Item Coversheet
CITY OF WATERLOO

Council Communication

Motion to accept and place on file the arbitrage test results reflecting that no payment is due to the Internal Revenue Service for the General Obligation Bonds Series 2015A.

City Council Meeting: 9/21/2020
Prepared: 9/11/2019
ATTACHMENTS:
DescriptionType
Arbitrage Results 2015A Council CommBackup Material
Berens Tate Arbitrage Results 2015ABackup Material
SUBJECT:
Motion to accept and place on file the arbitrage test results reflecting that no payment is due to the Internal Revenue Service for the General Obligation Bonds Series 2015A.
Submitted by:
Submitted By: Michelle Weidner, Chief Financial Officer
Summary Statement:
The report indicates that no arbitrage rebate or penalty is due to the Internal Revenue Service at this time.
Expenditure Required:
None.
Policy Issue:
Arbitrage testing is required in order to maintain the tax-exempt status of the City's bond issues.
Background Information:

We received positive information in that the City does not owe any arbitrage rebate or penalty to the Internal Revenue Service for these issues. The tax-exempt status of the issues is maintained, therefore protecting the City from potential liability from any bondholders. Internal Revenue Service regulations require that the City make periodic determinations that no arbitrage rebate or penalty is owed to the Internal Revenue Service when tax-exempt bonds are issued. This testing is required at each 5-year interval that bond proceeds are unspent and also once the proceeds are completely spent.