HomeMy WebLinkAboutPost-Insurance Debt Compliance Policy Feb 16,2010
☒City Council Approved: 2/16/2010
☐City-Wide Revised:
☐Department
City of Edina Policy
POST-ISSUANCE DEBT COMPLIANCE
The City Council of the City of Edina has chosen, by policy, to take steps to help ensure that all
obligations will be in compliance with all applicable state and federal regulations. This policy may be
amended, as necessary, in the future.
Background
The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue
Code and most other regulations governing certain obligations (As example: tax-exempt obligations,
Build America Bonds, Recovery Zone Development Bonds and various “Tax Credit” Bonds). The IRS
expects issuers and beneficiaries of these obligations to adopt and implement a post-issuance debt
compliance policy and procedures to safeguard against post-issuance violations.
Post-Issuance Debt Compliance Policy Objective
The City of Edina desires to monitor these obligations to ensure compliance with the IRS Code and all
other regulations governing such obligations. To help ensure compliance, the City has developed a
“Policy”. The following Policy shall apply to these obligations including bonds, notes, loans, lease
purchase contracts, lines of credit, commercial paper or any other form of debt that is subject to
compliance.
Post-Issuance Debt Compliance Policy
The Finance Director of the City of Edina is designated as the City’s agent who is responsible for post-
issuance compliance of these obligations.
The Finance Director shall assemble all relevant documentation, records and activities required to
ensure post-issuance debt compliance as further detailed in 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 Finance Director shall apply the Post-Issuance Debt Compliance Procedures to each qualifying
obligation and maintain a record of the results. Further, the Finance Director will ensure that the Post-
Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis.
The Finance Director, or any other individuals responsible for assisting the Finance Director in
maintaining records needed to ensure post-issuance 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.
The City of Edina may in the future issue qualifying obligations for beneficiaries such as 501(c) 3 non-
profit organizations or Industrial Revenue Bonds. This Policy applies to all such applicable obligations. In
order to ensure future compliance with this Policy, the City shall consider issuing qualifying obligations
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for beneficiaries only when the beneficiary has retained a Trustee and an independent arbitrage
consultant for the term of the obligation and this Policy has been incorporated into the Trust Indenture.
The Trustee and the independent arbitrage consultant must be retained prior to issuance of the
obligation.