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CC Resolution No. 9201660 RESOLUTION NO. 920 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, URGING THE UNITED STATES CONGRESS TO ENACT NO LEGISLATION TO TAX OR RESTRICT THE CONTINUED ISSUANCE OF TAX-EXEMPT OBLIGATIONS OF STATE AND LOCAL GOVERNMENT. *-rx-�r�z-.�r*x-*�■*s���r�r.**�r*�r�■ ���r�* �-��r rt �r�r ���r�r*��r�r�r�r**���rx.�r�r+�*�r w�*�r*�a�*■«*+� ■�r* 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 BAYTOWN, TEXAS: 1661 Section 1: That the United States Congress is urged to enact no legislation which would limit the ability of State and local government to issue tax-exempt obligations for public purposes as defined by duly enacted State law, tax the interest on said obligations, or eliminate the ability of financial institutions to deduct the costs of purchasing or carrying such obligations. Section 2: 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 13th day of August, 1985. M O. HLITTO, Mayor ATTEST: CC EILEEN P. HALL, City Clerk APPROVED- DALL• G,Attorney�r