HomeMy WebLinkAboutResolution 1986-005
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(!tity of Nortlt 1Rirltlanb Billa
WHEREAS, the citizens of this City would be adversely affected by
the passage of H.R. 3838, now pending before the U.S. Congress; and
WHEREAS, the City Council feels that certain portions of this
proposed legislation constitute an unfair, indirect tax by the Federal
Government on local governments.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
North Richland Hil]s, Texas, that:
1.
This City Council does hereby go on record in opposition to all
portions of H.R. 3838 which seek to impose additional restrictions upon local
governments in the issuance of municipal bonds.
2.
The following portions of H.R. 3838 are found to be most
objectionable:
a. Any attempt to take away tax exempt status from a bond, after
its sale to the public, because of the action of a local
government which fails to comply with federal regulations.
b. The requirement that five percent of the "net proceeds" must be
spent within thirty days and the requirement that all "net
proceeds" must be spent within three years. (Section 701 of
H.R. 3838).
c. The requirement that local governments be required to rebate
"positive arbitrage". (Section 701 of H.R. 3838)
d. The portion treating certain municipal functions as
"nonessential" and subjecting issues to state volume caps.
(Section 701 of H.R. 3838 amending Section 141s(a) of the
Internal Revenue Code)
e. The temporary period restricti.ons. (Section 701 of H.R. 3838
amending 147 (c) (2) of the Internal Revenue Code)
f. The proposed retroactive effective date of January 1, 1986.
(Section 703 (a) (i) of H.R. 3838) (Rather than being
retroactive, this type of legislation should provide for an
effective date at least two years in the future.)
Resolution No. 86-5
Page 2
3.
The City Council points out that the prov1s1ons of this bill dealing
with restrictions on municipal funding will greatly increase the cost of local
government and will cause great inconvenience to local governments in record
keeping and reporting.
4.
The City Council directs that the City Secretary forward a copy of
this resolution to both U.S. Senators from Texas and the U.S. Congressman from
this district.
PASSED AND APPROVED this 10th day of February, 1986.
~~
Dan Echols, Mayor
CITY COUNCIL:
Marie Hinkle, Place 1
Dick Fisher, Place 5
Uv\!\ (Z QJvwu..-
im Ramsey, Place 6
Jim Kenna, Place 2
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Richard Davis, Place 3
Harold Newman, Place 7
Virginia Moody, Place 4
ATTEST:
Jeanette Rewis, City Secretary