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Home My WebLink AboutReso 1969-5190RESOLUTION N0. 5190 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING REMOVAL OF TAX EXEMPTION ON MtTNICIPAL BONDS The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, cities throughout the United States have heretofore relied heavily on Tax Exempt Municipal Bonds to finance the expansion of said cities, which bonds are attracted to the bond market because of their tax exempt status, and WHEREAS, during the next session of Congress and Senate of the United States, the representatives of the citizens of the cities presently enjoying the benefits of said tax exempt on municipal bonds will undoubtedly be confronted with legislation eliminating or impairing the tax exempt status of said municipal securities, and WHEREAS, the City of Chula Vista has heretofore gone on record as opposing any measures which would work a hardship on the already hardpressed municipalities which rely on such tax exempt municipal bonds and .has urged the adoption of measures to retain the necessary flexibility of local agencies of municipalities to use whatever measures necessary to assure the continued expansion and development of their communities. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby express its strong opposition to the impairment in any way of the basic tax exempt status of municipal bonds by the Federal Government based on the fact that interest rates on funds borrowed by municipalities would probably double if the tax exemption privilege were removed and certain types of municipal bonds would pro- bably be unsaleable. BE IT FURTHER RESOLVED that the City Clerk of the City of Chula Vista be, and he is hereby directed to forward certified copies of this resolution to Congressman Wilbur D. Mills, Chairman of the House Ways and Means Committee, Senator Russell Long, Chairman of. the Senate Finance Committee, and to all of the Congressman and Senators from the State of Calif.ornia.. Presented by illiam L, ins, A ministrative Officer P Tempore Approved as to form by r--•,~ g George D. Lindberg, ity Attc Y ADOPTED AT'D APPROVED by the CITY COUr?CIL of the CITv DF C??Ut,A ~!i ~ 1'~ CALIFORNIA, this 20th day of May , 1969 by the ro11e,.~rinti /Jte, to-jai t AYES: Councilmen Scott, Sylvester, Hamilton, McCorquodale, McAllister T?AYES: Councilmen None AFSE"dT: Councilmen None rr Mayor of the Ci of Chula V~ to = ./ t, G City Clerk STATE OF CALIFORNIA ) COJT:~iY OF SAP'? DIEGO ) ss. CITY OF CHULA VISTA ) I, ?'EIS?NET?? p. CAMPBi'LL, City Clerk of the City of Chula Jista, Calitocnia, DO ~iERr.L'•Y CERTIFY that the above and foregoing is a full, true and corre:~L can-.- ,,i and that the same has not been a;:ended or r2nzaled. DA'T~ P : City Clerc. lC ~l 1 ~ RUSSELL B. LONG, LA., CHAIRMAN CLINTON P. ANDERSON, N. MEX . JOHN J. WILLIAM S, DEL. ALBERT Cf1RE, TENN. WALLACE F. BENNETT, UTAH HERMAN E. TALMADGE, GA. CARL T. CURTI S, NEBR. EUGENE J. MC CARTHY, MINN. EV ERETT MC KINLEY DIRK SEN, ILL. VANCE HARTK E, IND. JACK MILLER, IOWA J. W. FULBRIGHT, ARK. LEN B. JORDAN, IDAHO ABRAHAM RIBICOFF, CONN. PAUL J. FANNI N, ARIZ. FRED R. HARRIS, OKLA. HARRY F. BYR D, JR., VA. TOM VAIL, CHIEF COUNSEL r -~ ~~'`~ , 7 r~ " ~1 C~rf eb ,$taf e~ ,$e~a~e r~ COMMITTEE ON FINANCE ~~ WASHINGTON, D.C. 20510 June 13, 1969 Mr, Kenneth P. Campbell City Clerk City of Chula Vista California Dear Mr. Campbell: Thank you very much for your recent letter, enclosing copy of Chula Vista's Resolution No. 5190, opposing removal of the tax exemption on municipal bonds. I might report that in the Nixon Treasury suggestions for tax reform, the municipal bond question was not included in the limit on tax preference recommendation because the Assistant Secretary of the Treasury reported that he had been notified by the Justice De- partment that it raised a constitutional question, On the other hand, the state and local bond issue has been included in the allocation of deductions proposals of the Treasury. Here the Assistant Secretary reported there was no constitutional question because "the proposal is in no sense a tax on such interest; it is merely a disallowance of a portion of itemized deductions, " For these reasons, I doubt that the Treasury Department will make any direct assault on the State and local bond interest exemption, With every good wish, I am Sincerely, ~, ~. Chairman wASxmGTON OFFICE: HOUSE OFFICE BUILDING JAMES C. CORMAN WASHINGTON, D.C. 20515 'jj' p DIgTRKT CALiORNU 225-5811 N ~~ ~ f t ~ i ~ ADMI ISTRATIVE ASSISTANT olTgre o ie IY te~ tRte~ HOUSE WAYS AND MEANS ~ou~e of ~e~re~etttatibe~ COMMITTEE ,~1I, ,.A OiI ~ ~' ~~in SELECT COMMITTEE ON b• ' • • SMALL BUSINESS ~'LU]_~~: ~11St~~.~ ~':i~ _~FC~r'n~ ~_ i~ D15TRNT OFFICE: 14422 VICTORY BLUR. VAN NDYS. CALIFORNIA 81401 ~e~-ms JACK McGRATH FIELD REPRESENTATNE ~an}~~ ~r~L~. t~er~~ rrlrh ~nr -rc)~.Ir r~^~ lzti~~n in r`. "'~T>C)`,?1.t~.-On tC) t'1P '~Y'n'?~')S23)_ ~0Y' c: ~_PV~' O.' tc~Y.F'_~. r!I? "111T11C1?-ci~. ~jnr,~lc W~1~CP nOi' .{-c~l.~ UIl'7CY' `t~C i, r:~;-P_XE'I'1~)t Y'2~?U~ dt1_C:I? . F{~' ;IOU ??ld`I i~-1'10'd ~ Y ~1° : ~Ollf;E? T I<1.`.; S ~.IlE '~`Pc3.Il:-~ ~'OI'1T"tl_t.1"PE~ ? 7,' }if':Tlln 1t'~' C~ C~,`.;~° I ;;~=Cl: ~_1V'. y, -~ ~CS1~~I1" OIl t-"1~ f, dni~ C)±-}1E'Y' ~~ ';i~P?C:aY'(~T`C?hr: ~._. ~ ?nCa i ~ C; 11n~ ti T''Pr'~~ r~' '-li' ~ ~:°C; `? L'"' fE?y, `1071.<']~ ~CLiT' tc> f-'J `= ~'<', ,.. `'CCU '_~~~~ rF _, ,. c3S~iU7 F?%', ~ `.~ ?n~>S~ C;.:~7~E'_{~'.1L ~?'~l:'~ c;,-~Ti-C')L]F; COI ~-- ~ ., -- ~ ,- !~.ET'c':t i.i)i ~ ~~_:..~ ~_:n r. ~V:I: ~.1 ] "i;_ ':?1..7Y'(' -' n cI„,~ fL1r±};I:'.?^ ("(~'ilT":.i-~tE'.E'. C~C~~~~i-n• 4.._.~_- ~ ~~ I . . 1 ~~~ (_ i~ ~ JAMES B. UTT 55TH DIST., CALIF. 2346 RRYBURN HOUSE OFFICE BLDG. ROBERT A. GEIER ADMINISTRATIVE ASSISTANT MOLLY B. PARKER EXECUTIVE SECRETARY COMMITTEES: ~ f f ~ WAYS AND MEANS Ottgreg~ o t je IYiteb ~tdte~ JOINT COMMITTEE ON INTERNAL REVENUE TAXATION ~DU~C pf ~E~I~P~Ptlt~tlbe~ DISTRICT OFFICE: COMMITTEE ON COMMITTEES SEO EAST FOURTH STREET TUSTIN, CALIFORNIA 92680 Washington, ~B.QC. 20515 May 28, 1969 Mr. Kenneth P. Campbell City Clerk City of Chula Vista Chula Vista, California 92010 Dear Mr. Campbell: I have your letter of May 23rd, with the enclosed copy of a resolution adopted by the City Council of the City of Chula Vista on the subject of municipal bonds. The Ways and Means Committee has discussed this matter in some detail, and we are still undecided as to what will be done in this area. I appreciate having the benefit of the Council's views, and send my kindest regaxds. Cordially yours, JBU:Fs James B. Utt Member of Congress _~i,y~ THE C ITY O F 424-8135 IMPERIAL BEACH 625 CORONAD^ AVENUE - P, p. BOX 427 - IMPERIAL BEACH, CALIFORNIA `y""~~''~``'~~ OFFICE OF THE C ITY CLERK s :~,;: 1 ~~,/ August 2? _ City Council Chula Vista 276 Guava Chula Vista, California Dear Council Members: At a regular meeting of the City Council of the City of Imperial Beach held Tuesday, August 19, 1969, the Mayor directed me to forward copies of our Resolution No. 1525, in order that you will know that the City of Imperial Beach has acted upon it. tt is hoped that your agency will do the same. Very truly yours, t ~- L. I. Hoyle Deputy City Clerk jh W~ML:KIJ:mf 8/12/69 RESOLUTION N0~ 1525 A RESOLUTION OPPOSING CHANGE IN TAX-EXEMPT STATUS OF MUNICIPAL BONDS ' RESOLVED, by the T of the CITY OF IM , Ca _fornia, a 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 governmen 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 ; NOW, THEREFORE, IT IS DETERMINED and ORDERED, that this is strongly opposed to any legislation which would rescind, mo ify or in any way weaken the tax-exempt status of interest on municipal obliga- tions, including the tax reform bill which has been passed by the House, (H.R. 13270, 91st Congress, lst session) and the honorable representa- tives of the State of California in the Congress of the United States are respectfully urged to oppose any such proposed legislation with vinor and fortitude. * ~ ~ ~ ~ ~ I hereby certify that the foregoing is a full, true and correct copy of a resolution duly passed and adopted by the c ~ , of the C i tv of Im~,~Cl' I~ Ca ifornia, at a meeting t ereof held on e l4rh ay o August 1968, by the following vote of the members thereof: AYES, and in favor thereof, STITES. GARVIN.~MOSES, BLANK, MC LAUGHLIP NOES, NONE ABSENT, NONE BILL D. BLANK, MAYOR