4.8 SR 10-21-2024 - Laserfiche WebLink

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Financial Management Policies Page 15 12 Post-Issuance Debt Compliance Policy Objective The Ccity desires to monitor these obligations to ensure compliance with the IRS Code and related regulations governing such obligations. To help ensure compliance, the Ccity has developed the a following policy (the “Post-Issuance Debt Compliance Policy.”). Thise Post-Issuance Debt Compliance poPolicy shall apply to the obligations mentioned above, including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other form of debt that is subject to compliance. The Ffinance Dmirector anager of the City is designated as the Ccity’s agent who is responsible for post-issuance compliance of these obligations. However, to the extent obligations are issued for municipal utility purposes, the Finance Director/ERMU Ofinance ffice Mmanager of Elk River Municipal Utilities assumes the duties of post-issuance debt compliance as described in this Post- Issuance Debt Compliance Ppolicy instead of the Finance Director. The fFinance Director manager shall assemble all relevant documentation, records and activities required to ensure post-issuance debt compliance as further detailed in corresponding procedures (the “Post-Issuance Debt Compliance Procedures”). At a minimum, the Post-Issuance Debt Compliance Procedures for each qualifying obligation will address the following: 1. General post-issuance compliance; 2. Proper and timely use of bond proceeds and bond-financed property; 3. Arbitrage yield restriction and rebate; 4. Timely filings and other general requirements; 5. Additional undertakings or activities that support points 1 through 4 above; 6. Other requirements that become necessary in the future. The Ffinance Director manager shall apply the Post-Issuance Debt Compliance Procedures to each qualifying obligation and maintain a record of the results. F Further, the Ffinance Director manager will ensure that the Post-Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis. The fFinance Dmanagerirector or any other individuals responsible for assisting the Ffinance Director manager in maintaining records needed to ensure post-issuance debt compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance. Most of the provisions of this Post-Issuance Debt Compliance Ppolicy are not applicable to governmental bonds, the interest on which is includable in gross income for federal income tax purposes. On the other hand, if an issue of taxable governmental bonds is later refunded with the proceeds of an issue of tax-exempt governmental refunding bonds, then the uses of the proceeds of the taxable governmental bonds and the uses of the facilities financed with the proceeds of the taxable governmental bonds will be relevant to the tax-exempt status of the governmental refunding bonds. Therefore, if there is any reasonable possibility that an issue of taxable governmental bonds may be refunded, in whole or in part, with the proceeds of an issue of tax-exempt governmental bonds then, for purposes of this Post-Issuance Debt Compliance Ppolicy, the Ffinance Director manager shall treat the issue of taxable governmental bonds as if such issue were an issue of tax- exempt governmental bonds and shall carry out and comply with the requirements of this Post- Issuance Debt Compliance Ppolicy with respect to such taxable governmental bonds. The Ffinance Page 92 of 294