[Adopted 5-24-2010 by Ord. No. 2010-20]
[Added 5-22-2017 by Ord.
No. 2017-12]
As used in this article, the following terms shall have the
meanings indicated:
Bonds or other obligations which qualify as “Build
America Bonds” under federal tax law.
The Village Manager of the Village of Bannockburn.
Tax-exempt obligations and Build America Bonds.
Bonds or other obligations, the interest on which is not
includable in “gross income” for federal income tax purposes.
The Village of Bannockburn, Lake County, Illinois.
[Amended 5-22-2017 by Ord. No. 2017-12]
The Village Manager of the Village is designated as the keeper
of all records of the Village with respect to the obligations, and
such officer shall report to the Village Board at least annually that
he/she has all of the required records in his/her possession, or is
taking appropriate action to obtain or recover such records.
For each issue of obligations, the compliance officer shall
receive, and shall keep and maintain or cause to be kept and maintained,
a true, correct and complete counterpart of each document and agreement
delivered in connection with the authorization and issuance of the
obligations, including, without limitation:
A.
The proceedings of the Village authorizing the obligations;
B.
Any offering document with respect to the offer and sale of the obligations;
C.
Any legal opinions with respect to the obligations delivered by any
lawyers; and
D.
All written representations of any person delivered in connection
with the authorization, issuance and initial sale of the obligations.
The compliance officer shall review the agreements of the Village
with respect to the obligations and shall prepare, or cause to be
prepared by a qualified consultant, and present to the Village Board
a report stating whether or not the Village has any rebate liability
to the United States Treasury, and setting forth any applicable exemptions
that the obligations may have from rebate liability. Such report shall
be updated annually and delivered to the Village Board. Such report
may be based in part on an opinion or opinions of nationally recognized
bond counsel addressed to the Village.
A.
The compliance officer shall review the records related to the obligations
and shall determine what requirements the Village must meet in order
to maintain the tax exemption of interest paid on the tax-exempt obligations
and the qualification of the Build America Bonds as "Build America
Bonds."
B.
The compliance officer shall then prepare a list of the contracts,
requisitions, invoices, receipts and other information that may be
needed in order to establish that:
C.
Notwithstanding any other policy of the Village, such retained records
shall be kept for as long as the obligations relating to such records
(and any obligations issued to refund those obligations) are outstanding,
plus three years, and shall include the following at a minimum:
(1)
Complete copies of the bond transcripts delivered when any issue
of obligations is initially issued and sold;
(2)
Copies of account statements showing the disbursements of all bond
proceeds for their intended purposes;
(3)
Copies of account statements showing all investment activity of any
and all accounts in which the proceeds of any issue of obligations
have been held;
(4)
Copies of all bid requests and bid responses used in the acquisition
of any special investments used for the proceeds of any tax-exempt
or Build America Bonds, including any swaps, swaptions, or other financial
derivatives entered into with respect to any tax-exempt obligations
or Build America Bonds in order to establish that such instruments
were purchased at fair market value;
(5)
Copies of any subscriptions to the United States Treasury for the
purchase of State and Local Government Series (SLGS) obligations;
(6)
Any calculations of liability for arbitrage rebate that is or may
become due with respect to any issue of tax-exempt obligations or
Build America Bonds, and any calculations prepared to show that no
arbitrage rebate is due, together, if applicable, with account statements
or cancelled checks showing the payment of any rebate amounts to the
United States Treasury, together with any applicable IRS Form 8038-T;
and
(7)
Copies of all contracts of the Village, including any leases, with
respect to the use of any property owned by the Village and acquired
or financed with the proceeds of tax-exempt obligations or Build America
Bonds, any part of which property is used by a private person at any
time when such obligations are or have been outstanding.
If the Internal Revenue Service (IRS) commences an examination
of any obligations, the compliance officer shall inform the Village
Board of such event, and is authorized to respond to inquiries of
the IRS, and to hire outside, independent professional counsel to
assist in the response to the examination.