HomeMy WebLinkAboutBerens-Tate Consulting Group-Bond Services Agreement-04.14.2008 ap "}ss(%S/'"r-
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BERENS-TATE CONSULTING GROUP
SPECIALIZING IN PUBLIC SECTOR ACCOUNTING AND FINANCE
April 7,2008
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 for the period ending May
31, 2008:
• City of Waterloo
$8,825,000 General Obligation Bonds
Series 2003A
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) 391-7363
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 if any rebate is owed and paid at this time.
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, 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-$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 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
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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