02-12-2014 Council Agenda - Laserfiche WebLink

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(c) The Finance Director shall ensure that all contracts let for projects financed with direct pay bonds shall comply with the federal Davis -Bacon prevailing wage rules. 6. Taxable Governmental Bonds. Most of the provisions of these policies and procedures are not applicable to governmental bonds the interest on which is includable in gross income for federal income tax purposes. However, if an issue of taxable governmental bonds is later refunded with the proceeds of an issue of tax - exempt governmental refunding bonds, then the uses of the proceeds of the taxable governmental bonds and the uses of the facilities financed with the proceeds of the taxable governmental bonds will be relevant to the tax - exempt status of the governmental refunding bonds. Therefore, if there is any reasonable possibility that an issue of taxable governmental honds may be refunded, in whole or in part, with the proceeds of an issue of tax - exempt governmental bonds then, for purposes of these policies and procedures, the Finance Director shall treat the issue of taxable governmental bonds as if such issue were an issue of tax - exempt governmental bonds and shall carry out and comply with the requirements of these policies and procedures with respect to such taxable governmental bonds. The Finance Director shall seek the advice of Bond Counsel as to whether there is any reasonable possibility of issuing tax- exempt governmental bonds to refund an issue of taxable governmental bonds. 7. Qualified 501(0(3) Bonds. If the City issues bonds to finance a facility to he owned by the City but which may be used, in whole or in substantial part, by a nongovernmental organization that is exempt from federal income taxation under Section 501(a) of the Code as a result of the application of Section 501(e)(3) of the Code (a "501(e)(3) Organization "), the City may elect to issue the bonds as 5943171v1 9 35