HomeMy WebLinkAboutRES 11.12.1985- Proposals Relating to Municipal BondsRESOLUTION IN OPPOSITION TO.,.-
'AX PROPOSALS RELATING TO
@MUNICIPAL BONDS
WHEREAS, the United States Congress is currently considering tax reform
proposals including proposals relating to tax-exempt bonds; and
WHEREAS, included in the proposals under consideration are provisions
which would eliminate or limit the tax -exemption of state and local
government bonds including bonds issued by the City of Georgetown,
Texas; and
WHEREAS, these proposals would deny tax-exempt status to bonds where the
private sector benefits directly or indirectly from the use of a portion
of the proceeds of the bond issue; would eliminate all advance
refundings of tax-exempt bonds; would restrict the investment of bond
proceeds; would require that certain earnings from the investment of
bond proceeds be paid to the U.S. Treasury Department; would require
that an Internal Revenue Service information report be filed for every
bond issue; would impose additional taxes on banks that purchase
tax-exempt bonds; and would subject the holders of tax-exempt bonds to
minimum tax liability; and
WHEREAS, the proposed limitations on tax-exempt municipal bonds would
adversely affect the City of Georgetown by increasing borrowing costs,
requiring continuous administrative review of bond issues and the use
made of facilities financed with such issues, requiring filings with the
Internal Revenue Service and review by the Internal Revenue Service of
each bond issue, and jeopardizing the tax exemption on bonds where the
private sector benefits directly or indirectly from the use of a project
financed by such bonds; and
WHEREAS, the municipal bond proposals will result in an increase in
costs which must be passed on to the consumer, will reduce the ability
of municipalities and authorities to provide vital public services and
will impose added federal bureaucratic controls over the provision of
such services;
BE IT, THEREFORE, RESOLVED, that the Georgetown City Council of
Georgetown, Texas goes on record as opposing the limitations and
restrictions on municipal bonds under consideration by the United States
Congress, which, if enacted into law would adversely affect all
tax-exempt municipal bonds, including bonds issued by the City of
Georgetown, Texas; and
BE IT FURTHER RESOLVED, that copies of this Resolution shall be sent to
members of Congress urging them to oppose the provisions of the tax
proposals under consideration by the United States Congress which would
impose new limitations on the issuers and purchasers of municipal bonds.
Passed by the City Council of the City of Georgetown, Texas
on the 12th day of November, 1985.
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ATTEST:
Carl Doering Eb C. Girvin
Mayor Mayor, Pro-Tem
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