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Hunt County renews arbitrage rebate compliance contract with Hilltop Securities
Summary
Hunt County Commissioners approved a yearly renewal with Hilltop Securities Asset Management LLC to provide arbitrage rebate compliance services, estimated at roughly $3,000–$5,000 per year; county said retaining Hilltop will save onboarding costs because Hilltop issued the bonds originally.
Hunt County Commissioners Court on Oct. 16 approved a renewal of the county’s agreement with Hilltop Securities Asset Management LLC to provide arbitrage rebate compliance services, a technical annual reporting service the county said will cost roughly $3,000–$5,000 per year.
County staff described arbitrage compliance as the federal reporting and calculation that applies to tax-exempt bond proceeds and to income generated on unspent bond funds. A county presenter said Hilltop has been performing the work and that keeping Hilltop will avoid the additional expense of onboarding a new vendor to do the same technical filings.
The court moved, seconded and approved the renewal in open session; no roll-call votes were taken on the record during the meeting. Commissioners indicated the agreement will continue on an annual basis while the county holds tax-exempt bonds that require this compliance monitoring.
Quotes from the meeting included a staff summary that "this is a, short agreement... about, I think between 3 and $5,000 of work a year for federal, arbitrage rebate compliance services," and a separate staff remark that switching vendors would likely "cost more for that new group to come up to speed on all of the things that they're already reviewing." The court carried the motion to renew.
Next steps: County finance staff will continue to contract with Hilltop for annual arbitrage rebate compliance reporting and retain records of the contract in county minutes.
