HomeMy WebLinkAbout19006 RES - 09/10/1985•
A RESOLUTION
URGING THE UNITED STATES CONGRESS TO ENACT NO LEGISLATION TO
TAX OR RESTRICT THE CONTINUED ISSUANCE OF TAX-EXEMPT
OBLIGATIONS BY STATE AND LOCAL GOVERNMENTS; AND DECLARING AN
EMERGENCY.
WHEREAS, the municipalities and counties of Texas finance capital
projects for various purposes defined as public by State law through the
issuance of obligations whose interest is exempt from Federal income taxation;
and
WHEREAS, the projects financed with said obligations provide for the
benefit of all area citizens and build roads, schools, sewer lines, public and
charitable hospitals, and low-income housing among other facilities; and
WHEREAS, the tax exemption of said obligations has lowered the cost of
borrowing for all states and localities in turn lowering the cost of providing
essential projects and services at the state and local level; and
WHEREAS, the tax -exemption on said obligations is not a mere tax
expenditure but stems from the Constitutional doctrine of reciprocal immunity
which exempts from Federal income taxation interest earned on state and local
government obligations; and
WHEREAS, certain proposals considered by the United States Congress
would severely restrict the ability of states and localities to issue such
obligations for public purposes as defined by duly enacted State statute and
prohibit the use of government and private enterprise partnerships to provide
efficient and cost-effective delivery of services thereby impairing the ability
of state and local officials to determine public priorities within their
jurisdictions and the most appropriate method of financing those priorities; and
WHEREAS, certain proposals being considered by the United States
Congress would subject the interest earned on said obligations to Federal income
taxation or eliminate the ability of financial institutions to deduct the cost
incurred in buying and carrying tax-exempt obligations and would adversely
affect the continued efficient functioning of the entire market for state and
local government obligations thereby raising the cost of borrowing for state and
local government and consequently raising the cost of government;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the City Council of the City of Corpus Christi, Texas
urges the United States Congress to enact no legislation which would further
limit the ability of state and local governments to issue tax-exempt obligations
for public purposes as defined by duly enacted State law, tax the interest on
said obligations, or eliminate further the ability of financial institutions to
deduct the costs of purchasing or carrying such obligations.
43.04.04
19006 MICROFILMED
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SECTION 2. That upon written request of the Mayor or five Council
members, copy attached, to find and declare an emergency due to the immediate
need for the efficient and effective administration of City affairs, such
finding of an emergency is made and declared requiring suspension of the Charter
rule as to consideration and voting upon ordinances or resolutions at three
regular meetings so that this ordinance is passe and shall take effect upon
first reading as an emergency measure this the / day of September, 1985.
ATTEST:
City Secretary " MAYOR
APPROVED:I DAY OF SEPTEMBER, 1985
43.04.04
THE CITY OF CORPUS CHRISTI
Corpus Christi, Texas
i954— day of 6029ALe 198
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance
or resolution, an emergency exists requiring suspension of the Charter rule
as to consideration and voting upon ordinances or resolutions at three
regular meetings; I/we, therefore, request that you suspend said Charter rule
and pass this ordinance or resolution finally on the date it is introduced,
or at the present meeting of the City Council.
Respectfully, Respectfully,
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
Council Members
The above ordinance was passed by the following vote:
Luther Jones
Dr. Jack Best
David Berlanga, Sr.
Leo Guerrero
Joe McComb
Frank Mendez
Bill Pruet
Mary Pat Slavik
Linda Strong
19006