WASHINGTON — The Internal Revenue Service has notified Cañon City, Colo., that it has closed an audit without changing the tax-exempt status on $12.73 million of certificates of participation issued in 2008 to provide financing for improvements to its water treatment facility.
The IRS notified the city of the audit closure in a May 24 letter and the city disclosed the letter in a notice it filed with the Municipal Securities Rulemaking Board’s EMMA system.
The IRS notified the city’s finance department of the audit in a May 9 letter.
The city leased the water treatment facility to the Finance Authority, a Colorado nonprofit that was formed in February 2003 to facilitate public improvements to city facilities.
Cañon City is located in Fremont County, approximately 45 miles southwest of Colorado Springs.
Piper Jaffray & Co., was the underwriter and Sherman & Howard LLC was special counsel for the transaction.