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MINUTES OF THE FINANCE COMMITTEE January 19, 2021 Online Broadcast Meeting Present: Councilmembers Bullock, Litten, &Neff Also Present: Councilmembers O'Malley & Kepple, Mayor George, Finance Director Rancatore, Director Leininger, Chief of Staff Storey, Jeff Rink of Key Bank, Catherine Swartz of Bricker & Eckler, Clerk Bach, & Deputy Clerk Lascu taking minutes Start time: 5:30 p.m. AGENDA Chairman Bullock opened discussion by giving an overview of the debt legislation being considered by the committee and the coming presentation on the market outlook for the city's debt. Director Rancatore welcomed Jeff Rink of Key Bank and Catherine Swartz of Bricker&Eckler to the meeting. Jeff Rink gave a personal introduction and short overview of the presentation on the city's financial position and strategy. He noted that one of the challenges all city's face in their credit rating with Moody's is elevated debt limits. He asked if committee members had any initial questions before diving in to the presentation. Councilmember Litten asked the administration members about their philosophy towards debt, and spoke to past practice of finance directors that asserted debt could be used as an equitable way to spread cost among taxpayers for city improvements. Mayor George advocated for a balanced approach and working with professionals to make smart, long term financial decisions for the city. Director Rancatore stated they have continued to meet with Mr. Rink and Ms. Swartz because they are concerned about what the investment community thinks of the city's financials and debt load. Mr. Rink spoke to an approach where the slowing down of debt accrual may be necessary. Chairman Bullock stated he accounted for $9 million in new notes being proposed for various purposes, all backed by the city's income tax. He added that the city is beginning to incur larger wastewater treatment infrastructure costs. Mr. Rink began his presentation by showing the city's debt profile and noted potential opportunities to refinance some of the city's debt. He then reviewed the summary of the proposed 2021 debt issuance. The approach largely consisted of issuing short-term notes, due to their lower cost, for projects that have not been completed yet. Short-term notes are easier to sell with little difference in interest rates than other forms of debt. This approach also allows general obligation debt to be applied towards bigger projects and or preserving future debt capacity.