R 0836
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RESOLUTION NO. 836
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE OPPOSING CHANGE IN TAX-EXEMPT
STATUS OF MUNICIPAL BONDS.
RESOLVED, by the City Council of the City of Arroyo Grande, California, that
WHEREAS, this City 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 individual tax preferences in such a manner as to
directly affect the market value of otherwise exempt securities, and that legis-
lation to this effect has been passed by the House of Representatives;
WHEREAS, any such change would have catastrophic consequences on the econ-
omy of all local governments throughout the United States, including this City,
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 uni-
versally increase to a substantial extent because of the greater expense involved
in higher interest rates, charges for municipal utility service would substan-
tially increase of the higher cost of revenue financing, federal programs would
go up proportionately, all to the material detriment of local and municipal tax-
payers throughout the United States, including the taxpayers of this City.
NOW, 'IREREFORE, IT IS DETERMINED, and ORDERED, that this City is strongly
opposed to any legislation which would rescind, modify or in any way weaken the
tax-exempt status of interest on municipal obligations, including the tax reform
bill which has been passed by the House, (H. R. 13270, 9lst Congress, 1st session)
and the honorable representatives 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.
On motion of Councilman Levine, seconded by Councilman Schlegel, and on the
following roll call vote, to wit;
AYES: Councilman Wood, Smith, Levine, Schlegel and Mayor Thompson
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 26th day of August, 1969.
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ATTEST: ~ .
ity Clerk I, Polly S. Miller, City Clerk of the City of Arroyo Grande, County of
San Luis Obispo, State of California, do hereby certify that the foregoing
Resolution No. 836, is a true, full and correct copy of said Resolution passed
and adopted by the City Council of the City of Arroyo Grande at a regular
meeting of said Couneil held on the 26th day of August, 1969.
WITNESS my hand and the seal of the City of Arroyo Grande affixed this
27th day of August, 1969.
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City Cl of the City of Arroyo Grande