The Internal Revenue Service has closed an audit without changing the tax-exempt status of $65 million of general obligation limited tax water and sewer bonds that were issued by Washoe County, Nev. in December 2005.
The county disclosed the audit closure in an event notice it filed with the Municipal Securities Rulemaking Board’s EMMA system.
The bonds were issued to finance a portion of the cost of acquiring, constructing, improving and equipping water and sewer projects, according to the bond documents.
The IRS began its audit of the bonds in March 2012, saying it was part of a routine examination of municipal bond debt issuances to determine compliance with federal tax law requirements.
Washoe County covers an area of 6,600 square miles, including Reno.
The payment of the principal and interest on the bonds were insured by MBIA Inc.
Swendseid & Stern, then-a member of Sherman and Howard LLC in Reno, was bond counsel on the transaction.
Hobbs, Ong & Associates, Inc. in Las Vegas and Public Financial Management, Inc. in Seattle were financial advisors.