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Evansville bond bank reports higher cash balances, board questions insurance and interest income drop
Summary
The Evansville Local Public Improvement Bond Bank reported higher cash and CD balances but noted a sharp drop in interest income; board members asked about state deposit insurance coverage and diversification of holdings.
The Evansville Local Public Improvement Bond Bank reported that its cash and certificates of deposit rose to about $6,328,000 from $5,590,000 since Dec. 31, a board staff member said at the meeting.
Board members heard that the increase reflects a $954,000 collection from the police department loan, roughly $159,000 in interest income from investments and a $375,000 payout for ERAP-related expenses. "Since in the past 6 months, we've been pretty stable. Our cash total cash and certificates of deposit are up to $6,328,000 up from $5,590,000 since, December 31," Cody, who presented the financials, said.
The bank's loans outstanding also fell, the presenter said, and the six‑month interest income from investments was reported at $128,700, down from an annual figure of roughly $434,000 last year. The presenter attributed much of that decline to differences in loan and investment rates — several recent loans carry lower interest (2.5%) compared with higher investment yields last year.
Board members pressed staff on the insurance and concentration risk for large certificates of deposit. One member asked how coverage by the state program works and whether deposits above the typical $250,000 federal insurance limit are protected. The presenter summarized the packet language: "FTIF are insured by the FTIF, which is administered by the Indiana Board of Depositories," and said staff would research specific limits and report back. A board member requested follow-up before large CDs mature in August.
Board discussion also noted the approach to reinvesting maturing securities: staff solicit bids from local banks for multiple investments at once and disclose who won and at what rates. The presenter said the board separates cash and money‑market holdings from CDs in reporting and that the Hoosier Fund showed about 3.1% for the month of June, though rates fluctuate.
Votes at a glance
- Minutes of the previous meeting: approved (motion, second; voice vote: aye). - Acceptance of the financial statements presented: approved (motion, second; voice vote: aye). - Audit of 2024 financial statements: approved (see separate action in meeting). - Amended service agreement with the Evansville Regional Economic Partnership: approved (see separate action in meeting).
Board members asked staff to provide a clear written explanation of deposit insurance coverage and any concentration limits before upcoming rollovers, and to continue disclosing bid responses when securities mature. No formal policy change was adopted at the meeting.
