Agenda

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City Council Regular Meeting

Meeting Date:

12/01/2020

BACKGROUND

The Internal Revenue Service (IRS) puts certain requirement on tax exempt bonds. When a municipality issues tax exempt bonds, it has to spend funds down within a set amount of time and make sure it does not make more money by holding the bonds in an investment account than what the city pays in debt service. This calculation must be done every 5 years at minimum and submitted to the IRS.

In 2016, the City contracted with Avant Strategic Partners to provide this service and has been satisfied with thier performance and customer service.

GOAL

To ensure compliance with tax exempt bond rules set by the Internal Revenue Services (IRS).

COMMUNITY BENEFIT

N/A

SUMMARY OF RECOMMENDED ACTION

To receive approval of resolution and award a contract to Avant Strategic Partners for bond abritrage calculation and filing.

FISCAL IMPACT

This contract award is estimated to cost $43,500 over a 5 year period. These funds have been identified in the budget planning process and have been a part of the Finance budget for the past 5 years as well. If these reports are not done timely and accurately the City could face additional costs in the form of IRS penalties. Avant will ensure the City will avoid any of those issues.

RECOMMENDATION

Staff recommends approval of resolution 20-R-140 to award a contract to Avant Strategic Partners.

Attachments
Resolution 20-R-140
Avant Services Agreement