8.1. SR 07-15-2019 - Laserfiche WebLink

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POST ISSUANCE The issuance of the Bonds will result in post-issuance compliance responsibilities. The responsibilities are in two primary areas: (i) compliance with federal arbitrage COMPLIANCE: requirements and (ii) compliance with secondary disclosure requirements. Federal arbitrage requirements include a wide range of implications that have been considered as this issue has been structured. Post-issuance compliance responsibilities for this tax-exempt issue include both rebate and yield restriction provisions of the IRS Code. In general terms the arbitrage requirements control the earnings on unexpended bond proceeds, including investment earnings, moneys held for debt service payments (which are considered to be proceeds under the IRS regulations), and/or reserves. Under the tax-exempt status of the Bonds. Any interest earnings on gross bond proceeds or debt service funds should not be spent until it has been determined based on actual facts The arbitrage rules provide for spend-down exceptions for proceeds that are spent within either a 6-month, 18-month or, for certain construction issues, a 24-month period each in accordance with certain spending criteria. Proceeds that qualify for an exception will be exempt from rebate. These exceptions are based on actual expenditures and not based on reasonable expectations, and expenditures, including any investment proceeds will have to meet the spending criteria to qualify for the exclusion. The Bonds are expected to meet the 24-month spending exception, which will require the City to comply with the following spend-down schedule: 10% spent within 6 months 45% spent within 12 months 75% spent within 18 months 100% spent within 24 months Regardless of whether the issue qualifies for an exemption from the rebate provisions, yield restriction provisions will apply to Bond proceeds (including interest earnings) unspent after three years and the debt service fund throughout the term of the Bonds. These moneys should be monitored until the Bonds are retired. Secondary disclosure requirements result from an SEC requirement that underwriters provide ongoing disclosure information to investors. To meet this requirement, any prospective underwriter will require the City to commit to providing the information needed to comply under a continuing disclosure agreement. Baker Tilly Municipal Advisors, LLC will provide both arbitrage and continuing disclosure services to the District under the existing Agreement for Municipal Advisor Services. PURPOSE: Proceeds of the Bonds will be used to finance the following: Recreational facility improvements, consisting of arena improvements, community meeting/activity space, a synthetic turf field house, senior center facility improvements, youth athletic complex improvements; Various park improvements related to Lions Park consisting of meeting space and demo/utility space enhancements to Lions Park Center, additional playfields, parking lot improvements, trail improvements, and the addition of a community picnic pavilion; Page 2