[HISTORY: Adopted by the Town Council of the Town of South
Berwick as indicated in article histories. Amendments noted where
applicable.]
[Adopted 11-10-2015[1]]
[1]
Editor's Note: This ordinance was originally adopted as Ch.
37, but was renumbered to more accurately fit into the organizational
structure of the Code.
A.
The
Town of South Berwick, Maine (the "Town") issues tax-exempt bonds
from time to time to finance various capital improvements. As an issuer
of such tax-exempt bonds, the Town is required by the Internal Revenue
Code of 1986, as amended (the "code"), and regulations promulgated
by the United States Treasury Department to take certain actions subsequent
to the issuance of such bonds to ensure the continuing tax-exempt
status of the bonds.
B.
The
Town recognizes that compliance with applicable provisions of the
code and Treasury regulations is an on-going process, necessary during
the entire term of a bond issue, and is an integral component of the
Town's overall debt-management responsibilities. These requirements
apply equally to capital leases. Accordingly, the implementation of
these requirements will require on-going monitoring and consultation
with bond counsel.
The Town Council shall approve the terms and structure of bonds
issued by the Town. Such bonds shall be issued in accordance with
United States Treasury Department regulations, the Internal Revenue
Code of 1986, as amended, state statutes and the Town's Charter.
Specific post-issuance compliance procedures are addressed below.
The following guidelines will be used to monitor compliance
with post-issuance requirements:
A.
The
Town's Treasurer shall serve as the compliance officer and shall
be the person primarily responsible for ensuring that the Town successfully
carries out its post-issuance responsibilities.
(2)
The Treasurer shall be responsible for assigning post-issuance responsibilities
to other staff, bond counsel, the financial advisor, the paying agent
and the rebate specialist, and shall utilize such other professional
services as are necessary to ensure compliance with all post-issuance
requirements.
B.
The
Treasurer shall verify that the following post-issuance actions have
been taken on behalf of the Town with respect to each issue of tax-exempt
bonds:
(1)
Ensure that a full and complete record for the principal documents
of each issue has been completed by bond counsel and the financial
advisor;
(3)
Account for the allocation of the proceeds of the tax-exempt bonds
to expenditures as required by the code;
(4)
Coordinate receipt and retention of relevant books and records with
respect to the investment and expenditures of the issue proceeds;
(5)
Identify proceeds of tax-exempt obligations, in consultation with
bond counsel and the financial advisor, that are yield-restricted
and monitor the investments of any yield-restricted funds to ensure
that the yield on such investments does not exceed the bond yield
to which such investments are restricted;
(6)
Determine, in consultation with bond counsel and the financial advisor,
whether the Town is subject to the rebate requirements of Section
148(f) of the code[2] and related Treasury regulations with respect to each
issue of the Town. The Treasurer shall contact a rebate specialist,
as required, prior to the fifth anniversary of the date of issuance
of each issue and each fifth anniversary thereafter until the obligation
has matured to arrange for calculation of the rebate requirements,
as needed, to be paid by the Town. If any rebate is required to be
paid to the IRS, the Town Treasurer will file Form 8038-T, along with
the required payment.
[2]
Editor's Note: See 26 U.S.C. § 148.
(7)
Monitor the use of all financed facilities in order to determine
whether private business uses of financed facilities have exceeded
the de-minimus limits set forth in Section 141(b) of the code[3] (generally a value or benefit equal to 10% of issue proceeds)
that provide special legal entitlements to non-governmental persons.
[3]
Editor's Note: See 26 U.S.C. § 141.
(8)
With the assistance of professional services as needed, ensure that
any and all nonqualified bonds are remediated according to the requirements
of the code and relevant regulations.
C.
Records.
(1)
The Treasurer shall collect and retain the following records with
respect to each issue of tax-exempt obligations and with respect to
the facilities financed with the proceeds of such obligations:
(a)
Audited financial statements of the Town;
(b)
Appraisals, surveys, feasibility studies, if any, with respect to
the facilities to be financed with issue proceeds;
(c)
Trustee or paying agent statements;
(d)
Records of all investments and the gains (or losses) from such investments;
(e)
Expenditures reimbursed with the issue proceeds;
(f)
Allocation of issue proceeds to expenditures (including cost of issuance)
and the dates and amounts of each expenditure (including requisitions,
draw-down schedules, invoices, bills and cancelled checks as related
to each expenditure);
(g)
Construction or renovation contracts for financed facilities or projects;
(h)
Maintain an asset list of all tax-exempt financed depreciable property
and sales of tax-exempt financed assets;
(i)
Arbitrage rebate reports and records of rebate and yield reduction
payments, if any;
(j)
Orders, resolutions and other actions, if any, adopted by the Town
subsequent to the date of issue of the obligations; and
(k)
Relevant correspondence relating to such bonds.
(2)
The records collected by the Town shall be stored in any format deemed
appropriate by the Treasurer and shall be retained for a period equal
to the life of the tax-exempt obligations, including the life of any
obligations issued to refund obligations, plus three years.
D.
In
addition to its post-issuance compliance requirements under the Code
and Treasury Regulations, the Town has agreed to provide continuing
disclosure, such as annual financial information and material event
notices when required. The continuing disclosure obligations are governed
by the continuing disclosure documents and by the terms of Rule 15c2-12
under the Securities and Exchange Act of 1934, as amended and officially
interpreted from time to time.
