CC Resolution No. 872 1579
RESOLUTION NO. 872
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAYTOWN, TEXAS, SUPPORTING THE EFFORTS OF THE NATIONAL
INSTITUTE OF MUNICIPAL LAW OFFICES TO REVERSE THE TREND
OF RISING COSTS OF MUNICIPAL BORROWING; TO PROVIDE FIVE
HUNDRED AND NO/100 ($500.00) DOLLARS TO SUCH CAUSE; TO
PARTICIPATE AS A PARTY IN SUCH ENDEAVOR IF NECESSARY.
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WHEREAS, by Resolution No. 834, passed the 24th day of March, 1983, the
City Council of the City of Baytown supports the repeal of Title 26, Section 103(j)
of the Internal Revenue Code requiring municipalities to issue fully registered
securities; and
WHEREAS, it is believed that municipal bond registration is the first step
toward taxing interest of all municipal bonds and securities; and
WHEREAS, imposing a tax on income received from municipal bonds is clearly
unconstitutional; and
WHEREAS, the Supreme Court of the United States has recently taken
original jurisdiction of the State of South Carolina's complaint challenging the
constitutionality of the state and municipal bond registration and "public approval"
of "Industrial Development Bonds" requirements of the Tax Equity and Fiscal
Responsibility Act of 1982.
WHEREAS, the National Institute of Municipal Law Officers (NIMLO) has filed
an Amicres Curiae brief in support of the State of South Carolina's complaint; and
WHEREAS, NIMLO has determined that this is "massive" litigation for which a
separate fund should be set up to cover costs of legal fees, experts witnesses; and
other expenses; and NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City of Baytown supports NIMLO's efforts to reverse
this trend which raises the costs of borrowing for municipalities.
Section 2: That the City Manager and City Clerk are hereby authorized to
execute and attest the attached "agreement" with NIMLO.
1580
Section 3: That the Finance Director of the City of Baytown is hereby
authorized to pay NIMLO the sum of FIVE HUNDRED AND NO/100 ($500.00)
DOLLARS; to certify his estimate of the cost of this legislation to the City of
Baytown; and to appear as a witness is behalf of the City of Baytown before the
master appointed by the United States Supreme Court.
Section 4: This resolution shall take effect immediately from and after its
passage by the City Council of the City of Baytown.
INTRODUCED, READ, and PASSED by the affirmative vote of the City
Council of the City of Baytown, this the 12th day of April, 1984.
6
ALLEN CANNON, Mayor
ATTE�SJT-
EILEEN P. HALL, City
APPROVED:
RANDAL STRONG, Ci Attorney
AGRF� 1581
Return to:
Benjamin L. Brown, President
National Institute of M-micipal Law Officers
1000 Connecticut Avenue, N. W. , Suite 800
Washington, D. C. 20036
Dear President Brown:
The of hereby attaches its check in the amount of
(State, City or County)
$ (according to population formula shown on this agreement) payable to NDW Federal
Bond Registration Litigation Trust Fund to be placed in the NDW Trust Fund for use for the
expenses, legal fees, experts and others who are employed by the Trustees to support the liti-
gation attacking the constitutionality of the orovisions of the Tax Equity and Fiscal Responsi-
bility Act of 1982 (TF"RA) requiring registration of said bonds and securities to qualify in-
te-,st paid on said bonds and securities for exemption from the Federal ties to qualify interest
pa . on said bonds and securities for exemption from the Federal income tax. Further the liti.-
gation will attack the requuiresrent of said Act of "public approval" in a specified way of all
"industrial development bonds" including airport and other public facility bonds caught up in
the broad definition of such bonds as an unconstitutional Federal burden upon States and their
municipalities, as Federal tax exemption depends upon said approval.
In addition, the attaches a sc,orn affidavit of its chief financial
(State, City or County
officer certifying as to his estimate of the cost of this legislation to the
(State, City or
If considered necessary by counsel, the State, City or County agrees that this
County)
financial officer will care and act as a witness at any hearing held by the Master appointed
by the U. S. Suprerre Court to find the facts as to the impact of TEFRA upon the undersigned
m -acipality. If deemed helpful by counsel, the name of this municipality may be entered as
an intervening party and the undersigned counsel's nave may be signed to pleadings, briefs
and other papers in this litigation provided such are first cleared through the undersigned.
Population of Participating Jurisdiction Suggested Trust Fund Payment
25,000 and Under $ 125
25,001 - 50,000 $ 250
50,001 - 200,000 $ 500
200,001 - 500,000 $1,250
500,001 - 1,000,000 $2,750
over 1,000,000 $5,000
Participating Jurisdiction
_Name, Title and Signature of Authorized Officer
Mailing Address and Telephone Nuanber of Authorized Officer