Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Professional Services Contract with Hilltop Securities Asset Management, LLC (HSAM) for Arbitrage Rebate Compliance Services
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: June 2nd, 2026
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Chief Financial Officer
Trudy Mathis, Finance Director
Kelvin Bryant, Investment & Treasury Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution
ITEM SUMMARY:
• This resolution authorizes the City Manager to enter into a professional services contract with Hilltop Securities Asset Management, LLC (HSAM) for Arbitrage Rebate Compliance Services required for federal tax compliance on the City’s outstanding debt issuances.
BACKGROUND INFORMATION:
• HSAM has provided arbitrage rebate compliance services to governmental entities nationwide since 1991 and is recognized for its expertise in performing complex arbitrage calculations in accordance with IRS regulations.
• The scope of services includes reviewing investment schedules associated with bond proceeds, performing arbitrage rebate calculations, and preparing a comprehensive report detailing the rebate amount, bond yield, investment yield, and other relevant compliance information.
• The proposed agreement establishes a five-year contract term beginning on the date of acceptance. The agreement may be terminated by either party with or without cause upon thirty (30) days written notice.
FINANCIAL SUMMARY:
• Funding for this contract is available across four departmental budgets.
• The total cost of the five-year agreement is approximately $215,000, which will be allocated across these accounts over the duration of the contract.
BOARD OR COMMISSION RECOMMENDATION: N/A