Resolution 07525CITY OF 74 71' RESOLUREON NO. 71,5
OPPOSING CHANGE BY FEDERAL '711: '1 IN TAX-EXEMPT STATUS
OE' STUDICIPAL BONDS
WHKREAS, this Council is informed that the Congress of the United States, in seekirg
acceptable methods of tax reform, is again n' I'' the possibility of removing or otherwise
changing the tax-exempt status of interest on ,,ii 1,71,: obligations, or Timitirg individual tax
preferences in such a manner as to directly affect the market value of otherwise exempt securities,
and that legislation to this effect has been passed by the House of Representativos;
WHEREAS, agy such change wruld have severe adverse consequences on the econegy of all
local
44. (1. throughout the United States, including this municipality, in that the market for
any securities of many local government agencies might disappear completely., the cost of municipal
financing mould :materially increase for those whion could. market their securities at all, property
taxes would increase to a substantial extent because of the greater expense invbived in higher
interest rates, charges for municipal utility service would substantially increase because of the
higher cost of revenue financing, federal srbrentiens would hays to be increased and the coot cf
administesRrg federal programs mosad go up proportionately, all to the detriment of local and
municigal taxpayers throughout the United States, including the taxpayers of this City:
▪ EN, THEREFORE, ED IT RESOLVED BY THE COUNCIL OF THE CITY Oh ALAMEDA that strong opposition
is hereby expressed to any legislation which wisuld rescind, modify or weaken the tax-exempt status of
interest on mrniotpal obligations, including tho tax reform tyial which has been passed by the House,
(H.R. 18270, Gist Congress, 1st sessien) and the honorable representatives of the State of California
in the Congress of tno United States are respectfully urged to oppose any such proposed legislation
with vigor and fortitude.
D E IT FURTHER, RESOLVED that certified copies of this Resolution be forwarded, to the
Honorable Alan Cranston and the Honorable Geerge Murphy, United States Senators from California, and
to the Honorable George P. Miller, United States Congressman for the 8th District of Californiu-
the undersigned, hereby certify that the foregoing Resolution. mas duly' anderegulargy
introduced and adopted by the Council of the 5/ of Alameda in regglar meeting assembled on the
18t day of' August, 1W62, by the following vote, to wit:
AYES: CourciImen Levy, Longater, McCall. and President La Croix. jr., (A).
OES: None.
ATEEAT: Councilaan Fore, (I).
IV WITNESS NREREOF, I have hereunto set my hand and affixed the official. seal of said
City this 20th day of August, 1H69.
(sEAL)
IRMA L. NELSON
City Clerk of the City of Alameda
* * *
I hereby certify that the foregoing is a full, true and correct copy of "City of Alamedu
Resolution No. 7525, OPPOSING GNAWER BY FEDERAL GOVERMENT IN TAK-EXEMPT STATUS OF PINJOIPAL BONDS,"
introduced and adopted by- the Council of the Gity of Alameda. on the 19th day of August, 186R.
City:TR:erg. of the City of Alameda