Meetings Team - Laserfiche WebLink

Home Browse Search

arrangement, if transit and the county wish to do so. This would necessitate an amendment to the condominium agreement and the development agreement. But, Ben and I can do this. 3. Identif~n~ Funds on Hand with Trustee and Use of Surplus. I have arranged for Arbitrage Specialists to do an updated report through October 1, 2000. This should identify interest earnings, arbitrage amount, and whether the county can qualify for an exemption by spending down all principal and interest within two years. I would like to remind folks of Ed Einowski's advice on this point. If the county spends down all principal and interest, less not more than 5% retainage to complete construction, and meets certain spending benchmarks during a two year period, the county need not pay the IRS arbitrage. However, the county will not qualify for this spend down exception if it spends any of the funds to pay off bonds. So, the county can do one of two things: Use all bond principal and interest for construction, or pay arbitrage, if due, and use some of the proceeds to pay off bonds. The two year period will be up December 18, 2000. 4. Payin~ Bond Principal and Interest with Other County Funds. The county can do this. The Trustee can accept county monies for this purpose. When construction is complete, and the county has paid off construction costs in full, the Trustee will determine the surplus. The surplus will be applied first to debt service to prepay principal for the maturities selected by the county. Trust Agreement, Sections 204(D) and 402(B). The balance, if any, will be applied to current payments due. This would be a small amount, under $5,000. The county can designate some money to be retained in the Project Fund to pay off construction costs occurring later. Finance Agreement, Section 402(B). ~ (~ ~ ~. l