1998AGN JUN 02 I08 - Laserfiche WebLink

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ADMINISTRATIVE EXPENSE ACCOUNT The Administrative Expense Account was established to pay the expenses incurred in the administration and management of the bonds. Administrative expenses include fees for the fiscal agent, legal counsel, special tax consultant and that portion of City staff time spent on CFD administration. Special tax revenue is deposited in the Administrative Expense Account and the amount collected for debt service is transferred to the Bond Service Fund. The balance in the Administrative Expense Account on June 30,1997f was $148,119. Of this amount, $136,670 will be transferred to the Bond Payment Fund to pay debt service. ARBITRAGE REBATE The CFD may earn interest on the investment of money in the bond funds. However, the amount of interest that may be earned is limited by federal tax laws. The CFD may keep all interest earnings up to the amount of interest that is owed on the bonds. This amount is referred to as the Bond Yield. The Bond Yield on the CFD bonds is 7.622914%. Any interest earned in excess of the Bond Yield must be rebated to the United States Government. In order to determine if any arbitrage has been earned, the City is to prepare an arbitrage analysis from time to time. If excess. interest has been eamed, that amount is set aside in the Rebate Fund Arbitrage Rebate payments are made to the Internal Revenue Service every five years. The Arbitrage Rebate calculation prepared by Orrick, Herrington & Sutcliffe on March 24 1997, states that no arbitrage interest was earned on the bond funds through February 21, 1997. Colton CFD 99-2 Page 4 September 1997 Prepared by Scott Associates