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Infrastructure Bank board approves annual fiscal sufficiency and debt service budget
Summary
The South Carolina Infrastructure Bank board reviewed a PFM-prepared fiscal sufficiency report and adopted a physical-sufficiency resolution and the annual debt service budget, finding projected revenues sufficient to meet bond obligations.
Infrastructure Bank Board Chair John White said the board approved the bank’s annual fiscal-sufficiency report and the debt service budget after presentations from PFM and the bank’s finance staff.
The board adopted a physical-sufficiency resolution and an annual debt service budget that staff said are required by the bank’s bond documents and master revenue bond resolution. The presentations, prepared by PFM, showed projected receipts, required deposits and debt-service coverage that PFM summarized as “around or above 2 times coverage.”
The fiscal-sufficiency report, required by bond documents the bank entered into in 1998, is presented so the board can “reach [a] conclusion on whether it’s collecting enough revenue to meet its payment obligations and make the required deposits,” said a bank staff member during the meeting. PFM’s materials, included in the board packet, project cash flows through fiscal year 02/1941 and show excess revenue after required deposits, the presenter said.
CFO Jerry Butler told the board the debt service budget is adopted under the master revenue bond resolution, section 3.12, and “shows you the principal and interest payments that are due.” Board members moved and seconded the two resolutions and approved them by voice vote.
The action keeps the bank’s bond-related obligations and required deposits in place; the board did not change bond covenants or adopt any new bond authorizations at this meeting.
The board’s approval was procedural and focused on satisfying existing bond covenants and providing information to investors and bondholders. PFM offered to answer additional questions and will remain available to bondholders and staff for follow-up.
