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CID board ratifies engagement for arbitrage compliance tied to 2016 bonds
Summary
Board ratified an engagement agreement with an arbitrage compliance specialist to perform required arbitrage calculations for the tax-exempt special assessment bond series 2016; a presenter explained federal oversight requires periodic checks of investment yields.
The Abamore Community Infrastructure District No. 1 board moved to ratify an engagement agreement with an arbitrage compliance specialist to perform arbitrage calculations required for the tax-exempt special assessment bond series 2016. The motion was seconded and approved by voice vote.
A presenter (speaker 5) explained why the district needs the specialist, saying federal tax rules limit how proceeds of tax-exempt bonds can be used and require periodic review of the district's holdings and yields. "Whenever we issue tax exempt bonds, it's, basically what the federal government do is doing is waiving their right to collect taxes," the presenter said, adding the reviews ensure the district is not using bond proceeds in a way that would allow the district to earn impermissible returns on exempt funds.
The chair asked for any questions, and a board member moved to ratify the agreement; the motion passed without recorded opposition.
