HomeMy WebLinkAboutBerens-Tate Consulting Group - 4.27.2006 BERENS-TATE -�° �'a�- 333
CONSULTING GROUP
SPECIALIZING IN PUBLIC SECTOR ACCOUNTING AND FINANCE
April 5, 2006
Ms. 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 through May 31, 2006:
$13,440,000 G.O. Bonds
Series 2001
PROCEDURES
We will perform the following procedures:
• Review of bond documentation (official statement, arbitrage certificate, investment
information, IRS Form 8038-G, 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 / sun-E 400 OMAHA, NEBRASKA 68114 • (402) 391-6188 • FAX (402) 391-7363
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 at the end of the fifth bond year, if any
rebate is owed.
CITY'S RESPONSIBILITIES
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-G, 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 $2,000 — 3,000 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. 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 continue working with the City of Waterloo on this project and appreciate this
opportunity to serve you.
Sincerely,
BERENS-TATE CONSULTING GROUP
,!Z U
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: ,4!-Q(