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2012-03 - Bond Record Keeping Policy

 Approval Date:  October 15, 2012

Effective Date:  October 15, 2012

Policy Statement

The City of St. Charles has issued and is expected to continue to issue bonds or other obligations, the interest on which is excludable from gross income for federal income tax purposes and the City may at some time in the future issue bonds or other obligations, other than Tax Exempt Obligations, that enable the issuer or holder to receive federal tax benefits (collectively referred to as “Obligations”).   Incidental to its issuance of these Obligations, the City has a contractual obligation to take all action necessary to comply with applicable federal tax rules and regulations relating to the Obligations and to preserve the excludability of interest on the Tax Exempt Obligations from gross income for federal income taxation purposes or qualify for other tax advantaged benefits applicable to the Obligations. Because of this contractual obligation, it is necessary and in the best interest of the City to maintain sufficient records to demonstrate compliance with Federal tax regulations as they pertain to the Obligations.

updated Mar 23, 2018