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Home My WebLink AboutResolution - 2285 - Tax Exempt Bond Issues - 03/27/1986DGV:da RESOLUTION Resolution #2285 March 27, 1986 Agenda Item #27 WHEREAS, the issuance of tax-exempt bonds is essential for the City of Lubbock to finance badly needed capital facilities for use by both the public and government; and WHEREAS, the House of Representatives on December 17, 1985, passed H.R. 3838, the "Tax Reform Act of 1985," which includes amendments to the provisions of the Internal Revenue Code pertaining to the tax-exempt status of bonds issued by or on behalf of the states and their political subdivi- sions; and WHEREAS, N.R. 3838, if finally passed in its present form, will have the following detrimental effects upon local governments: (1) the costs of borrowing will be increased, which will result in higher taxes, higher utility rates and higher user fees; (2) the volume limitations will unnecessarily ration the ability of local governments to borrow money for legitimate projects that will benefit local citizens; and (3) many traditional public purpose bonds will no longer be issued because of restrictions on the use of bond financed facilities by non-governmental entities or persons; and WHEREAS, S.B. 2166, the "Durenberger Proposal," would be much less destructive of the ability of states and local governments to issue tax-exempt bonds to finance needed capital facilities for the benefit of the public and government; and WHEREAS, the City Council of the City of Lubbock supports S.B. 2166, it also urges that should S.B. 2166 fail, then the City Council of the City of Lubbock urges that modifications be made to H.R. 3838 to ease its adverse impact upon local government financing; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City of Lubbock strongly opposes H.R. 3838 in its current form and substance as it relates to the issuance of tax-exempt bonds by states and governmental subdivisions; and SECTION 2. THAT the City of Lubbock strongly supports S.B. 2166 for its more reasonable treatment of tax-exempt bond issuance by states and governmental subdivisions; and SECTION 3. THAT should S.B. 2166 fail, the City of Lubbock strongly urges that the Congress consider the following with regard to H.R. 3838: (1) Remove all provisions providing for retroactive taxability of municipal bonds to the date of their issuance; (2) Continue to permit historic and essential public functions to be financed on a tax-exempt basis outside state cap limitations; (3) Permit the advance refunding of state and local public debt on the basis now permitted by law; (4) Remove all provisions that impose artificial constraints on governmental decision making or that will violate state law, such as: (a) the provision requiring that 540' of the net proceeds must be spent within 30 days of issue; and (b) the provision requiring that all proceeds must be spent within 3 years of the date of issue. (5) Remove all provisions which require payment of interest earned on investments to the federal treasury; and SECTION 4. THAT a certified copy of this Resolution be forwarded to all members of the Congress from Texas, to the Chairman of the House Ways and Means Committee, the Chairman of the Senate Finance Committee, the Majority and Minority Leaders of the House and Senate, and the Secretary of the Treasury. PASSED by the City Council on this 27th anette joy -d, city Secretary APPROVED AS TO CONTENT: Bob Cass, Deputy Cit - er Mana Y 9 APPROVED AS TO FORM: uonaia 6. vanaiver, First Ass City Attorney - 2 - day of March _ 1gAA >`w s CITY OF LUBBOCK 109 City Secretary P.O. Boa 2000 . Lubbock, Ta. 79457 (806) 762-6411 April 24, 1986 President Ronald Reagan The White House Washington, D.C. 20500 Dear Mr. President: The attached Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Rane to Boyd City Secretary RB/lib Enclosures (2) 3� f CITY OF LUBBOCK City Secretary '4 P.O. Boa 2000 „e Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 Vice President George Bush Executive Office Building Washington, D.C. 20501 Dear Mr. Vice President: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/l jb Enclosures (2) °F CITY OF LUBBOCK \"09- City Secretary P.O. Box 2000 r Lubbock, Tx. 79457 (806) 762-6411 April 28, 1986 The Honorable Lloyd Bentsen United States Senator U. S. Senate Washington, D.C. 20510 Dear Senator Bentsen: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) �V CITY OF LUBBOCK City Secretary P.O. Boa 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Phil Gramm United States Senator 370 Senate Dirksen Office Building Washington, D.C. 20510 Dear Senator Gramm: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) 5 CITY OF LUBBOCK City Secretary SN P.O. Boa 2000 Lubbock, Ta. 7957 (806) 762-6411 April 28, 1986 The Honorable Larry Combest United States Representative 1529 Longworth Building Washington, D.C. 20515 Dear Representative Combest: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK s �F "09J,,MM City Secretary P.O. Boa 2000 Lubbock, Ta. 79457 14 (806) 762-6411 April 28, 1986 The Honorable Charles Wilson United States Representative 701 North First Street, Room 201 Lufkin, Texas 75901 Dear Representative Wilson: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/l jb Enclosures (2) tr c CITY OF LUBBOCK mid� �''' City Secretary yD m: P.O. Boa 2000 Lubbock, Ts. 79457 (806) 762-6411 April 28, 1986 The Honorable Sam B. Hall, Jr. United States Representative 2236 Rayburn House Office Building Washington, D.C. 20515 Dear Representative Hall: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) }. CITY OF LUBBOCK City Secretary .` "Al It P.O. Box 2000 k" Lubbock, Tx. 79457 Y e4 (806) 762-611 April 28, 1986 The Honorable Joe Barton United States Representative 1017 Longworth House Office Building Washington, D.C. 20515 Dear Representative Barton: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this.be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK M City Secretary P.O. Boa 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Steve Bartlett United States Representative 1233 Longworth House Office Building Washington, D.C. 20515 Dear Representative Bartlett: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK City Secretary P.O. Boa 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Ralph M. Hall United States Representative 1224 Longworth House Office Building Washington, D.C. 20515 Dear Representative Hall: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK \"O9 City Secretary `P.O. Bos 2000 { Lubbock, Ts. 79457 (806) 762-6411 April 28, 1986 The Honorable John Bryant United States Representative 506 Cannon House Office Building Washington, D.C. 20515 Dear Representative Bryant: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/1 jb Enclosures (2) CITY OF LUBBOCK a M/ \7 City Secretary - P.O. Boa 2000 'F Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Bill Archer United States Representative 1135 Longworth House Office Building Washington, D.C. 20515 Dear Representative Archer: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) uCITY OF LUBBOCK \ City Secretary P.O. Boa 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Jack Fields United States Representative 413 Cannon House Office Building Washington, D.C. 20515 Dear Representative Fields: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) y a, CITY OF LUBBOCK City Secretary t ; P.O. Boa 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Jack Brooks United States Representative 2449 Rayburn House Office Building Washington, D.C. 20515 Dear Representative Brooks: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) F A CITY OF LUBBOCK Y4City Secretary P.O. Bog 2000 Lubbock, Tg. 79457 (806) 762-6411 April 28, 1986 The Honorable J. J. Pickle United States Representative 242 Cannon House Office Building Washington, D.C. 20515 Dear Representative Pickle: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK 109M= City Secretary s P.O. Boa 2000 Lubbock, Ta. 79457 (806) 762-611 April 28, 1986 The Honorable Marvin Leath United States Representative 336 Cannon House Office Building Washington, D.C. 20515 Dear Representative Leath: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) }f �f CITY OF LUBBOCK \, City Secretary z P.O. Boa 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Jim Wright United States Representative 1236 Longworth House Office Building Washington, D.C. 20515 Dear Representative Wright: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/1 jb Enclosures (2) A-04 CITY OF LUBBOCK f09 'jIM City Secretary P.O. Boa 2000 Lubbock, Ta. 79457 ` (806) 762-6411 April 28, 1986 The Honorable Beau Boulter United States Representative 1427 Longworth House Office Building Washington, D.C. 20515 Dear Representative Boulter: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) .CITY OF LUBBOCK a M City Secretary P.O. Boa 2000 Lubbock, Ta. 79457 � (806) 762-611 April 28, 1986 The Honorable Mac Sweeney United States Representative 1713 Longworth House Office Building Washington, D.C. 20515 Dear Representative Sweeney: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK 1909 „ City Secretary t� \ s P.O. Box 2000 ' Lubbock, Tx. 79457 r (806) 762-6411 April 28, 1986 The Honorable Tom Mc Lay United States Representative 1234 Longworth House Office Building Washington, D.C. 20515 Dear Representative McLay: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) ' CITY OF LUBBOCK City Secretary P.O. Bog 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable E. (Kika) De La Garza United States Representative 1401 Longworth House Office Building Washington, D.C. 20515 Dear Representative De La Garza: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) Alt CITY OF LUBBOCK A r City Secretary P.O. Bos 2000 4� Lubbock, Ta. 7957 (806) 762-6411 April 28, 1986 The Honorable Ronald Coleman United States Representative 1017 Longworth House Office Building Washington, D.C. 20515 Dear Representative Coleman: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) El - CITY OF LUBBOCK 109 City Secretary k P.O. Bos 2000 Lubbock, Ts. 79457 806 762-6411 April 28, 1986 The Honorable Charles W. Stenholm United States Representative 1232 Longworth House Office Building Washington, D.C. 20515 Dear Representative Stenholm: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) t _ CITY OF LUBBOCK Jrµr I �� rj` . */ 1909 City Secretary P.O. Boa 2000 x Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Mickey Leland United States Representative 419 Cannon House Office Building Washington, D.C. 20515 Dear Representative Leland: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) "''),CITY OF LUBBOCK ZI City Secretary P.O. Bog 2000 r Lubbock, Tx. 79457 (806) 762-6411 April 28, 1986 The Honorable Henry Gonzalez United States Representative 2413 Rayburn House Office Building Washington, D.C. 20515 Dear Representative Gonzalez: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK NMI 7/ \f09 City Secretary P.O. Bog 2000 Lubbock, Tx. 79457 (806) 762-6411 April 28, 1986 The Honorable Tom Loeffler United States Representative 1212 Longworth House Office Building Washington, D.C. 20515 Dear Representative Loeffler: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) t r r ,,CITY OF LUBBOCK City Secretary 3"1 � f "; � P.O. Boa 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Albert G. Bustamante United States Representative 1116 Longworth House Office Building Washington, D.C. 20515 Dear Representative Bustamante: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) I'ei�'Y OF LUBBOCK 4, A \ City Secretary P.O. Boa 2000 Lubbock, Ta. 79457 (806)762-6411 April 28, 1986 The Honorable Martin Frost United States Representative 1238 Longworth House Office Building Washington, D.C. 20515 Dear Representative Frost: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK \"09 City Secretary P.O. Bos 2000 Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Michael A. Andrews United States Representative 1039 Longworth House Office Building Washington, D.C. 20515 Dear Representative Andrews: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) CITY OF LUBBOCK City Secretary P.O. Boa 2000 W Lubbock, Ta. 79457 (806) 762-6411 April 28, 1986 The Honorable Richard Armey United States Representative 514 Cannon House Office Building Washington, D.C. 20515 Dear Representative Armey: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/1 jb Enclosures (2) x 111,,&TY OF LUBBOCK \jIM City Secretary 5 P.O. Bog 2000 ' Lubbock, Tx. 79457 (806) 762-6411 April 28, 1986 The Honorable Solomon P. Ortiz United States Representative 1524 Longworth House Office Building Washington, D.C. 20515 Dear Representative Ortiz: The enclosed Resolution regarding the Tax Reform Act of 1985 was passed by the Lubbock City Council on March 27, 1986. They have asked that this be sent to you for your consideration. Sincerely, Ranette Boyd City Secretary RB/lib Enclosures (2) LLOYD BENTSEN TEXAS 2cnifeb ,cifofez ,male WASHINGTON. D.C. 20510 May 7, 1986 Ms. Ranette Boyd City of Lubbock P.O. Box 2000 Lubbock, Texas 79457 Dear Ms. Boyd: Thank you for sending me a copy of the resolution adopted by the City Council of Lubbock. I understand your concerns about the proposed restrictions and limitations on municipal bonds. You may be interested in recent actions taken by the Senate Finance Committee. In the Committee plan, the 25 percent private usage test in present law would be retained. Bonds for projects like airports, sewage treatment, and water facilities would retain their current status as exempt IDBs; and, if the projects are governmentally - owned, the bonds would be removed from the state volume cap. Bonds for multifamily housing, mass transit, and charitable organizations would not be subject to any volume cap either. volume limitations would continue to apply to qualified veterans mortgage bonds, student loan bonds, and other mortgage bonds, as under current law. The Committee also agreed to less onerous arbitrage restrictions. The early issuance requirements in present law would be retained. In addition, up to three advanced refundings would be permitted for governmental bonds; up to three sets of these bonds could be outstanding at any one time. Again, I appreciate your taking the time to contact me. Sincerel Lloyd CHARLES WILSON 2D DISTRICT, TEXAS Conareiz of the Mniteb Mate# 34ouze of Repreantatibez Unbington, 3DC 20515 May 7; 7.986 Ms. Ranette Boyd City Secretary The City of Lubb ck P. 0. Box 2000 Lubbock, Texas ;9457 Re: Resolution #2285 March 127, 1986 Tax Reform Act of 1985 Dear Ms. Boyd: Thank you for your letter concerning Subject. I -voted against H.R. 3838, the "Tax Reform Act of 19 mainly because of the detrimental effects if would have oilnd timber industries. are also in agreement on preserving and perpetuate the ta-exempt status of municipal bonds. UCha cerely, z ils CW:pw COMMITTEE: APPROPRIATIONS THE WHITE HOUSE WASHINGTON May 19, 1986 Dear Miss Boyd: It was good of you to send President Reagan the resolution adopted by your Council. Your forwarding of this statement is appreciated, and you may be sure that it has been fully noted. With the President's best wishes to you and the members of your Council, Sincerely, Anne Higgins Special Assistant to the President and Director of Correspondence Miss Ranette Boyd City Secretary City of Lubbock Post Office Box 2000 Lubbock, TX 79457 STEVE BARTLETT 1709 LONGWORTH HOUSE OFFICE BUILDING 3o DISTRICT, TEXAS WASHINGTON, DC 20515 (202)225-4201 COMMITTEES: of the united �tate� BANKING, FINANCE 6600 U TE FREEWAY AND URBAN AFFAIRS SUITE 4190 DALLAS, TX 75240 ouse of `1�epreoentatiueo (214)767-4848 EDUCATION AND LABOR Washington, PC, 20515 May 13, 1985 Ranette Boyd City Secretary City Secretary's Office Post Office Box 2000 Lubbock, Texas 79457 Dear Ranette: Thank you for contacting me regarding the treatment of tax exe.,,,A?t bonds in H.R. 3838. I appreciate having the benefit of your views in this matter. I opposed the Ways and Means tax bill when it reached the floor. I did so for several reasons. First, I support the concept of tax reform, but tax reform should meet three tests: simplification, fairness, and economic growth. The Ways and Means bill failed to meet any of those criteria. I felt the bill was anti -economic growth, anti -savings, and anti -family. It was a serious and costly diversion from the original goals set forth by our President, and I felt the best interests of the country would be served if it were defeated. H.R. 3838 passed the Mouse on December 17, 1985, and is now in the Senate. I was particularly concerned about the effect H.R. 3838 would have on tax free bonds. I believe the bill's provisions on this subject are among its worst. H.R. 3838 would have a serious negative impact on the ability of cities, public schools and similar public organizations to issue bonds. I have become a cosponsor of H. Con. Res. 279, introduced by Congressman Pickle. This resolution would express the sense of Congress that any tax reform provisions relating to tax-exempt municipal bonds take effect no earlier than January 1, 1987. H.R. 3838 as currently drafted is retroactive to January 1, 1986. This is causing serious disruptions in state and local government financing and construction. In my judgment, a distinction should be made between public and private purpose tax-exempt bonds. I believe Congress should explicitly permit the former to be issued by state and local governments with few restrictions. On the other hand, I believe Ranette Boyd Page 2 May 13, 1986 Congress should either restrict or prohibit the issuance of tax-exempt private purpose bonds, such as industrial revenue bonds (IDBS). I plan to work to remedy these problems in the current tax reform legislation. Again, thank you for contacting me. Please stay in touch in the future on this or any other issue of importance to you. Sincerely, STEVE BARTLETT Member of Congress SB/ng