December 2011
Inside The Advisor
Clients in the News
Recently we've had a few Ehlers clients who have made the news. Be sure to read up on what's going on in their community.

City as Concierge: A Case Study of Brooklyn Park

Eagan Project Would Offer Backup Links to Net

Target Applies for Building Permit, Begins Construction

Study: Chanhassen has highest quality of life in Twin Cities 
Upcoming Conferences
Here are some of the upcoming conferences Ehlers is attending or presenting.
  • Minnesota Association of County Officers (MACO) Winter Conference - January 9-13, 2012
  • Economic Development Association of Minnesota (EDAM) Winter Conference - January 19-20, 2012
  • Minnesota Clerks and Finance Officers Association (MCFOA) - March 20-22, 2012
Click here for more conference details.

 

The 12 Ways to Health Holiday Song 

Holiday AppleThe holidays are a time to celebrate, give thanks, and reflect. They are also a time to pay special attention to your health.   

  

Learn how to stay safe and healthy with this festive song, The 12 Ways to Health, courtesy of The Centers for Disease Control and Prevention.

 

For more holiday health and safety tips, click here.      

 

Ehlers Market Commentary

Are you up to date with current market trends? If not, be sure to check out the Ehlers Market Commentary, which is released every other week.   

 

Be sure to sign up to receive your email copy, or read past articles here.  

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Ehlers
3060 Centre Pointe Drive
Roseville, MN 55113

 

Phone: 651-697-8500
Season's Greetings!

 

As 2011 draws to a close, we're already looking ahead to 2012. In this issue of The Advisor, we explore a little know debt instrument called Qualified Conservation Energy Bonds. Some of clients have recently made the news with positive impacts to their communities, so we are highlighting them.  

 

We continue to keep you informed of the Dodd-Frank Wall Street Reform and Consumer Protection Act as the roll out progress. In this issue, we're sharing the background of the body of rules the Municipal Securities Rulemaking Board maintains to prevent fraud. These rules are to protect you and your communities, and they will impact the public finance industry. The rules will change parts of how we do business, but Ehlers' commitment to you and your community continues to serve in your best interest.  

 

So on behalf of the entire Ehlers team, we hope that you and your families enjoy the best that the season has to offer. We appreciate your relationship and interaction with Ehlers.   

 

Happy Holidays! 

   

Steve Apfelbacher 

Steve Apfelbacher

President and CEO

sapfelbacher@ehlers-inc.com

 

Qualified Energy Conservation Bonds

by  Bruce Kimmel, Senior Financial Advisor
 
Bruce KimmelAs part of the 2009 federal stimulus bill (ARRA), the State of Minnesota and 23 "large local governments" (12 counties and cities, and 11 tribal reservations) received a total of $54.2 million in authorization to issue Qualified Energy Conservation Bonds (QECB). 
 
QECBs may be issued for several purposes, the most common of which is to finance energy conservation improvements to publicly-owned buildings so long as those enhancements are expected to reduce energy consumption by at least 20%. 

Click here to continue reading.

IRS: Form 8038-G and Small Governmental Financing Exams

 

The Internal Revenue Service (IRS) has made changes to the IRS Form 8038-G. The 8038-G form is required to be filed with the IRS for every tax-exempt obligation issued by a state or local government.  It is usually prepared by the bond counsel with input from your financial advisor.

The 8083 contains three new line items in Part VI.
  • Line 43 asks if the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code of Regulations;
  • Line 44 asks if the issuer has established written procedures to monitor the requirements of section 148;
  • Line 45a ask if some portion of the proceeds was used to reimburse expenditures and the amount;
  • Line 45b asks to enter the date of when the official intent was adopted.

Ehlers can assist with crafting policies and procedures for the new changes to Form 8038-G.

 

Further, the IRS has announced it plans to conduct correspondent exams of small governmental financings of less than $15 million in fiscal year 2012.    

 

For more information, check out the IRS website at  

http://www.irs.gov/ or contact an Ehlers Financial Advisor.

Save the Date!

Ehlers 2012 Minnesota Municipalities Public Finance Seminar   

MN City 2012 Sem CalendarWe're starting to get ready for you to attend the Ehlers 2012 Minnesota Municipalities Public Finance Seminar!  

 

Be sure to block your calendars now to join us February 2-13, 2012 at the Earle Brown Heritage Center.

 


Expect to see more details in special emails sent to you, and visit our website for more information soon.  

 

MSRB Rulemaking Program

The Municipal Securities Rulemaking Board (MSRB) is monitored by the Securities and Exchange Commission (SEC). Both are federal agencies responsible for federal securities laws and regulating the securities industry.  The MSRB writes rules and operates market information systems for municipal securities dealers, banks, and municipal advisors, and regulates agents in the municipal market through an array of programs aimed at protecting issuers, investors, state and local government entities, and others whose credit stands behind municipal securities. These rules are to protect you and your communities, and they will impact the public finance industry.  

 

MSRB Rulemaking Program 

The Municipal Securities Rulemaking Board (MSRB) maintains a body of rules designed to prevent fraud and manipulation in the market, to promote the mechanisms of a free and open market, to promote just and equitable principles of trade and to serve various other specific purposes described in the Securities Exchange Act.

 

Timely and well-informed rulemaking and interpretive guidance responsive to changing market conditions are critical to the MSRB's mission to protect investors. The MSRB frequently publishes rule interpretations providing guidance on the application of MSRB rules in the context of typical situations that may occur in the market.

 

The Dodd-Frank Wall Street Reform and Consumer Protection Act granted the MSRB regulatory authority over municipal advisors. The MSRB is adopting a comprehensive set of rules for municipal advisors, click here.

 

General Rules   

The MSRB's General, or "G", rules create a number of specific responsibilities for dealers (a person or entity who buys and sells shares, securities, or other financial assets as a principal, rather than as a broker or agent) affecting municipal securities transactions. These include requirements to ensure that the material facts about a proposed transaction are disclosed to investors, to ensure that recommended transactions are suitable for investors, and to ensure that transaction prices are fair and reasonable.

 

Several rules address dealer behavior with respect to potential conflicts of interest that may arise in the underwriting, sales and trading of municipal securities. These include rules relating to political contributions made to officials of issuers of municipal securities, gifts or gratuities made to persons with which the dealer is engaging in business, and dealers acting as financial advisors to municipal securities issuers. Other MSRB rules specify disclosure and other responsibilities of dealers underwriting municipal securities.

 

The rules will change parts of how we do business, but Ehlers remains committed to serving you and your community's best interest.   

 

To read more about the MSRB rules, click here.
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