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Board approves roughly $169,000 IRS arbitrage payment tied to 2019 bond; remaining proceeds to CIP
Summary
The Board approved a resolution sending roughly $169,000 to cover the county's IRS arbitrage/yield restriction liability from a 2019 bond issue; ~ $14,000 will come from tax-exempt balances and other taxable proceeds will be returned to the county's CIP.
County staff member Anne (referred to in the transcript as both 'Anne Howerton' and 'Anne Harrington') told supervisors the county must remit its portion of IRS-required arbitrage/yield restriction payments tied to a 2019 bond issue. "The part we cannot keep is about $169,000," she said, adding that roughly $14,000 will come out of tax-exempt balances and about $70,000 of the taxable bond proceeds will be applied toward the payment. The remaining taxable proceeds would be returned to the county's Capital Improvement Program for a future project.
A motion to accept the payment as presented was made and seconded; roll call recorded five 'Aye' votes and the resolution passed unanimously. Anne said the county had intentionally not spent all bond proceeds in anticipation of this obligation and that the balance remaining in taxable proceeds (about $300,000 before the payment, as stated in the packet) will be used for future CIP projects once the arbitrage obligation is paid. The Board did not request additional action beyond approving the payment as presented.
