06-09-09 FPAC packet - Laserfiche WebLink

Home Browse Search

TEMPLATE Last Updated: 6412009 -AVEN HILLS Post -Issuance Debt Compliance Policy The City Council of the City of Arden Hills has chosen, by policy, to take steps to help ensure that all tax- exempt debt obligations will be in compliance with all applicable state and federal regulations regarding the obligations. This policy may be amended, as necessary. in the future_ Background Tax-exempt debt obligations (debt for which the interest paid to the debt holders is excludable from their gross income for federal income taxes) result in a lower interest cost to state and local governments (the issuer). The tax-exempt status remains throughout the life of the debt obligation provided all applicable state and federal tax laws are satisfied at the time of issuance and throughout the term of the obligation. The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code and most other regulations governing tax-exempt obligations. The IRS expects issuers and beneficiaries of tax-exempt debt to adopt and implement a post -issuance debt compliance policy and procedures to safeguard against post -issuance violations that may result in the loss of the tax-exempt status of the debt. Post -Issuance Debt Compliance Policy Objective The City of Arden Hills desires to monitor all of its tax-exempt debt obligations to ensure that all tax- exempt debt obligations remain in compliance with the IRS Code and all other regulations governing tax- exempt obligations. To help ensure compliance, the City of Arden Hills has developed a "Policy'. The following Policy shall apply to all tax-exempt debt obligations including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other form of tax-exempt debt. Post Issuance Debt Compliance Policy The Finance Director of the City of Arden Hills is designated as the City's agent who is responsible for post -issuance compliance of all tax-exempt debt obligations. The Finance Director shall assemble all relevant documentation, records and activities required to ensure post -issuance debt compliance as further detailing the "Post -Issuance Debt Compliance Procedures". At a minimum, the Post -Issuance Debt Compliance Procedures for each tax-exempt debt obligation will address the following: I . General Post -Issuance Compliance; 2. Proper and timely use of bond proceeds and bond -financed property; 3. Arbitrage yield restrictions and rebate; 4. Timely filings and other general requirements; 5. Additional undertaking or activities that support points 1 through 4 above; 6. Other requirements that become necessary in the future. The Finance Director shall apply the Post -Issuance Debt Compliance Procedures to each tax-exempt debt obligation and maintain a record of the results. Further, the Finance Director will ensure that the Post - Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis. The Finance Director, or any other individuals responsible for assisting the Finance Director in maintaining records needed to ensure post -issuance compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance.