Sarasota County Debt Management Policy - Resolution 2021-184

Sarasota County Debt Management Policy 4. Payment of Arbitrage Rebate and Yield Reduction Liability In the event the County owes arbitrage rebate or has accrued a yield reduction payment liability to the IRS, the County will timely submit IRS Form 8038-T, Arbitrage Rebate Yield Reduction and Penalty in Lieu of Arbitrage Rebate, to be prepared by the arbitrage rebate monitor, together with payment in the amount equal to the arbitrage rebate or yield reduction payment liability calculated by the arbitrage rebate monitor in accordance with the Tax Certificate or other related documents related to such debt issue. Timely shall mean within sixty days after each installment computation date, the County will cause to be paid to the IRS at least ninety percent of the amount of arbitrage rebate and yield reduction payment liability owed and within sixty days after the final installment computation date, the County will cause to be paid to the IRS one hundred percent of the amount of arbitrage rebate and yield reduction payment liability owed. 5. Expenditure of Tax-Exempt Debt Proceeds It is the policy of the County to expend debt proceeds as promptly and diligently as possible within the confines of these policies and procedures and the Tax Certificate or other related documents entered into by the County in connection with a particular debt issuance. For these purposes, it is the County's policy generally not to finance projects using the proceeds of debt for which the County expects that the debt proceeds will not be fully spent within three years of the date of issue of the debt. 6. Arbitrage Rebate Exceptions Each Tax Certificate or other related documents prepared for the County's debt issuances shall contain the arbitrage rebate exception(s) applicable to the debt issuance and which arbitrage rebate exceptions(s) will be applied by the rebate monitor in assessing whether the County owes arbitrage rebate. 7. Verification Agent The County will continue to retain a third-party verification agent for each of its advance refunding bond issues. The County may waive the requirement for a verification agent if no escrow securities are purchased and the escrow is gross funded. The verification agent will verify the arbitrage yield on the tax-exempt debt issuance, the arbitrage yield on the investments acquired as part of the refunding escrow established using gross proceeds of the debt issuance, and the sufficiency of the refunding escrow. 21