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Commission hears Reedy Financial report; arbitrage analysis finds no payment due now
Summary
Reedy Financial presented the commission's consolidated cash flows and an arbitrage rebate computation for 2022 bonds. Staff reported March ending TIF balances and that the 2022 arbitrage computation shows no rebatable arbitrage; trustees and federal rules mean future calculations may be required.
The commission received its monthly financial briefing from Reedy Financial followed by an arbitrage rebate presentation addressing compliance for the 2022 lease-rental redevelopment authority bond.
A Reedy Financial representative reported that the consolidated ending cash balance for March across TIF funds was $6,118,188 and that the current consolidated balance (after April claims) was $5,997,093; the presenter highlighted revenues of $119,833 and expenditures of $2,024,729 as key line items. Staff and the consultant emphasized that the financial reports will continue to be updated and that individual grant and TIF allocations will be tracked separately to avoid commingling.
On bond compliance, the commission heard from the arbitrage presenter that the 2022 RDA bond calculation showed "there is no rebatable arbitrage right now" and that the next calculation is scheduled in one year. The presenter explained the IRS rule requiring computations at least every five years, noted trustee practices that can require annual computations, and said specialist vendors often charge $1,500–$5,000 for such computations.
The commission approved the financial report on a motion and voice vote and had no immediate arbitrage payment obligations; staff said they will keep records on file to document compliance and run future computations as required.
