May 29, 2019 Audio posted below

Debt Review Committee
May 29, 2019 
Salt Lake County Government Center
2001 S State Street #N1-200, Salt Lake City, Utah 84190

Meeting Minutes

Attendees:

K Wayne Cushing (Chair), member
Dave Delquadro (Council), member
Darrin Casper (Mayor's Finance), member
Scott Tingley (Auditor), member
Ralph Chamness (District Attorney), member
Javaid Majid (Mayor's Finance), member
Craig Wangsgard (District Attorney)
Rod Kitchens (Mayor's Finance)
Shanell Beecher (Mayor's Finance)
John Pectol (Mayor's Finance)
Greg Folta (Mayor's Finance)
Ben Umeadi (Treasurer) 
Eric Pehrson (Zions Bank)
Marcus Keller (Zions Bank)
Cara Bertot (Zions Bank)
Ryan Bjerke (Chapman & Cutler LLP)
Lisa Daniels (Treasurer)
Steve Van Maren (Public)
 

Meeting was called to order by Chairman Cushing.  

Approval of Minutes
A motion was made by Ralph and seconded by Darrin to approve the April 24, 2019 minutes.  All were in favor. 

Public Comment
No public comment.

Financial Advisor Updates
Marcus presented the update as Jon is on vacation.  Rates have been going down due to a 'tariff' war.  Good for the TRANS but maybe not for the U.S. economy.  He congratulated all on a successful sale of the Lease Revenue bonds, Series 2019 for the libraries and went over highlights in the pricing book for those bonds. The true Interest Cost for this issue is 3.27%.  He reviewed the comparables to other bonds issued recently and noted that the County did well in comparison in most instances.

2019 TRANS Amount
Shanell presented and explained the worksheets on how the projected TRANS amount is figured.  This is consistent with prior years.  Adjustments to cash represents revenue received, not cash.  Mayor's Finance is recommending a $70m borrowing this year compared to $55m last year.  Darrin asked Zions (and everyone) to look through this carefully and come up with questions that may be asked.  Darrin made a motion that we borrow Tax and Revenue Anticipation Notes in the amount of $70m per the analysis presented.  Scott seconded and all were in favor.

TRANS Due Diligence Review
Eric, along with Cara, presented the Preliminary Official Statement (POS) for the TRANS, Series 2019.  He went over the calendar.  June 4th the County Council will adopt a plan of finance, June 5th the rating packet will go to Moody's, POS mailed on June 21st and the sale will be Tuesday, July 2nd.  Payment will be changed from December 26 to December 27, 2019.  Changes in the POS were reviewed and adjustments made.  

Debt Review Ordinance Amendment
Craig passed out a draft of the Salt Lake County Ordinance amending the Debt Review Committee from eight to seven members.  Language of the county auditor was changed from two members of the county auditor's office designated by the county auditor, to the county auditor or designee to give the committee some flexibility.  There is no formal process to designate someone.  Dave mentioned that there is no council budget director as stated in the ordinance.  Scott mentioned that the policy states two representatives from the council.  Ralph made a motion to make this adjustment in the ordinance with the addition of two council representatives rather than how it is currently stated.  Dave seconded.  All were in favor.  Craig will make the changes, approve as to form and send it to Wayne to put with a letter of recommendation from the DRC and send to Council.

Disclosure Materiality Policy
Craig passed out a draft for disclosure procedures that he received from Ryan and massaged for the County.  It mentions a Disclosure Officer which Eric thinks is a good idea and shared his reasons.  Craig asked the committee for 3 things: any changes to be made, an idea and discussion about materiality and where this policy should go.  Perhaps this should go under Policy 1060 Subsection 3 per Javaid.  The listing of the Debt Review is totally wrong.  Craig will get with Dina and incorporate the changes here after the policy is adopted.  He would like to have a recommendation from the DRC if the disclosure should go in there perhaps as 13.18.  Question arose as to what 'Undertaking' is. Cara stated it is 'a vehicle to borrow money'.   The discussion continued with many questions and scenarios of materiality and disclosure procedures.  Ralph made a suggestion that Craig takes a stab at the policy and at the next Debt Review we can discuss further.  Craig mentioned perhaps meeting with Mayor's Finance for further discussion.  Eric asked permission to prepare the CISCO Maintenance Agreement for disclosure as it is now done.  It will be posted on EMMA.  

Next month's meeting will be June 26th if warranted.

Meeting was adjourned at 3:15 pm.