city of San Antonio


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File #: 18-6420   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 12/13/2018
Posting Language: Ordinance approving the extension of the City of San Antonio Arbitrage Rebate Compliance Services Contract with The Bank of New York Mellon Trust Company, N.A. for arbitrage rebate compliance services for a two (2) year term commencing April 1, 2019 and terminating March 31, 2021, under the same terms and conditions. [Ben Gorzell, Jr., Chief Financial Officer, Troy Elliott, Deputy Chief Financial Officer]
Attachments: 1. Draft Ordinance, 2. Ordinance 2018-12-13-1022
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DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-Wide


SUBJECT:

Approving the extension of the Arbitrage Rebate Compliance Services Contract


SUMMARY:

This ordinance approves the extension of the City of San Antonio Arbitrage Rebate Compliance Services Contract with The Bank of New York Mellon Trust Company, N.A. for arbitrage rebate compliance for a two (2) year term commencing April 1, 2019 and terminating March 31, 2021, under the same terms and conditions.


BACKGROUND INFORMATION:

This Contract provides a qualified firm to provide Arbitrage Rebate Compliance Services in connection with the City's financings. Laws codified in Internal Revenue Service Code Section 148 and regulations promulgated by the United States Treasury mandate that interest income derived from the investment of tax-exempt proceeds in excess of the permitted arbitrage rate must be rebated to the United States Government. Arbitrage rebate compliance requires that computations be performed which are consistent with the complex technical requirements contained in the aforementioned laws and regulations to determine the rebate amount, if any. Any rebate amount due must be reported and paid to the United States Government. The scope of Arbitrage Rebate Compliance Services includes a comprehensive review of the City's outstanding tax-exempt obligations, debt service funds, debt service reserve funds, capital projects funds and other funds, into which tax-exempt proceeds have been deposited. Such services also encompass calculation and verification of the arbitrage rate for each tax-exempt obligation for which an arbitrage rebate computation is required, on-going service with respect to questions that may arise from time to time concerning arbitrage rebate, and assisting the City in responding to queries posed to the City related to arbitrage.

On December 21, 2015 a Request for Proposal (RFP) for Arbitrage Rebate Compliance Services was iss...

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