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RESOLUTION NO. 54 •
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I A RESOLUTION' OPPOSING CHANGE IN TAX-EXEMPT STATUS
• OF MUNICIPAL BONDS
RESOLVED, by the City Council of the Town of Los Altos Hills, California
that
WHEREAS, this City Council is informed that the Congress of the United
States, in seeking .acceptable methods of tax reform, is again considering the
possibility of removing or otherwise changing the tax-exempt status of interest
on municipal obligations, or limiting individual tax preferences in such a manner
• as to directly affect the market value of .otherwise exempt securities, and that
legislation to this effect has been passed by the House of Representatives;
WHEREAS, any such change would have catastrophic consequences on the
economy of all local governments ,throughout the United States, including this
City, in that the market for any securities of many local government agencies would
disappear completely, the cost of municipal financing would materially increase for
those which could 'market their 'securities at all, property taxes would universally
increase to a substantial extent because of the greater expense involved in higher
interest rates, 'charges for municipal utility service would substantially increase
because of the higher cost of revenue financing, federal subventions would have
to be increased and the cost of administering federal programs would go up
proportionately, all to the material detriment of local and municipal taxpayers
throughout the United States, including the taxpayers of this City;
NOW, THEREFORE, IT IS DETERMINED and ORDERED, .that this City is strongly
opposed to any legislation which would rescind, modify or in any way weaken the
tax-exempt status of interest on municipal obligations, including the tax reform .
bill which has been passed by the House, (H.R. 13270, 91st Congress, 1st session)
and the honorable representatives of the State of California in the Congress of
the United States are respectfully urged to oppose any such proposed legislation
with vigor and fortitude.
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I hereby certify that the foregoing is a full; true and correct copy of •
a resolution duly passed and adopted by the City Council of the Town of Los Altos
Hills, California, at a meeting thereof held on the 2nd day of September, 1969, by
the following' vote of the members thereof:
AYES', and in favor thereof: Councilmen Benson, Davey, Fowle, Helgesson,
Mayor Aiken.
NOES: None •
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ABSENT: None
APPROVED•
City Clerk
Mayor