuer honoree for its $31.5 million issuance of Local Investment Bonds. The designation serves a two-fold purpose: raising awareness of the social and environmental impacts of the projects the Bond Bank funds, and making access to those investments more widely available through $1,000 denominations.

NORTHEAST REGION
The Battery Park City Authority claimed the Northeast crown for its $673 million offering for resilience projects in a neighborhood devastated by Superstorm Sandy in 2012. The complex financing saw the authority issue variable-rate demand bonds and SIFMA floating-rate notes for the first time. The transaction also received a second-party sustainability bond designation.

MIDWEST REGION
The Indianapolis Local Public Improvement Bond Bank is the winner in the Midwest for its $625 million issuance of bonds secured by lease rental payments for its Community Justice Campus. The design consolidates operations and replaces the current outdated, overcrowded, and unsafe facilities with three new, modernized buildings on a single campus.

SOUTHWEST REGION
The Southwest recipient is the City of Austin’s $464.5 million offering of taxable revenue bonds to fund its acquisition of a biomass-fired power plant for the city’s electric utility. The transaction created a clear path to eliminate an above-market power purchase agreement, a source of considerable cost and frustration for the city and Austin Energy.

SOUTHEAST REGION
The Solid Waste Authority of Palm Beach County, Florida wins the Southeast for a $347.6 million refunding utilizing "Cinderella bonds," which employ a crossover taxable and tax-exempt convertible refunding bond structure. This creative approach allowed the issuer to solve a problem it otherwise couldn’t have after the elimination of tax-exempt advance refunding.

FAR WEST REGION
The San Diego Association of Governments’ $331 million capital grants receipts revenue bond sale is the honoree in the Far West. The first public market, stand-alone securitization of a federal full-funding grant agreement in nearly 20 years, the deal accelerated the completion of the city’s $2.2 billion Mid-Coast Corridor Transit Project.

September 23, 2019

Press Release
ILPIBB Stormwater 2019F Issuance

THE INDIANAPOLIS LOCAL PUBLIC IMPROVEMENT BOND BANK PLANS THE SALE OF AN ESTIMATED

$50 MILLION* BONDS, SERIES 2019F (STORMWATER PROJECT)

The Indianapolis Local Public Improvement Bond Bank (the “Bond Bank”) plans the sale of the following bonds (“Bonds”) for the Qualified Entity, the Marion County Stormwater Management District (the “District”).

Negotiated Sale scheduled for the week of September 30, 2019*

$50,000,000*  The Indianapolis Local Public Improvement Bond Bank Bonds, Series 2019F (Stormwater Project)

Proceeds of the Series 2019F Bonds will current refund the Indianapolis Local Public Improvement Bond Bank Notes, Series 2016 (Stormwater Project), outstanding in the aggregate principal amount of $50 million, and fund costs of certain additions and improvements to the District’s Stormwater System.

The Series 2019F Bonds will be secured by a pledge of net revenues of the District, which includes all revenues and income from the Stormwater System, including but not limited to charges, and user charges, but excluding revenue from ad valorem taxes, minus operation and maintenance expenses.

The Preliminary Official Statement and Investor Roadshow for the Bonds is expected to be available on September 25, 2019*. A rating presentation was given to Standard & Poor’s on September 18th, 2019 with a rating determinant forthcoming. 

Sycamore Advisors, LLC is serving as the Municipal Advisor to the Bond Bank for this issuance.

This notice does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instruments, including the Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to the Bonds will be made solely by means of the final Official Statement relating to such Bonds which will describe the actual terms of such Bonds.

This notice does not constitute an obligation of the Bond Bank to issue bonds.

Prior continuing disclosure filings for the Bond Bank and the District can be accessed at the following link:

https://emma.msrb.org/IssuerHomePage/Issuer?id=48F81DF5F4D01CA5E053151ED20A6930

September 20, 2019

News
Indianapolis receives fifth positive financial rating from national agency

Indianapolis receives fifth positive financial rating from national agency

Kroll Bond Rating Agency awards highest rating to the city, citing strong local economy

INDIANAPOLIS – Today, the office of Mayor Joe Hogsett announced that Indianapolis has received yet another General Obligation rating upgrade from the Kroll Bond Rating Agency (KBRA).  This is the second upgrade the City has received from KBRA within the last year, and the fifth positive rating action taken by a national agency since October of 2018. 

KBRA cited several trends in issuing the rating, noting the City’s two years of balanced budgets, a steady increase in unassigned fund balances, and good liquidity. Additionally, the rating agency pointed to the strength of the local economy, the continued residential and commercial development, as well as the expansion of the technology sector as proof that Indianapolis’ financial position continues to demonstrate an upward trajectory.

This announcement comes as the City-County Council is debating the 2020 budget, the third balanced budget submitted to the legislative body by the Hogsett administration.  After nearly a decade of imbalanced budgets, Mayor Hogsett and City-County Councillors have prioritized responsible fiscal policies aimed at right-sizing city government and making strategic investments in critical city services.  

“Bipartisan leadership and thoughtful fiscal policies have caused national agencies to take note of Indianapolis,” said Mayor Hogsett.  “We are committed to strengthening our local economy and investing in our neighborhoods, while being good stewards of taxpayer dollars. This combination of thoughtful spending and meaningful investments are helping to attract jobs and residents, ensuring Indianapolis is on sound financial footing.”

In October of 2018, Kroll upgraded the City’s General Obligation rating to AA+ stable. In November 2018, Moody’s affirmed the City’s Aaa rating and upgraded the municipality’s financial outlook to stable. In December 2018, S&P upgraded our outlook to AA+ Stable and in February of 2019 Fitch affirmed a AAA stable rating for the city.

KBRA is a full-service credit rating agency registered within the U.S Securities and Exchange Commission.  To learn more, click here.

Taylor Schaffer
Deputy Chief of Staff - Communications
Office of Mayor Joe Hogsett – City of Indianapolis

taylor.schaffer@indy.gov

P: (317) 327-2793  C: (317) 694-0463
www.indy.gov

News
Market snaps up Indianapolis/Marion County justice center debt
Market snaps up Indianapolis/Marion County justice center debt

By: Nora Colomer

**Published: March 21 2019, 6:13pm EDT **

Good timing and strong retail participation set the stage for a strong reception of Indianapolis and Marion County's $623 million of tax-exempt bonds.

The consolidated city-county government priced the deal Thursday after a retail order period Wednesday. It consists of $610 million of bonds for the long-anticipated justice center project, plus roughly $13 million of bonds to finance an assessment and intervention center. 

The finance team received $3 billion in orders, allowing it to trim yields from the initial pricing.

“The timing on this sale was impeccable in that there was really very low supply of about $3 billion and with the Federal Reserve notes coming out and saying they are not raising rates.” said Evercore Wealth Management Municipal Bond Research Director Howard Cure. “I think that really increased the institutional buyers demand at the rates they were showing. They couldn’t have timed it much better."

A 2024 maturity in the Aa1 and AAA-rated deal with a 5% coupon landed at a yield of 1.76%, or five basis points over the Municipal Market Data's top-rated benchmark. A 2044 maturity with a 5% coupon landed a yield of 2.97% or 22 basis points over MMD. A 2054 maturity with a 5% coupon landed a yield of 3.20% or 40 basis points over MMD, according to MMD's daily market close column.

Bank of America Merrill Lynch and UBS Financial Services are co-senior managers. Faegre Baker Daniels LLP is bond counsel. Sycamore Advisors LLC is the financial advisor.

Most maturities were repriced 5 to 7 basis points lower across most of the curve but the team did not reprice the 30-year and the 35-year maturities, said Diana Hamilton, president of Sycamore Advisors.

The city and county took retail orders on Wednesday with more than $218 million in orders received including $53 million from Indiana buyers. Hamilton said it was “incredibly strong” retail participation for an Indiana deal.

Hamilton said the city was pushing for retail participation.

"From the city's perspective, they wanted this deal to have local support and from a pricing standpoint, strong retail participation gives us a good anchor for the deal going into the institutional order period," Hamilton said.

"The project itself as interesting as it is about the city and county taking over what was a privatized facility, I don’t think it is coming into play very much," Cure added.

The Federal Reserve on Wednesday scaled back their projected interest-rate increases this year to zero and said they would end the drawdown of the central bank's bond holdings in September after holding policy steady.

The bonds tap a new revenue pledge to fund a criminal justice complex billed as a cornerstone of reform plans.

The $610 million, 35-year, Series A bonds that finance construction of the city-county’s adult detention facility and local courthouse are secured by lease rental payments, which are repaid with a local income tax. The deal marks the first time the city has pledged the revenue source to secure bond payments.

The $12.6 million, 20-year, Series B bonds that finance the assessment and intervention center will be secured by lease rental payments backed by a property tax. The center will be operated by the Marion County Health and Hospital Corporation.

“It is ultimately appropriation with some abatement risk but I don’t think people are concerned about that because it is pretty typical structure,” Cure said.

Press Release
Bonds fund a new criminal justice approach in Indianapolis

Indianapolis and Marion County on Thursday will sell more than $623 million of tax-exempt debt that taps a new revenue pledge to fund a criminal justice complex billed as a cornerstone of reform plans.

News
Bonds fund a new criminal justice approach in Indianapolis

By: Nora Colomer

Published: March 19 2019, 2:39pm EDT

Indianapolis and Marion County on Thursday will sell more than $623 million of tax-exempt debt that taps a new revenue pledge to fund a criminal justice complex billed as a cornerstone of reform plans.

The consolidated city-county government is pricing $610 million of bonds for the long-anticipated project, plus roughly $13 million of bonds to finance an assessment and intervention center.

The three-building complex, which will house the county’s civil, criminal, juvenile and probate courts, jail and sheriff’s department, in addition to the assessment and intervention center, will repurpose a formerly vacant industrial site with the intent of revitalizing a long-underserved neighborhood on the Eastside.

Indianapolis has recognized the need for a new jail for more than a decade but previous efforts to build one have stalled. “Like other large metros the criminal justice infrastructure in Indianapolis is aging, inefficient and overcrowded,” Mayor Joe Hogsett said in an investor presentation.

Hogsett created a criminal justice reform task force three years ago to make recommendations. It found that nearly 30% of inmates suffer from mental illness and nearly 85% of inmates suffer from substance abuse or addiction. They recommended primary goal or reform should be to identify these non-violent inmates and send them to treatment rather than prison.

“With that in mind we are creating something new; a modern justice campus for entire community,” Hogsett said in the investor presentation.

The assessment and intervention center, run by the county‘s public health department, is designed to be a place where people can be diverted at the beginning of the process, assessed and offered the medical intervention needed rather than sending them to a jail bed, Sarah Riordan, executive director and general counsel of the Indianapolis Local Improvement Public Bond Bank, said in a phone interview. The bond bank will issue the debt.

“There is significant population of people in our jail facilities that are cycled in and out,” Riordan said. “They are not violent offenders but people who came into police interaction for whatever reason whose real problems are undiagnosed or untreated mental health issues or substance abuse.”

The building will be owned by the Indianapolis-Marion County Building Authority and will then be leased back to the city-county government.

The $610.5 million, 35-year, series A bonds will finance construction of the city county’s adult detention facility and local courthouse. The proceeds will also current refund $75 million of direct placement debt related to the project the city and county issued through the bond bank in 2017 and 2018. The first was for $20 million and was placed with PNC Bank. The second was for $55 million and was placed with Fifth Third Bank.

The new bonds are ultimately secured by lease rental payments, which are repaid with a local income tax. Local income tax is derived from an income tax with a flat rate structure imposed on state adjusted gross income of county taxpayers that is authorized by statute and available to all Indiana municipalities.

The deal marks the first time the city has pledged the revenue source to secure bond payments.

The $12.6 million, 20-year, series B bonds that finance the assessment and intervention center will be secured by lease rental payments backed by a property tax. The center will be operated by the Marion County Health and Hospital Corporation.

Bank of America Merrill Lynch and UBS Financial Services are co-senior managers. Faegre Baker Daniels LLP is bond counsel. Sycamore Advisors LLC is the financial advisor.

The bonds are scheduled to price on Thursday after a retail order period Wednesday.

“We have had positive meetings with some exiting bondholders and other investors,” Riordan said. “The reception has been good.”

Fitch Ratings has assigned the bonds its AAA rating and Moody’s Investors Service rates the bonds Aa1. Both Moody's and Fitch also affirmed the city's Aaa/AAA issuer ratings, with stable outlooks.

Moody’s rates the bonds one notch below the city/county rating “due to abatement risk if the facilities cannot be occupied,” the rating agency said.

“The dedicated tax revenue structure provides ample financial resilience in the event of a moderate economic downturn and incorporates strong legal protections to mitigate abatement risks,” Fitch said. “The city/county plans to capitalize interest on the bonds through the projected construction completion date. Additionally, the city/county will maintain two years of rental interruption insurance to mitigate abatement risks post completion.”

Andy Mallon, corporation counsel for Indianapolis, said in the investor presentation that relocating the justice functions to a single campus will generate significant operating and cost savings to make the project effectively budget neutral.

About $35 million in annual savings are expected from the expiring leases for those offices currently located in privately owned buildings.

“We determined for the 2019 budget what it costs to operate all of our criminal justice facilities and when those are no longer used we will apply that same amount of money to debt service,” Riordan said.

The assessment and intervention program is designed to improve people’s lives but may pay off financially.

“We are not banking on any type of savings to be generated from this in terms of our ability to pay back our bondholders but we predict there will be savings generated from fewer occupancies ultimately of the adult detention facility making it less expensive to run and also lower medical care costs,” Riordan said.

Mallon said that vacating the existing justice facilities would also create significant opportunity for private investments and jobs through the redevelopment of the real estate.

The local income tax-backed base is a new structure for Indianapolis. The city's pledged component of its LIT is 1.72% and the current all-in rate, which includes unpledged IndyGo LIT, is 1.97%. The maximum allowed all-in rate in the county is 2.75%.

The tax represents the second largest city revenue source with the city’s portion of the certified distribution a projected $336 million for fiscal 2019 up 41% from 2014, according to the presentation. The city and county have covenanted not to reduce the rate or otherwise impair LIT while the 2019 series A bonds are outstanding.

“The bonds have 3 times additional bonds test and nearly 8.7 times coverage, so we have a lot of LIT revenue and there is an irrevocable pledge of LIT revenue to service these bonds,” Riordan said. “There is a tremendous amount of capacity not only for these bonds but also for the city to raise revenues in the future should it decide to do that.”

For the series B bonds the city will continue using a levy that was instituted for healthcare-related projects. Riordan said there will be no new increase in the property tax rate or debt burden as a result of the financing.

The structure also provides safeguards to mitigate construction and abatement risks. The detention center and courthouse are expected to be completed by Dec. 31, 2021 and the assessment and intervention center has an earlier completion date of July 1, 2020. The facility will be constructed at the site of the former Citizens Energy coke plant.

The bonds benefit from additional security provisions to mitigate the risk of abatement if construction delays were to push the completion date back. The capitalized interest, funded with bond proceeds, is enough to cover debt service payments six months beyond estimated project completion date. There is also the revenue stabilization fund, which is equal to 25% of maximum annual debt service, that can be drawn on in first instance if rent is interrupted due to abatement or other causes. The debt service reserve fund will be funded equal 100% of maximum annual debt service or $38.7 million.

Riordan said the bonds also benefit from rental interruption insurance to cover two years' rental interruption to cover lease payments in event the property is unavailable for use or occupancy. Bonds will also have 100% coverage against physical loss or damage sufficient to fully repair property or call outstanding debt.

Press Release
Fitch awards its highest rating to Indianapolis Community Justice bonds

Fitch awards its highest rating to Indianapolis Community Justice bonds
_National ratings service assigns a “AAA” rating to bonds that will fund new Community Justice Campus in the Twin Aire neighborhood _

INDIANAPOLIS – Fitch Ratings Service (Fitch) awarded its highest rating – “AAA” – to the Indianapolis Public Improvement Bond Bank’s two Community Justice Campus (CJC) bonds. Rarely, if ever, has Fitch awarded a ‘AAA’ rating to a lease abatement financing of this kind in Indiana. The series 2019A and 2019B bonds total more than $623 million and will fund the new consolidated adult detention facility and courthouse, as well as an assessment and intervention center being built on the 140-acre site formerly occupied by the Citizens Energy Group Coke Plant in the Twin Aire neighborhood.

“We worked diligently to assess and ensure the affordability of this project – without a tax increase,” said Mayor Joe Hogsett. “The ‘AAA’ rating represents the fiscally conservative and taxpayer-first mentality of our team, potentially resulting in millions of dollars in interest savings.”

Series 2019A, valued at approximately $610.5 million, will fund the consolidated county jail that replaces existing correctional facilities, as well as a consolidated county courthouse that joins civil, criminal, juvenile and probate courts into one building. Series 2019B, valued at approximately $12.6 million, will fund an assessment and intervention center to provide temporary shelter, case assessment and treatment referral services to individuals suffering from addiction or mental illness. The 2019A bonds are backed by a pledge of local income tax revenues, while the 2019B bonds are backed by a pledge of property taxes.

Fitch explains its ‘AAA’ rating on the 2019A bonds reflect anticipated income tax revenue growth based on the city’s expanding local economy, grounded in positive trends in population growth, employment and personal income. Fitch cited a 6% cumulative increase in taxable assessed values in 2018 and 2019, due in large part to a boom in residential and commercial development. Fitch also noted that the city’s unemployment rate has been trending below the national rate since 2015, likely attributed to the swift expansion of the technology sector in Marion County. The ‘AAA’ rating on the 2019B bonds reflects the city’s strong underlying credit strength.

For More Information:
Emily Koschnick
317.995.3289
emily.koschnick@indy.gov

News
Moody's assigns Aa1 to Indianapolis Local Public Improvement Bond Bank's (IN) lease bonds; outlook stable

Rating Action: Moody's assigns Aa1 to Indianapolis Local Public Improvement Bond Bank's (IN) lease bonds; outlook stable

New York, March 06, 2019 -- Moody's Investors Service assigns a Aa1 rating to the $610 million Community Justice Campus Bonds, Series 2019A (Courthouse and Jail Project) and $12.6 million Community Justice Campus Bonds, Series 2019B (Assessment and Intervention Center Project). The bonds are issued by the Indianapolis Local Public Improvement Bond Bank and are ultimately secured by lease payments made by Indianapolis-Marion County (the city). Concurrently, Moody's has affirmed the city's Aaa issuer rating. The outlook is stable.

The issuer rating represents Moody's assessment of hypothetical debt of the city supported by a general obligation unlimited tax (GOULT) pledge.

News
Fitch Rates $623MM Indianapolis Local PIB Bond Bank, IN Lease Revenue Bonds 'AAA'; Outlook Stable

Fitch Ratings-New York-05 March 2019: Fitch Ratings has assigned 'AAA' ratings to the following
Indianapolis Local Public Improvement Bond Bank, Indiana bonds:

--$610.5 million Indianapolis-Marion County Building Authority (the Building Authority) Community
Justice Campus lease rental revenue bonds, Series 2019A ;
--$12.6 million Indianapolis-Marion County Building Authority (the Building Authority) Community
Justice Campus lease rental revenue bonds, Series 2019B.
Fitch has also affirmed the City of Indianapolis' $60 million limited tax general obligation (ULTGO)
bonds at 'AAA'.   

The Rating Outlook is Stable.

The 2019A and B lease rental revenue bonds will sell via negotiation on March 21. The 2019A
bonds will fund a consolidated county detention center to replace existing correctional facilities
and a consolidated county courthouse that joins civil, criminal, juvenile and probate courts into
one building (and capitalized interest through April 1, 2022). The 2019B bonds will fund an
assessment and intervention center to serve as a facility for providing temporary shelter, case
assessment and treatment referral services (and capitalized interest through Jan. 15, 2020).

Press Release
The Indianapolis Local Public Improvement Bond Bank Plans the Sale of an Estimated $625 Million

The Indianapolis Local Public Improvement Bond Bank (the “Bond Bank”) plans the sale of the following bonds (“Bonds”) for the Qualified Entity, the Indianapolis-Marion County Building Authority (“IMCBA”), to construct a new community justice campus and an assessment and intervention center.

News
Fitch Affirms AAA City's Rating

City of Indianapolis receives fourth consecutive positive financial rating

Fitch Ratings affirms the City’s “AAA” score, states outlook is “stable”

INDIANAPOLIS – Today, Fitch Ratings, one of the four major national credit rating agencies, has affirmed Indianapolis’ “AAA” rating for ad valorem special benefits tax bonds – bonds based on assessed property tax value – as well as for the City’s unlimited tax general obligation (ULTGO) bonds.  Fitch also affirmed the City of Indianapolis’ Issuer Default Rating (IDR) at “AAA.”  The rating outlook remains “stable.”

This most recent “AAA” rating is the fourth in a series of positive financial reports for the City of Indianapolis since late last year.  In December, S&P Global upgraded its long-term rating on the City’s ad valorem tax-secured bonds to “AA+” and affirmed the City’s “stable” outlook.  Last November, Moody’s Investors Service affirmed the City-County’s “Aaa” issuer and the City’s “Aaa” General Obligation Limited Tax Ratings and revised the outlook on all Indianapolis ratings to “stable,” removing the “negative” outlook imposed in 2015.  In October of 2018, the Kroll Rating Agency gave the City a credit rating of “AA+” and upgraded its outlook from “stable” to “positive” for the City of Indianapolis General Obligation Funds.

“This fourth positive report gives the City of Indianapolis affirmation that we are moving in the right direction for our residents, while demonstrating to prospective businesses, developers, and employers that we are a city that supports growth and expansion,” said Mayor Joe Hogsett.  “When companies and their employees move here and see success, we can reinvest in our neighborhoods, bringing that financial prosperity to all of Indianapolis.”

Fitch explained its “AAA” rating for Indianapolis reflects the City’s ability to grow its general fund revenues, keeping it above the rate of inflation.  This revenue growth is based on the ongoing expansion of the local economy, due in large part to the residential and commercial boom happening in Marion County.  As evidence, Fitch listed developments such as the Waterside District along the White River and the downtown projects that will convert the former Coca Cola Bottling plant and the historic AT&T Building to mixed-use developments.

Also cited in Fitch’s release is the City’s unemployment rate – which has been trending below the national rate since 2015 – and continued job growth, specifically within the City’s burgeoning tech sector: Salesforce plans to add 800 new jobs to its already 1,400 employees by 2021; last year, Infosys announced plans for a $245 million expansion at the site of the former Indianapolis International Airport, expected to bring nearly 3,000 jobs to the area over the next three years; and Fed Ex’s $1.5 billion expansion at the airport will add 20 new commercial gates by 2023.

Other key factors in Fitch’s decision to affirm the “AAA” rating include the observation that the City’s overall debt and long-term liability burden is relatively low in relation to income.  Local tax revenue is projected to increase by six percent in 2019.  Fitch also expects the City to be on solid financial footing and able to maintain stability should there be a moderate economic downturn.  Additionally, the ratings agency cites the City’s ability to control expenditures by managing the size of its workforce – mainly through employee attrition and by carefully managing service contracts.

For more information on the report from Fitch Ratings, click here.

News
Moody's removes 'negative' outlook on city's credit rating

Moody's removes 'negative' outlook on city's credit rating

November 29, 2018   Hayleigh Colombo

Credit rating agency Moody’s affirmed the city of Indianapolis’ financial path under Mayor Joe Hogsett by revising its former “negative” outlook on the city’s overall Aaa credit rating to a “stable” outlook.

Moody’s also this week assigned an initial Aa2 rating to $30 million in revenue bonds issued this year by the Indianapolis Bond Bank to pay for long-term transportation planning.

Moody’s, in a press release, said the "stable outlook reflects our expectation for continued growth in tax base valuation and the maintenance of ample operating reserves." The city's Aaa rating is technically on $119.4 million of outstanding general obligation limited tax debt.

"These strengths should continue to offset credit challenges, positioning the city in the Aaa category for the foreseeable future," according to Moody's.

In a separate release, Moody's said its rationale for giving the Aa2 rating to the $30 million in new revenue bonds was “based on a diverse and growing revenue base that is anchored by” the city.

“Indianapolis sits at the center of a broad network of local and regional roadways, including four US interstate highways,” according to the Moody’s release. “This base should provide for continued growth in pledged revenues, which consist of a gas tax and other transportation-related revenue.”

Moody’s had previously rated all Indianapolis ratings as “negative” in 2015.

Hogsett, who spent the first two years of his administration trying to create a “structurally balanced budget,” cheered the news in a press release.

“This upgrade to our credit outlook affirms what we already know – Indianapolis is in a strong fiscal position,” Hogsett said.  “Our strong rating and improved outlook is emblematic of our city’s commitment to consistent and cost-saving initiatives. 

“In turn, these initiatives foster a climate that will continue to attract businesses, a talented workforce, and families who want to relocate to a city that is on firm financial ground and invests in its public safety, infrastructure and neighborhoods."

News
New Tax Backs Deal for Indianapolis Transit

The Indianapolis mass transit system is set to price the first round of bonds to finance projects under the system’s $522 million, five-year capital plan.

Indianapolis Public Transportation Corporation, marketed to riders as IndyGo, will bring $26 million of local income tax revenue bonds Nov. 8. They are selling through the city's borrowing arm — the Indianapolis Local Public Improvement Bond Bank.

Indianapolis, IN | October 26, 2018
Nora Colomer, The Bond Buyer

News
Mike Bloomberg Names Indianapolis Winner in Bloomberg American Cities Climate Challenge

Indianapolis is one of 20 cities total to be awarded with resources and technical support to help achieve their ambitious climate goals under Bloomberg American Cities Climate Challenge

INDIANAPOLIS – October 29, 2018 - Today, Bloomberg Philanthropies announced Indianapolis as a winning city in the Bloomberg American Cities Climate Challenge. The Bloomberg American Cities Climate Challenge is a $70 million dollar program that will accelerate 20 ambitious cities’ efforts to tackle climate change and promote a sustainable future for residents. Through the Climate Challenge – which is part of Bloomberg’s American Cities Initiative, a suite of more than $200 million in investments to strengthen city halls and advance critical policies – Indianapolis is accepted into a two-year acceleration program and will be provided powerful new resources and access to cutting-edge support to help meet or beat the city’s near-term carbon reduction goals.

News
Indy's Improving Finances Earn It Outlook Upgrade

October 26 2018 - Indianapolis' growing record of keeping its finances structurally balanced has earned the city an outlook upgrade from Kroll Bond Ratings Agency.

Kroll raised the outlook to positive and affirmed its AA-plus rating on the city, saying that the city’s financial position continues to demonstrate an ascending trajectory.

“Indianapolis has continued to post improved financial results and, in recent years, has reversed a historical pattern of structural deficits in its General Fund,” Kroll said.

The upgraded outlook comes after the city-county council approved Indy Mayor’s Joe Hogsett's third annual budget on Oct. 15. The budget totaled $1.2 billion, an increase of 4% from the fiscal 2018 budget and the second consecutive structurally balanced budget. As in 2018, the budget does not rely on any reserve draw-down and estimates a small operating surplus and an $80.8 million Fiscal Stability Fund balance.

“In its budget for FY 2019, the city continues to forecast structurally balanced operations by extending its conservative revenue projections, diversifying its funding sources and holding the line of expenses,” said Kroll.

Kroll said that the city has managed to reduce the strain on its general fund operations while increasing overall financial transparency by establishing dedicated revenue sources to fund capital improvements.

Indy has budgeted more than $650 million in capital improvement spending between 2019 and 2022. The city’s storm water projects are funded through capital and debt. The city’s transportation projects, including bridges, streets, and streetlight repairs, are funded from a mix of funds and community grants generated from the state gas tax and matching funds, local funds such as the COIT reserves and external funds such as federal aid.

Kroll rates the city’s general obligations one notch lower than the city’s triple-A marks from Fitch Ratings and Moody’s Investors Service. S&P Global Ratings rates Indianapolis AA after downgrading its AAA rating in 2013.

Total direct debt and overlapping debt for the consolidated city/ Marion County government totals $1.2 billion.

As of Dec. 31, 2017, the City had $135.8 million of GO debt outstanding and another $867.4 million of debt backed by the city’s moral obligation pledge.

The Bond Bank serves as a conduit issuer and provides access to the capital markets for qualified entities, including the city, Marion County, all special taxing districts of the City and County, and all entities whose tax levies are subject to review and modification by the Council and certain authorities.

Indianapolis, IN | October 26, 2018
Nora Colomer, The Bond Buyer

News
Justice Center Move Will Bring Changes to 2 Neighborhoods

Indianapolis, IN | September 28, 2018
Hayleigh Colombo, The Indianapolis Business Journal

The $572 million Criminal Justice Center won’t open until 2022, at which time scores of city and county employees—working for the courts, public defender, prosecutor, sheriff and other agencies—will move from downtown’s Market East Cultural District 2-1/2 miles east to the Twin Aire neighborhood.

But city officials and businesses are already thinking about how both neighborhoods will be changed by the shift.

Downtown, city leaders see potential for redevelopment that builds off recent successes near the City-County Building, including the opening of Cummins Inc.’s $30 million divisional headquarters and the $120 million Market 360 apartment tower.

They envision that the subtraction of the nearby Jail I and Jail II, and the relocation of a slew of bail bonds businesses, will liven up the area.

News
Response to Charges Against Former Bond Bank Employees

Indianapolis, IN | July 20, 2018

In 2017, Director Riordan discovered possible evidence of fraud or abuse in the Bond Bank’s payroll and benefit records beginning as far back as 2008. Director Riordan immediately terminated the employees she had reason to believe were involved and notified law enforcement of potential fraud on June 26, 2017. The Bond Bank made all its records available to the Marion County Prosecutor for review and worked with investigators in a year-long investigation. 

Director Riordan implemented immediate corrective action in consultation with the Bond Bank’s external auditing firm. The Bond Bank will pursue all available remedies to recover such losses. 

The alleged misappropriation does not affect bond proceeds or bond debt service payments, all of which are maintained by outside Trustee banks and are subject to annual audit and disclosure requirements.

News
Council Panel OKs Spending $55M for some Justice Center Construction Costs

Indianapolis, IN | January 17, 2018
Hayleigh Colombo, The Indianapolis Business Journal

An Indianapolis City-County Council committee on Tuesday night unanimously approved spending $55 million to pay for a fraction of the construction funding to build the city’s proposed criminal justice center.

The same proposal also authorizes the city to spend $4.2 million for the acquisition of 140 acres of land from Citizens Energy Group as the site for the new jail, courthouses and mental health center. The facilities are being built on the property of the former Citizens coke plant in the Twin Aire neighborhood.

The proposal also indicates the council’s support for the project, which is expected to eventually cost the city $571 million. The full council will have to vote on the $55 million construction funding and land acquisition proposal—as well as future spending on the justice center.

News
City Seeks Submissions for Criminal Justice Center Services

Indianapolis, IN | June 16, 2017
Hayleigh Colombo, The Indianapolis Business Journal

The Indianapolis Bond Bank is looking for firms interested in working on the city’s new criminal justice center—from providing civil engineering services to mechanical, electrical and plumbing work.

The bond bank released a “request for qualifications” on June 9 for 17 design services associated with the project, with submissions due June 27. The city will select chosen contractors sometime after Aug. 1.

The new jail, an assessment and intervention facility, and the courts will be moving to a new complex at the former Citizens Gas and Coke Utility plant just southeast of downtown. The plant closed in 2007.

The new complex is expected to cost upwards of $575 million, and is part of Mayor Joe Hogsett’s overall criminal justice reform efforts.

The RFQ notes that selections are “not based on competitive bidding, but on professional qualifications, competence, documented experience and the expertise of key personnel."

News
Indianapolis Council Approves $20M for Mayor Joe Hogsett to Plan Jail Campus

Indianapolis, IN | July 24, 2017
James Briggs, The Indianapolis Star

The City-County Council has moved Mayor Joe Hogsett's plan for a new Marion County criminal justice center one big step closer to reality, while also signaling that the project could face increasing scrutiny in the months ahead.

The council on Monday approved the Hogsett administration's request for $20 million to pay for planning and design work for a project that could cost up to $575 million. That money will allow the administration to shepherd the project through the rest of the year, completing engineering, site work, legal work and bidding.

News
Indianapolis’ Jail Project Moving Closer to Reality Second Time Around

Dallas, TX | August 1, 2017
Nora Colomer, The Bond Buyer

Marion County and Indianapolis took a first step toward getting a long-anticipated criminal justice facility off the ground with the approval of an initial $20 million in financing.

The City-County Council of Marion County and Indianapolis approved the bond anticipation note issue in a 17 to 7 vote on July 24, providing a strong indicator on how it might vote next year on the 35-year, lease appropriation bonds that will take out the note and cover the entire $571 million of project costs. The Indianapolis Bond Bank will serve as conduit issuer for the debt on behalf of the consolidated council.

News
Note Deal Would Mark City's Commitment to Indianapolis Justice Center Project

Indianapolis, IN | January 23, 2018
Nora Colomer, The Bond Buyer

Indianapolis officials are asking the City-County Council to approve $55 million of notes to proceed with a criminal justice center project.

It’s the second leg of financing needed for the $571 million project and follows a $20 million draw note approved in July 2017 to finance design work on the planned courthouse, sheriff’s office, jail and assessment and intervention center.

Both the $20 million approved in July and the $55 million in bond anticipation notes are secured by local auction income tax but the borrowing will ultimately be paid off by bond proceeds. The Indianapolis Bond Bank will serve as conduit issuer for the debt on behalf of the council, the legislative body for the combined government of Indianapolis and Marion County.

News
Moody's Assigns Aa2 to Indianapolis (IN) Local Public Improvement Bond Bank Refunding Bonds, Ser. 2017C

New York, NY | December 13, 2017
Moody's Investors Service

Moody's Investors Service has assigned a 'Aa2' rating to $159.5 million Indianapolis Local Public Improvement Bond Bank Bonds (IN), Series 2017C (PILOT Infrastructure Project). Moody's maintains the Aaa rating on Indianapolis-Marion County (the city), IN's outstanding general obligation (GO) debt.

The Aaa GO rating reflects a diverse economy, improved financial position and moderate pension liabilities. These attributes are balanced against challenges that include weak resident income indices, a restrictive revenue raising environment and high debt levels.

The Aa2 rating on $159.5 million of Refunding Bonds, Series 2017C (PILOT Infrastructure Project) reflects the credit characteristics inherent in the city's GO rating. The MO rating on the current bonds is notched twice from the city's GO rating, reflecting the city's MO pledge to consider appropriating to replenish the debt service reserve (DSR), the risk of non-appropriation, and the more essential nature of the financed assets (wastewater system infrastructure improvements).

The outlook on all ratings is negative. The negative outlook reflects weak resident income indices and a restrictive revenue-raising environment, both of which will challenge the city to grow revenues that keep pace with ongoing cost growth, particularly in the areas of public safety, capital maintenance, debt service, and pensions.

News
Moody's Affirms Indianapolis, IN's Aaa Issuer Rating; Outlook Negative

Chicago, IL | October 4, 2017
Moody's Investor Service

Moody's Investors Service affirms the 'Aaa' issuer rating on Indianapolis-Marion County (Indianapolis), IN. The rating reflects a diverse economy; improved financial position; and moderate pension liabilities. These attributes are balanced against challenges that include weak resident income indices; a restrictive revenue-raising environment; and high debt levels.

Concurrently, Moody's affirms the following ratings:

  • The Aaa rating on $82 million of outstanding general obligation limited tax (GOLT) debt. The GOLT pledge is subject to Indiana's (Aaa stable) Circuit Breaker taxing limitations. It is rated on parity with Indianapolis' issuer rating given the ample margin under its rate limitation as well as the city's first budget obligation to levy ad valorem taxes for debt.
  • The Aa1 rating on $515,000 of Certificates of Participation (COPs), Series 2010A and 2010B. The rating is notched once from the issuer rating because the pledge to make lease payments is subject to appropriation and the financed assets (public safety vehicles) are more essential.
  • The Aa2 rating on $160 million of Bond Bank Bonds, Series 2010F (PILOT infrastructure Project - Build America Bonds). The Aa2 rating is notched twice from the issuer rating due to the moral obligation (MO) pledge to consider appropriating to replenish the debt service reserve (DSR) and because the financed assets (wastewater system infrastructure improvements) are more essential.
  • The Aa3 rating on $376 million of MO debt issued for economic development projects. The Aa3 rating is notched three times from the issuer rating due to the MO pledge to consider appropriating to replenish the DSR and because the financed projects are less essential.

The outlook on all ratings is negative.

While the city has made progress in improving its financial profile by reducing expenses, its debt burden and limited flexibility to raise revenues weakly position its issuer rating in the Aaa category. If there is no further improvement in financial or leverage metrics over the next 12 to 24 months, the rating could be pressured.

News
Fitch rates $70MM AD VALOREM Tax Bonds Series 2017 A & B 'AAA'

New York, NY | January 18, 2017
Fitch Ratings

Fitch Ratings has assigned a 'AAA' rating to the following Indianapolis Local Public Improvement Bond Bank, IN bonds:

  • $58 million series 2017A bonds (ad valorem property tax-funded projects);
  • $11.99 million series 2017B bonds (taxable) (ad valorem property tax-funded projects).

The Rating Outlook is Stable.

News
Indianapolis Local Public Improvement Bond Bank Issuance 2017 A & B

Indianapolis, IN | February 1, 2017
The Indianapolis Local Public Improvement Bond Bank

The Indianapolis Bond Bank’s first bond issue of 2017 assisted four Qualified Entities to raise $71.325 million, through Indianapolis Local Public Improvement Bond Bank series 2017A and B. The General Obligation Bonds were issued to finance infrastructure and capital needs for Consolidated City, Park District, Metro Thoroughfare District and Public Safety and Communications District. The Consolidated City used the funds for solid waste equipment, police vehicles, City-County Building generator, voting machines, two firehouses, and fire apparatus. The Park District used its funds for its capital improvement needs. The Metro Thoroughfare District used its proceeds on roads and streets improvements and other major capital equipment. Finally, the Public Safety and Communications District funded a computer-aided dispatch (CAD) system, record management system and E-911 system. Series 2017A and B Bonds were rated AAA by Fitch and AA by Standard & Poor’s.

News
ILPIBB Moody’s – Indianapolis Airport Authority Rating 2016A-1

New York, NY | June 14, 2016
Moody's Investor Services

Moody's Investors Service has assigned a rating of 'A1' to the Indianapolis Local Public Improvement Bond Bank/Indianapolis Airport Authority Refunding Bonds (AMT), Series 2016A-1.

News
ILPIBB S&P – Indianapolis Airport Authority 2016A Rating

Chicago, IL | May 3, 2016
S&P Global Ratings

S&P Global Ratings has assigned a rating of 'A' to the Indianapolis Local Public Improvement Bond Bank/Indianapolis Airport Authority Refunding Bonds (AMT), Series 2016A. 

The Rating Outlook is Stable.

News
ILPIBB Fitch Ratings – Indianapolis Airport Authority Rating 2016A-1

New York, NY | April 25, 2016
Fitch Ratings

Fitch Ratings has assigned a rating of 'A' to the Indianapolis Local Public Improvement Bond Bank/Indianapolis Airport Authority Refunding Bonds (AMT) Series 2016A-1. 

The Rating Outlook is Stable.

News
KBRA General Obligation Bonds Ratings Letter 2015

New York, NY | October 30, 2015
Kroll Bond Rating Agency

Kroll Bond Rating Agency, Inc. ("KBRA") has assigned a long-term rating of AA+ with a stable outlook to the City of Indianapolis, General Obligation Bonds. The KBRA long-term rating does not apply to bonds backed by a letter of credit or liquidity facility, unless otherwise noted.

News
Moody’s highlights Indy’s continued Job Growth and Bolstering Economy but cautions continued operating budget pressures that pose significant long-term hurdles

Chicago, IL | August 31, 2015
Moody's Investor Services

Indianapolis, IN’s (Aaa negative) strong credit profile is supported by a fundamentally healthy economy, as evidenced by job growth that has outpaced other Midwest regional hubs. However, escalating operating costs under a somewhat restrictive revenue-raising environment have weighed on the city's finances. The region’s strong economy and a recent influx of cash from the sale of the city’s water and sewer utility will buoy credit quality in the short term, but continued operating budget pressures and elevated leverage pose hurdles in the long term.

News
Indy Wins Triple-A on Stormwater Debt

Chicago, IL | July 24, 2015
Caitlin Devitt, The Bond Buyer

Indianapolis won a coveted triple-A rating from Standard & Poor's on its stormwater system bonds as the city heads into market with a $15 million borrowing and puts the final touches on a new $300 million capital plan.

The deal will fix out a chunk of stormwater bonds the city privately placed in 2011 that are scheduled to shift into a variable-rate mode in 2020. The city has almost all of its $4.1 billion debt portfolio in a fixed-rate mode, with the exception of some airport debt. The stormwater system is a mix of natural and manmade infrastructure managed by the city's public works department. It's one of the city's last publicly managed utilities, after Indianapolis sold its water and sewer departments to a non-profit in a high-profile privatization in 2011.

News
Standard & Poor’s Rating Services Raises its Rating on Bond Bank’s Existing Stormwater Senior-Lien Bonds to ‘AAA’

Chicago, IL | July 21, 2015
Standard and Poors Rating Services

Standard & Poor's Ratings Services raised its rating on The Indianapolis Local Public Improvement Bond Bank, Ind.'s existing stormwater system senior-lien revenue bonds to 'AAA' from 'AA+'. At the same time, we assigned our 'AAA' rating to the bond bank's series 2015H refunding bonds.

The outlook is stable.​​​​​​​

News
Fitch Rates Indianapolis Local Public Improvement Bond Bank (Health & Hospital Corp.), IN 2015B Series Rfdg Bonds “AA+”

New York, NY | June 5, 2015
Fitch Ratings

Fitch Ratings assigns an 'AA+' rating to the following Indianapolis Local Public Improvement Bond Bank (Health and Hospital Corp. of Marion County), IN bonds:

  • $16,750,000 refunding bonds, series 2015 B (the bonds).

The bond proceeds will be used to currently refund the bond bank's outstanding series 2005 D bonds for an estimated present value savings of $2.1 million with no extension of the final maturity date of 2025.
In addition, Fitch affirms the following ratings:

  • Approximately $170 million unlimited tax general obligation bonds (ULTGOs), series 2010A-1 and 2010A-2 affirmed at 'AA+';
  • Approximately $19 million general obligation bonds, series 2005D affirmed at 'AA+';
  • Approximately $502 million lease revenue bonds, series 2013A, 2010B-1 and 2010B-2 affirmed at 'AA'.

The Rating Outlook is Stable.

News
Standard & Poor’s Raises Rating on Bond Bank’s Marion County Convention and Recreation Facilities Authority’s (MCCRFA) Senior Obligation Bonds

Chicago, IL | June 8, 2015
Standard & Poor's Rating Services

Standard & Poor's Ratings Services raised its rating on the Indianapolis Local Public Improvement Bond Bank, Ind.'s series 2011D, 2011I, and 2012B bonds (senior obligations) to 'AA' from 'AA-'. The outlook is stable. The rating improvement reflects strong revenue performance, which continues to support very strong debt service coverage (DSC).

News
Citites, Towns See Historic Savings on Bond Refinancing

Indianapolis, IN | May 16, 2015
Jared Council, The Indianapolis Business Journal

Officials who manage the Indianapolis Airport Authority’s $1.1 billion in bond debt typically refinance bonds when they can shave at least 3 percent off total remaining debt payments.

The Indianapolis Local Public Improvement Bond Bank handles what the industry calls bond refundings for entities including the airport, and it recently helped refund a $165 million airport bond to chop total projected debt obligations by about 9 percent.

News
Indianapolis is on Moody’s Ratings List of Successful US Cities

New York, NY | November 13, 2014
Moody's Corporation

During and in the wake of the US recession, many large local governments in the country have proven just how resilient their credit quality has been to the systemic economic downturn and other challenges such as pension underfunding. In fact, 34 of the 50 largest US cities have either improved or maintained their credit quality since the onset of the Great Recession.

News
Fitch Affirms Indianapolis Local Public Improvement Bond Bank, IN Bonds at 'AAA'; Outlook Stable

Chicago, IL | January 29, 2015
Fitch Ratings

Fitch Ratings affirms the 'AAA' rating on the following Indianapolis Local Public Improvement Bond Bank, Indiana (the bond bank) bonds: ­­

  • $61.3 million series 2013B taxable refunding bonds;
  • ­­$12 million series 2013C multipurpose refunding bonds; ­­
  • $55.1 million series 2008A ad valorem bonds; ­­$55 million series 2007D multipurpose refunding bonds.

The Rating Outlook is Stable.