Highlights
- S&P: Bank Loan Structures Risks Remain, But GASB 88 Is A Positive Step Toward Transparency In Financial Reporting.
- Muni Regulator to Seek Comment on ‘Pennying’ by Dealers.
- With Self-Driving Cars on Horizon, Cities Worry About Parking.
- Mutual Funds Stand to Gain as Muni Buyers Get First Look at Fees.
- Brokers Polish Resumes as New Muni-Bond Rules Threaten Business.
- The Muni-Market’s Terrible, Horrible, No Good, Very Bad Year.
- Hawkins Advisory: Rev. Proc. 2018-26: Supplemental Remedial Action Rules for Tax Advantaged Bonds.
- CDFA // BNY Mellon Webcast Series: Housing Finance 201: Partnerships & the Capital Stack.
- Intro EB-5 Finance WebCourse.
- Congregation v. Mayor and City Council of Baltimore – Court of Special Appeals holds that stormwater fee that city assessed on religious congregation’s properties was an excise tax rather than a property tax, user fee, or service charge, and thus congregation’s status as a religious organization did not exempt it from the fee.
- And finally, BCB’s newly-inaugurated Department of Puppies, Rainbows & Bestiality this week proudly brings you Ochoa v. County of Kern, in which a police officer was investigated for “annoying/molesting a child under the age of 18 years old.” Wait. What? Annoy and/or Molest? We highly, highly recommend that you immediately cease any/all contact with children if it is not immediately clear to you which of those is a delightful hobby and which a serious felony.
- Ed. Note: We will be off next Tuesday (4/1) (El Cap!) and will return with a double dose of drivel on Wednesday, May 8.
- NFMA Recommended Best Practices in Disclosure for Water and Sewer Bonds.
- EPA Taking WIFIA Loan Applications.
- Boston’s New Site Aimed at Municipal Bond Investors is Powered by Local Startup BondLink.
- SIFMA: Draft FAQs Regarding Rule G-42 and the Making of Recommendations.
- BDA Submits Comment Letter: MSRB Seeks Input on a Compliance Resource to Help Distinguish Advice and Recommendations (Rule G-42).
- Commentary: Muni Industry Best Served by Wider Acceptance of Group Net Syndication Rule.
- BOKF, NA v. Estes – District Court holds that bank – that had served as indenture trustee for a series of allegedly fraudulent conduit municipal bond offerings for the purchase and renovation of senior living facilities – was subject to FINRA arbitration in action brought by bondholders. See also, Compelling a Muni Indenture Trustee to Arbitrate Before FINRA: Kramer Levin
- Weiss v. People ex rel. Department of Transportation – Court of Appeal holds that procedure for pretrial resolution of issues affecting the determination of compensation in eminent domain cases does not apply to inverse condemnation actions.
- And finally, Other Than That, Mrs. Lincoln, How Was the Play? is brought to us this week by Hubacz v. Village of Waterbury, in which a cop happily copped to “cheating on a police exam, insurance fraud, taking uniforms from a prior employer, failure to report income on his tax returns, and impersonating a police officer for discounts and to intimidate high school classmates” but was unable to draw a causal link between these acts and his ongoing right to protect and serve. The court’s opinion failed to mention it, but we’re quite sure he received a warm and heartfelt send-off from said high school classmates.
- Compelling a Muni Indenture Trustee to Arbitrate Before FINRA: Kramer Levin
- S&P: Could Connecticut’s Proposed Bond Covenants Lead The Way To A New Financial Management Tool For Other U.S. States?
- What Does “Control” Mean in the Context of Affiliated 501(c)(3) Organizations?
- Tech Hasn’t Hurt Muni Ratings Yet.
- Tarrant Appraisal District v. Tarrant Regional Water District – Court of Appeal holds that regional water control and improvement district was entitled to tax exemption under statute exempting property owned by the state or a political subdivision and used for a public purpose from taxation, as long as its property was used for a public purpose, and had no obligation to prove that the property was devoted exclusively to use and benefit of the public; overruling Grand Prairie Hosp. Auth. v. Tarrant Appraisal Dist.
- Aca Financial Guaranty Corporation and UMB Bank, N.A. v. City of Buena Vista, Virginia -District Court holds that city was not under legally-enforceable contractual obligation to make payments to bank pursuant to loan arrangement; although city entered into lease agreement and forbearance agreement promising to repay loan, both agreements expressly made payments subject to appropriations by city council. Cautionary tale in which the insertion of the phrase “subject to appropriations” in loan documents rendered repayment obligations legally unenforceable “moral obligations”.
- And finally, Shephard v. Regional Board of School Trustees of De Kalb County this week brings us the story of a group of concerned parents who petitioned to detach their properties from the boundaries of one school district and annex them to another district following an incident in which carbon monoxide was leaked from an adjacent landfill, sending 63 students and staff to the hospital. The court ruled that the parents had failed to establish that any “significant direct educational benefits” would result from such a change. Then again, there would still seem to be a significant direct benefit of not being, like, you know, dead.
- Tax-Exempt Advance Refunding of Taxable Bonds (Including BABs)? A Report from the Tax and Securities Law Institute.
- SIFMA Comments on Amendments to MSRB Rule G-21 and New Rule G-40.
- Insights: Threat to State Tax Revenues, What’s Next for Advanced Refundings?
- Insolvent “On Behalf Of” Municipal Bond Issuers: Chapter 9, Chapter 11, or Ineligible?
- Yes, Special Revenue Bonds Remain Special: Mintz Levin
- Follow the Money: How to Track Federal Funding to Local Governments.
- S&P: When Analyzing Municipal Utility Credit Quality, Strong Management Is Often An Asset.
- And finally, Thanks For Nothing is brought to us this week by Kelly v. DiNapoli, in which police officer was ordered not to enter a home that had collapsed during Hurricane Sandy until a “technical response unit” could be dispatched. The cop – responding to the “blood-curdling” screams coming from the residence – ignored the order and fought his way into the building where he rescued a woman who had been impaled and pinned to the floor. In the process, he sustained devastating physical injuries. His reward? The denial of disability benefits because the incident hadn’t been an “accident” and the guy was just engaged in the ordinary course of his duties. Let that be a lesson to all you would-be heroes (a disproportionate number of which, of course, practice public finance law.)
- Further Fallout from the 2017 Tax Legislation – Beware of Reissuance of Bank-Held Tax-Exempt Obligations.
- What GFOA is Warning on Alternatives to Advance Refundings.
- GFOA: Potential Impacts of Tax Reform on Outstanding and Future Municipal Debt Issuance.
- Big Banks Got Huge Tax Cuts, Then Hiked Cities’ Interest Rates.
- When Public-Private Partnerships Fail: A Look at Southern Indiana’s I-69 Project.
- S&P: Diagnosing Distress In U.S. Local Governments.
- Fitch Report: Puerto Rico Ruling Muddies Special Revenue Debt Waters.
- Intro Tax Credit Finance WebCourse.
- City of Bowling Green, Kentucky v. Mills Family Realty, Inc. – In case brought by city for misappropriation of bond proceeds and TIF revenue, District Court denies city’s RICO claim, finding that city had failed to establish an investment injury arising from the defendants’ use or investment of the bond funds and TIF revenue into their own businesses that was distinct from any alleged injury the city suffered as a result of the predicate racketeering offenses of withdrawing those same funds; federal action dismissed for lack of subject matter jurisdiction.
- And finally, When Stereotypes Attack is brought to us this week by Brooks v. Powers, in which Westbrook’s Finest were questioned as to their whereabouts on the night in question. And thus we learned that: “When the defendants arrived for work, they punched in, got into a cruiser, and drove to a donut shop. After that, they drove to the marina to inspect the boat.” “…they did not need to get out of the cruiser to inspect the boat: ‘We would just look to make sure that the boat was still there…” “Once they completed their inspection, the officers drove to a convenience store. Powers stayed with the cruiser while Milardo went in to get some snacks.” Sleep well, good citizens of Westbrook. You’re clearly in good hands.
- Orrick: Tax Issues When Fixing Rate and Fee Adjusters in Tax-Exempt Loans.
- Impact on Muni Bonds of New Accounting Guidelines for Local Governments.
- New MSRB MuniEdPro® Course: Upcoming Mark-Up Disclosure Requirements and Determination of Prevailing Market Price.
- GASB Requests Public Input on Revenue and Expense Recognition.
- Fitch: Puerto Rico Ruling Could Have Wide-Ranging Impact on Municipal Debt.
- Criteria FAQ: S&P Global Ratings’ Approach To Rating U.S. Local Government Bonds Secured By Dedicated Limited Ad Valorem Tax Pledges.
- Credit FAQ: An Overview Of S&P Global Ratings’ Updated Methodology For Rating U.S. Solid Waste System Financings.
- Neighborly Issuer Brief: A Volatile Stock and Bond Market Makes for a Difficult Space for Munis and Issuers.
- Understanding Costs and Benefits: Leases
- Paul Cheatham IRA v. Huntington National Bank – Court of Appeals holds that contract claim for breach of trust indenture entered into between trustee for municipal bondholders and county as obligor, whether asserted against trustee or obligor, arose out of contract with bondholders and was thus a “right in the security” that automatically transferred to subsequent bond purchasers.
- Zeppelin v. Federal Highway Administration – District Court holds that it had power, under Administrative Procedure Act, to enjoin Colorado Department of Transportation (CDOT) from sending money to city and county to fund stormwater project, despite fact that CDOT was not federal agency, where CDOT actively consented to federal involvement in its operations and requested federal funds.
- And finally, Unclear on the Concept: Judicial Edition is brought to us the week by St. Bernard Port, Harbor & Terminal District v. Violet Dock Port, Inc., LLC, in which the Superior Court judge stated that it wasn’t his job to “split the baby,” and thus he had no choice but to (apparently randomly) opt for either the city’s $16M valuation or the landowner’s $35M valuation in eminent domain case. None of that pesky adjudicating for me, thanks. Just in case the Superior Court judge wasn’t feeling up to opting between literal and figurative, a bemused Supreme Court of Louisiana went ahead and remanded to the Court of Appeals to split that baby.
- The Tax Cuts and Jobs Act: The Impact on the Municipal Bond Market. *WEBINAR TOMORROW*
- MSRB Reminds Dealers of Existing Guidance on Filtering of Bids and Offers.
- Fitch Credit Outlook Teleconferences.
- S&P U.S. Public Finance Year In Review.
- U.S. Tax Reform: What Will The New Law Do To Municipal Credit Quality?
- The Tax Reform Roller Coaster Ends – Summary of Provisions Affecting Public Finance.
- And finally, Take That, Hippie! is brought to us this week by State ex rel. Town of Tiverton v. Pelletier, in which the Supreme Court of Rhode Island found itself grappling with the definitions of “manufacture” and “compost” in a case where a man was charged with – you guessed it – manufacturing compost. Dude’s argument was that no one can, like, manufacture compost because it’s, like, a natural process, man. He also noted that the statute in question didn’t define “compost” because it’s, like, beyond definition, man. The court suggested “controlled, biological decomposition of selected solid organic waste materials under aerobic conditions resulting in an innocuous final product.” Works for me. You good? Cool.
- Ed Note: UMB Bank, N.A. v. Landmark Towers Association, Inc. knocked us a bit sideways this week when the Supreme Court of Colorado held a very hard line in enforcing the 10-day deadline to challenge the formation of a special district and to contest the resulting bonds and property taxes in what appears to be a clearly fraudulent scheme. The case was remanded for consideration of issues not included in the opinion, so we do not yet know how consequential this will be. We’ll keep you posted and invite any/all of the fine firms involved in this case to weigh in.
- NFMA Releases Recommended Best Practices in Disclosure for Local General Obligation Debt Disclosure.
- NFMA Releases White Paper on General Obligation Bond Payment Protections: Statutory Liens and Related Disclosure.
- NFMA Releases Recommended Best Practices in Disclosure for Water and Sewer Bonds.
- NABL: The Bond Lawyer – Fall 2017 – In particular, “Federal Securities Law” by
Paul S. Maco of Bracewell LLP.
- MSRB to Amend Requirements for Obtaining CUSIP Numbers.
- Surge in Private Muni Issuance Leaves Disclosure Black Hole.
- When Climate Change Becomes a Credit Problem.
- Final Tax Reform Legislation Saves PABs and Stadium Bonds, Kills Advance Refundings and Tax Credit Bonds.
- UMB Bank, N.A. v. Landmark Towers Association, Inc. – Supreme Court of Colorado holds that challenge by homeowners’ association – which represented condominium owners whose properties were included in special district – to district’s creation was a challenge to the means by which results of the election creating the district were obtained, rather than a challenge to the substance of a ballot issue, and thus ten-day period specified in statute on filing a statement of intent to contest an election applied to association’s challenge, where association’s contentions were that illegal voters participated in the election and that eligible electors did not receive notice of the election.
- And finally, No Equitable Tolling For You! is brought to us this week by the aforementioned UMB Bank, N.A. v. Landmark Towers Association, Inc., in which a newly-created special district held an election to issue $35 million in bonds. To create “voters,” the proposed development created a 10-foot by 10-foot “director’s parcel” and issued purchase options to six people. Voila. Voters. Of course the whole scheme eventually ends in tears. It strikes us that a fitting punishment would be to require these six folks to serve their sentences together in a 10′ x 10′ condo. We’ll let you decide if they should be joined by the rotting corpse of the developer who (R.I.P.) killed himself.
- Ed. Note: It’s been a rather quiet week (enjoy it while it lasts), so we’re taking this opportunity to let you know that we’ll henceforth be publishing Neighborly Insights, which is written by George Friedlander of the Court Street Group. The first issue is here. We won’t be including it in the Highlights, as it is geared more toward the market side, rather than the legal, but it’s otherwise an extraordinary resource. That is all.
- Alternatives to Tax-Exempt Advance Refundings Would Cost Issuers.
- Have They Got a Bond for You.
- Fitch Focuses on Rental Car Facilities in Revised Airport Criteria.
- SLGS Will Soon be Unavailable for Subscription: Squire Patton Boggs
- San Diegans for Open Government v. Public Facilities Financing Authority of the City of San Diego – Court of Appeal holds that nonprofit taxpayer organization’s alleged interest – on behalf of taxpayer who was resident of city – would be sufficient to maintain an action for judgment restraining and preventing any illegal expenditure of city funds or action for reverse validation, and thus organization had standing under narrower provisions of conflict-of-interest statute to challenge validity of municipal ordinance authorizing issuance of bonds to refund and refinance remaining amount owed by city for construction of professional baseball stadium based on alleged financial interest in the sale of bonds by a member of the financing team that participated in preparation of the bonds.
- And finally, You Keep Using That Word. I Do Not Think It Means What You Think It Means is brought to us this week by Oregon State University v. Superior Court, in which the court repeatedly refers to the plaintiff’s “alleged injuries.” When the crane you are operating collapses as you are loading a shipping container, resulting in severe internal injuries and the amputation of your foot, I think it’s safe go ahead and dispense with the “alleged.”
- Ed. Note: The proposed tax plan and its potential implications for the muni market have, predictably, resulted in an outpouring of lamentations, jeremiads, and all-purpose exhortations. We are dutifully posting each and every one of these for archival porpoises and you’re welcome to them. However, we will reserve Highlights item status for concise status summaries and final legislative enactments. Please be kind, as this is our first attempt at actually providing a useful service and we have grave doubts regarding our aptitude for that sort of thing.
- Senate Bill Saves, Enhances PABs, but Eliminates Advance Refundings.
- MSRB Files Amendment to Proposal on Obtaining CUSIP Numbers. and Hold-to-Maturity CUSIP Exemption Tweaked in New Filing.
- Markup Rule Deadline May Be Hard To Meet.
- NFMA Comment Letter on MSRB Regulatory Notice 2017-19.
- Public-Private Development: Aligning Interests Through a Ground Lease.
- Bondholders Fret as Alchemy Turns Chicago’s Junk to Gold.
- S&P Request for Comment: Priority-Lien Tax Revenue Debt. and Live S&P Webcast: Request For Comment: Priority Lien Tax Revenue Debt.
- Columbus Board of Tax Assessors v. Medical Center Hospital Authority – Supreme Court of Georgia holds that the fact that bonds used to finance construction on property were validated as having a public purpose did not conclusively render hospital authority’s leasehold interest in a continuing care retirement facility public property exempt from ad valorem taxation.
- And finally, we learned this week – via Appeal of Krenik – that collector vehicles in Minnesota must be “screened from ordinary public view by means of a fence, shrubbery, rapidly growing trees or other appropriate means.” Wait, what? Just how rapid we talking here? Rapid as a fence? Kill you in your sleep rapid? Not since middle-school sex ed have we been so thoroughly terrified and intrigued.
- U.S. SEC Close to Forming Group to Scrutinize the Bond Market.
- MSRB Holds Quarterly Board Meeting October 2017
- 1001 Ogden Avenue Partners v. Henry – Appeals court holds that improving, maintaining, equipping, altering, and repairing school buildings qualify as “corporate purposes” for which boards of education may issue working-cash-fund bonds without direct referendum.
- Robert W. Baird & Co. Incorporated v. Whitten – In Underwriters’ legal malpractice action against Bond Counsel resulting from suit brought against Underwriters by Bondholders, Court of Appeals holds that Bond Counsel was entitled to Bond Litigation Counsel’s billing records in connection with Bond Counsel’s affirmative defense, but that the privilege had not been waived as to other communication between Underwriters and their Bond Litigation Counsel.
- And finally, Come on Lady, Give Me a Break, is brought to us this week by Savinon v. New York City Transit Authority, in which a city bus driver neglected to open the rear door of his bus, possibly because he was FENDING OFF A BRUTAL ASSAULT. His courageous efforts were rewarded by a false imprisonment lawsuit by a woman who claimed to have suffered a panic attack. False imprisonment? Panic attack? I’ll see your panic attack and raise you an actual violent physical attack. That gonna work for you?
- MSRB Mark-Up Disclosure Implementation Forum: Webcast
- NFMA Summary: GASB 87, New Governmental Lease Accounting Standards.
- BDA’s 2016-17 Federal Regulatory and Legislative Priorities and Accomplishments.
- Why Governmental Accounting and Financial Reporting Is – and Should Be – Different: GASB White Paper
- MSRB Provides Continuing Education Planning Tool for Municipal Advisors.
- MSRB Releases New MuniEdPro® Courses on Best Execution and Gift-Giving.
- IRS Tax Exempt & Government Entities FY 2018 Work Plan.
- “TEFRA is a Four-Letter Word”
- Wittemyer v. City of Portland – Supreme Court of Oregon holds that city “arts tax,” imposing $35 tax on each resident of city who was at least 18 years old, had income of $1,000 or more per year, and did not reside in household that was at or below federal poverty guidelines, took income and household resources into account, and thus was not unconstitutional “poll or head tax,” though income was not taken into account in determining amount of tax.
- And finally, What Could Possibly Go Wrong? Ingrate Edition, is brought to us this week by Lycourt-Donovan v. Columbia Gas of Ohio, Inc., in which gas company learned of naturally-occurring concentrations of natural gas forming in neighborhood basements and – by all accounts – did an exemplary job of detection, prevention, remediation, communication, etc. And still they were sued by the ingrate homeowners for doing what certainly must be Plan A in any such scenario – TURNING OFF THE BLEEPIN’ GAS! Somewhere (probably in Ohio), Columbia Gas of Ohio executives sleep – vengeful visions of fireballs dancing in their heads.
- MSRB Identifies Compliance Considerations for Municipal Securities Dealers.
- The Bond Lawyer: Summer 2017
- S&P: Cyberattacks Pose A Real, If Varying, Credit Risk Across U.S. Public Finance Sectors. Ed. Note: This may serve as a handy guide for new & improved risk factors and disclosures.
- As Flood Risks Intensify, Stormwater Utilities Offer a More Resilient Solution.
- Someone Left the Crayons Out, and Now the Tax Lawyers Are Drawing Pictures.
- California Cannabis Coalition v. City of Upland – Supreme Court of California holds that requirement – under constitutional provision limiting ability of local governments to impose, extend, or increase any general tax – that a general tax be submitted to the voters at a general election does not apply to taxes that are imposed by initiative after securing the electorate’s approval in a manner consistent with statute setting forth local government’s duty with respect to voter initiatives whose proponents request a special election.
- And finally, Please Remind Me Again Why We Aren’t Paid Hourly is brought to us this week by Corrigan v. Illuminating Company, in which one can positively feel the waves of resigned disgust wafting off the Facts and Procedural Background section of the Supreme Court of Ohio’s opinion, which begins, “For over ten years, the parties have litigated the fate of this tree.” May visions of chainsaws dance through your heads.
- NFMA Comment: GASB Proposed Statement No. 3-30, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements.
- MSRB Solicits Input on Retrospective Review of Primary Offering Practices.
- Commentary: Key Takeaways from the SEC’s Post-MCDC, Beaumont Cease and Desist Order.
- MSRB Issues Advisory on Selective Disclosure of Material Information: Day Pitney
- An Overview Of S&P Global Ratings’ Proposed Methodology For Special Assessment Debt + S&P Request for Comment: Special Assessment Debt + S&P Live Webcast: Request for Comment (RFC): Special Assessment Debt.
- Force Majeure and Similar Considerations for the Energy Industry in the Aftermath of Hurricane Harvey: Mayer Brown
- Exposing Government Favoritism.
- Florida Judge Refuses to Validate Poinciana CDD Bonds.
- SEC, MSRB, FINRA to Hold Compliance Outreach Program for Municipal Advisors.
- MSRB Begins Daily Release of Previously Unavailable Municipal Market Statistics: Webinar (Short notice! – 9/21)
- Tax Reform: What Does it Mean for Main Street, Wall Street and K Street? (Short notice! 9/21)
- And finally, For This I Went To Law School? is brought to us this week by Hatfield v. Board of Supervisors of Madison County, in which THE SUPREME COURT OF MISSISSIPPI wonders just how it came to be that the issue of Arlin George Hatfield, III’s right to raise “60 chickens, guineafowl, and ducks” on his property fell into their august, berobed laps. Regardless, we condemn in the strongest terms the Court’s tepid embrace of the myriad, cringeworthy punning opportunities here presented. One winking nod to “afoul?” Really? Shame. Shame.
- U.S. Municipal Credit Report, Second Quarter 2017
- Deloitte White Paper on the DOL Fiduciary Rule.
- BDA to Submit Comment Letter: DOL Fiduciary Rule.
- Why Cities Should Stop Fighting Big Banks and Create Their Own.
- BDA Submits Comment Letter: Urges the Secretary of the Treasury to Withdraw the Proposed IRS Political Subdivision Rule.
- Show Me the Money: Financing Public Facilities in the Age of Scarcity.
- P3 Infrastructure Delivery: Principles for State Legislatures.
- United States ex rel. Fields v. Bi-State Development Agency of the Missouri-Illinois Metropolitan District – Court of Appeal holds that bi-state agency that operated public transportation services in Missouri and Illinois was not an arm of the compacting states and instead was comparable to a local governmental entity, and thus, agency was not entitled to Eleventh Amendment immunity from suit in federal court.
- And finally, Loophole of the Week is brought to us this particular week by Campbell v. United States, in which Mr. Campbell walked free when the court determined that the “grassy median” between two actual parking lots did not constitute a “parking area” for the purposes of the statute prohibiting a motorist from being drunk off his/her ass in a “parking area.” Mr. Campbell was described as, “reclined in the driver’s seat, semiconscious or unconscious, and a half-empty bottle of Absolut vodka in the vehicle’s center console.” Or, as we refer to it here at the BCB offices, a “Tuesday afternoon.”
- MSRB Modernizes Customer Account Transfer Rule.
- GFOA Releases Research Report on Fiscal Sustainability.
- “The Fixed Income Dealer Evolution” An Overview of the Competitive Landscape for Regional Dealers.
- New EPA Tool Helps Communities Access More Than $10 Billion in Water Infrastructure Financing.
- Rising Costs, Declining Revenues Forcing Smaller Firms to Exit Municipal Finance Business, MUFG’s Head of Public Finance Says.
- UBS On Its Own For Debt Bonds Defense, Insurers Say.
- Oh Great; More Issue Price Talk.
- CDFA – Frost Brown Todd Infrastructure Finance Webcast Series.
- Milewski v. Town of Dover – Supreme Court of Wisconsin holds that statutory scheme governing process for challenging tax assessor’s property valuation, which scheme conditioned property owners’ right to contest tax assessor’s valuation of their real property as excessive on their granting of assessor’s request to view property, was unconstitutional as applied to property owners who exercised their Fourth Amendment right to deny assessor’s request to inspect home’s interior, and who were thereafter denied their Fourteenth Amendment due process right to contest their increased tax burden.
- And finally, Scam Alert: Golf Pro Edition is brought to us this week by Craw v. City of Lincoln, an employment dispute in which the court repeatedly referred to the plaintiff’s occupation as a “purported” golf pro at a city course. It had previously been our understanding that this term, in this context, would be more applicable to, say, a Nigerian Prince (or BCB Editor!) than to what is presumably a verifiable occupational position. Then again, perhaps golf pros have become craftier than we could ever have imagined, turning to the dark arts in pursuit of muni course glory. Let’s certainly hope not.
- Improving Financial Disclosure by State and Local Government Borrowers.
- BDA Submits Comment Letter: Proposed Limited Safe Harbor from FINRA Debt Research Rules for Desk Commentary.
- New MSRB Fee to be Assessed on Underwriters to 529 College Savings Plans.
- INFRA Grant Program Encourages Use of P3s.
- Fitch: Illinois Legislation Gives Chicago New Financing Tool.
- MSRB Webinar: What to Expect from Your Municipal Advisor.
- Assured Guaranty Corporation v. Madison County, Mississippi – In action by bond guarantor against county, Court of Appeals holds that plain language of Contribution Agreement entered into between county and special-purpose district conditioned county’s obligation to advance bond payments on district’s continued performance of its obligation to reimburse county for any such payments within a period of two years.
- Tennessee Republican Party v. Securities and Exchange Commission – Court of Appeals upholds SEC rule limiting campaign activities of persons who advise city and state governments on issuing municipal securities.
- And finally, we ran across this little event and thought to ourselves, “Hey, maybe our fine readers would like to spend a week in Cambridge (so lovely in January) attending a week-long public finance seminar at the Kennedy School of Government. Fun for the entire family!” All for the low, low price of WHAT?! Should I ever elect to shell out $8,500 for a week’s festivities, I’ll be expecting the, uh, perks that JFK himself would have required and which cannot be further enumerated in a family publication such as this. Happy Birthday, Mr. President indeed.
- Ed. Note: Hey, folks. As very little went down this week, please feel free to submit a request for a 1/50 pro rata refund of your subscription price. Send enquires to AirborneSwine@bondcasebriefs.com
- SIFMA Submits Comments to the SEC on Proposed Rule Change to Amend MSRB Rule G-26, on Customer Account Transfers.
- Groups Ask MSRB to Broaden CUSIP Exception for Private Placements.
- Unlocking Value from Public Assets: Leveraging Private-Sector Expertise to Generate New Public Benefits.
- Goldman Leaps Into Ranks of Top Muni Underwriters With Big Sales.
- NABL: Political Subdivision Regs on List of Burdensome Regs.
- Valley Forge Towers Apartments N, LP v. Upper Merion Area School District – Supreme Court of Pennsylvania holds that Uniformity Clause did not permit school district to selectively appeal only assessments of commercial properties, such as apartment complexes, while choosing not to appeal assessments of other types of property, such as single-family residential homes.
- People v. Superior Court – Supreme Court of California holds that an independent contractor can be a public officer or employee prohibited from having a financial interest in a contract made in his official capacity, disapproving People v. Christiansen.
- And finally, Not Exactly the Casino Royale is brought to us this week by McAnally v. Thompson, in which whistleblowing town police captain contacted the FBI to request its assistance in investigating possible municipal malfeasance. The site of their clandestine rendezvous? “In the parking lot behind the Dairy Queen in Wasilla.” Captain MacAnally, I knew Bond, James Bond. Bond, James Bond was a friend of mine. You sir, are no….
- As the Countdown to the New Issue Price Regulations Continues, Let the Document Negotiations Begin!
- Outline For Discussion Of New Issue Price Rules.
- Black & Veatch: 2017 Water Industry Report.
- CDFA Water Finance Resource Center.
- A Comprehensive Look At S&P Global Ratings’ U.S. Public Finance Water And Wastewater Ratings.
- KBRA Rating Letters for Insured Bonds.
- S&P Request for Comment: Limited-Tax General Operating Debt.
- S&P Request for Comment: Issue Credit Ratings Linked To U.S. Public Finance Obligors’ Creditworthiness.
- Couple of interesting tax cases: DirecTV, Inc. v. Town of New Hampton and Upper Moreland Township v. 7 Eleven, Inc.
- Vermillion State Bank v. State by Department of Transportation – Court of Appeal holds – as a matter of first impression – that a landowner is the only person that may petition for attorney fees and costs under statute providing for such awards to landowners in inverse condemnation actions, and an attorney has no right to seek fees and costs under the statute independently of the landowner.
- And finally, The Grinch that Stole Grinchiness is brought to us this week by Carr v. Town of New London, in which the Town went to the mats to contest homeowners’ request for a tax abatement. The petty reason for the homeowners’ whining about their tax bill, against which the Town made such a valiant stand? The home in question HAD BURNED TO THE GROUND. Which, come to think of it, is probably some kind of code violation. Look into that, Town of New London.
- Fitch: Pension Impact Adjusted in U.S. Public Finance Criteria.
- Special Assessment Techniques for Transformative Community Improvements.
- MSRB Seeks Additional Comment on Requirements for Obtaining CUSIP Numbers.
- MSRB Adds Exception in Revised Proposal Requiring CUSIPs for Private Placements.
- BDA Submits Comments to Department of the Treasury and the Internal Revenue Service on Recommendations for the 2017-2018 Priority Guidance Plan.
- Federal Infrastructure Tax Credit Legislation Makes Key Changes from 2015 Proposal.
- The Tavern, LLC v. Town of Alpine – Supreme Court of Wyoming holds that campground owners sufficiently alleged that, in constructing and financing (loans, rather than bonds) new sewer system, town exceeded its constitutional and statutory authority, as required to state a claim for injunctive relief.
- Better Government Association v. Illinois High School Association – Supreme Court of Illinois holds – as a matter of first impression – that voluntary association of public and private high schools was not “subsidiary body” of governmental unit under Freedom of Information Act (FOIA), and thus was not subject to FOIA’s disclosure requirement.
- And finally, Can Someone Please, Please Explain This? is brought to us this week by Ada County Highway District v. Brooke View, Inc.,, a seemingly garden-variety eminent domain case. Highway District offers subdivision $7,738.47 as just compensation for a 1,425 square foot section of property to complete a sidewalk and drainage project. Subdivision declines. Highway District condemns, subdivision sues over valuation. Court awards $148,390.21, plus prejudgment interest and attorney fees. So far, so good. But, but, but (insert spluttering noises of your choosing). Prejudgment interest = $48,792.66. Non-discretionary costs = $44,051.46. Discretionary costs = $365,703.63. Attorney’s fees = $744,243.56! So the county is rung up to the tune of $1.35 million for utilizing 1,425 sq. ft. of land for a public works project? How is this possible? Is this normal? Can I assume that this is how it’s done in China? Why haven’t they come for us with pitchforks and torches?
- When Should an Issuer of Tax-Advantaged Bonds Use the Hold-the-Offering-Price Method to Establish the Issue Price of the Bonds?
- MSRB Webinar: Municipal Advisor Solicitor Guidance.
- SEC and MSRB to Hold Webinar on Series 50 Exam for Municipal Advisors.
- MSRB Files Amendments to Modernize Customer Account Transfers.
- S&P Global Ratings Announces New Green Evaluation Service.
- Local Governments’ Hidden Reason to Oppose Tax Cuts: Bank Loans.
- Rising Seas May Wipe Out These Jersey Towns, but They’re Still Rated AAA.
- S&P: The Top 10 Management Characteristics of Highly Rated State and Local Borrowers.
- Successful Investing in Charter Schools Part III: Market Advancements
- And finally, the Supreme Court of Colorado this week took up the issue of whether “Blunt Wraps” qualify as “tobacco products” for tax purposes in Colorado Department of Revenue v. Creager Mercantile Co., Inc. The court helpfully informed us that, “Like traditional rolling papers, Blunt Wraps are designed to be filled with tobacco, marijuana, or other smoking material and smoked.” And then this bombshell: “See generally Redman, How to Roll A Blunt, on Whut? Thee Album (Columbia Records 1992).” Wait, the Blue Book now covers the proper citing of rap artists? Mad props to the clerks who snuck this into a Supreme Court opinion. But what on earth were the Justices smoking? Oh. Never mind.
- SIFMA Finalizes Muni Issue Price Model Documents.
- MSRB Holds Quarterly Board Meeting.
- GASB Implementation Guidance Update No. 2017-1
- IRS Teeing Up More Flexible Rules for Public Approval of PABs.
- Munis Could Be Hurt by Plan to Slash Corporate Tax Rates.
- Demys’TIF’ying Tax Incentives.
- IRS Publication 5271, Complying with Arbitrage Requirements: A Guide for Issuers of Tax-Exempt Bonds.
- S&P 2017 U.S. Public Finance Credit Forum.
- BLX Post-Issuance Compliance Workshop.
- KBRA NE Municipal Finance Summit.
- Long v. City of Helen – Supreme Court of Georgia holds that fact that city’s attorney fees and litigation expenses were principally borne by city’s insurer did not preclude city from recovering fees and expenses.
- City and County of Denver v. Expedia, Inc. – Supreme Court of Colorado holds that online travel companies were “vendors” with responsibility to collect lodger’s tax and remit it to city, and that companies’ markup for selling reservations to lodgers, which companies retained, was subject to tax.
- And finally, Adventures in Assessments is brought to us this week by City of North Little Rock v. Pfeifer, in which “The City’s attorney appeared before the Board, explained the uses of its properties within the proposed district, and requested a reassessment. The Board then raised the assessed value of the City’s larger parcel from $530 to $82,850 and lowered the assessment of its smaller parcel from $8200 to $8196.” While first revaluation is genuinely stunning, the second is just plain gobsmacking. (I’d love to tell you that I did a violent double take when I saw the numbers, but it took me a minute or so to do the math.) What conceivable factor(s) could possibly result in a $4 reduction? Once again, we welcome your conjectures.
- Think Trump Tax Cuts Spell Doom for Municipal Bonds? Think Again.
- Owners of These Muni Bonds May Reap Windfall From Trump Tax Plan.
- States to Battle White House for Tax Deduction, Muni Exemption.
- Trump’s Tax Plan And Munis.
- The Yield Curve – What It Is and Why It Matters: Squire Patton Boggs
- Following the Money 2017: Special Districts
- Estermann v. Bose – Supreme Court of Nebraska holds that joint water management entity created by four natural resource districts pursuant to Interlocal Cooperation Act (ICA) was authorized to exercise the power of eminent domain.
- Magnolia 8 Properties, LLC v. City of Maple Plain – Court of Appeal holds, as a matter of first impression, that discretionary-acts exception to municipal liability is absolute and shields a municipality’s planning-level decisions from strict-liability claims.
- And finally, Surreptitious Plumbing, LLC is brought to us this week by Godfrey v. Upland Borough, in which homeowners accused their borough of “surreptitiously” installing storm and sewage-water systems on their property and subsequently engaging in a years-long, elaborate, cover-up in which the raw sewage in their basement was attributed to a crack in their own sewer line, a malicious prosecution for the failure to fix that line, destruction of evidence, etc. etc. Jeez, paranoid much? Wait. What? That’s a thing that actually occurred? Our sincerest apologies to the sewage-spackled Godfreys.
- NFMA Issues Comment on GASB Project No. 3-251, Financial Reporting Model Improvements – Governmental Funds.
- USAFacts: This Goes Way Beyond Open Data.
- MSRB to Mull MA Impact Analysis, Critical Comments at Meeting.
- Funding of Infrastructure: Framing the Issues.
- S&P: U.S. State And Local Governments Wait For The Economic Boost To Kick In.
- Bankable Construction Contracts In P3 Projects: Dentons
- Is the Pendulum of Bond Pricing Beginning to Swing Back Toward Discount Bonds? If So, We Need to Be Prepared for the Resulting Bond Yield Calculations.
- NCPPP Announces Spring, Summer P3Bootcamps.
- Heartland Apartment Association, Inc. v. City of Mission – Supreme Court of Kansas holds that city’s transportation “user fee,” which was assessed on developed real property based on a formula that attempted to estimate the number of vehicle trips a particular property generated, was a prohibited excise tax, rather than a fee.
- And finally, we learned this week that “Dentons is the world’s first polycentric global law firm.” Uh, congratulations? Perhaps fewer Wiccans in the marketing department? What can this possibly mean? The belief in multiple law firms that animate the universe? We welcome your conjectures.
- GASB Issues Omnibus Statement Addressing a Broad Range of Practice Issues.
- SEC Proposes Expansive New Continuing Disclosure Requirements Regarding Private Debt and Other Financial Obligations.
- SEC Seeks Comment on Proposed Amendments to Municipal Securities Disclosure Rule.
- Cambridge, Mass., Community-Sourced Minibonds Could Spark Market Trend.
- Changes in the Audit Process for Tax Advantaged Bonds Related to IRS Division Reorganization.
- Report from TSLI – What Can We Expect in the Near Term from the IRS?
- William Beaumont Hospital System v. Morgan Stanley & Co., LLC – Court of Appeals holds that allegations by nonprofit hospital system that broker-dealers withheld information about structure of auction-rate securities (ARS) market and their support-bidding practices, that they misrepresented availability of fixed-rate versus formulaic-rate structures, and that they failed to warn hospital system about deteriorating ARS market did not satisfy heightened fraud and mistake pleading standard.
- And finally, Great Moments in Judicial Overreach is brought to us this week by Den Hartog v. City of Waterloo, which contains this stupefying zinger, “The exact extent to which we may go in deciding questions of fact from the record is vaguely defined; it lies in a shadow land, a ‘twilight zone,’ whose boundaries do not admit of definite charting.” We’ll give you a moment to let that sink in.
- SEC to Propose Issuer Disclosures on Bank Loans, Private Placements.
- SEC Proposes Rule Amendments to Improve Municipal Securities Disclosures.
- MSRB Draft Rules Would Clarify CUSIPs Needed for Private Placements.
- The Coming Transparency Wave: GASB 77
- Hawkins Advisory: Municipal Market Regulatory Update.
- IRS Publishes Population Figures for Housing Credit, Private Bonds.
- NFMA Municipal Analysts Bulletin.
- MSRB 2016 Fact Book.
- And finally, Great Moments in Misguided Linguistic (Pubic) Hair-Splitting, is brought to us this week by Board of Liquor License Commissioners for Baltimore City v. Kougl, in which Detective Fletcher Jackson of the Baltimore City Police Department’s Special Enforcement Section, Vice Division, took it upon himself to conduct an undercover investigation at Club Harem, an adult entertainment establishment. During his investigation, one of the Club’s employees, Jamaica Brickhouse, approached Detective Jackson and engaged him in conversation. “After introducing herself, Brickhouse exposed her breasts to Detective Jackson and invited him to touch them. He complied.” While we appreciate your dutiful compliance, Detective, is it not the case that one complies with a directive and accepts an invitation? It remains a distinct possibility that Detective Jackson’s busy – yet rewarding – work schedule will prevent him from delving further into this distinction.
- Forecasting the Bond Market in 2017: CDFA // BNY Mellon Development Finance Webcast
- Student Housing: Comparing Options for Tax Exempt Financing – Orrick
- GOP Expected to Take Aim at Local Tax Deductions.
- Slowing of Muni Tax Regs Seen in 2017, But Three Projects Watched.
- GFOA and Issuer Groups’ Message to Congress: Munis Build Infrastructure.
- New York Federal Reserve Staff Report on Regulation and Bond Market Liquidity.
- Tutor Perini Corporation v. Banc of America Securities LLC – Court of Appeals holds that genuine issues of material fact remained as to whether broker-dealer acted unfairly or deceptively by making material omissions regarding nonviability of auction rate securities market during time that broker-dealer was specifically recommending and selling student loan auction rate securities to investor while market teetered on brink of collapse, thus precluding summary judgment on investor’s state securities law claims against broker-dealer. Beautifully-written opinion, if you got the time.
- And finally, Great Moments in Deadpan Understatement is brought to us this week by Torres v. Faxton St. Lukes Healthcare, in which police were summoned to a home where a violently psychotic Paul Bumbolo was accosting his uncle on the front porch of the family home. Paul had just killed the family dog, because it was “the devil.” After taking this all in, including the fact that Paul couldn’t remember his own name and referred to himself as, “the god of war”, the police reached the conclusion that his behavior was, “abnormal.” The police report also states that the aunt found her nephew’s behavior, “unusual.” This became important after Paul was summarily released from the hospital, only to return home and slaughter the entire family. Which we conclude was “unfortunate”.
- In American Towns, Private Profits From Public Works.
- 5 Hot Topics Hitting Public Finance in 2017.
- Muni Investors: Beware Of The De Minimis Tax Rule.
- NASACT Webinar: Getting Ready for Infrastructure Change.
- Matter of Application of The Oklahoma Turnpike Authority – Supreme Court of Oklahoma holds that bonds requested by Oklahoma Turnpike Authority to finance four turnpike construction projects all related to the construction and/or improvement of turnpikes, and therefore, statute providing funding for the four projects under one bond issue did not violate single subject rule contained in the state constitution.
- And finally, Worth a Try! is brought to us this week by Western Petroleum, LLC v. Williams County Board of Commissioners, in which an oil company set up a trailer park for its itinerant workforce (your editor gets a special tingly feeling each time he hears the term, “man camp”) and was subsequently fined for a violation of the county temporary housing regs. The applicable fine is $1k/day, but the county assessed a $1k/day per (purported) violation fine. Given the number of days, and the number of trailers, Western Petroleum’s tab came to $29,635,000. We did a little digging and learned that the entire 2017 annual operating budget for Williams County is $22.7 million. The ND Supreme Court wasn’t buying it, but ya’ gotta dream. Ya’ gotta dream.
- NABL Teleconference on Final Issue Price Regulations.
- The New Issue Price Regulations – “Bought Deals,” Bored Bidders, and Other Problems.
- Early Views On The US Energy And Infrastructure Sectors Under A Trump Administration: Sherman & Sterling
- KKR Seeks Buyer for Water Ventures, Testing Appetite for Trump-Style Infrastructure Deals.
- In re Transient Occupancy Tax Cases – Supreme Court of California holds that transient occupancy tax was not payable on amounts retained by travel companies above the amounts remitted to hotels as the agreed wholesale costs of room rentals plus the hotel-determined markup.
- Fernandez v. UBS AG – District Court holds that investors in Puerto Rico tax-free closed-end mutual funds had Article III standing to assert breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and breach of contract claims against broker-dealers, investment advisors, and fund administrator on behalf of putative class of investors; detailed analysis of applicable statutes of limitation.
- And finally, Our Work Here Is Done is brought to us this week by Trimble v. City of Albany, in which firefighters hosed down a minor house fire, struck heroic poses, and instructed the family to pack up a few things and spend the night with relatives. And so they did. The minor glitch in the plan smoldered in a window well as they slept, eventually erupting into flame. The family returned, only to find a pile of ash. The fire department returned, only to find a lawsuit. And the circle of life rolls on.
- Third Circuit Appellate Court Rules That Post-Acceleration Payment in Bankruptcy Constitutes Optional Redemption: Mintz, Levin
- Final Issue Price Rules Make Allowances for Competitive Sales.
- IRS Publishes Issue Price Definition for Tax-Exempt Bonds.
- New Type of Chicago School Debt Gets Investment-Grade Rating.
- Fitch Rates $500MM Chicago Board of Ed (IL) Bonds ‘A’ on Special Revenue Analysis; Outlook Stable.
- Kroll Bond Rating Agency Assigns the Long-Term Rating of BBB with a Negative Outlook for the Chicago Board of Education Dedicated Capital Improvement Tax Bonds, Series 2016.
- Becker v. Bank of New York Mellon Trust Company, N.A. – District Court certifies class action by bondholders against indenture trustee that had failed to maintain perfected security interests in the property securing the bonds, allegedly resulting in a reduced award to the bondholders by the bankruptcy court in issuer’s Chapter 11 bankruptcy.
- And finally, The Wheels On the Bus Go Buelta y Buelta is brought to us this week by McNair v. City and County of San Francisco, in which school bus driver Michael McNair’s professional qualifications were called into question after he (oh, so very inter alia) “improperly drove a group of children from San Diego, California to Tijuana, Mexico.” Field trip! Mr. McNair’s explanation for this little incident features the mother of all understatements, “I made a mistake and just didn’t think.” Appreciate the candor, but we’ll be hanging on to the keys all the same.
- IRS Publishes Arbitrage Guidance for Tax-Exempt Bonds.
- How Did Arbitrage “Rebate” Get its Name?: Squire Patton Boggs
- MSRB Reminds Investors of Risks of Rising Interest Rates in Municipal Market.
- MSRB Reminds Dealers of Time of Trade Disclosure Obligations Related to Market Discount Bonds.
- Issuers Took More Time to Complete Financial Audits in 2015.
- TE/GE Announces New Information Document Request Management Process.
- Tutor Perini Corporation v. Banc of America Securities LLC – Court of Appeals reverses District Court’s grant of summary judgment in favor of broker-dealer and its parent company in investor’s action asserting securities fraud claims under federal and state law by alleged misrepresentations and omissions regarding ARS market that eventually collapsed; finds multiple issues of material fact.
- New Jersey Alliance for Fiscal Integrity, LLC v. New Jersey Sports and Exposition Authority – Appeals court authorizes transaction in which the New Jersey Sports and Exposition Authority will issue Redevelopment Area Bonds and Economic Redevelopment Grant Revenue Bonds and then sell those bonds to the Wisconsin Public Finance Authority, which will raise the money to purchase the bonds by issuing its own bonds and servicing the debt on those bonds with the revenue from the New Jersey bonds.
- And finally, If It Walks Like a Duck, Talks Like a Duck, and Looks So Peaceful and Lifelike Like a Duck is brought to you this week by River’s Edge Funeral Chapel and Crematory, Inc. v. Zoning Hearing Board of Tullytown Borough, in which the court had to explain to the zoning board (presumably slowly and using very small words) that a business entailing “meeting with clients, arrangements, embalming, cremating, dressing of deceased, casketing, and conducting funeral services” is what we here in America call a “funeral home.” Common sense clearly not a permitted use in Tullytown Borough.
- Pay for Success Project Assessment Tool.
- MSRB Files Proposed Rule Change to Extend MSRB’s Proposed Customer Complaint and Related Rules to Municipal Advisors and to Modernize Those Rules.
- MSRB Seeks New Complaint Process for MAs, Updated One for Dealers.
- Bond Attorneys’ Workshop Round-up: Squire Patton Boggs
- IRS Releases Three-Part Video Series on Conduit Issuers.
- MSRB Municipal Advisor Registration Compliance Webinar.
- Attn. California practitioners – California Debt Limit Allocation Committee Releases Proposed Regulations: Orrick.
- GE Funding Capital Market Services, Inc. v. Nebraska Investment Finance Authority – District Court holds that Investment Agreement entered into between Investment Finance Authority and GE Capital was ambiguous as to whether the redemption of a particular series of revenue bonds automatically terminated the investment account associated with that series of bonds. Check your Investment Agreements to ensure that redemption triggers termination.
- And finally, in our ongoing quest to bring you the answers to questions you haven’t asked, we proudly present State v. Alaska Laser Wash, Inc., which obviously sent us on a quest to ascertain the role of actual laser beams in the Alaska car wash industry. Sadly, the answer is, “none whatsoever.” We did, however, turn up a priceless gem in the Alaska Laser Wash FAQs. (Yep, this is indeed how we fritter away your hard-earned subscription dollars.) The question: “How often should I wash my car?” The answer: “It depends.” Have truer words e’re been spoken?
- Dealers: Proposed MSRB Minimum Denomination Rule Would Hurt Liquidity.
- GASB Proposes Implementation Guidance for Other Postemployment Benefit Plans.
- NABL: TEB Adds Exam Resolution Method.
- TEB Says Muni Audits Can Be Closed After Full Redemption.
- SEC Will Tell All MCDC Submitters If They Face Enforcement Action.
- Ceresney Warning: Expect Continued SEC Enforcement Activity Regarding Municipal Securities.
- S&P Q&A: U.S. State Rating Methodology.
- The Bond Buyer Web Seminar: Muni Compliance Update
- And finally, Just a Little Off the Top, Mr. Escobar is brought to us this week by Thompson v. Civil Service Com’n, in which the union rep was required to get just a little creative when asked to explain how it was that ten city police officers happened to submit hair samples that tested positive for cocaine. That’s right, TEN. That’s right, COCAINE. Fortunately, he proved up to the task by convincing the court that it couldn’t be certain that the positive tests weren’t the result of “environmental” factors, rather than the personal ingestion of a controlled substance. I feel as if there might be something that could help me envision such “environmental” factors (other than, of course, the existence of an environment in which police officers habitually and collectively snort cocaine), as I’m drawing a blank. Johnson & Johnson’s Cali Cartel Conditioner? Doesn’t seem likely. Wait, I know what’s missing! Cocaine!
- SEC Approves Fund Liquidity Rules, Sparking Concern for Munis.
- Dealers to SEC: Markup Proposal Overly Complex, Would Hurt Liquidity.
- With Soaring Demand Come Weaker Assurances for U.S. Municipal Investors.
- Electronic Muni Debt Platform Gains Traction with Ohio.
- More on Rev. Proc. 2016-44: What Light Is Shed on Net Profits Compensation?
- IRS Requests Comments on Tax-Exempt Bond Forms.
- IRS PLR: Organization Is Instrumentality of State Political Subdivisons.
- Nichols v. City of Rehoboth Beach – Court of Appeals holds that debt incurred by city from bond issue approved by special election was insufficient basis for taxpayer to have municipal taxpayer standing in her action against city alleging that election violated the Fourteenth Amendment with regard to requirements to vote in election, where city did not expend funds from bonds on the allegedly illegal elements of the special election.
- In re City of Detroit, Michigan – Court of Appeals holds that equitable mootness is viable doctrine that applies in Chapter 9 cases just as it applies in cases under Chapter 11.
- And finally, Stating the (Painfully) Obvious is brought to you this week by Foust v. Forest Preserve Dist. of Cook County, in which the court ruled that a tree limb was not a condition of a forest preserve trail. Um, ok. And why was this seemingly uncontroversial question at issue? Because the limb in question broke off and crushed a woman to death as she was innocently riding her bike down the trail. That’s one atrociously unlucky cyclist or one viciously homicidal tree. Regardless, we’ll take this as further proof (as if we needed any) that fresh air, nature, exercise, and all that will definitely kill you. Consider yourselves warned.
- Ed. Note: We’ll be off next week, but will return with the proverbial vengeance on 10/18.
- GASB Proposes Omnibus Statement Addressing a Broad Range of Practice Issues.
- MSRB Proposes Standalone Minimum Denomination Rule.
- MSRB Improves Bank Loan Disclosure on EMMA Website.
- MSRB Improves Bank Loan Disclosure on EMMA After Issuer Complaints.
- GASB Webinar on Fiduciary Activities Project.
- DC Water Closes Historic Deal.
- Following Revenue Procedure 2016-44, Is There Still a ‘Facts and Circumstances’ Test for Private Business Use?
- Just in Case You Didn’t Notice – Rev. Proc. 2016-44 Treats as Compensation under a Management Contract the Reimbursement of Amounts Paid by the Manager to its Employees.
- Department of Transportation v. Amerco Real Estate Company – Supreme Court of Colorado holds that general authorization by transportation commission, to the extent it purported to delegate to transportation department the choice of particular properties to be taken for a project to alter a state highway and the manner of their taking, constituted an unlawful delegation of the commission’s statutorily imposed obligation.
- And finally, Goes Without Saying is brought to you this week by 730 Equity Corp. v. New York State Urban Development Corp., in which the court determined that the highest and best use of condemnee’s property was a “12-story budget hotel.” That strike anyone else as oddly specific? No mention of the waffle bar? Or perhaps the court simply believes that to be highest/best use for any and all properties. And who are we to argue? We also ran across Corbett v. County of Lake this week, in which the court noted that the “determinative” factor in deciding whether or not a public path was dangerously overgrown was the fact that the plaintiff and her friends had dubbed it the “bunny trail” due to the abundance of wildlife. We recommend that you preemptively begin referring to every route you may utilize as the “[path, highway, boulevard, etc.] of Immediate and Horrible Death.” Just in case.
- In a First Federal Jury Trial, Miami, Boudreaux Found Guilty.
- SEC’s Miami Win Likely to Embolden Muni Crackdown: Lawyers
- Demographics Can Spell Trouble for a City’s Finances. (Check out the interactive feature.)
- So, Just What Are Appropriation Backed Municipal Bonds?
- Bank Loan Disclosure Enhancements Coming to EMMA.
- Reckoning Time for a City’s Bad Fiscal Decisions.
- Indian River County v. Rogoff – District Court holds that there was substantial likelihood that operator of railway construction project would not proceed with project if DOT did not support project with tax-exempt PABs, and thus counties, through which portion of railway would run, suffered redressable injury, as required for them to have Article III standing in their action challenging DOT’s decision under various federal statutes.
- FMS Bonds, Inc. v. Bank of New York Mellon – District Court declines to dismiss bondholder’s breach of fiduciary duty claims against indenture trustee for failing to accurately track issuers’ transfers of their obligations and for failing to file proofs of claim in issuers’ subsequent bankruptcies; punitive damages available for bondholder’s claim that trustee breached its fiduciary duty by seeking further indemnification from bondholders in order to rectify trustee’s own alleged mistakes and negligence.
- And finally, Unclear on the Concept is brought to you this week by Milbert v. Wells Twp. Haunted House, Inc., in which a Township built and operated a haunted house minus a firm grasp on the understanding that this type of thing should deliver family-friendly thrills and chills and not, you know, actual death. Suppose the silver lining is that the boxes in the “swinging coffin ride” turned out to be dual-use. The court also gifted us a lesson in Newtonian physics when it specified that the coffins were lowered “by gravity.” Thanks for clearing that up.
- SEC Announces MCDC Issuer Enforcement Actions.
- SEC: Issuer Settlements Show Widespread, Pervasive Disclosure Problems.
- Democratizing Tax Increment Financing through Participatory Budgeting – A Tool Kit.
- The Lowdown On Enhancement Programs For School District Bonds.
- Hawkins Advisory: 2016 Final Arbitrage Regulations.
- IRS Issues New Safe Harbors for Management Contracts to Facilitate P3s.
- Rev. Proc. 2016-44 Greatly Expands Rev. Proc. 97-13 Safe Harbor for Management Contracts, Opening the Door for Long-Term Management Contracts.
- Some Lawyers Have Questions About New Management Contract Safe Harbors.
- New IRS Management Guidance is Flexible, Furthers P3s: Ballard Spahr Webinar.
- And finally, Huggies on Conveyance (2nd ed.) this week brings you City of Jackson v. Jordan, in which the Supreme Court of Mississippi informs us that, “An infant’s avoidance of a conveyance of property may be evidenced by any act clearly demonstrating a renunciation of the contract.” We would now like to invite you to close your eyes and envision the infantile act your particular infant would use to demonstrate the renunciation of a contract. Your tool kit includes – but is certainly not limited to – soggy diapers, crayon fragments, curdled mush, miscellaneous choking hazards, regurgitated peas, and a Black’s Law Dictionary covered in drool. Enjoy!
- BDA and Others Submit Comments to the SEC on CDAs.
- Why Market Groups Want SEC Disclosure Guidance.
- MSRB Provides Guidance on Trade Reporting Rule.
- NFMA Issues Comment Letter on Primary and Secondary Market Disclosure in the Municipal Market.
- Issuers: Watch a Step-By-Step Video on Customizing EMMA Issuer Homepages.
- Taming Premium Bonds.
- SIFMA Issues U.S. Municipal Credit Report, Second Quarter 2016
- Ignore the Rules (If They Don’t Apply): Squire Patton Boggs
- CDFA Intro Energy & Water Finance Course.
- GFOA 21st Annual Governmental GAAP Update.
- Columbus, Georgia Board of Tax Assessors v. Medical Center Hospital Authority – Court of Appeals holds that hospital authority’s leasehold interest in a continuing care retirement facility was public property exempt from ad valorem taxation, as revenue bond validation proceedings had conclusively established that the retirement facility furthered a legitimate function of the hospital authority.
- And finally, this week’s BCB Travel Alert (aka Tiptoeing Through the Minefield) is brought to you by Flanigan’s Enterprises, Inc. of Georgia v. City of Sandy Springs, Georgia, in which the Court of Appeals upheld the constitutionality of a Sandy Springs municipal ordinance prohibiting the sale, rental, or lease of obscene material, including “any device designed or marketed as useful primarily for the stimulation of human genital organs.” (I think we can all agree on the prohibition of rentals and leases.) The court held that consenting adults had no fundamental right to engage in private sexual intimacy. Never mind the right, certain of us would settle for the fundamental opportunity. We must leave you now before we say something that results in the cancellation of our sole remaining subscription.
- NFMA Releases Draft White Paper on Disclosure of Statutory Liens.
- Why Issuers Must Increase Statutory Lien Disclosure.
- Black & Veatch 2016 Strategic Directions: U.S. Water Report.
- Expanding Municipal Securities Enforcement: Profound Changes for Issuers and Officials.
- NASACT Releases Voluntary Guidelines for Stable NAV LPIGs.
- NABL: IRS Issues Final Non-Issue Price Arbitrage Regulations.
- What’s in Treasury’s Newly Released Final Arbitrage Rules.
- The SEC’s Municipal Advisor Rule: Webinar.
- And finally, BCB’s Department of the Spectacularly Ill-Conceived gleefully brings you McLean v. Pine Eagle School District, No. 61, in which a high-school teacher claimed to have been traumatized by an active-shooter drill conducted at the school during an in-service day at which only teachers were present on the campus. Oh, boo hoo. Wait, what’s that? School administrators smashed their way into the school dressed in black and wearing masks, ran down the halls throwing firecrackers, busted into classrooms, “shot” teachers at point-blank range with real guns firing blanks, screaming at the teachers that they were dead? This resulted in multiple injuries as the teachers stampeded for the doors? One teacher “wet herself”? Well at least they’d been told to expect a drill right? No? Well, now that you put it that way….
- SEC Hits MAs, Execs With $200,000 Fine in First of a Kind Case.
- GFOA Issues Alert on MCDC Initiative Settlement Terms for Issuers.
- MSRB: Implications for Supervisory Procedures of Newly Effective Rules.
- GFOA Issues Alert on Rule G-42.
- SIFMA to SEC: It’s Time to Revise Rule 15c2-12 on Muni Disclosure.
- MSRB Updates Content Outline for Municipal Advisor Qualification Exam.
- SEC Said to Study Muni Bank Loan Disclosure That Vanguard Wants.
- Defending Wall Street Fees.
- Going Green: Evolution of Renewables ABS Discussed.
- Trail of Defaults Leads to Dark Corner of Tax-Exempt Bond Market.
- Bill Would Create New $5B Category of PABs for Government Buildings.
- NABL: IRS TEB Announces Form 8038-CP Changes.
- And finally, please bow your heads for a moment of silence to commemorate the demise of “adult-content” conventions in Dallas, Texas. While Three Expo Events, L.L.C. claimed that participants in its three-day adult entertainment expo called “Exxxotica” (inclusion of an additional x or two, clearly an oversight) complied with all applicable City regulations, the City begged to differ. As the court’s opinion drily notes, “The City offers a different view of what occurred at the 2015 Exxxotica expo.” The ensuing litany of offenses are, sadly, unfit for enumeration in a fine, upstanding publication such as this, but please feel free to visit the opinion.
- Ed. Note: Surprise! Just when you thought it was safe to go back in your inbox… We’ll actually be taking next week off. We’ll be off the grid (OTG) this week, so please remember that the password is muni.
- MSRB to Launch Permanent Series 50 Exam September 12, 2016.
- Why Market Groups Want MSRB to Abandon Bank Loan Proposal.
- GFOA: The Perils of “Benefit Bonds” and Social Impact Bonds.
- IRS PLR: Management Contract Will Not Result in Private Business Use.
- New Reporting Rules Subject OID on Tax-Exempt Bonds to Information Reporting.
- McGee v. Balfour Beatty Construction, LLC – Court of Appeal holds that school districts are exempt from obtaining competitive bids when entering into “lease-leaseback” agreements to improve school property, even if the districts fund the projects, and regardless of whether the leases are site leases or subleases.
- In re Validation of Tax Anticipation Note, Series 2014 – Supreme Court of Mississippi holds that, under exceptions to mootness doctrine (as the note had been repaid) the Court would consider appeal challenging issuance of tax anticipation note by county board of supervisors; holds that board had authority to issue note that borrowed against total anticipated ad valorem tax revenues; remands for consideration of objector’s evidence regarding validity of signatures on petition to submit matter to public for election. This one’s worth a read-through, including the concurrence/dissent.
- And finally, Embracing the Mystery is brought to you this week by Stanton v. Oceanside Union Free School Dist., in which school district was sued after “inflatable rides” it had leased became airborne and injured festival participants. What were these “rides”? How did they become airborne? Were the passengers taken aloft along with the rides? We’ll never know, so we invite you to close your eyes and envision bouncy castles falling from the heavens. You’re welcome.
- Ed. Note: We’ll be taking next week off. Yes, we can hear your rejoinder that we take every week off, but this time it’s literal, as well as figurative, ok?
- SIFMA Develops Model Documents for Compliance with New MSRB Rule G-42.
- Treasury Paper Outlines Steps to Ensure Success In Identifying, Pursuing P3-Suitable Projects.
- How Groups Want To See Minimum Denomination Exceptions Changed.
- The Hidden Wall Street Fees That Could Be Costing Pensions $20 Billion a Year.
- An Argument For Using Tax-Exempts in P3 Structures.
- Why Groups Are Demanding IRS Withdraw Proposed Political Subdivision Rules.
- NABL and Others Call for Withdrawal of Political Subdivision Regs.
- The Final Allocation and Accounting Regulations – What Do They Mean For “Phantom Investment Proceeds”?
- CDFA Intro to Incentives WebCourse.
- And finally, The Worst Defense is a Worser Offense is brought to you this week by William Marsh Rice University v. Refaey, in which a driver idled at an intersection for several light cycles, responded to 16 texts, and then drove on for two more miles before it dawned on him that the driver of the car with those annoying flashing lights that had been directly behind him this entire time perhaps wanted a word. So the driver finally pulls over, walks to the back of his car, “throws his hands up” and yells, “What the f* * * do you think you’re doing pulling me over?” “Refaey then saw that Officer Spears had his weapon drawn and pointed at Refaey.” Worth a try, no?
- FAF Issues 2015 Annual Report: “Serving the Financial Statement User.”
- What’s Going on With Muni Credits?
- Why Statutory Liens Matter in a Chapter 9 World.
- GASB Posts New Page for Financial Statement Users.
- U.S. Municipal Credit Report, First Quarter 2016.
- Tax-Exempt Bonds: Is It Possible for a Municipal Corporation Not to be a Political Subdivision?
- Schuerman v. Eastwood Local School Dist. – Court of Appeals holds that local voters lacked standing to challenge school district’s agreement with School Facilities Commission to finance new school (via the issuance of Certificates of Participation) after voters had previously rejected two proposed bond issuances to finance the project.
- And finally, what’s the world coming to when mom & pop can’t be left in peace to crush a few aluminum cans on the front porch as part of their self-described “small scale recycling business?” Next thing you know, the Jack-Booted Government Thugs are kicking down the door of your suburban home and carting off your “discarded debris/materials, garbage, rubbish, auto parts, appliances/furniture, all unlicensed and/or inoperable vehicles.” The priceless part is that the Petersons then sued the city to get it all back, claiming that those crooks down at the code enforcement office had converted the property for their own personal use. Just another perk of that sweet, sweet code enforcement gig.
- Deloitte Playbook for Implementing T+2 Settlement Cycle in the U.S.
- MSRB Publishes Educational Resources on Municipal Advisor Conduct Rule.
- BDA Submits Comment Letter to the SEC: FINRA Rule 4210 “TBA” Margin Amendments.
- Municipal Bond Premiums: Separating Fact from Fiction.
- Why Consolidations in Municipal Evaluations Landscape Signal ‘Tectonic Shift’ for Industry.
- Colo. Court Case Puts Spotlight on Special Districts that Issue Munis.
- CDFA Webcast: Financing Water Infrastructure.
- Landmark Towers Association, Inc. v. UMB Bank, N.A. – Court of Appeals holds that organizers’ option contracts for purchase of undivided 1/20 interest in 100-square-foot parcel within proposed special district were sham contracts, and therefore organizers were not eligible electors for purposes of special district bond and tax election; condo purchasers within the district, who were parties to contracts obligating them to close as soon as purchased units were completed and obligating them to pay pro-rated property taxes from date of closing to end of year, qualified as eligible electors.
- City of Chesapeake v. Dominion SecurityPlus Self Storage, L.L.C. – Supreme Court of Virginia holds that subdivision plat that reserved 50-foot right of way in favor of city for purposes of future expansion of highway constituted a waiver of damages to residue of property, including waiver of loss of direct access to highway and loss of visibility, after city condemned right of way.
- And finally, BCB’s Practice Tip of the Week is brought to you by Landmark (above), which provided us with the recipe for creating a foolproof special district. Step one: find ten buddies. Step two: issue each individual an option contract to purchase a 1/20 interest in a 100-square-foot parcel (the square footage of a roomy jail cell). (Bonus tip: don’t bother to collect the $10 down payment for the contracts.) Voila, instant special district. Go forth and issue $35 million in bonds safe in the knowledge that no one will ever dare look askance at this arrangement.
- Enhancing Tax Abatement Transparency.
- NABL: IRS Issues Final Regs on Determining AFRs for Tax-Exempt Bonds.
- Hawkins Advisory: IRS Revenue Procedure 2016-25 Regarding Mortgage Revenue Bonds and Mortgage Credit Certificates.
- MSRB Reminds Municipal Advisors and Dealers of the May 6, 2016 Effective Date of Amendments to Gifts Rule.
- SEC Approves MSRB Rule Changes For Two-Day Settlements.
- When Debt Meets Public Approval: Municipal Bond Elections in San Antonio, Texas.
- MSRB Webinar: What to Expect From Your Municipal Advisor.
- Concerned Citizens of Southeast Polk School Dist. v. City of Pleasant Hill, Iowa – Supreme Court of Iowa holds that City, which had consolidated urban renewal areas in order to use tax increment financing (TIF) from original renewal area across a greater area, lacked authority to extend renewal area and TIF arrangement in light of statute limiting a TIF division based upon an economic development determination to 20 years. (Why can’t we once, just once, get an “Indifferent Citizens vs. Whatever”?)
- And finally, Staggering Irony of the Week is brought to you this particular week by Baker v. Wayne Cty., in which the brain trust at Wayne City elected to erect a statue of – of all things – a deer. These vermin are a sufficient pestilence to motorists while ambulatory, so how in the name of all that is cloven-hoofed was it deemed wise to carve one in stone? Yep, you know where this is going – Kelli Baker loses control of her vehicle, hits the damn things and dies. Oh, deer.
- Webinar: The Ins and Outs of a Negotiated Bond Pricing. PLEASE NOTE THAT THIS EVENT TAKES PLACE ON WEDNESDAY, 4/20. We apologize for the short notice.
- SIFMA Releases White Paper Recommending Improvements to Disclosure in the Municipal Securities Market.
- SIFMA Asks SEC To Update 15c2-12, Create Parallel Rule for MAs.
- Wall Street Lobbyist Wants Advisers to Vet Bond Disclosures.
- Why Bond Trustees Are Often Frustrated, Powerless in Today’s Debt Environment.
- GASB Issues Pension Guidance Addressing Issues Raised by Stakeholders During Implementation.
- MSRB Issues Interpretative Guidance for ABLE Programs.
- And finally, this week’s Unclear on the Concept – Cost/Benefit Analysis Edition – is brought to you by City of Fargo v. Rakowski, in which William Rakowski really, really, really didn’t want to fork over a $100 rental inspection fee to the City of Fargo. No particular ideological objection, just didn’t want to pay. But perhaps, just perhaps, taking this matter all the way from small claims court to the North Dakota Supreme Court (where he lost) on his own dime wasn’t the wisest course of action. Kudos to you, Mr. Jonathan T. Garaas (working out of that mighty edifice knowns as the “DeMores Office Park”) for walking your client through the numbers and talking him out of this folly. You’re a credit to the profession.
- IRS Proposed Political Subdivision Rules Would Be Big Change for Munis.
- MSRB 2016 Compliance Advisory.
- George K. Baum FINRA Case Shows Excessive Fee, Bond Ballot Concerns.
- NABL Submits Additional Issue Price Comments.
- FINRA Approves Enhanced Price Disclosure to Retail Investors in Fixed-Income Securities.
- Wheelabrator Bridgeport, L.P. v. City of Bridgeport – Supreme Court of Connecticut holds that trial court’s improper rejection – as a matter of law – of the cash flow approach to property valuation (a waste-to-energy (WTE) facility) required a new trial at which the court could exercise its discretion to determine the credibility of expert testimony regarding the appropriate valuation method and expert’s calculations.
- Lenox Barbeque and Catering, Inc. v. Metropolitan Transit Authority of Harris County – Court of Appeals holds that landowner’s conveyance of part of a tract of land used for a restaurant to transit authority, pursuant to a settlement of the authority’s condemnation petition, operated as a release of any claim under the state constitution for lost profits based on the loss of the parcel taken by the transit authority, even though there was no express release.
- In re Lewis & Clark Public School Dist. #161 of Ward – Supreme Court of North Dakota holds that catch-all provision of statute governing annexation of property permitting consideration of “all other relevant factors” was not unconstitutionally vague and did not amount to unconstitutional delegation of legislative authority to Board of Public School Education.
- And finally, we highly recommend that one tread very, very lightly when initiating conflict with any entity with the word “barbeque” in its name due to the enormous karmic implications. Conversely, knock yourself out with regard to any entity with the word “colon” in its name. Worst case karmic consequence there is just a colonoscopy. Which isn’t the worst idea, particularly if you eat a lot of barbeque.
- GASB Issues Guidance on Blending Certain Component Units Into Financial Statements.
- Muni Groups Mull Using Auditors, EMMA To Boost Disclosure Compliance.
- IRS Revises Publications for Tax-Exempt Bonds.
- Meet the Canadian Who Developed a Ranking System for All 3,141 U.S. Counties.
- NABL: President Releases FY 2017 Budget Proposals.
- GASB Board Meeting Highlights.
- Energy Investment Partnerships Webinar Series.
- Deloitte 2016 Utility Tax Training Seminars.
- Repko v. County of Georgetown – Court of Appeals holds that county ordinances, which allowed developer to post financial guarantees in lieu of completing required infrastructure improvements before selling undeveloped subdivision lots, imposed special duty on county to purchaser of two undeveloped lots to manage financial guaranty provided by developer, and therefore, county was not immune under public duty rule from owner’s negligence action against county, filed after county allowed several reductions in the guarantee, developer filed bankruptcy, and infrastructure was left unfinished.
- And finally, All In A Day’s Work is brought to you this week by McCaffrey v. City of Wilmington, in which an intoxicated police officer ran a red light, crashed into another vehicle, and then made “inappropriate” sexual advances toward the driver of that vehicle. We find it rather puzzling that the court felt it necessary to point out that the sexual advances were inappropriate. In what conceivable municipality could any element of this scenario be deemed “appropriate?” Please let us know if you’ve identified one, as we’d certainly be interested in taking the tour.
- MCDC Credited with Boosting Muni Disclosure.
- MSRB Holds Quarterly Board Meeting.
- GASB Board Meeting Highlights.
- GASB Proposes to Establish a Single Approach for Reporting Leases of State and Local Governments.
- Fitch Releases Exposure Draft on Adding Enhanced Recovery to U.S. Local Gov’t Criteria.
- Fitch Teleconference: Adding Enhanced Recovery to U.S. Local Gov’t Criteria.
- MSRB to Seek Public Comments On Prevailing Market Price, Bank Loans.
- Jack County Appraisal District v. Jack County Hospital District – Court of Appeals holds that hospital district, a political subdivision of state, was “owner” of leased CT scanner, for purposes of statute exempting from taxation tangible personal property owned by political subdivision.
- Regional Utility Service Systems v. City of Mount Union – Supreme Court of Iowa holds, as matter of first impression, that general funds in a municipal bank account constitute “other public property” exempt from execution/garnishment so long as the funds are necessary and proper for carrying out the general purpose for which the municipality is organized.
- And finally, BCB’s Department of Thankless Jobs is brought to you this week by Kretschmann Farm, LLC v. Township of New Sewickley, a massive NIMBY objection to the siting of a natural gas compression station next to an organic farm. The Board of Supervisors was serenaded by an endless stream of measured, well-reasoned arguments from a completely objective local citizenry. A prime example of which is the testimony of a Mr. Bob Schmetzer, who insisted that the Supes were being “bamboozled” by the gas industry, which had suppressed the fact that gas emissions cause brain lesions. His unimpeachable source for this claim? “Schmetzer asserted that the risk can be confirmed by reports on the internet.” Still awaiting reports concerning the long-term neurological effects of repeatedly bashing one’s own head against the surface of a large, curved podium while being subjected to the Schmetzers of the world. We’ll keep you posted.
- MSRB to Discuss Bank Loans, Markup Disclosure at Meeting.
- Dealer, Advisor Groups Ask for Revisions to MSRB Pay-to-Play Rule.
- BDA Submits Letter to SEC on MSRB Pay-to-Play Rule.
- An Overview of Standard & Poor’s Updated Methodology for Rating U.S. Public Finance Waterworks, Sanitary Sewer, and Drainage Utility Systems.
- Cities’ Pension Liabilities Are About to Look a Lot Worse.
- Nichols v. City of RehoBoth Beach – District court holds that city resident lacked standing to challenge city charter provisions governing voting procedures for special elections to authorize the borrowing of money (i.e. $53 million of general obligation bonds), as resident had the right to vote in the special election and thus lacked the concrete personal injury necessary to bring suit.
- Metropolitan St. Louis Sewer District v. City of Bellefontaine Neighbors – Supreme Court of Missouri holds, as a matter of first impression, that a public entity (sewer district) was not entitled to sue another public entity (city) for inverse condemnation.
- And finally, BCB’s Department of Misplaced Priorities this week brings you Estate of Glasoe v. Williams County, N.D., in which the Glasoe children lost the family homestead via tax sale. The kids brought suit, alleging that they were shocked, shocked, by the foreclosure and sale. Uh, despite the fact that Leanne Glasoe – who resided at the property – had been personally served by a deputy sheriff while she was working at her hair salon. “The deputy testified that when he gave the envelope to LeAnne Glasoe he told her ‘it was very important that she pay attention to the contents because it was a Foreclosure Notice.’ LeAnne Glasoe testified, ‘I didn’t even open it, I went right back to work.'” While we commend your commitment to the beautification of the ladies of the greater Williston area, Leanne, maybe shoulda taken the time to open the envelope. Bet you wish you could Curl Up & Dye.
- GFOA Financial Policies Examples.
- Where Have All the Muni-Bond Dealers Gone?
- S&P General Obligation Medians for Counties: Update as of Oct. 9, 2015.
- S&P General Obligation Medians for Municipalities: Update as of Oct. 9, 2015.
- Why Florida May Be the Next Big Source of PACE Bonds.
- Outlook: What’s Ahead for Tax Regulation, Enforcement in 2016.
- McGuire Woods: President Signs Extender Package for PTC and ITC – Renewable Energy Tax Credits.
- Kaplan v. Saint Peter’s Healthcare System – Court of Appeals holds that ERISA provision granting exemptions for churches and qualifying church agencies was unambiguous in requiring that a church, rather than a qualifying church agency, establish a church exempt plan.
- In re City of Stockton, California – In challenge brought by unsecured creditor, United States Bankruptcy Appellate Panel of the Ninth Circuit issues comprehensive ruling affirming the City of Stockton’s Chapter 9 Confirmation Order.
- And finally, as a matter of first impression, the Supreme Court of Florida held this week that the act of tattooing is artistic expression protected by the First Amendment. Although not widely known, James Madison did indeed have “Fed Life” tattooed across his torso.
- Doubly Bound: The Cost of Issuing Municipal Bonds.
- Financing Infrastructure Through Resilience Bonds.
- SIFMA Issues 2016 Municipal Issuance Survey.
- Dealers Want MSRB, FINRA to Adopt Same, Less Costly Markup Proposals.
- Moody’s Seminar: Financial Analysis of Local Governments
- MSRB to Implement Core Conduct Rule for Municipal Advisors.
- GASB Issues Guidance for External Investment Pools and Pool Participants Ahead of SEC Rule Change.
- GASB Issues Proposed Guidance on Fiduciary Activities, Asset Retirement Obligations, and Pensions.
- Fish v. Township of Lower Merion – Supreme Court of Pennsylvania holds that Township’s application of business privilege tax to businesses whose sole income consisted of rent payments on leased real property was not barred by provision of Local Tax Enabling Act precluding “any tax” on leases or lease transactions; disapproving Cheltenham Twp. v. Cheltenham Cinema, Inc. and F.J. Busse Co. v. City of Pittsburgh.
- Ordinance 2354-12 of Tp. of West Orange, Essex County v. Township of West Orange – Supreme Court of New Jersey holds that Township’s redevelopment bond ordinance was not subject to referendum, where Township passed ordinance through exercise of redevelopment powers conferred on municipalities by Local Redevelopment and Housing Law.
- And finally, although perhaps not the ideal probationer, the community service participant in Giordanella v. City of New York who attacked his supervisor with a rake is definitely your secret weapon in the event of the dreaded Zucchini Apocalypse. Shouldn’t be hard to find, as he undoubtedly occupies a very, very fixed address.
- Ed. Note: We’ll be taking next week off, but will return (without any particular vengeance) on 12/29 to close out the year. May visions of sugarplums dance in your heads. (Aforementioned seasonal pleasantry not applicable in the event that “Sugarplum” is the nom de pole of a danseur working in your municipality.)
- Green Bond Best Practice Guide Released for Public Sector.
- A Guide to Evaluating Pay for Success Programs and Social Impact Bonds.
- Butler Snow: MSRB’s Execution Guidance Under Rule G-18 – Forward With Flexibility.
- BDA Submits Comment Letter to FINRA and MSRB on Proposed Retail Markup Disclosure and Pricing Reference Rules.
- BDA Proposes Additional Issue Price Safe Harbors.
- GASB Issues New Pension Guidance Designed to Assist Certain Governments.
- Catalina Foothills Unified School Dist. No. 16 v. La Paloma Property Owners Ass’n, Inc. – Court of Appeals holds that school district did not violate statute requiring voter approval for purchase of school sites by condemning private road owned by homeowners association to provide vehicular access into early childhood learning center, as district received approval in bond election in which voters approved proposal to authorize district to acquire property and expend funds for new preschool facility, and district had independent statutory power to acquire property by condemnation at time of bond election.
- Duke Energy Ohio, Inc. v. Cincinnati – Court of Appeals holds that city was responsible for costs incurred by utility to relocate its utilities to accommodate city-owned streetcar project, invalidating local ordinance to the contrary.
- Storino, Ramello and Durkin v. Rackow – After village abandons effort to impose special assessment on property owners, appeals court holds that the law firm representing the property owners was entitled to attorneys’ fees under contingent fee agreements based, not on the total amount recovered, but on a percentage of the savings from the proposed special assessment.
- And finally, BCB’s Department of Irrebuttable Presumptions this week brings you In re Equalization Appeal of Kansas Star Casino, L.L.C., in which the court concluded that a property’s highest and best use was hosting a casino, and not that whole agricultural thing. Should go without saying, no?
- NABL Recommends Revisions to Management Contract Safe Harbors.
- Mintz Levin: Helpful News from IRS on Student Loan Bonds.
- MSRB’s Kelly Highlights Concerns For Retail Muni Investors.
- NABL: Registration For TSLI Is Open.
- Stifel, Nicholaus & Co., Inc. v. Godfrey & Kahn – In dispute over bond issuance, Court of Appeals holds that tribal court lacked jurisdiction over bondholders and brokerage firm; counsel to tribal economic development corporation, who also was bond counsel to bond transaction, could rely on forum selection clauses in bond documents.
- Coves of Highland Community Development Dist. v. SCB Diversified Mun. Portfolio – District Court denies Community Development District’s request for declaratory judgment that $7.6 million of Bonds issued by the District had prescribed, citing factual question as to whether Trustee had acted as District’s agent, such that the debt was acknowledged via Trustee’s making of certain payments from the Debt Services Reserve Account.
- Young’s Market Company v. Superior Court – Trial court’s order granting school district’s petition for a right of entry against the owner of an adjoining building, to assess the possibility of acquiring the property by eminent domain by boring holes in the ground and taking samples of soil and building materials, was within the scope of the Eminent Domain Law entry statutes and did not amount to a taking under the federal and state constitutions.
- And finally, I’d Like to Buy a Vowel is brought to us this week by Coves of Highland Community Development Dist. v. SCB Diversified Mun. Portfolio, in which a subdivision project was abandoned after the Army Corps of Engineers popped up mid-project with the news that the property had previously been used as a practice bombing, rocket, and artillery range, so, uh, maybe keep an eye out for unexploded munitions. And therein lies the origin story of the country’s first municipal ordnance enforcement unit. May they rest in pieces.
- NABL Ethics Teleconference.
- MSRB Provides Implementation Guidance on Best-Execution Rule.
- MSRB Releases Long-Awaited Best Ex Guidance.
- GFOA 20th Annual Governmental GAAP Update (Encore Presentation)
- GASB: On The Horizon.
- Municipalities Pushing Out Payments Spur Balloon Debt Resurgence.
- Hawkins Advisory: Final Allocation & Accounting Regulations under Section 141 of the Internal Revenue Code.
- Otay Mesa Property, L.P. v. United States – Following landowners’ successful takings claim against federal government for easement along the Mexican border, the Court of Federal Claims awards $1.1 million in attorneys’ fees and $276k in costs under the Uniform Relocation Assistance and Real Property Acquisition Policies Act in very comprehensive, detailed, and informative ruling.
- And finally, Unclear On The Concept is brought to you this week by City of Albany v. Pait, in which a firefighter ran ye olde cost/benefit analysis, concluded that robbing the premises was definitely worth the risk, netted $200 in the heist, and promptly lost his job. The irresistible, pocketable, easily fenceable, untraceable object in question? Diamonds? Cash? Nope, a canoe. An honest-to-god canoe. We now invite you to close your eyes, imagine your favorite heist film, and insert canoes. Makes for a slightly different flick, no?
- Treasury, IRS Issue Rules that Will Help Facilitate P3s.
- Notice of Support Availability: Training and Technical Assistance Services for Pay for Success Initiatives.
- MSRB Extends Deadline for Markup Rule Comments.
- MSRB Best-Ex Guidance Could Come in Nov.; Board Presses SEC on Bank Loans.
- Fitch Tax-Supported Criteria Revision.
- Treasury Issues Final Private Activity Bond Allocation and Accounting Regs.
- IRS Announces Inflation Adjustments for 2016.
- NFMA Advanced Seminar on Higher Education.
- Young v. Red Clay Consolidated School District – Court of Chancery holds that complaint filed by school district residents, who opposed increase in school-related property taxes but did not vote in special election in which increase was passed, sufficiently pled that school district’s interventions affected result of election in resident’s action seeking to void result, based on district’s alleged actions in discouraging and raising impediments to voting by elderly and disabled residents.
- And finally, this week’s Allegorical Day in the Life of a Law Firm Associate is brought to us by Zollar v. City of Chicago Dept. of Administrative Hearings, which includes the following, “the 100–pound male bullmastiff, Eli, attacked Jib, a female Portuguese water dog weighing 39 pounds, in an alley.” Although in the allegory, Eli’s real world punishment – posting a sign alerting passersby of the presence of a dangerous animal, muzzling the dog while off her property, implanting a microchip under the dog’s skin, and sterilization – lands squarely on Jib.
- Intro Property Assessed Clean Energy (PACE) Finance WebCourse.
- NAMA: Some MSRB Gift Rule Changes Are Unclear or Could Lead to Abuse.
- Chicagoans’ Cost to Exit Swap Agreements Approaches $300 Million.
- GASB Proposes Changes to Pension Standards for Certain Governments.
- Appellate Court Upholds TIF District Levy and Collection of Taxes.
- Arras v. Regional School Dist. Number 14 – Supreme Court of Connecticut holds that towns’ failure to strictly comply with statutory notice provisions by publishing an official warning of referendum, on question of whether to approve resolution by board of education authorizing issuance of bonds and notes to finance certain school construction, in legal notice section of newspaper of general circulation, did not require invalidation of the referendum, absent proof that the failure caused the referendum results to be seriously in doubt; overruling Pollard v. Norwalk.
- Florida Bankers Ass’n v. Florida Development Finance Corp. – Supreme Court of Florida holds that bankers association lacked standing to appear in appeal of trial court’s validation of bonds issued by government corporation for qualifying improvements in county, in development finance company’s action seeking to determine validity of series of bonds proposed to be issued under Property Assessed Clean Energy (PACE) Act. See prior coverage here.
- And finally, in Mender v. Chauncey, a standard-issue unlawful termination case brought by a mayor against her town, we encountered this rather startling sentence, “Her husband Stace Mender and her two daughters, Merissa Nicholson and Cassie Gardner, were co-plaintiffs asserting loss of consortium claims.” Either that family has a rather, uh, unique relationship or “loss of consortium” means something a bit different than we had been led to believe.
- Ed. Note: Please note that our weekly newsletter is simply a collection of links to the articles posted on our website that week, and not a stand-alone publication. Consequently, we do not have the ability to forward past “issues.” However, the underlying website – bondcasebriefs.com – contains all our archived postings (6k+), where you can scroll through the items posted to a particular category to catch up on articles you may have missed and/or use the search function to conduct more focused research.
- GASB Proposes Implementation Guidance Designed to Clarify Recent Pronouncements.
- 22 MCDC Settlements With Firms to be Followed by Another Round.
- Butler Snow: Fed’s Proposed Treatment of Municipal Securities as High-Quality Liquid Assets.
- Junk or AAA? Rating Split Plagues Chicago as It Borrows Billions.
- Webcast: Understanding Proposed IRS Rules on Issue Price and the Industry Impact.
- Reynolds v. Leon County Energy Improvement Dist. – Supreme Court of Florida holds that objector who failed to appear at trial level lacked standing to appeal validation of proposed bond issue, as full party status was granted only to those who appeared and pleaded in the circuit court proceeding and thus only such parties were permitted to avail themselves of the statutory right of appeal; receding from Meyers v. City of St. Cloud, Rowe v. St. Johns County, Lozier v. Collier County, and Bruns v. County Water–Sewer Dist.
- Thomas v. Clean Energy Coastal Corridor – Supreme Court of Florida validates bond issuance, but also holds that references to judicial foreclosure as a remedy for collecting unpaid non-ad valorem assessments contained in financing agreement securing bonds for qualifying improvements to real property under Property Assessed Clean Energy (PACE) Act, required remand to circuit court to amend the financing agreement to remove those references, as judicial foreclosure was not a remedy for such collection authorized by Florida law.
- And finally, BCB’s Department of Perhaps Understandable NIMBYism this week brings you Neighbors for Preservation of Big and Little Creek Community v. Board of County Com’rs of Payette County, in which the neighbors kicked up the predictable fuss at the prospect of a minor alteration to their community. But then again, we suppose that the prospect of glow-in-the-dark pets could have that effect. “Turn right at the big cooling tower. We’re the first house on the left.”
- PROGRAM NOTE: As of this week, we are implementing password-protection for the bondcasebriefs.com website. The initial password is: muni. The links contained in the weekly newsletter have the password embedded, so a reader who clicks on a link will be taken directly to the corresponding item hosted on the website without being required to enter a password. The password will be required only in the event that the website is accessed directly. We apologize for any technical glitches that may arise during the implementation process.
- MSRB Requests Comment on Requiring Disclosure of Mark-Ups.
- MSRB: Dealers Would Have to Disclose Markups on Principal Transactions.
- S&P Credit FAQ: Proposed Criteria Changes Will Bring Greater Transparency to U.S. Municipal Water and Sewer Systems.
- Incentive To Pay: How Recent Bankruptcies Inform Analysis Of Distressed Local Government Credits.
- BDA Submits Issue Price Comment Letter to IRS.
- IRS Chief Counsel Blasted for Favorable Ruling on Total Return Swaps.
- NABL Submits Issue Price Comments.
- SIFMA Submits Comments to the IRS on Re-proposed Issue Price Rules.
- And finally, Unclear on the Concept is brought to you this week by Sherman v. Town of Randolph, in which the the court’s opinion included the following, “Four of those candidates are relevant here: Sherman, who was ranked highest on the eligibility list, and the three candidates who ultimately bypassed him, whom we shall call Walter Burton, Blair Lewis, and Martin Duval.” Did the court simply decide to get gratuitously creative with its fictitious naming (“No John Doe for us!”) or was it indeed unclear on the concept? Please direct your inquiries to the opinion’s author, whom we shall call Justice Fernande R.V. Duffly.
- NFMA Introduction to Municipal Bond Credit Analysis.
- SEC Urged to Disapprove Rule on MA Core Conduct.
- Neighborly Raises $5.5M from Joe Lonsdale’s Formation 8, Ashton Kutcher to Transform the Municipal Debt Market.
- How Standard & Poor’s Treats Public-Private Partnerships in U.S. State and Local Government Debt Analysis.
- SIFMA: Alternative Issue Price Method ‘Not Workable’ As Proposed.
- IRS Rules that No Abusive Arbitrage Device Was Used in Connection With Bond Issue: Tax Analysts
- NABL: TEB Announces VCAP Changes.
- City of Seattle v. Department of Revenue – Supreme Court of Oregon holds that cities’ interest in electrical transmission capacity, purchased from electrical cooperative and used to transmit electricity over region’s federally administered power grid, could be taxed by Department of Revenue as a property interest “held” by the cities.
- And finally, Yet Another Reminder of Why People Hate Lawyers is brought to us this week by Parker v. Town of Erwin, in which the court began its opinion thusly, “The evidence in the record tends to show that a Christmas parade was held in Erwin, North Carolina, on 5 December 2011.” “Tends to show?” Were there cars driving down Main Street? Did one of those cars contain a fat man in a red suit? If yes, I tend to think that we can definitively conclude that a bleepin’ Christmas parade was held. Please open your hymnals to page 25 and join us in singing, “We Tend to Wish You a Merry Christmas.”
- NFMA Releases Final Best Practices for State GO Bond Disclosure After Public Comment.
- SEC Asks: Should Muni Bond Pricing Change in Wake of Edward Jones?
- MSRB: Best-Ex Rule Will Not Be Implemented Before Release of Guidance.
- BDA Submits Letter to SEC on MSRB Proposed Rule G-42 Regarding the Core Duties of Municipal Advisors.
- Hedge Funds Fill Gap in the U.S. Municipal Bond Market.
- Bond Ruling Emboldens Abusive Scheme, Former IRS Official Says: Tax Analysts
- Emmet & Co., Inc. v. Catholic Health East – Appeals court holds that issuer’s coupling of tender offer with redemption of municipal bonds, as well as issuer’s synthetic sale of bonds to financial advisor through total return swap, violated indenture.
- And finally, “Now Where Did I Leave My Keys?” is brought to us this week by Caramanno v. City of New York, in which a paving contractor sued the city after it relocated, and subsequently destroyed, an item of contractor’s personal property. The item, you ask? A steam roller. An honest-to-god steam roller. Answers to the absolutely dumfounding questions regarding how one might possibly misplace, relocate, or destroy such an item are far, far beyond the purview of this publication. Our deepest apologies.
- New Rule to Lift Veil on Tax Breaks.
- MSRB Changes MA Conduct Proposal, But Not Principal Transaction Bar.
- MSRB Enables Issuers to Display Bank Loan Disclosures on Customized EMMA Issuer Homepages.
- Municipal Bond Underwriter Didn’t Feel Like Underwriting.
- Edward Jones to Pay $20 Million to Settle SEC Municipal Bond Charges.
- SEC Members Demand Muni Markup Disclosure After Edwards Jones Case.
- UBS Fined $750,000 for Misstating Tax-Exempt Bond Interest.
- And finally, Oddly Specific Facts is brought to us this week by Cordova v. City of Los Angeles, in which the judge, describing a fatal car crash, wrote, “Out of control and spinning counterclockwise, the car struck one of several large magnolia trees planted in the median.” Presumably, his honor’s intent was to honor the memory of the deceased, whose final thought was undoubtedly, “Hey, we’re spinning counterclockwise! Is that a magnolia tree?”
- U.S. Municipal Credit Report, Second Quarter 2015.
- Coalition Creates Guide For Green Muni Bonds.
- MSRB to Revise Proposed Rule on Disclosing Bond Price Markups.
- Dealers, Issuers: Fed Proposal Too Strict on Munis, Would Hurt Market.
- In Post-Detroit Bankruptcy Era, California Protects Investors Before Pensioners.
- How One Mississippi County Played Wall Street’s Fiddle.
- Memo Provides Interim Guidance on Audits of Direct-Pay Bonds.
- AHS Hospital Corp. v. Town of Morristown – Tax Court holds that hospital operated and used its property for profit-making purpose by entangling its activities with affiliated and non-affiliated for-profit entities, such that hospital did not qualify for property tax exemption for nonprofit organizations; calls modern non-profit hospitals “legal fictions.”
- And finally, When Science Attacks is brought to you this week by Fugle v. Sublette County School Dist. No. 9, in which a high school teacher’s practical demonstration of centripetal force spins right along until one kid’s scrawny little arms give out, he lets go of the rope/cart contraption, and slams into the gym wall, fracturing his faith in science teachers in multiple locations. What’s wrong with the traditional kitten in a blender or baby in the dryer?
- Ratings Value Questioned as More Municipal Borrowers Go Without.
- MSRB Considers Creating Municipal Market Data Product for Academic Researchers.
- New California Law Would Secure Local GO Holders in Bankruptcies.
- IRS Rules Student Loan Bonds Still Tax-Exempt in PLR.
- CDFA Intro to Public-Private Partnership (P3) Finance Course.
- CDFA Intro to Tax Increment Finance Course.
- Borough of Keyport v. International Union of Operating Engineers – Supreme Court of New Jersey holds that negotiation would have significantly interfered with management determination of governmental policy, and therefore municipalities’ imposition on certain units of public employees mandatory, but temporary, layoffs, in the form of a reduced number of work days over a specified period of time was non-negotiable, such that municipalities did not violate Employer-Employee Relations Act by imposing layoffs without negotiating with representatives from unions for public employees.
- And finally, that noise you just heard is the collective sigh of relief going up from our nation’s overworked/underpaid schoolteachers as they learn that they can’t be fired for a third offense of using profanity in front of their students. “[Bleep] Yeah!”
- And even more finally, Happy Motoring in the Grand Canyon State is brought to you this week by Fleming v. State Dept. of Public Safety, in which a police officer placed an intoxicated driver in the rear seat of his patrol car, which was immediately obliterated by yet another drunk driver, killing the poor woman in the back seat. Maybe the open bar at the midnight Mad Max screenings wasn’t such a great idea after all.
- Ed. Note: We occasionally receive requests to resend past issues of the newsletter. Unfortunately, the newsletter does not exist as a discrete document, and is merely a program that pulls together the HTMLs for each item posted to our website during the previous week. We can resend the latest issue. Otherwise, please access past content by going directly to bondcasebriefs.com where you can select a topic (e.g. Tax) and scroll down through the entries, which are posted in chronologic order. The website also contains a search function that will allow you to access older content. We’d apologize for any inconvenience, but you know us better than that.
- Frequently Asked Questions on FINRA’s Eligibility Proceedings for Firms Participating in the MCDC
- Initiative.New Player Seeks to Revive VRDO Market.
- Putting the Public Back in Public Finance.
- CDFA Fundamentals of Economic Development Finance Course.
- GAI Consultants, Inc. v. Homestead Borough – Appeals court holds that TIF Agreement is an ongoing contract, and therefore claims for reimbursement of property tax assessment appeal refunds are not subject to the four-year statute of limitations for contract actions.
- Indian River County v. Rogoff – District Court holds that counties lacked standing to request a preliminary injunction vacating the U.S. DOT’s authorization of PABs to construct a rail line traversing the counties; issuance of the PABs would not redress the counties’ alleged environmental injuries, as the developer was prepared to proceed using alternate sources of financing.
- And finally, we do our best to cover each and every inverse condemnation case that comes our way. That being said, should you wish to ensure that your case makes the cut, please be sure that the opinion begins, “In 2011, the City of St. Petersburg demolished Christine Lacy’s house after it was damaged in a shoot-out between St. Petersburg police and Lacy’s husband. Yeah, we’re gonna go ahead and publish that.
- 36 Underwriters to Pay $9.3M to Settle Under SEC MCDC Program.
- Voluntary Reporting of Bank Loans – Best Practice or Sword of Damocles?
- New Resource Available for Municipal Advisors Developing Supervisory and Compliance Systems.
- GFOA Seeks MA Conduct Rule Changes to Reduce Issuer Costs, Burdens.
- The Dirty Business of Paying for Ratings.
- Behind Chicago’s Rift With Moody’s: Rater’s Tough New Stance.
- New Issue Price Regs Proposed.
- NABL Submits Comments to IRS on TEFRA Regulations.
- Dacus v. Parker – Supreme Court of Texas holds that failure of ballot proposition – for a proposed city charter amendment – to mention drainage charges to be imposed on most real property owners across the city rendered drainage systems and streets funding measure invalid.
- And finally, Don’t Quit Your Day Job is brought to you this week by Justice David E. Nahmias of the Georgia Supreme Court, whose opinion in a sexually oriented business ordinance case begins with this zinger, “The [strip club] asserts that when its employees dance nude and serve alcohol, they are clothed with constitutional free speech protection, which the City of Doraville’s Code of Ordinances attempts to strip away. Ouch. And yes, we are fully aware of the rank hypocrisy inherent in this criticism, which is why this entry could just as well have been entitled, “Mr. Pot, meet Mr. Kettle.”
- Fed Is Expected to Shift on Muni Bonds.
- MSRB Files MA Core Conduct Rule With SEC For Approval.
- Conduct Rule ‘Unclear’ on Underwriters Giving Advisory Services.
- Dealers Raise Some Concerns About New Trade Data Requirements.
- He Made $3.8 Million in Fees in an Odd Little Corner of the Muni Bond Market.
- Muni-Bond Insurance Actually Pays Off, Report Says.
- NABL Seeks Guidance Projects on Reissuance, Issue Price.
- Golden State Water Company v. Casitas Municipal Water District – Court of Appeal holds that bonds issued pursuant to the Mello-Roos Act can be used to finance eminent domain actions, in this case the acquisition of a private water utility by a newly-formed community facilities district.
- Clarke County Reservoir Com’n v. Abbott – Supreme Court of Iowa holds, as a matter of first impression, that joint public-private county reservoir commission, organized under joint governmental activity statute and including private members lacking the power of eminent domain, could not itself exercise the power of eminent domain or serve as an acquiring agency seeking a declaratory judgment of public use.
- And finally, Great Moments in Deductive Reasoning is brought to you this week by Wentworth v. Coldwater, in which cop conducts traffic stop of driver and releases him with a stern warning for a lane violation. Driver immediately proceeds to kill some folks (oops!), but court lets cop off the hook due to the fact that there was absolutely nothing to indicate that the driver may have been a wee bit intoxicated. I mean, besides “an odor of alcohol emanating from the vehicle, admission that others in vehicle had been drinking, high rate of speed, erratic driving, that it was 2:37 a.m. on a Saturday night, intoxicated driver’s numerous past driving offenses, including alcohol-related offense, and intoxicated driver’s admission that he was traveling from a local bar.” Other than that…
- SIFMA to SEC: No Exemptions for Non-Dealer MAs.
- MSRB Seeks Approval to Enhance Post-Trade Data Available on EMMA.
- Key Regulator Shows No Sign on Budging on Muni Bank Rule.
- Why Some Public Pensions Could Soon Look Much Worse.
- Moody’s: Modest Credit Impact for GASB Pension Changes, but Contribution Weaknesses Now Highlighted.
- SLGS Sales Halt May Pose Challenges for Small Issues.
- Chicago’s Gamble on Disclosure.
- Cottrell v. Atlanta Development Authority – Supreme Court of Georgia holds that City development authority was not required to actually construct, nor to own, new stadium project in order for it to issue revenue bonds to fund the project or for tax proceeds paid to the authority to be considered as part of the “revenue” to pay for the bonds.
- Greene County Development Authority v. State – Supreme Court of Georgia holds that record supported finding that county development authority’s proposal to issue revenue bonds to finance construction of charter school was not sound, feasible, and reasonable and, thus, validation of bonds was not warranted.
- And finally, appearances to the contrary, Caicedo v. Caicedo is not a divorce case, but rather the bizarre tale of Officer Caicedo running over a young boy also named Caicedo. What the hell are the odds of that? Then we have the the Maine property owner who waged war against approval of his neighbor’s Mother of All Benign Uses – a Frisbee golf course. This guy suffering from some kind of early-onset allergy to hippies?
- Cities Paying Millions to Get Out of Bad Bank Deals.
- NASACT Responds to GASB’s PVs on Leases.
- NASACT Responds to GASB’s PVs on Financial Reporting for Fiduciary Responsibilities.
- Dealer Donations to Mayor’s Fund in LA Legal, But Raise Eyebrows.
- Supremacy’s Claws: How Two Judges are Changing the Pension Debate.
- City of Topeka v. Imming – Court of Appeals holds that, because the state law creating STAR bonds – the method chosen by the City to finance its purchase of property to establish a redevelopment district – permitted a referendum election only in cases where a protest petition is filed, citizen was not entitled to a writ of mandamus compelling an election or repeal of the ordinance, as citizen’s petition was not a protest petition.
- And finally, appeals court, in a shocking turn of events, declines to order the demolition of newly-constructed 40,000 square-foot grocery store and two additional retail commercial buildings. Next time around, fellas, perhaps request injunctive relief pending appeal? Just a thought. And, although it was surely an innocent mistake, BCB is now soliciting amicus briefs for Spellcheck v. Foxxxy Ladyz Adult World, Inc.
- MSRB Publishes New Fact Book of Municipal Market Data and Invites User Feedback.
- MSRB Creates Professional Qualification Standards for Municipal Advisors.
- Best-Ex Rule Presents Liquidity, Compliance Challenges.
- Conduit Issuers, Dealers Face Some MA Challenges.
- Orrick Advises Goldman on Unique Bridge Financing to Propel Transbay Transit Center Project Down the Track.
- S&P: Proposed Criteria Changes Will Bring Greater Transparency to U.S. Municipal Water and Sewer Systems.
- Mixed Reviews on Disclosing Tax Incentives.
- IRS Issues Proposed Regs on Determining AFRs for Tax-Exempt Bonds: Tax Analysts
- Orrick: New Clean Renewable Energy Bonds IRS Notice 2015-12 Application Submission and Requirements.
- Louisiana Local Government Environmental Facilities and Community Development Authority v. All Taxpayers – After District Court declines to validate PACE bonds on due process grounds, Court of Appeal holds that state taxpayers and property owners do not have a protected property interest in challenging the validity of a bond resolution, but that it could not validate the bonds due to the Development Authority’s failure to publish or introduce into evidence the bond resolution, notwithstanding the fact that no objections to the validation had been filed.
- Hartland Glen Development, LLC v. Township of Hartland – Court of Appeal rejects Tax Tribunal’s blanket assertion that special assessments encumbering property can never result in a decrease in the property’s true cash value (TCV); remands for factual inquiry as to whether the outstanding special assessments in this instance can and did decrease the property’s TCV.
- And finally, we learned this week, via Binschus v. State, Dept. of Corrections, that the term “endorsed hallucinations” doesn’t mean what we initially assumed, thus foreclosing a promising source of revenue for this admittedly delusional publication.
- Municipal Legal News – February 2015 – Volume 1, Number 1: Dickinson Wright
- SEC Officials Pushing Harsher Penalties, Streamlined Disclosure.
- Municipal Advisors Concerned About IRMA Exemption.
- March 6 is the Comment Deadline on the GASB’S Proposals on Fiduciary Responsibilities and Lease Accounting.
- Swimming with the Sharks: Goldman Sachs, School Districts, and Capital Appreciation Bonds.
- Draft Accounting Standards Raise Thorny Questions About Accounting for P3 Risks.
- IRS to Allocate Nearly $1.4 Billion in New CREBs Volume Cap: McGuireWoods
- In re City of Stockton, California – Bankruptcy Court confirms the City of Stockton’s chapter 9 plan of adjustment of debts, holding that pension contracts entered into by the City, including its pension administration contract with CalPERS, may be rejected pursuant to Bankruptcy Code § 365. 11 U.S.C. § 365; bankruptcy practitioners will want to read this interesting, well-written opinion in its entirety.
- In re Woodham – Supreme Court of Georgia holds that attorney’s conduct in asking developers to pay him 1%($1.3 million!) of the bond amount to dismiss complaints in intervention in bond validation proceedings did not violate rule of professional conduct forbidding an attorney from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation; Court seems to be letting him off the hook because he was completely honest about the fact that this was a shakedown.
- In re City of Detroit – In this Amended Opinion and Order Regarding the Reasonableness of Fees Under 11 U.S.C. § 943(b)(3), Bankruptcy Court finds that the fees billed to the Detroit by the professionals engaged in the City’s bankruptcy and restructuring were reasonable; Court extremely complimentary of the lawyers involved in this case; worth a skim.
- In re City of Detroit – Previously-published Detroit bankruptcy opinion now with Westlaw Headnotes, making it much easier to navigate this monster.
- And finally, in its opinion confirming the fees charged by the professionals in the Detroit kerfuffle, the Bankruptcy Court noted that, among others, Jones Day, Debevoise & Plimpton, Lazard, and Pepper Hamilton had filed briefs supporting confirmation. In opposition? A Ms. Angles (sic?) Hunt. The occasional David notwithstanding, the smart money remains on the big guy.
- US Municipal Credit Report, Fourth Quarter and Full Year 2014.
- The Bond Lawyer – Winter 2015
- GFOA GAAFR Supplement.
- Lawyers Recommend Disclosure Strategies in Wake of MCDC.
- What Obama’s 2016 Budget Means for States and Localities.
- Best Bonds Seen Due Beyond 22 Years as U.S. Expands: Muni Credit.
- GFOA Executive Board Approves 10 Best Practices, Advisories.
- Recent Favorable IRS Guidance for Tax-Exempt Bond Financed Facilities: Ballard Spahr.
- Board of Trustees of City of Omaha Police and Fire Retirement System v. City of Omaha – Supreme Court of Nebraska holds that board of trustees of city retirement system had authority to hire actuarial consultant at city’s expense, but lacked authority to hire private legal counsel unless there was a conflict of interest preventing city attorney from serving.
- And finally, for evidence of a little clerk-on-clerk violence going down behind the scenes at the Alabama Supreme Court, see the following: Murdock, J., filed opinion concurring specially; Moore, C.J., filed opinion concurring in the result; Main, J., concurred in the result; Shaw, J., filed dissenting opinion; Bryan, J., filed dissenting opinion. Kumbaya, anyone? Anyone?
- Program Note: This week’s issue includes links to articles published by Tax Analysts, which is a subscription service. It’s a deservedly popular service, so please check with your librarian or tax folks to determine if your firm is already a subscriber. We’re working on obtaining permission to publish full articles.
- MSRB to Discuss MA Exams, Gift Restrictions, Principal Transaction Disclosure.
- Muni Groups: SEC Disclosure Rule Outdated, Needs Overhauling.
- Dealers to MSRB: Withdraw Principal Trade Disclosure Proposal.
- SIFMA Supports Increased Bond Market Price Transparency for Investors; Urges Greater Access to and Usage of Existing Data on FINRA and MSRB Systems.
- QPIBs Provide a Level Playing Field for Public-Private Partnerships.
- S&P: Why U.S. Availability Projects are Not Rated the Same as the Counterparty.
- GASB Adds External Investment Pools to Its Technical Agenda.
- WSJ: Detroit’s Lawyers and Advisers Defend Billing.
- Congress Extends QZABs, New Markets Tax Credits; Continuing Effect of Sequestration: McGuire Woods
- American Federation of Teachers v. State – Supreme Court of New Hampshire upholds statutory amendments affecting the calculation of benefits under the New Hampshire Retirement System, finding that the statute’s defining of “earnable compensation” did not create a contractual right to a fixed definition of that term.
- And finally, Argabrite v. Neer was good enough to provide us this week with the most accurate description of the BCB workplace to date, “atrocious, and utterly intolerable in a civilized society.”
- Program Note: We’ll be taking next week off to spend some much-dreaded time with our families. We’ll be back on the 30th to wrap up the year.
- S&P: U.S. Local Government Rating Review Shows Varied Economic Conditions Being Met With Sound Financial Underpinnings.
- S&P: U.S. State and Local Government Credit Conditions Forecast: For 2015, the Future is Now.
- MSRB Adopts Best-Execution Rule to Enhance Fairness and Efficiency in the Municipal Securities Market.
- SIFMA Submits Comment Letter to MSRB on MSRB Rule G-20 relating to Gifts, Gratuities and Non-cash Compensation.
- S&P Request for Comment: U.S. Public Finance Waterworks, Sanitary Sewer, and Drainage Utility Systems: Methodology and Assumptions.
- NABL Submits Comments to IRS on Purpose Investment Valuation.
- Nabors, Giblin deviously waits till winter to advertise a public finance associate position in sunny, sunny Tampa, Florida.
- And finally, condo association engages in ruinously expensive litigation to (rather uncharitably) prevent sewer district from running a trunk line across its property, only to eventually be stuck with both a sewer line and a $1,350 payment for the easement, which presumably more than covered its attorneys fees. Is there such a thing as a Pyrrhic Defeat?
- SEC Raises Pressure on Borrowers as Leniency Ends: Muni Credit.
- SEC Seeking Comments on Disclosure Rule.
- MSRB to Accept Disclosures about Municipal Asset-Backed Securities.
- Proskauer: Firms Have Roadmap for Expanding Litigation of Customer Disputes After Second Circuit Holds Forum Selection Clauses Trump FINRA’s Mandatory Arbitration Rule.
- MSRB and FINRA to Host Webinar on Proposals to Provide Pricing Reference Information to Investors.
- Are Muni Bonds Being Replaced by Direct Loans?
- And finally, the Inaugural Easterbrook Prize for Delightfully Written Opinions goes to Judge Charles E. Moylan, Jr. for his opinion in Holloway-Johnson v. Beall, which includes the following: a heading entitled, “A Furiously Contested Moot Question”; “a tempestuous Punch and Judy exchange of irrelevancies”; “The presence or absence of malice, simple or actual, has not been a dispositive factor in this case. It has nonetheless haunted our analysis of the voluminous caselaw on tort claims. What is ‘actual’ malice? Is there indeed some junior varsity level of malice that is less than actual? If not, what possible function is being served by the annoying adjectival qualifier ‘actual’ in the frequently, but not universally, recurring phrase ‘actual malice’?”; and a footnote reading, “This is ‘a maneuver in which a bicycle, motorcycle, or car has its front wheel or wheels momentarily lifted off the ground.’ ‘Wheelie.’ Dictionary.com Unabridged. Random House, Inc.” which may nor may not have been inserted tongue-in-cheek but, regardless, feels cheeky. Thanks, Judge.
- Mea Culpa: The Bond Case Briefs website was down for a few days last week due to a thoroughly preventable problem with our domain registration. Consequently, all emails sent our way during that period were also lost and remain unrecoverable. We sincerely apologize, both for the outage and for our inability to respond to any and all resulting requests for clarification.
- Chan Warns Of Secondary Market Crackdown.
- BDA Sends Letter to SEC on SMMP Exceptions, Requests Bifurcated Affirmation Process.
- Ballard Spahr: Regulators Decline to Exempt TOBs from Risk Retention Rule but Add Helpful Revisions and Clarifications.
- Governments Would Disclose Information on Tax Abatements Under GASB Proposal.
- New Rule Could Require Governments to Report Tax Incentives as Lost Income.
- Brown v. Denton – Court voids settlement agreement between city, public pension board, and union arising from closed-door mediation sessions with federal mediator, finding that mediation constituted collective bargaining, which violated state Sunshine Law.
- Rotz v. Van Kampen Asset Management – Appeals court dismisses shareholder derivative action brought against investment trusts and their financial adviser in connection with the redemption of auction rate securities, finding that the decision of disinterested trustees not to pursue litigation against the adviser – based on a comprehensive report by a disinterested special litigation committee – was protected by the business judgment rule.
- Kozel v. Andrews – Court of Appeals holds that bankruptcy trustee failed to present sufficient evidence that members of bankrupt hospital’s board had consciously disregarded the risk that approval of capital project, including $17.3 million in revenue bonds, would result in injury or damage to the hospital, granting summary judgment in favor of board members sued by trustee.
- And finally, get ready to play a game we call Deposition Transcript or Your Editor’s Typical Saturday Night? “I knew I was coming up to the steps, so I paid attention. I just didn’t see the step there…. The next thing, I just sort of-I was going-I just shot out like that, and my head was going towards the car that was parked there, and I thought I was going to hit the car head-on. And then I just splatted on the sidewalk.”
- Quick Note: We are fully aware that the one category in which BCB exceeds its mandate as a municipal finance publication is our coverage of case law, where we include cases more relevant to city attorneys (e.g. zoning, municipal ordinances) than to those of you representing large issuers and underwriters. If you’ve been scanning through the case briefs and asking yourself, “What the hell does this have to do with me?” please note that all cases relevant to municipal issuance and finance will be featured in the Highlights section.
- MSRB Strengthens Continuing Education Requirements for Municipal Securities Dealers.
- BDA Submits Comment Letter to MSRB on Rule G-37.
- IRS LTR: Income Exempt as Exercise of Essential Government Function.
- MCDC III Podcast is Now Available Online.
- City of San Bernardino, Cal. – Bankruptcy Court holds that city acted in “good faith” when, in response to financial crisis, it filed for Chapter 9 relief although city did not engage in meaningful prepetition negotiations with its creditors and did not seriously consider alternatives to filing for Chapter 9 relief.
- Kohl’s Illinois, Inc. v. Marion Cty. Bd. of Revision – Supreme Court of Ohio holds that Tax Increment Financing agreement’s no-contest covenant, which precluded developer and property owners from contesting assessed valuations of improvements for real property tax purposes, did not impose jurisdictional limitation on county Board of Revision regarding property owner’s valuation complaint and that, as a result, the beneficiaries of the covenant had the burden to come forward and prove their entitlement to a dismissal of the complaint.
- Couple of big public utilities cases below, if you’re into that kind of thing.
- And finally, this week’s Interesting Conflict, Your Honor is brought to you by Ray v. Judicial Corrections Services, Inc., in which a certain Alabama gent served as a part-time judge for a number of municipalities. Oh, did I mention that his full-time job was muni bond salesman? What could possibly go wrong?
- Federal Accounting Board Releases P3 Disclosure Requirements for Comment.
- SEC, FINRA and the MSRB to Hold Compliance Outreach Program for Municipal Advisors.
- S&P: The Updated General Obligation Criteria Reflect the U.S. Local Government Sector’s Strength and the Importance of Qualitative Analysis.
- Insurers Build Market Share as Detroit Shows Value: Muni Credit.
- Judge Says Cities in Bankruptcy May Reject Pension Contracts.
- IRS TE/GE Advisory Committee Requests Applications.
- NABL MCDC Teleconference.
- Tulsa Indus. Authority v. City of Tulsa, Oklahoma – Supreme Court of Oklahoma holds that bondholders who purchased bonds used to finance the underlying transaction were necessary parties to declaratory judgment action by city industrial authority seeking to validate authority’s expenditure of public funds, in which taxpayer intervened seeking to enjoin authority from making payment to bondholders, where bondholders could have chosen to prosecute an action separately from the lawsuit, leaving authority subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations.
- And finally, Great Moments In Commuting is brought to you this week by Alabama Mun. Ins. Corp. v. Allen, in which a perhaps slightly over-eager officer was chided for hitting 103 mph (in a 45 mph zone) while driving his patrol car to work. We also cover the sad tale of an epic eminent domain case that required seven years of litigation, a 100-day trial, and a 19,000 page transcript but will be remembered solely for the phrase, “an overwhelming smell of urine in the stairwells and hallways.” Hopefully, not in the courthouse.
- MSRB Webinar: Request for Comment on Extending MSRB Rule G-37 to Municipal Advisors.
- SIFMA Advanced Muni Bond School.
- NAST, NASACT Make 11th Hour Appeal on Munis to Regulators.
- Fed: Some Munis May Become HQLA in Liquidity Rule.
- Lawmakers Threaten SEC with Ultimatum on MCDC.
- Muni Managers Unearth Secondary Market for Price Discovery.
- Driving Muni Bond Rally: Communities Reluctant to Borrow.
- IRS Approves Proposed Allocations of Build America Bond Proceeds.
- Gary Community School Corp. v. Indiana Dept. of Local Government Finance – Tax Court holds that state Department of Local Government Finance exceeded its authority in reducing School Corporation’s exempt debt service fund levy because the statutory framework for reviewing such levies did not authorize the DLGF to consider other sources of funding available to the school (e.g., its general fund).
- And finally, the judge in Citizens for Restoration of L Street v. City of Fresno noted the following in an historic preservation matter: “[The house] had lost the majority of its historic integrity because of the loss of original woodwork, enclosure of the original front porch, alteration of a character-defining bay window, installation of vinyl sash windows, replacement of the original roof, and other inappropriate restoration and alteration elements. Inspections showed the interior was 90 percent gutted, the upstairs ceiling was collapsing, and the presence of fungus, dry rot, feline and human feces, lead paint and asbestos.” In other words, much like the rest of the Fresno housing stock.
- Ballard Spahr: Industry Concerns Prompt SEC to Modify MCDC Initiative.
- U.S. SEC’s Piwowar Calls for More Price Transparency for Munibonds.
- Lawyers: MCDC Changes Foster More Tension.
- U.S. Treasury to Put Public Pensions Under Scrutiny.
- California High-Speed Rail Bonds Revived by Appeals Court.
- Register for MSRB’s Webinar on Revised Draft Rule G-42.
- California ex rel. California Dept. of Transp. v. U.S. Dept. of Labor – District Court issues interim ruling in dispute between California transit agencies and the Department of Labor arising from DOL’s withholding of over $1 billion in transportation funding in connection with the elimination of certain collective bargaining rights under California’s recently-enacted Public Employees’ Pension Reform Act; motion for summary judgment to be heard on August 28 and we’ll keep you posted.
- Madison Teachers, Inc. v. Walker – Supreme Court of Wisconsin holds, inter alia, that provisions of state budget repair act that prohibited city from paying on behalf of a general employee the employee share of required contributions to the city employees’ retirement system violated neither the Home Rule Amendment, nor the Contract Clause.
- And finally, Great Moments in Pedagogy is brought to us this week by DeYoung v. Commission on Professional Competence of the Hueneme Elementary School District, in which Mr. DeYoung acted out the fantasies of many an elementary school teacher when he became “angry and frustrated with students who were talking and laughing during a classroom movie.” “He grabbed some of the students, told them to ‘shut up,’ called them ‘stupid,’ struck one student in the foot with a chair, hit three students on top of the head with a yardstick or metal desk leg, and threw a pencil or pen at two or three students.” Was it the children, the teacher, or the court who couldn’t manage to distinguish between “a yardstick or metal desk leg?”
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