|
|
New IRS Questionnaire on
Advance Refundings
On May 24, the
Internal Revenue Service (IRS) announced that it has initiated a new
questionnaire for borrowers who have issued tax-exempt advance
refunding bonds. The questionnaire is extensive (8 pages, with 22
multi-part questions).
Click here to continue reading.
|
|
Conferences:
GFOA, LMC and EDAM
 If you weren't able to make any of these conferences,
here's a quick recap of the National GFOA, LMC and EDAM conferences.
|
|
The New
Ortonville Area Hospital Replacement Project
By Carolyn Drude, Senior Financial Advisor and Brian Reilly, Financial Advisor
The City of Ortonville, MN held its opening ceremony
for the new Ortonville Area Health Services (OAHS) on June 29, 2011.
The Ortonville Hospital Replacement Project is a $20
million facility owned by the City of Ortonville and run by the
Ortonville Health Care Board.
Click here to continue reading.
|
|
Wellness
Challenge and Minnesota FoodShare
by Alicia Aulwes, Bond Sale Coordinator
Ehlers employees recently participated in two events
that benefited others as well as themselves.
Each March, Minnesota FoodShare directs the March
Campaign, the largest food drive in the state and restocks 300 food
shelves across Minnesota.
It recruits thousands of congregations, companies,
schools and civic groups to run local food and fund drives to aid in
the effort.
Click here to continue reading.
|
|
Greetings!
In this issue,
there are two IRS-related articles to which I draw your attention.
One article alerts you to a questionnaire that's gone out to a
small group of government entities and other tax-exempt
organizations, and the other article discusses being prepared for
Federal examinations as it relates to Arbitrage.
Last year, we introduced you to changes in the municipal securities
market with the introduction to the Dodd Frank Act. As more
regulations are passed, we will continue to keep you informed. In this
issue of the Advisor, we talk about changes to Section 15B of the
Act.
Finally, we look at a redevelopment project in the City of Maple
Plain, and congratulations to the City of Ortonville, which
recently opened the new Ortonville Area Health Services facility.
Steve Apfelbacher
President and CEO
sapfelbacher@ehlers-inc.com
|
|
|
Redevelopment
in The City of Maple Plain
 In the City of Maple Plain, Minnesota, Ehlers worked
side-by-side with the redevelopment consultant Cornejo Consulting
to provide a financial feasibility analysis on the redevelopment
potential of three key sections of the City, referred to as the
Gateway Redevelopment District, Downtown District, and Budd
Avenue-Highway 12 District, paid for with a county grant.
The City of nearly 2,100 residents is the main
commercial intersection for surrounding areas, and will soon be the
first western stop on State Highway 12. Revitalization of the
City's commercial and residential components is the top priority
when seeking interest for new development opportunities.
Click here to continue
reading.
|
|
Arbitrage:
Are You Prepared for Federal Examinations?
Interest received
by bondholders is exempt from federal income tax only if the issuer
complies with both the arbitrage rebate and yield restriction
requirements of the Internal Revenue Code.
To comply, the
issuer must either 1) remit profits from investing gross proceeds
of the issue at a yield in excess of the bond yield to the Treasury
every five years until the debt is no longer outstanding, or 2)
satisfy exceptions to the rebate and yield restriction
requirements.
The IRS routinely
examines debt issuances to ascertain compliance with the arbitrage
requirements. Federal agents initiate the examination by sending
issuers Form 4564 which contains a series of information document
requests. Issuers must submit a response to the IRS within 21 days
of the date on the form.
|
|
Possible
Registration of EDA & HRA Board Members as Municipal Advisors
by Steve Apfelbacher, Senior
Financial Advisor/President
The Dodd Frank
Act, passed by Congress in July 21, 2010, regulated all parties
that meet the definition of a Municipal Advisor.
In Section 15B of the Act, a Municipal Advisor is
defined to mean a person "that provides advice to or on behalf
of a municipal entity ...with respect to municipal financial
products or the issuance of municipal securities including advice
with the respect to the structure, timing, terms and other similar
matters concerning such financial products or issues."
Since October 1, 2010, municipal market participants
who believed they fall under this definition have been registering
with the Securities and Exchange Commission (SEC) under a temporary
registration rule.
|
|
Are you a follower?
Being a follower isn't always a bad thing. You can
get current information and network with the entire Ehlers
team.
Click on the logo to follow us on LinkedIn.
|
|
|
|
