[Adopted 10-15-2013 by Ord. No. 1-2013 (Ch. 2, Art. XVI, of the 1976 Code)]
A.
TAX CREDIT OBLIGATIONS
TAX-EXEMPT OBLIGATIONS
Title and definitions. This post-issuance
compliance policy establishes procedures and guidelines to be followed
with respect to the Town of Winslow's outstanding tax-exempt obligations
and tax credit obligations.
All tax credit bonds and direct pay bonds that provides a
tax credit to the holders thereof or a direct pay bond issued under
the code, including but not limited to Sections 54, 54A, 54AA, 1394,
1400U-2, 1400U-3, and 6431 or other similar provision of the code.
All tax-exempt bonds, notes and lease-purchase contracts
and other evidences of indebtedness the income on which is excludable
from the gross income of the holders thereof under Section 102 of
the Internal Revenue Code of 1986, as amended (the "code").
B.
Compliance officer; consultation
and training. The Town Treasurer (the "Compliance Officer") shall
be responsible for monitoring post-issuance compliance with respect
to the Town's tax-exempt and tax credit obligations to monitor for
compliance with this policy.
(1)
Unless a shorter time-frame
is specified below, the Compliance Officer shall annually review each
of the Town's tax-exempt and tax credit obligations to monitor for
compliance with this policy.
(2)
The Compliance Officer shall
consult with the Town's bond counsel and/or its financial advisor
and a rebate consultant as necessary to meet the requirements of this
policy.
C.
Closing transcripts; Form 8038-G;
Form 8038-TC. The Compliance Officer shall maintain a copy of the
transcript of proceedings for each tax-exempt and tax-credit obligation
issued by the Town. If not included in the closing transcript, the
Compliance Officer shall also maintain records required to be maintained
to qualify for the safe harbor for investment contracts or defeasance
escrows and to identify any qualified hedge contract on the Town's
books and records. The Compliance Officer shall confirm the proper
filing of an 8038-G, 8038-TC or other applicable Form 8038 return
for each tax-exempt and tax credit obligation issued by the Town by
no later than the 15th day of the second calendar month after the
close of the calendar quarter during which bonds are issued.
D.
Deposit and use of proceeds; arbitrage
compliance. The Compliance Officer shall:
(1)
Identify or provide for the
computation of the bond yield for each tax-exempt and tax credit obligation
issued by the Town.
(2)
Identify appropriate funds
and accounts to track the deposit and use of the sale proceeds and
investment proceeds of each tax-exempt and tax credit obligation issued
by the Town.
(3)
Identify any fund or account
that may be expected to be used to pay debt service on each tax-exempt
and tax credit obligation issued by the Town.
(4)
Maintain records of all investments
and expenditures from such funds and accounts and record whether investments
were purchased at a fair market value and whether they were purchased
on a negotiated basis or were put out for bid. If by bid, obtain all
documentation relating to whether there was compliance with the bidding
rules established for the specific investment. Consult with Bond Counsel,
if needed.
(5)
Make a final allocation of
the proceeds of any tax-exempt and tax credit obligation to expenditures
by no later than: (a) 18 months after the later of the date the expenditure
was made; or (b) the date the project being finance was placed in
service. Notwithstanding the forgoing, the final allocation shall
be made not later than the earlier of five years after the particular
tax-exempt or tax credit obligations was issued or 60 days after the
issue is retired.
(6)
Determine whether each tax-exempt
or tax credit obligation meets the requirements of any applicable
exception to arbitrage rebate, including the "small issuer" exception
to arbitrage rebate or the semiannual target dates for the six-month,
eighteen-month, or twenty-four-month spending exception to arbitrage
rebate.
(7)
Consult with Bond Counsel to
identify and monitor any proceeds of a tax-exempt or tax credit obligation
that must be invested in yield restricted investments following the
expiration of any applicable temporary period or spending period.
(8)
In the event the Town fails
to meet the requirements of the applicable temporary period, spending
period or exception to rebate:
(a)
Arrange for the timely calculation
and payment of any rebate liability or yield reduction payment, if
available and as applicable.
(b)
Establish a calendar of
each date for each of the Town's bond issues that the Town will be
required to make any rebate payment to the United States (generally,
every five years and upon final payment of all bonds). Such a calendar
must recognize that the dates of any required rebate payment to the
United States must be adjusted to reflect any redemption date of a
bond issue prior to final maturity.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
(c)
Ensure that if rebate is
due, the first rebate installment is paid and a Form 8038-T is filed
by the fifth anniversary of the issue date of the particular tax-exempt
or tax credit obligation plus 60 days and each fifth anniversary thereafter
until the final maturity date or earlier redemption date plus 60 days.
E.
Proper use of bond financed property.
The Compliance Officer shall:
(1)
Maintain a record of all bond
financed property and the proceeds
of any tax-exempt or tax credit obligation spent on each such bond
financed property.
(2)
Monitor all nonpublic use of
any property financed with the proceeds of any tax-exempt or tax credit
obligation and confer with Bond Counsel as appropriate. Such nonpublic
use may arise out of some of the following arrangements: nonqualified
management or research contracts (refer to Rev. Procs. 97-13 and 97-14),
leases (including leases to the federal government), naming rights,
or the sale, disposition or other change in use of such property.
(3)
Maintain copies of any nonpublic
use arrangement.
(4)
Keep a record of the payments
to be derived from operation of the property financed with the proceeds
of any tax-exempt or tax credit obligation and whether such property
secures the payment of any tax-exempt or tax credit obligation.
(5)
With respect to any property
financed with any tax-exempt or tax credit obligation, monitor for
approval prior to execution:
(a)
Any lease, sales contract
or other disposition of such property.
(b)
Any naming rights, sales
or licensing contract; management or service contract, research contract;
output contracts; cell phone tower agreements; solar power contracts
or windmill-generation contracts of such property.
(c)
Immediately upon the execution
of any such arrangement or other disposition that constitutes a nonpublic
use, and in all events no less than annually during the term of any
tax-exempt or tax credit obligation, calculate the amount of nonpublic
use and payments with respect to such property.
(6)
In the event the Town takes
an action which causes the private activity bond tests to be met,
contact bond counsel and take all actions necessary to ensure timely
remedial action under the applicable IRS Regulation.
F.
Continuing disclosure. The Compliance
Officer shall file the annual financial statements and other financial
information and operating data and shall provide notice of any material
events as required by any continuing disclosure certificate delivered
by the Town with respect to any tax-exempt or tax credit obligation.
G.
Significant modification. The Compliance
Officer shall evaluate all modifications to any of the Town's Tax-Exempt
or Tax Credit Obligations to determine whether such modifications
result in a reissuance and, if such modifications do result in a reissuance,
to take all actions necessary to maintain the tax-exempt status of
the tax-exempt obligation or the tax advantaged status of the tax
credit obligation.
H.
Retention of records. The closing
transcript for each tax-exempt and tax credit obligation and other
records to be retained pursuant to this policy shall be maintained
until three years after said tax-exempt or tax credit obligation (or
obligations issued to refund such tax-exempt or tax credit obligation)
has been retired. If records and materials to be maintained under
this policy are kept in electronic format, the record system shall
comply with the requirements of Rev. Proc. 97-22, as such may be amended,
modified, superseded or replaced.
