HomeMy WebLinkAboutAgenda Statement 1985/03/21 Item 2 INDUSTRIAL DEVELOPMENT AUTHORITY ._
AGENDA STATEMENT
Item 2
Meeting Date 3/21/85
ITEM TITLE: Report: Update on status of Industrial Development Bond allocations
SUBMITTED BY: Community Development Director (4/5ths Vote: YES NO X )
REVIEWED BY: Executive Director
The City has recently received notification from the State indicating that our
allocation for the issuance of private activity industrial development bonds for
the 1985 calendar year is $4,649,000. If applications are received in excess of
that amount, the City will have to request to borrow allocation authority from
either the County or the State. This allocation is computed by formula which
is based upon the population of the City. Our allocation computes out to approx-
imately $52 per capita based on the State's formula.
Last year's allocation was approximately $4.6 million. Out of that allocation
the City approved $2,730,000 in commercial development revenue bonds for the
surgi-center currently nearing completion on Davidson and Landis Streets.
The current proposals before Congress to change federal tax laws propose major
impacts upon private activity development bonds. Most of the proposals call
for an end to the tax exempt status for interest earned on private activity
bonds. This will not affect public activity bonds issued by the City for public
purposes such as parking garage and public buildings.
FK:as
RA-4 (Rev. 1/80) ( —
\\