HomeMy WebLinkAboutCC RESO 9928RESOLUTION NO. 9928
A RESOLUTION OF THE CITY OF NATIONAL CITY URGING
THE UNITED STATES CONGRESS TO REJECT LEGISLATION
WHICH ELIMINATES THE TAX EXEMPT STATUS OF
MUNICIPAL BONDS
WHEREAS, proposed legislation to change current
tax exemptoon of State and local government bond interest
is before the Congress of the United States; and
WHEREAS, if such proposed legislation is adopted,
it will constrict substantially the market for State and
local government bonds, increase the cost of capital financ-
ing for localities, and raise innumerable legal and consti-
tutional problems; and
WHEREAS, governmental agencies throughout the
United States have heretofore relied heavily on tax exempt
bonds to finance the various functions of said agencies,
which bonds are attractive to the bond market because of
their tax exempt status, and
WHEREAS, any change would have catastrophic con-
sequences on the economy of all local governments through-
out the United States, including this agency, in that the
market for securities of many local government agencies
would disappear completely and the cost of municipal finan-
cing would materially increase;
NOW, THEREFORE, be it resolved by the City Council
of the City of National City as follows:
That this council is strongly opposed to any leg-
islation which would rescind, modify or in any way weaken the
tax-exempt status of interest on local governmental bond
obligations.
That the legislatures representing this area and
the State of California in the Federal legislature are urged
to oppose any such proprosed legislation.
That the City Clerk is directed to send copies of
this resolution to our representative in Congress.
PASSED and ADOPTED this l6th day of September,
1969.
ATTEST: