HomeMy WebLinkAboutResolution 1384
WJML:KIJ:mf C/12/69
RESOLUTION NO" 1384
A RESOLUTION OPPOSING CHANGE IN TAX-EXEMPT STATUS
OF MUNICIPAL BONDS
RESOLVED, by the
C i t Y of G i 1 roy
CITY COUNCIL
of the
, Ca lifornia,
that
~>JHEREAS, this Counc i 1 is informed that the Congress of the
United States, in seeking acceptable methods of tax reform, is again
considering the possibility of removing or otherwise changing the tax-
exempt status of interest on municipal obligations, or limiting indivi-
dual tax preferences in such a manner as to directly affect the market
value of otherwise exempt securities, and that legislation to this
effect has been passed by the House of Representatives;
WHEREAS, any such change would have catastrophic consequences on
the economy of all local governments throughout the United States,
including this municipality , in that the market for any securities
of many local government agencies would disappear completely, the cost
of municipal financing would materially increase for those which could
market their securities at all, property taxes would universally
increase to a substantial extent because of the greater expense involved
in higher interest rates, charges for municipal utility service would
substantially increase because of the higher cost of revenue financing,
federal subventions would have to be increased and the cost of adminis-
tering federal programs would go up proportionately, all to the material
detriment of local and municipal taxpayers throughout the United States,
including the taxpayers of this municipality,;
NOVI, THEREFORE, IT IS DETERMINED and ORDERED, that this Counci 1
is strongly opposed to any legislation which would rescind, modify or
in any way weaken the tax-exempt status of interest on municipal obliga-
tions, including the tax reform bill which has been passed by the House,
(H.R. 13270, 9lst Congress, 1st session) and the honorable representa-
tives of the State of California in the Congress of the United States
are respectfully urged to oppose any such proposed legislation with
vigor and fortitude.
*
*
*
*
*
*
I hereby certify that the foregoing is a full, true and correct
copy of a resolution duly passed and adopted by the City Counci 1
of the City of G i 1 roy
, California, at a meeting thereof held on the 18th
day of August , 1969, by the following vote of the members thereof:
AYES, and in favor thereof,
Council Members : Batrez, Duffin, Kennedy,
~ate, Wentworth, and Goodrich.
NOES,
Counc i 1 Members
None
ABSENT, Counc i 1 Member
S i 1 va
ATTEST: / ? ~ '
~ (>Jl2~-:::;lerk.- 4~m~:;
APPROVED:
4~~A41{
/3 E; ./