11-04-1985-Resolution-Resolution In Opposition to Tax Proposals Relating to Municipal Bonds-11/04/1985RESOLUTION IN OPPOSITION TO
TAX 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
Sanger; 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 in-
vestment of bond proceeds; would require that certain earnings from
the investment of bond proceeds be paid to the U. S. Treasury Depart-
ment; would require that an Internal Revenue Service information re-
port 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 Sanger, Texas by increasing borrow-
ing 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 exemp-
tion 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 City Council of the City
of Sanger, 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 Sanger, Texas; and
BE IT FURTHER RESOLVED, that copies of
be sent to members of Congress urging them
of the tax proposals under consideration by
gress which would impose new limitations on
chasers of municipal bonds.
PASSED AND APPROVED this
ATTE Sa,.T :
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Ci S etary
this Resolution shall
to oppose the provisions
the United States Con -
the issurers and pur-
�`� day of ;�°`,�:�,�;��-�.��. 1985
U --o y ,�,,'' U -
Mayor � f
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