RES 1978-38 - 0000691974
RESOLUTION NO. 38 -1978
A RESOLUTION IN OPPOSITION TO THE MUNICIPAL TAXABLE BOND ISSUE
WHEREAS, Congress is currently considering legislation which would remove
municipal bonds from their nontaxable status and put them in a taxable
status, and
WHEREAS, it is the opinion of many people in the finance field that this
legislation would hinder rather than help the sale of municipal bonds,
and
WHEREAS, municipalities would be dependent on the federal government's
action and financing before selling municipal bonds, and
WHEREAS, this would tend to create much uncertainty as to the availability
and timing of municipal bond financing, and
WHEREAS, the ultimate cost of the federal subsidy would be paid by all
of the tax payers of the country, and
WHEREAS, it is doubtful that the taxing of municipal bonds would have any
significant effect of shifting the tax burden to those with higher income,
and
WHEREAS, if this legislation were to pass, another federal bureaucracy
would have to be created to handle the administrative work of this new
federal program.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Fridley hereby
goes on record as being opposed to the so- called municipal taxable bond
option.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 1ST DAY OF MAY, 1978.
ATTEST:
CITY CLERK - MARVIN C. BRUNSELL
0/dj - `�--
MAYOR - WILL J. NEE
F1