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IVO of <br /> Report Number 12-070 <br /> 13RIGHTON Agenda Section VI-5 <br /> the city that works for you Council Meeting Date March 27, 2012 <br /> REQUEST FOR COUNCIL CONSIDERATION <br /> ITEM DESCRIPTION: APPROVE POST-ISSUANCE DEBT COMPLIANCE POLICY <br /> DEPARTMENT HEAD'S APPROVAL: <br /> CITY MANAGER'S APPROVAL: <br /> No comments to supplement this report / -Comments attached <br /> Recommendation: Approve the Post-Issuance Debt Compliance Policy. <br /> Legislative History: All issuers of tax-exempt bonds are required to file IRS Form 8038-G, <br /> Information Return for Tax-Exempt Government Obligations, upon issuance. Our bond <br /> attorney prepares and files this return on our behalf. In September, 2011, the IRS revised this <br /> form, adding lines 43 (which deals with private use), 44 (which deals with arbitrage and 45a <br /> and 45b (which deal with reimbursement of prior expenditures). If the issuer has formal <br /> written procedures, they can check the boxes on lines 43 and 44. Adoption, implementation <br /> and execution of this policy and procedures enable the City to check these boxes. <br /> Financial Impact: There is no financial impact to the approval of this policy. <br /> Explanation: The procedures outlined in this policy have been the City's practice. The <br /> policy is simply formalizing our procedures and practices into written form. Both our bond <br /> attorney and financial advisors have reviewed the policy and procedures and recommend <br /> approval. The City Council will be considering award of bids for two bond issues on <br /> Tuesday, March 27. This is the first time the City has been an issuer of tax-exempt bonds <br /> since the IRS revised their form. <br /> Attached is the recommended written policy and procedures and IRS Form 8038-G with <br /> instructions. <br /> c�Gh/Lc� <br /> Dan Maiers <br /> Director of Finance and Support Services <br />