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Kossuth County adopts tax-compliance procedures after municipal bond sale
Summary
The Kossuth County Board adopted a resolution establishing tax-compliance procedures after a bond sale that generated a roughly $66,000 premium; board members were briefed on disclosure steps and investor notices by a financial advisor on the conference line.
The Kossuth County Board of Supervisors unanimously adopted a resolution creating formal tax-compliance procedures for tax-exempt bonds after a remote briefing on the recent sale.
Rebecca, a financial advisor with Northland, briefed the board by conference call and said, "we are in a premium market, which means the county got a slight premium of about $66,000 on the bond purchase price." She explained the sale resulted in a coupon set at 4% and an effective true interest cost of about 3.9% and that insurance reduced the county's interest expense by roughly $30,000.
Board members then discussed operational details for ongoing disclosure to investors. Rebecca summarized the compliance steps: unlimited continuing disclosure requires posting the county's annual financial report and audit, and staff should monitor a small set of events — mostly issuance of new debt — that must be reported to investors. She recommended maintaining an issuer profile on the Electronic Municipal Market Access (EMMA) site and coordinating timing with the county auditor. "We can walk you through that as much or as little as you want," she said.
Following the presentation, Supervisor Stecker moved to adopt the resolution naming Tammy as the compliance officer; the motion was seconded by Hawes. A roll-call vote recorded yes votes from Garman, Stecker, Haas, Maas and Knapp, and the resolution passed.
The board asked staff to confirm which internal fund will be used for certain payments (referred to in discussion as the 12,000 fund) and for Tammy to circulate the relevant budget sheets after the meeting. The board signed the adopted resolution and will file required disclosures per the procedures.
