2016-05-09-minutes-public-works-study-session

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Continuing Disclosure Undertaking Publicly issued LiD financings fall under the requirements of the SEG 15c2-12 regulations. if the issue meets the size thresholds of the regulation, reporting to the Nationally Recognized Municipal Securities Information Repository (NRMSIR) is required. Of particular importance for reporting is the annual call of LID bonds. LID bonds are relatively unique in that they have annual unscheduled calls of bonds. The calls are unscheduled in that the number of bonds called is dependent on the receipt of assessment payments and cannot be scheduled at the time of issuance, only estimated. Prior to the issuance of the bonds and the passage of the financing ordinance or resolution, reviewthe reporting requirements under 15c2-12 with bond counsel and set up the mechanism for annual reporting under the regulation. Arbitrage Tracking LID financings are subject to the Arbitrage Regulations in the same manner that all other b are subject to the regulations. If arbitrage is earned, rebates must be paid. A rebate requirement will most likely be incurred as a result of the balance and interest earnings of the reserve or guaranty fund for the LID bonds. Arbitrage tracking is necessary to insure compliance with the regulations and may be accomplished by qualified people and software programs within your municipality or by independent professionals who specialize in providing the service. Given the potential penalties for failure to comply, the cost of the professional service is relatively low at the current time. Ask your financial advisor and/or bond counsel for a list of firms who provide the service. In addition, keep accurate records of the interest earned in the reserve or guaranty fund as well as the debt service fund and do not commingle the funds with other funds and accounts. Contributor: Steve Gaidos Local and Road Improvement Districts Manual for Washington State Sixth Edition 51