In order to ensure that no money is owed to the United States Treasury, Winamac Town Council members agreed to allow Umbaugh and Associates to assess the status of their existing bonds when they met last Monday.

Winamac Town Attorney Justin Schramm explained that whenever the town bonds a project, the bonds are tax-exempt since they were governmental bonds issued for a utility project.

He added that typically, bonds are subject to arbitrage regulations and if any excess interest or income earned are invested into higher yielding bonds for additional proceeds. However, since the town’s bonds are tax-exempt, different rules apply. Continue reading →