Question 1 The following features and analyses are included in BLXs - - PowerPoint PPT Presentation

BROWARD COUNTY EVALUATION COMMITTEE PRESENTATION

Erik Dingwall Managing Director edingwall@blxgroup.com (813) 872‐6840 RFP GEN2116179P1 Arbitrage Services Alan Bond Managing Director abond@blxgroup.com (212) 506‐5275

Question 1: What services are included and not included in the

provided pricing schedule? Also, if two reports are produced for a bond in a given year (i.e. interim report for fiscal year end and IRS computation date report), do you charge for both or does the one report fee cover all reports produced per year?

The following features and analyses are included in BLX’s annual report fee:

• 1. Commingled Funds Analyses
• 2. Transferred Proceeds Analyses
• 3. Variable Rate Yield Calculations including Qualified Hedges

and Qualified Guarantee Fees Analyses

• 4. Parity Reserve Analyses
• 5. Bona Fide Debt Service Fund Testing
• 6. Yield Restricted Amounts Analyses
• 7. Legal Opinion of Nationally Recognized Bond Counsel firm

Orrick, Herrington & Sutcliffe LLP

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The following features and analyses are included in BLX’s annual report fee (Continued):

• 8. Consultation of BLX personnel with Orrick tax counsel

regarding technical application of the governing Treasury Regulations

• 9. Access to the deep bench of BLX’s analytical and Orrick’s

legal resources

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Fees related to the reporting schedule:

• BLX will charge a single report fee for each issue during the

calendar year that includes computation dates covering:

– Scheduled Fiscal Year End computations (as of 9/30) – Installment Computation Dates related to each 5 year period (or according to the frequency dictated by any election made by the County) – The Final Redemption Date of the issue – Further, BLX will discuss the costs and benefits of continuing to report

• n issues wherein all of the gross proceeds have been fully expended.

Other firms continue to provide reports that we feel do not deliver value in line with the cost for such issues. We have worked with the County on a number of such cases and believe we have saved the County both time and money without sacrificing its compliance goals.

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Question 2: Describe the firm's educational efforts for County staff

through: a) Annual on‐site training and, b) Interim communication on relevant tax code and compliance requirements.

Annual On ‐ Site Training:

– BLX provides on‐site training for many of its clients, including for the County in 2015. – As it relates to this engagement, BLX will deliver an annual half‐day training session to personnel selected by the County. – BLX traditionally provides training related to:

• Post‐Issuance Compliance including Private Business Use
• Arbitrage including Rebate and Yield Restriction
• Continuing Municipal Disclosure

– BLX offers CPE for all training sessions – Customized Topics

• As a complement to, or a replacement for, the traditional topics listed

above, BLX will identify new topics for on‐site training.

• BLX will meet with County personnel in person and via teleconference to

elucidate the most relevant aspects of the governing Treasury Regulations as they relate directly to the County’s current debt profile and any prospective changes thereto.

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BLX Annual Post‐Issuance Compliance Workshop 2018

– Las Vegas, October 25 – 26 2018 – Tax reform and municipal bonds – Federal tax law and tax‐exempt bond requirements relating to Private Business Use – Private Business Use calculations – IRS safe harbor compliance for management contracts – IRS safe harbor compliance for sponsored research agreements – Using “floating equity” to mitigate Private Business Use – IRS Schedule K review – IRS audits of tax‐exempt bonds – enforcement update – Secondary market disclosure – Arbitrage rebate and yield restriction compliance

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Interim communication on relevant tax code and compliance requirements:

– BLX consultants interface regularly with Orrick Bond and Tax Counsel on new developments in Public Finance from both market and regulatory perspectives. BLX clients are receiving services that incorporate the most current information available. – NABL’s “Weekly Wrap” is circulated to all BLX managers. – Trends in the activities of the IRS related to tax‐exempt bonds, tax‐exempt issuers and tax‐exempt obligors are discussed during monthly manager calls. The results of such calls are implemented in BLX’s operations and communicated to BLX clients as necessary. – BLX has met at least annually with key County personnel to discuss technical aspects of the engagement, market trends, and trends in IRS activities. – BLX sends timely Tax Alerts via e‐mail when there are changes to the Regulations and when there are new Technical Memorandums or Revenue Procedures that are important to our clients and friends of the firm. These Tax Alerts are usually co‐authored by Orrick and BLX. The County has received these e‐mails in the past and will continue to receive them. – In short, the County will receive the most timely and current regulatory information available.

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Question 3: If selected, what will the implementation/transition

process look like? How will you get up to speed?

Engagement on‐ramp and implementation:

– BLX is in possession of the all required documents for bonds issued by the County through the end of 2016 (14 of 15 active rebate issues). Minimal exchange of documentation between the County and BLX will be required thereby. – BLX has established procedures that enable the County and BLX to efficiently exchange information, research and answer questions, and timely deliver the required reports for each fiscal or installment computation date. Minimal training of BLX as to the internal

• perations of the County related to executing the required services will be needed.

– BLX is familiar with the debt structures of the County’s active bond issues, saving the County time and commitment of resources. – BLX has already established cordial and professional relationships with key members of the County’s compliance team. – BLX maintains an online portal that enables the County to:

• Download PDF Reports
• View statistics related to issue
• View the scheduled prospective computation dates for each issue

– In short, the County will experience the most efficient on‐ramp experience in retaining BLX.

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