2014-11-12 CC Packet - Laserfiche WebLink

Home Browse Search

Related Considerations: • Bank Qualified - because total tax-exempt debt issued by the City in calendar year 2015 is not expected to be more than $10 million, the bonds will be designated as "bank qualified" obligations pursuant to Federal Tax Law. • Arbitrage Compliance- o Refunding Fund - All tax exempt issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the City expects to qualify for is the "24-month spend down exemption." o Debt Service Fund - The City must maintain a bona fide debt service fund for the bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. • Book Entry - The Bonds will be global book entry with Northland Trust Services Inc. designated as the paying agent. As "paperless" bonds, you will avoid the costs of bond printing and annual registrar charges. The Paying Agent will invoice you for the interest semiannually and on an annual basis for the principal coming due. • Continuing Disclosure - The Series 2015A Bonds are subject to the Securities and Exchange Commission's full continuing disclosure requirements. Page 3 NORTHLAN 1)0 SECURITIES 22