HomeMy WebLinkAboutCC Res 3508 1985-08-26
RESOLUTION NUMBER ,3SCa
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY uF SEAL BEACH, CALIFORNIA, OPPOSING
CERTAW TAX PROPOSALS RELATING TO MUNICIPAL
FINANCE
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
WHEREAS, certain federal tax proposals, introduced would alter
federal income tax laws, severely affecting federal management
in local government; and
WHEREAS, the federal government would tax interest income received
on obligations issued by a state, city or county, if
any private person or corporation or combination of private
persons or corporations used more than one percent of
the proceeds of the obligations, directly or indirectly;
and
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WHEREAS, local governments issuing tax-exempt municipal obligations
would be required to rebate the United States government
all arbitrage earnings, where such earnings further reduce
local taxpayers costs; and
WHEREAS, the market for municipal obligations would be reduced
from its current size, by denying certain interest expense
deductions for banks and thrift institutions, which hold
tax-exempt municipal bonds by the general reduction in
personal and corporate taxes.
I~OW, THEREFORE, BE IT RESOLVED that the City Council of the City
of Seal Beach opposes certain federal tax proposals relating to
municipal finance and hereby directs the City Manager to inform
the California Congressional Delegation that Council is convinced
that the tax proposals would radically affect the tools available
to cities and counties for accomplishing goals, would restrict
local governments use of tax-exempt bonds for municipal purposes,
and would shrink the market for tax-exempt municipal bonds.
NOES: Councilmembers
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PASSED, APPROVED AND ADOPTED by the City Council
Seal Beach at a meeting the of held on the
1985, by the following vo
AYES: Councilmember
ABSENT: Councilmembers
ATTEST:
S ATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF SEAL BEACH
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) SS
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I, Joanne M. Yeo, City Clerk of the City of Seal Beach, California,
do hereby certify that th~~~~Oing resolution is the original
copy of Resolution Number on file in the office of the City
Clerk, passed, approved and adopted by the City Council of th~?/u,
City of 1 Beac at a regular meeting thereof held on the ~11~
day of , 1985.