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Avonmore EID board ratifies arbitrage compliance contract for outstanding bonds
Summary
Boardmembers ratified a contract with an arbitrage compliance specialist to perform required five-year calculations on the district's tax-exempt bonds after a discussion about the federal requirements and why payoffs must be calculated to a closing date.
The Avonmore Energy Infrastructure District No. 1 board ratified an engagement agreement with an arbitrage compliance specialist to perform the five-year calculations required for tax-exempt bond compliance.
Board member Laska explained the need for the work, saying the specialist “does, just basically just a small audit to be able to show that we did not use the funds in a way that would render them no longer tax exempt,” and that any interest earnings that violate rules must be returned to the federal government. A committee member moved to ratify the engagement and the board approved the motion by voice vote.
The board discussed that the specialist verifies past spending and interest calculations so the district can demonstrate compliance if audited by the IRS. The motion to ratify the engagement was made by a committee member and seconded; the board approved the contract and the chair announced the motion passes.
