Explanation
The IRS is now issuing questionnaires to those cities that issued Build America Bonds. The questions focus on whether the City has written policies addressing the bonds AFTER the bonds have been issued, therefore "Post Issuance." These policies extend beyond the City's traditional bond ordinances that comply with all state and City statutes.
This ordinance authorizes the City Auditor to establish such policies. This Ordinance is a result of collaboration between the City Auditor, City Attorney, and the Department of Finance and Management. It is quite possible that the IRS will issue additional guidance as to how to implement such a policy. The Ordinance, therefore, allows for amendments to the policy.
I ask for and recommend adoption of the Ordinance and I thank you.
Title
To authorize the City Auditor to establish a Post-Issuance Compliance Policy to help ensure the City's compliance with all pertinent legal requirements.
Body
WHEREAS, the City uses bonds and/or notes (bonds) as one means of financing capital projects; and
WHEREAS, the use of the proceeds from the issuance of municipal bonds require compliance with federal income tax and securities laws, as well as the requirements set forth in the bond documents for each bond issue; and
WHEREAS, in consulation with bond counsel, the City Auditor has developed a Post-Issuance Compliance Policy to help ensure the City's compliance with all pertinent legal requirements; and
WHEREAS, the Department of Finance and Management and the City Attorney have reviewed and approved the Post-Issuance Compliance Policy as proposed by the City Auditor; and
WHEREAS, implementation of and compliance with the Post-Issuance Compliance Policy will require the cooperation of all City Departments, divisions and offices; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Post-Issuance Compliance Policy, as developed and promulgated by the City Auditor and as it may be amended from time to time by the City Auditor, is hereby adopted to establish policies and procedures relating to use of the proceeds from City-issued bonds in order to promote post-issuance compliance with federal income tax and securities laws, as well as the requirements set forth in the bond documents for each bond issue.
Section 2. That the City Auditor, City Attorney, and Department of Finance and Management are hereby authorized and directed to implement and enforce the Post-Issuance Compliance Policy.
Section 3. That all City of Columbus departments, divisions and offices are hereby authorized and directed to comply with the Post-Issuance Compliance Policy.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.