HomeMy WebLinkAboutCity of Tamarac Resolution R-2017-015Temp. Reso #12914
March 8, 2017
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CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R2017-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF TAMARAC, FLORIDA OPPOSING ANY EFFORT TO
REDUCE OR REPEAL THE FEDERAL TAX EXEMPTION
ON INTEREST EARNED FROM MUNICIPAL BONDS;
AUTHORIZING THE MAYOR TO EXECUTE A LETTER IN
SUPPORT OF MAINTAINING THE PRESENT TAX
EXEMPT STATUS OF MUNICIPAL BONDS;
AUTHORIZING THE DELIVERY OF THIS RESOLUTION
AND LETTER TO THE FLORIDA DELEGATION TO
CONGRESS AND TO SENATORS NELSON AND RUBIO;
PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, interest earned from state or municipal bonds is wholly exempt from
federal taxation pursuant to the Section 103 of the code.
WHEREAS, for more than a century, states and local governments have
depended on this reliable and efficient means of financing; and
WHEREAS, nearly two-thirds of core infrastructure investments in the United
States are financed with municipal bonds; and
WHEREAS, in 2016 alone, more than $440 billion in municipal bonds were
issued to finance the projects that touch the daily lives of every American citizen and
business consisting of roads we drive on, schools for our children, affordable family
housing, water systems that supply safe drinking water, courthouses, hospitals and
clinics to treat the sick, airports and ports that help move products domestically and
overseas, and, in some cases, the utility plants that power our homes, businesses and
factories and are known as pro -growth investments which spur job creation, help our
economies grow, and strengthen our communities; and
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WHEREAS, a combination of local control and local responsibility makes
municipal bonds an incredibly effective and efficient tool; and
WHEREAS, voters throughout the country overwhelmingly support tax-exempt
municipal bonds, which are either approved by locally -elected officials or directly
through bond referenda; and
and
WHEREAS, federal tax exemption reduces the cost of issuing municipal bonds;
WHEREAS, the City of Tamarac issued tax-exempt municipal bonds this past
year to upgrade its wastewater collection system; and
WHEREAS, the City of Tamarac has used tax exempt bond financing to
construct critical infrastructure, public safety facilities, and water and sewer systems,
and
WHEREAS, the City of Tamarac prides itself in maintaining quality infrastructure
while limiting the tax burden on the citizens; and
WHEREAS, Congress and the President have proposed legislation to reduce or
repeal the tax exemption on municipal bonds; and
WHEREAS, these proposals to reduce or repeal the tax exemption would have
severely detrimental impacts on national infrastructure development and the municipal
market, resulting in either fewer resources available to finance these projects, or,
increased costs which will be passed on to the public through higher taxes and/or fees;
and
WHEREAS, if simply left alone, municipal bonds will likely finance another $3
trillion in new infrastructure investments by 2026; and
WHEREAS, it is vital to maintain the present tax exempt status on local
government bond debt and the ability of local governments to maximize investment on
local infrastructure to serve the public and contribute to the local economies; and
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WHEREAS, the average difference between tax exempt interest rates and taxable
interest rates is 84 Basis Points, or $2.7 million in additional costs on a $25 million issue
over 20 years for an average AA rated community; and
WHEREAS, the increased cost of issuance of bonds for infrastructure
improvements will be borne by the local constituents of the entity issuing the bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA, AS FOLLOWS:
Section 1. The foregoing "WHEREAS" clauses are confirmed and ratified as
being true and correct and are hereby incorporated herein.
Section 2. The City of Tamarac opposes any effort by Congress or the President
to reduce or repeal the federal tax exemption on interest earned from municipal bonds.
Section 3. The Mayor of the City of Tamarac is hereby authorized to execute a
letter in support of maintaining the current tax exempt status of municipal bonds.
Section 4. Copies of this Resolution and the accompanying letter shall be sent
to each member of the Florida Delegation and to Senators Nelson and Rubio.
Section 5. All resolutions or parts of resolutions in conflict herewith are hereby
repealed to the extent of such conflict.
Section 6. If any clause, section, other part or application of this Resolution is
held by any court of competent jurisdiction to be unconstitutional or invalid, in part or
application, it shall not affect the validity of the remaining portions or applications of this
Resolution.
Section 7. This Resolution shall become effective immediately upon its passage
and adoption.
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PASSED ANQ ADOPTED BY THE CITY COMMISSION OF THE CITY OF TAMARAC,
FLORIDA THIS DAY OF
ATTEST -
PAT TEUFEO 6MC, CITY CLERK
I HEREBY CERTIFY that I
Have approved this
RESOLUTION as to form.
Y'V4 - AjA' -- oI
SAMUEL S. G ,
CITY ATTORNE
MAYOR DRESSLER
DIST 1: BOLTON
DIST 2: GOMEZ
DIST 3: FISHMAN
DIST 4- PLACKO
C
I
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