Annual Report of Bonded Indebtedness Filings Past Due
We recently received notice from the Arizona Deputy Treasurer that many bond issuers failed to file their annual report by June 30 as required by A.R.S. §35-501.
Counties, cities, towns, school districts, irrigation districts, other political subdivisions and municipal property corporations (collectively “Issuers”) are required to file reports of all issues of bonds, certificates of participation or other securities (including bonds directly placed with banks, or WIFA and GADA loans) by June 30 of each year with the Arizona State Treasurer (the “Annual Reports”).
The Annual Reports should include financial information pertaining to the bonds or securities regarding the par amount, the interest rate, repayment schedule (including principal and interest), sources of repayment, and other data described in the statute. The Annual Reports were previously filed with the Arizona Department of Revenue, but a statutory change in 2015 made the Arizona State Treasurer the recipient of the Annual Reports.
The Department of Revenue previously permitted Annual Reports that included all related entities (for example, a municipality would include its related municipal property corporation, improvement districts and community facilities districts all in one Annual Report). However, the State Treasurer may not accept Annual Reports that combine information for related entities.
Issuers should 1) review their Annual Report compliance process and insure that the Annual Reports are being sent to the State Treasurer (instead of the Department of Revenue), and 2) confirm with the State Treasurer that the 2016 Annual Report has been submitted in an acceptable format.
In addition, Issuers may need to contact their financial advisors for assistance regarding the financial data in the Annual Reports.
For more information or questions regarding the Annual Reports, please contact any of our Public Finance attorneys listed below.