(A) Investment of proceeds. The city acknowledges its ongoing fiduciary responsibilities to actively manage the proceeds of bonds issued for public purposes in a manner that is consistent with the city's investment policy, Illinois statutes that govern the investment of public funds, and consistent with the covenants of related bond documents. The investment of bond proceeds requires significant diligence in meeting the objectives of regulatory compliance, management of the covenants described in financing documents, and the needs of the projects being funded.
(B) Compliance practices.
(1) Arbitrage. It is the city's policy to minimize the cost of arbitrage rebate and yield restriction while strictly complying with the Federal arbitrage and rebate regulations. The city will take the following steps to minimize any rebate liability through proactive management in the structuring and oversight of its bonds.
(a) Examine whether the city met the arbitrage rebate exception rules;
(b) Use bond proceeds only for the purpose and authority for which they were issued;
(c) Monitor the expenditure of bond proceeds and exercise best efforts to spend proceeds in such a manner that the city will meet one of the spend-down exemptions from arbitrage rebate;
(d) Maintain detailed investment records and monitor the investment of bond proceeds with awareness of rules pertaining to yield restrictions; and
(e) Perform arbitrage rebate calculations as determined by the IRS.
(2) Continuing disclosure. The city has covenanted and agreed in previous instances, in accordance with Rule 15c2-12 of the 1934 Act, to provide certain financial information and operating data relating to the city within 210 days after the close of the city's fiscal year; and, in a timely manner, to provide notices of the occurrence of certain enumerated events. The following will be filed by the city with the Municipal Securities Rulemaking Board (MSRB) for disclosures on its Electronic Municipal Market Access (EMMA) system:
(a) Audited financial statements;
(b) Financial and operating data included in the original official statement;
(c) Required event notices; and
(d) Voluntary event notices.
(3) Legal covenants. The city shall comply with all covenants and conditions contained in any legal document entered into at the time of the bond offering.
(Ord. 19-012, passed 5-2-19)