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P.O. Box 427
Medford, MN 55049 651.645.6272
Informational Sessions
Should You Be Concerned About Arbitrage?
Join us to learn how to keep your district on the right side of the IRS.
Thursday, October 9, 2025
10:00 AM - 11:00 AM (CDT)
Join Us Virtually
Event Details
Ever wonder what happens when school districts borrow money for major projects but end up earning more than expected on the side? It might sound like a good problem to have—but if not managed correctly, it can lead to serious issues with the IRS.
In past years, when short-term interest rates were lower than long-term borrowing costs, arbitrage wasn’t a major concern. But recently, short-term investments occasionally yield more than the interest paid on long-term debt. That kind of interest rate mismatch can trigger arbitrage rebate liabilities—and they’re not the kind you can ignore.
We’ll guide you through:
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The fundamental rules (don’t worry—it’s straightforward),
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Critical deadlines (so you don’t miss key compliance dates),
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Smart financial strategies—like leveraging tax-exempt investments to maximize earnings and reduce exposure.
The takeaway? Arbitrage compliance may seem like a minor detail, but it carries real consequences. With the right planning and strategies, districts can stay compliant, optimize their portfolios, and avoid unexpected tax problems.
Join us to learn how to keep your district on the right side of the IRS.
About Our Presenter
John Major has over a decade of investment and financial services experience helping clients navigate the financial markets. Before joining American Deposit Management in 2017, he held Financial Advisor positions with national wealth management firms. He has partnered with more than 80 school districts across the Midwest to manage bond proceeds for capital projects totaling more than $2 billion. John is a registered Municipal Advisor Principal and a Certified Public Funds Investment Manager (CPFIM) and holds a bachelor's degree in finance from the University of Wisconsin - Milwaukee.
For More Information:
P.O. Box 427Medford, MN 55049 651.645.6272