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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