OPEN SESSION OCTOBER 9, 2025 PAGE THREE OF FOUR
Mr. Berkoh advised the Committee that following the annual review by internal staff and an external municipal advisory firm, no changes to the Debt Policy are currently recommended. Member von Paris called for a motion to recommend approval of this item to the full MDTA Board at its next scheduled meeting. Member Carroll made the motion, and Member Penny- Ardinger seconded the motion, which was unanimously approved. APPROVAL – PROPOSED CHANGES TO THE MDTA’S TRUST AGREEMENT Allen Garman requested a recommendation of approval from the Finance and Administration Committee to present proposed conceptual Trust Agreement changes to the full MDTA Board at its next scheduled meeting. Mr. Garman advised that currently, the Trust Agreement does not provide the MDTA with the ability to self-fund a business interruption insurance reserve and treat the releases from the reserve as Net Revenues for purposes of supporting the annual Rate Covenant or Debt Service Coverage ratios. Recently, the MDTA has experienced rapidly rising insurance premiums nationally as a function of increasing natural disaster loss activity, as well as the MDTA’s recent business interruption experience. These circumstances have necessitated a close examination of the Master Trust Agreement provisions for insurance reserves and the legal treatment of reserve releases to ensure stable Debt Service Coverage. The proposed changes would authorize external Bond Counsel to draft changes to various sections and definitions within the Trust Agreement to provide the MDTA with the financial flexibility to self-insure for potential business interruption with cash reserves. Other potential benefits include lower insurance costs, the elimination of counterparty risk, and more stable Debt Service Coverage in stress scenarios. The Committee requested, and MDTA Management concurred, to update the MDTA’s Board Operating Policy at a future date to reserve the authority of the Board to make future decisions regarding self-funding. Member von Paris called for a motion to recommend approval of this item to the full MDTA Board at its next scheduled meeting. Member Rosen made the motion, and Member Carroll
seconded the motion, which was unanimously approved. UPDATE – CANTON DEVELOPMENT COMPANY
Tyler Horner, President and CEO of the Canton Development Company, updated the Committee on Canton’s customer base and the company’s operations and financial performance. Mr. Horner also updated meeting attendees on key initiatives to secure additional revenue and improve business performance.
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