CC MEETING: January 6, 2026
DATE: December 17, 2025
TO: Erin Rinehart, City Manager
FROM: Diana Vaughn, Chief Financial Officer
Chrystal Davis, Assistant City Manager
Title
Consider Authorizing the City Manager To Enter Into An Agreement With Hilltop Securities Asset Management LLC Pursuant to RFP 26-002 For Arbitrage Rebate Compliance Services In An Amount Not To Exceed $32,000.00 Annually, For A Five-Year Total Contract Not To Exceed $160,000.00.
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BACKGROUND:
Arbitrage refers to the difference between the investment earnings on tax-exempt bond proceeds and the interest paid on those bonds. When investment earnings exceed the bond yield, the excess may be subject to federal rebate requirements under IRS regulations. These rules are complex and vary depending on the specifics of the bond issue. Noncompliance can jeopardize the tax-exempt status of the bonds. The agreement with Hilltop Securities Asset Management LLC will provide the City with experienced, professional arbitrage rebate services to ensure compliance.
On October 13, 2025, the City issued a request for proposal for these services. Notifications were posted online, previous and interested vendors were contacted, and advertisements placed in the Dallas Morning News. Submissions were due on November 13, 2025. Two (2) vendors submitted qualification packets.
The Finance Department reviewed and evaluated the submissions, ultimately selecting Hilltop Securities Asset Management LLC based on criteria related to qualifications, expertise, project approach, references, fees, and prior successful service for the City of Carrollton.
FINANCIAL IMPLICATIONS:
The fee for arbitrage compliance services will be $1,400 per debt obligation, assessed during the annual calculation period, with an additional fee of $3,000 for IRS refund requests when necessary. The number of debt obligations will vary over the term of the contract as new debt issuances occur.
IMPACT ON COMMUNITY SUSTAINAB...
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