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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 I 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 I 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 ) ) SS ) . . I 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.