HomeMy WebLinkAboutBerens-Tate Consulting Group-9/4/2012BERETS -TATE CONSULTING GROUP
SPECIALIZING IN TAX-EXEMPT BOND SERVICES
August 27, 2012
Michelle Weidner
City of Waterloo
715 Mulberry Street
Waterloo, IA 50703
Dear Ms. Weidner:
Thank you for the opportunity to provide arbitrage rebate services to City of Waterloo ("City"). This
letter outlines my understanding of the project.
SCOPE
We will perform an arbitrage rebate calculation for the following bonds:
City of Waterloo
$11,640,000 Sewer Revenue Refunding Bonds
Series 2004A
- through the 2011 redemption date
City of Waterloo
$19,620,000 General Obligation Bonds, Series 2007A
$3,675,000 General Obligation Refunding Bonds, Series 2007B
- through May 31, 2012, the five-year installment date
PROCEDURES
We will perform the following procedures:
• Review of bond documentation (official statement, arbitrage certificate, investment
information, IRS Form 8038, etc.).
• Determine the bond yield.
• Compute the rebate amount (based upon the net future value of the non -purpose investments or
the "cash flow method").
• Work closely with bond counsel to resolve any questions which may arise.
• Work with you to determine the appropriate investment strategy for each bond issue/account,
as well as the funding of and accounting for any rebate liability which might exist.
10050 REGENCY CIRCLE / SUITE 400 OMAHA, NEBRASKA 68114 • (402) 391-6188 • FAX (402) 391-9037
REPORTS
We will prepare the following reports:
• Summary report - describes procedures performed and the amount of any rebate owed.
• Arbitrage rebate report - includes details of all transactions, sources of information,
assumptions, as well as the calculation.
• IRS Form 8038-T - prepare the proper IRS Form if any rebate is owed and paid at this time.
CITY'S RESPONSIBILI1'IES
The City is responsible for providing the Consulting Group with the documentation necessary to
complete the calculation. This would include bond documentation (official statement, arbitrage
certificate, 8038, etc.), as well as expenditure and investment information (trust statements/activity
summary by fund, investment summary, disposition of bond proceeds, etc.). In determining the
rebate amount for the Bonds, we will rely on the information provided by you without independent
verification. We will retain copies of the records you have supplied us, along with our work papers
for your engagement. However, our work papers and files are not a substitute for the original
records of the client.
FEES
We estimate our fees for the project will be $2,500 for the 2004A Bonds and $3,500 for the
2007A&B Bonds plus actual out-of-pocket expenses (travel, delivery charges, etc.). This fee is
dependent on the availability, quality, and completeness of the records noted above and will be due
within 30 days of completion of the project. If unexpected problems arise which are beyond the
scope of our work and would affect our fee quote we would discuss these with you and obtain the
necessary authorization from you before performing any additional procedures.
We look forward to working with the City of Waterloo on this project and appreciate this
opportunity to serve you.
Sincerely,
BERENS-TATE CONSULTING GROUP
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Chris D. Berens
If you agree with the services outlined in this letter, please sign in the space provided below and
return a copy to me.
Accepted by:
Date:
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