HomeMy WebLinkAbout85-604 08-27-1985CITY OF EULESS, TEXAS
RESOLUTION NO. 85 -604
WHEREAS, on May 29, 1985, President Reagan submitted his tax proposal for
"fairness, growth and simplicity" to Congress; and
WHEREAS, included in the President's tax proposals are provisions which would
eliminate or limit the tax - exemption of state and local government bonds
including bonds issued by the City of Euless, Texas; and
WHEREAS, the President's proposals would deny tax - exempt status to bonds
where the private sector benefits directly or indirectly from the use of more
than one percent of the proceeds of the bond issue; would eliminate all
advance refundings of tax - exempt bonds; would restrict the investment of bond
proceeds; would require that certain earnings from the investment of bond
proceeds be paid to the U. S. Treasurey Department; would require that an
Internal Revenue Service information report be filed for every bond issue; and
would impose additional taxes on banks that purchase tax - exempt bonds; and
WHEREAS, each of the President's proposed limitations on tax - exempt municipal
bonds would adversely affect the City of Euless, Texas, by increasing
borrowing costs, requiring continuous administrative review of bond issues
and the use made of facilities financed with such issues, requiring filings
with the Internal Revenue Service and review by the Internal Revenue Service
of each bond issue, and jeopardizing the tax - exemption on bonds where the
private sector benefits directly or indirectly from the use of more than one
percent of a project financed by such bonds; and
WHEREAS, the President's municipal bond proposals will result in an increase
in costs which must be passed on to the residents of the City of Euless, Texas,
will reduce the ability of the City of Euless, Texas, to provide vital public
services to such residents, and will impose added federal bureaucratic
controls over the provision of such services;
BE IT, THEREFORE, RESOLVED, that the City Council of the City of Euless,
Texas, goes on record as opposing the limitations and restrictions on
municipal bonds proposed by the President, which, if enacted into law would
adversely affect all tax- exempt municipal bonds, including bonds issued by
the City of Euless, Texas; and
BE IT FURTHER RESOLVED, that copies of this Resolution shall be sent to
members of Congress urging them to oppose the provisions of the President's
tax proposals which would impose new limitations on the issuers and purchasers
of municipal bonds.
ATTEST:
Kay R.'ney, City Se
APPROVED:
Harold D. Samuels, Mayor