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1969/08/18 City Council Resolution (2)Wv 1,4L <K]rJ :.mf x/12/69 RESOLUTION NO •- A RESOLUTION OPPOSING CHANGE IN TAX - EXEMPT STATUS O MUL�y_' C f AL BONDS RESOLVED, by the City Council of the City of Roh e,rt Park , Ca lifornia, that WHEREAS, this Council is informed that the Congress of the United States, in seeking acceptable methods of tax reform, is again considering the possibility of removing or otherwise changing the tax - exempt status of interest on .municipal obligations, or limiting indivi- dual 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 Representatives; WHEREAS, any such change would have catastrophic consequences on the economy of all local governments throughout the United States, including this City_ , in that the market for any securities of many local government agencies would disappear completely; the cost of municipal financing would materially increase for those which could market their securities at all, property taxes would universally increase to a substantial extent because of the greater expense involved in higher interest rates, charges for municipal utility service would substantially increase because of the higher cost of revenue financing, federal subventions would have to be increased and the cost of adminis- tering federal programs would go up proportionately, all to the material detriment of local and municipal taxpayers throughout the United States, including the taxpayers of this City i10W5 THEREFORE, IT IS DETERMINED and ORDERED, that this Council is strongly opposed to any legislation which would rescind, modify or in any vray weaken the tax- exempt status of interest on .municipal obliga- tions, il eluding the tax reform bill which has been. passed by the House, 91st Congress, lst session) and the honorable representa- tives of the State of California in the Congress of the United Stags are respectfully urged to oppose any such proposed legislation with vi or and fortitude. hereby certify that the foregoing is a full, true and correct copy of a resolution duly passed and adopted by the Citv Council of the City of Rohnert Park California,'at a meeting thereof held on the 18th day of August , 1969, by the following vote of the members thereof: AYES, and in favor thereof, NOES, (0) None ABSENT, (0) None APPROVED: f,' E Mayor (5) Councilmen Bgchanan, Hopkins, Roberts, Smith & Rogers .11 s Deputy City.-,:.,Clerk August 22, 1969 Mr. Kenneth 1. Jones WILSOO, JONES, MORTON & LYN01 P. 0. Box 152 an Mateo, CA - 94401 Dear Mr. Jones: Enclosed is a copy of Resolution No. 69-81, "A Resolution opposing Change in Tax-Exempt Status of Municipal Bonds", which was adopted by the City Council of the City of Rohnert Park on August 13, 1969. Copies of the enclosed resolution were sent to Senators Cranston and Murphy, and Congressman Don Clausen. very truly yours, CITY OF ROHNERT PARK Peter M. Callinan City Manager PeIC.w1f Enclosure cc: League of California Cities August 22, 1969 Congressman Don Clausen House Office Building Room 10 3 5 Washington, D. C. - 20515 Dear Congressman Clausen: Enclosed is a copy of Resolution No. 69-81, "A ResolutIon Opposing Change in Tax-Exem-pt Status of Municipal Bonds", which was adopted by the City Council of the City of Rohnert Park on the 13th day of August, 1969. Very truly yours, C I T Y. CE R 0 1.111 E R, " 117 1 Peter H. Callinan City Manager PMC: Wlf Enclosure August 22, 1969 Senator George Murphy Roox-,i 452 Old Senate office Building Washington, D. C. - 20510 Dear Senator Idiurphy: Enclosed is a copy of Resolution No. 69-81, "A Resolution opposing Change in Tax-Exempt Status of Municipal Bonds", which was adopted by the City Council of the City of Rohnert Park on August-18, 1969. Very truly yours, CITY OF ROHNERT PARK Peter M. Cal linan City Manager R'Hi-1 - w 1 f August 22, 1969 Senator Alan Cranston Room 4241 New Senate Office Building 4ashington, D. C. - 20510 Enclosed is a copy of -Resolution No. 69-81� 5'A Resolution Opposing Change in pax - Exempt Status of lHunicipal Bonds", which was adopted by t4he City Council of the City of Rohnert Park on August 18, 1969. CITY OF ROHNER"E' PARK Peter M. Callinan City Manager P.,MC - W 1 f THOMAS C. MORONEY ROBERT J. HILL ROBERT A PRIOR LAWRENCE C_JENSEN ROBERT M HAIGHT ROBERT G _ AUWSREY RICHARD H. HARGROVE ANDREW C. HALL,JR. RICHARD F. RAYMOND J EREMIAH J. LYNCH MAYER A. DANIEL GERALD A. LASTER MICHAEL R_ NAVE FRANK PIOMBO RAYMOND M_ HAIGHT WILSON, JONES, MORTON & LYNCH ATTORNEYS AND COUNSELLORS AT LAW Honorable City Council City of Rohnert Park Rohnert Park, California Dear Members: 630 NORTH SAN MATEO DRIVE P. O. BOX 152 SAN MATEO, CALIFORNIA 94401 E416] 342-3523 August 12, 1969 Au G 3 CHARLES N. KIRKBRIDE 11194-19 KIRK SR 1IDE & GORDON (JOSEPH H B. GORDON) 1911 -1929 KIRKSR DE & WILSON 1929-1947 KIRKBRIDE,WILSON. HARZFELD & WALLACE 1947-1961 OF COUNSEL ARTHUR J. HARZFELD JAMES M. WALLACE Legislation Affecting Tax-Exempt Status of - Municipal Securities (H.R. 13270, 91st Congress) The House of Representatives has adopted a so-called tax reform bill which, if it becomes law, would have disastrous effects on the ability of cities, counties and districts to borrow money. Specifically, the bill provides that an individual having income that is not subject to taxation because it derives from any of five types of preferential sources would be required to include in his ordinary income tax base half of his preferential income, to the extent that it exceeds the income subject to tax, provided the income from preferential sources exceeds adjusted gross income subject to tax by at least $10,000. Interest from currently tax-exempt bonds is one of the five sources of preferential income which would become subject to tax. The passage of this measure by the Senate and its approval by CD the President would have catastrophic effects on the municipal bond market. It should be opposed by every local taxing agency in the country. We have prepared and enclose for your immediate consideration a resolution which would oppose any change in the tax-exempt status of municipal bonds. We urge its immediate adoption and transmission of certified copies to both Senators George Murphy and Alan Cranston as well as to any other congressional representatives you consider appropriate. Even though the bill has passed the House, it will do no harm to communicate your position to all of your representatives. I am also enclosing a photocopy of the Congressional Directory to facilitate any distribution you may care to make. If you feel the need of any further information, please feel free to call. Obviously time is of the essence and we would urge immediate action. �tL�10, KENNETH I. JONES JAMES T. MORTON JOHN E_ LYNCH PHILIP D. ASSAF PEGGY L McELLIGOTT JOHN H. HOUTOM (1921-1966) NORMAN W. KAVANAUGH 5HERROD S. DAVIS THOMAS C. MORONEY ROBERT J. HILL ROBERT A PRIOR LAWRENCE C_JENSEN ROBERT M HAIGHT ROBERT G _ AUWSREY RICHARD H. HARGROVE ANDREW C. HALL,JR. RICHARD F. RAYMOND J EREMIAH J. LYNCH MAYER A. DANIEL GERALD A. LASTER MICHAEL R_ NAVE FRANK PIOMBO RAYMOND M_ HAIGHT WILSON, JONES, MORTON & LYNCH ATTORNEYS AND COUNSELLORS AT LAW Honorable City Council City of Rohnert Park Rohnert Park, California Dear Members: 630 NORTH SAN MATEO DRIVE P. O. BOX 152 SAN MATEO, CALIFORNIA 94401 E416] 342-3523 August 12, 1969 Au G 3 CHARLES N. KIRKBRIDE 11194-19 KIRK SR 1IDE & GORDON (JOSEPH H B. GORDON) 1911 -1929 KIRKSR DE & WILSON 1929-1947 KIRKBRIDE,WILSON. HARZFELD & WALLACE 1947-1961 OF COUNSEL ARTHUR J. HARZFELD JAMES M. WALLACE Legislation Affecting Tax-Exempt Status of - Municipal Securities (H.R. 13270, 91st Congress) The House of Representatives has adopted a so-called tax reform bill which, if it becomes law, would have disastrous effects on the ability of cities, counties and districts to borrow money. Specifically, the bill provides that an individual having income that is not subject to taxation because it derives from any of five types of preferential sources would be required to include in his ordinary income tax base half of his preferential income, to the extent that it exceeds the income subject to tax, provided the income from preferential sources exceeds adjusted gross income subject to tax by at least $10,000. Interest from currently tax-exempt bonds is one of the five sources of preferential income which would become subject to tax. The passage of this measure by the Senate and its approval by CD the President would have catastrophic effects on the municipal bond market. It should be opposed by every local taxing agency in the country. We have prepared and enclose for your immediate consideration a resolution which would oppose any change in the tax-exempt status of municipal bonds. We urge its immediate adoption and transmission of certified copies to both Senators George Murphy and Alan Cranston as well as to any other congressional representatives you consider appropriate. Even though the bill has passed the House, it will do no harm to communicate your position to all of your representatives. I am also enclosing a photocopy of the Congressional Directory to facilitate any distribution you may care to make. If you feel the need of any further information, please feel free to call. Obviously time is of the essence and we would urge immediate action.