WASHINGTON — The Internal Revenue Service has closed an audit of about $171 million of bonds issued by the East Baton Rouge, La. Sewerage Commission in 2006 without changing the bonds' tax-exempt status.
The commission disclosed the examination's completion in an event noticed filed with the Municipal Securities Rulemaking Board's EMMA system on Wednesday, five days after the IRS informed it of the audit's result.
The commission is a political subdivision of Louisiana that has jurisdiction over the public sewer system in East Baton Rouge Parish, according to the official statement for the bonds.
The examination related to $128.88 million of outstanding series 2006A revenue refunding bonds and about $42.02 million of series 2006B revenue bonds. Proceeds from the sale were used to refund sales tax revenue bonds issued in 1998, 2001, 2003 and 2004 and to finance a portion of the cost of upgrading, rehabilitating, extending and improving the sewer system owned by the commission, according to bond documents.
The bonds are backed by sewer user fees and net sales tax revenues.
Breazeale, Sachse & Wilson, LLP was bond counsel. Merrill Lynch & Co., Citigroup, Morgan Keegan & Co., Jackson Securities, Siebert Brandford Shank & Co., and Stephens Inc. were co-underwriters.