§ 2-586. Compliance with federal tax law provisions.

Federal arbitrage regulations were put into place for two (2) primary reasons: (1) to ensure that the proceeds of tax-exempt financing are not solely being used to make investment in higher-yielding taxable securities, and (2) to ensure that the bond proceeds are spent in an expeditious manner. In compliance with the spirit of this legislation, the city will not issue obligations except for identifiable projects with a prospect of timely initiation. The city's finance director is responsible for ensuring that a system of record keeping and reporting is maintained to meet the arbitrage rebate requirements of the federal tax code.

The city's finance director will monitor compliance with debt covenants and adherence to federal regulations. Any instances of noncompliance will be reported by the city manager to the city commission.

(Ord. No. 2013-03, § 1, 2-5-13)