Ordinance 1358-87 - Laserfiche WebLink

ORDINANCE NO . /351(-er 7 AN ORDINANCE establishing rules and procedures for compliance with arbitrage rebate requirements imposed by the Internal Revenue Code of 1986 with respect to certain tax-exempt obligations issued by the City of Everett , Washington, and establishing Fund No. 644 . THE CITY OF EVERETT DOES ORDAIN: Section 1. Background and Purpose . Section 148( f) of the Internal Revenue Code of 1986 imposes upon certain issuers of certain tax-exempt bonds requirements that certain excess arbitrage earnings ( and all income attributable to such excess earnings) derived from the investment of the gross proceeds of those tax-exempt bonds be calculated and paid to the United States on a periodic basis as a condition to preserving the tax-exemption for interest on the bonds . The City from time to time has issued or may issue tax-exempt bonds that are or may become subject to arbitrage rebate requirements and desires to preserve the tax-exemption for interest on those bonds. This ordinance is intended to establish certain rules and procedures for full and timely compliance with arbitrage rebate requirements under the Internal Revenue Code of 1986 and applicable regulations promulgated thereunder to the extent such requirements apply to bonds of the City.