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Finance committee recommends council hire Ehlers to review bond arbitrage for sanitary lift-station bond
Summary
Committee approved a motion to recommend common council engagement of Ehlers to perform an IRS-required arbitrage review for outstanding bond proceeds related to the 2021 sanitary-sewer lift station and other projects; staff said Ehlers' fee is about $5,000.
Finance staff told the committee the city issued a 2021 bond for sanitary-sewer lift station work and stormwater projects and that a portion of the bond proceeds remain unspent on the sanitary sewer lift-station component. Under Internal Revenue Service rules, the city should engage an arbitrage consultant to determine whether arbitrage rebate is due to the U.S. Treasury because of the difference between bond yield and investment earnings.
Danielle presented Ehlers' proposal and told the committee the firm previously worked on the city's matters and would charge roughly $5,000 to perform the arbitrage review for the outstanding bond portion. "Ehlers has put together a proposal... it would be roughly $5,000 to have them do it on this one," Danielle said.
A committee member moved and another seconded a motion recommending the common council authorize engagement of Ehlers to perform the arbitrage review. The committee approved the recommendation by voice vote.
Nut graf: the committee's approval was a recommendation to the full common council — not a contract award by the committee itself — and staff will forward the recommended engagement for council action.
Ending: staff will forward the recommendation and Ehlers' proposal to the common council for final authorization and contract execution.
